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Renewed Oil Wealth: Getting it Right This Time?,” Survival: Global Politics and Strategy, 50:6, 129-150,
www.brookings.edu/research/articles/2008/12/gulf-oil-maloney] E. Liu
Whatever their rationale, the consequence of these investment patterns is that the impact of the oil boom extends beyond
the oil-rich states to other Middle Eastern countries. Intra-Arab investment tripled between 2000 and 2005, and at least 11%
of Gulf foreign investment since 2002 has remained within the region, particularly North Africa.17 ‘Gulf investors are
going very big on North Africa,’ one hedge-fund manager told a reporter recently.18 The numbers may still be paltry
relative to the overall flow of revenues gushing into the Gulf, but for the recipients, the newfound regional interest can have
a decisive impact, particularly for economies still transitioning away from the heavy hand of state control. The United Arab
Emirates invested $3bn during 2007 in Egypt alone – a country whose stock market now draws 30% of its investors from
the Gulf – and has made commitments to Morocco in the range of one-third of the country’s GDP. Overall, Gulf
investments in the Arab world could reach $750bn by 2020, which would represent a quadrupling compared to the past five
years.19 Having examined the fast-rising Gulf interest in local financial products, where private regional investors now
park at least one-quarter of their portfolios (as opposed to 15% in 2002), one consulting firm has suggested that this
investment is creating ‘a virtuous development cycle’ that can strengthen and mature local capital markets.20 One can
reasonably extend this conclusion to the broader economic vitality of the region, since the multiplicity of alternatives
available to the Gulf will minimise their tolerance for any business opportunities seen to suffer from a poor investment
climate. Growing interest in intra-regional investment also holds out the prospect of not simply facilitating further
privatisation and economic liberalisation across the region, but also mitigating at least some of its festering conflicts.
Although the wealthy Middle Eastern states are rightly criticised for their stingy support to the Palestinians,21 Gulf wealth
has played a significant role in rebuilding Lebanon after its civil war and helping to stabilise the government and the
economy in the aftermath of the 2006 conflict with Israel and ensuing internal crises. 98 Oil DDW 2012 1 Transition causes power decline of oil-exporters – Causes instability
Blanchette Deputy Chief Engineer for Army Programs at the Software Engineering, 08
Stephen Blanchette Jr., Deputy Chief Engineer for Army Programs at the Software Engineering, 08, [“A hydrogen economy and its
impact on the world as we know it,” Energy Policy 36 (2008) 522–530, ideas.repec.org/a/eee/enepol/v36y2008i2p522-530.html] E.
That investment could be funded through higher oil prices: As already discussed, there would be some period between now
and the advent of a hydrogen economy...
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This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.
- Spring '13
- The American, Saudi Arabia, Peak oil, Nuclear weapon, Oil prices