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Tuesday, August 11, 2009

Weekly Report 75: GCC

Introduction

A new era seems to be dawning on the petro-industry, oil-rich nations of the GCC. They have realized that the oil reserves will not be last for a very long time, and sustainable development is becoming a new buzzword. Abu Dhabi announced that Masdar city will be the world’s first carbon-neutral, zero-waste city, which will also have the headquarters of the International Renewable Energy Agency (IRENA). While Oman signed contracts for the construction of a huge waste-water management and treatment scheme. At the same time, these countries are busy making contacts and developing ties with different countries. Bahrain and Iraq have singed an agreement which will increase travel and business between them. Qatar has been in talks with Thailand for the importation of man-power etc. The biggest inter-regional project is the gulf power grid that would eventually span throughout the GCC countries and help them meet the rising power demands and prevent power outages. The new dawn is evident with Saudi Arabia engaging in new dialogues about its society and change. Saudi Arabia’s Grand Mufti Sheikh Abdul Aziz Al-Asheikh claimed that cooperation and a diversity of viewpoints being accepted was beneficial for society, and stood against the singular dominance of one ideology. At the same time Saudi activists and Human Rights organizations keep pressurizing the government to change the restrictive male-guardianship system for women in Saudi Arabia as well as ban the practice of child marriages. Similarly, UAE was severely castigated for backtracking on media freedom by banning a leading Saudi newspaper. Abu Dhabi issued two new generous health insurance cards for people with special needs, orphans and prisoners. All countries in the region are trying to minimize the damage from the global recession, and saw a drop in travel booking.

Points to Ponder

The Gulf power grid further highlights the strengthening and highly inter-connected ties between the GCC countries. These countries have started relying on each other for efficient development, and geo-strategic security. At the same time, these countries are looking outside the region and established contacts with various different countries of the world. Will the GCC eventually become as integrated as the EU has become?
As the petroleum industry’s precarious future becomes clearer these countries have started focusing on renewable energy and environmental protection. The trend has just started with the establishment of Masdar City in Abu Dhabi and the waste-water scheme in Oman, but it seems that the trend will catch on furthermore in the upcoming years.
As globalization merges these countries to seek economic and military ties with other countries, their societies are also affected in the process. For example, Saudi Arabia is under increasing pressure to reform the way its society is structured to give more freedom to women, ban child marriages, treat guest-workers better etc.
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Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' This project has been undertaken and developed by the Gilani Research Foundation as a free resource and social discussion tool.

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