Because the hydrocarbon sector is responsible for such a large proportion of the gross domestic product of the GCC states’, maximizing the value obtained from these resources in a sustainable way is essential. In this regard, modeling the energy sector is a key tool for better understanding of the energy markets.
In July 2016, the World Bank appointed American Paul Romer as the Bank’s chief economist. This was quite a radical decision; the World Bank usually prefers conservative figures for its top positions, whereas Romer is a commercial and intellectual entrepreneur, who left the academy, first to establish Aplia, which heralded a transformation in the higher education sector, and subsequently to launch the “charter cities” development project.
The economies of the Gulf Corporation Council (GCC) countries are highly dependent on the energy sector, where the hydrocarbon sector constitutes around 40% of their GDP. Moreover, revenues from the oil and gas sector accounts for about 80% of the governments’ budgets.
From the days of antiquity, through to the middle of the twentieth century, economics was largely a deductive and narrative discipline. The leading contributions were dense treatises hundreds of pages in length, with scarcely a number or equation in sight.
In most GCC countries, for some time, over 50% of employed nationals have been working in the public sector—a very large percentage by international standards, as in advanced economies, public sectors usually account for around 20% of total employment.
This trend, combined with a growing youth population, poses a challenge to the GCC’s capacity to create sufficient job opportunities – a novel problem for wealthy economies.
In response to two recent Abu Dhabi mergers – National Bank of Abu Dhabi with FGB (a combined market value of US$30 billion) and the International Petroleum Investment Company with Mubadala Development Company (with combined assets of $127bn) – one may wonder: why, and why now?
The period following WW2 witnessed the emergence of a military conflict between American and the Soviet union. The capitalist and socialist-communist economic models also crossed swords as a subplot of this global conflict, and the…
Markets are complex, and consumers often struggle to understand pricing decisions, resorting to conspiracy theories. For example, in countries with floating petrol prices – the UAE is a new member of this club after subsidy reforms – consumers are convinced that…
A semi-annual specialized journal issued by the Bahrain Center for Strategic, International and Energy Studies in the Kingdom of Bahrain. The journal aims to public studies and reports on political, international, economic, security, energy, and cyberspace issues that relate to strategic issues…