Destination Arabian Gulf – Trade, Tourism, Investment

By Kirtan Bhana – TDS

It is not surprising that four countries of the Gulf Cooperation Council GCC are host to the prestigious Formula 1 motorsport event annually, considered to be the pinnacle or Grand Prix of the sport. The Arabian Gulf’s transformation into a global powerhouse is nothing short of remarkable, attributed to the leveraging of abundant energy resources of oil and gas.

A History from Ancient Civilizations to Modern Wealth

The four countries, the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), the Kingdom of Bahrain and the State of Qatar established the GCC in 1981 together with their fellow Arab nations of the State of Kuwait and the Sultanate of Oman to form a pivotal intergovernmental Arabian Gulf organization. 

Ideally located at the crossroads of the globe straddling Asia in the East, Eurasia in the North and West, Africa in the South and the America’s in the western hemisphere, the region has had a telling influence on the world. A visionary leadership originating from its ancient civilization and strong roots has a direct relevance to its current affairs and emerging status as influential voices on the global stage. 

For many millennia the Gulf was a connector of advanced and sophisticated civilizations linking the Indian Sub-Continent, Mesopotamia and east Africa. The Arabs have been at the centre of commerce, politics and diplomacy with a reverent history steeped in the legacy of philosophers, poets, storytellers, astronomers and mystics. Arabian academics made groundbreaking contributions to modern Science and Mathematics, charting maps for navigation and documenting records which today serve as profound evidence of the highly skilled, technically apt, vastly knowledgeable, and innovative inventiveness of the inhabitants.

The GCC’s Economic Powerhouse

The emerging modern, futuristic metropolises like Riyadh, the capital of KSA, Doha, the capital of Qatar and the world renowned city of Dubai, as well as the capital city of the UAE, Abu Dhabi, seem to mimic the majesty of the dominant civilizations that ruled over the Peninsula. 

Considered to be the largest peninsula in the world, as well as its advantageous central location in regards to global demographics, it seems destined to become a centre of finance and transacting for trade and business. The proximity of its coastline makes the region ideal for shipping and transshipment. The burgeoning economies have also attracted much needed expertise and qualified expert professionals and personnel. 

Tourism has also been a boon for the region with the infrastructure development offering all manner of unique experiences for visitors, from extravagant luxury to exciting desert adventures. As a proficient air travel hub, with a dearth of accommodation and hospitality logistics, it is attracting many high profile international events.

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The combined GDP of the GCC according to the latest matrix and indices is calculated at over U$D 2,1trillion in 2023 and is projected to grow at 3% in in the coming year. Saudi Arabia, with a population of 32 million, leads the way with a GDP of U$D 1.06 trillion followed by the UAE with a population of 10 million and GDP of U$D 514 billion. Qatar is next with a population of 3 million and U$D 213 billion, Kuwait has a population of 4,8 million and U$D 163 billion GDP,  Oman 516 million population and U$D 108 billion GDP and Bahrain has a population of 1,6 million and a 46 billion GDP (the population figures include the many expats that are living in the countries or have settled there).

The prudent management of the combined U$D 4.1 trillion sovereign fund has emerged as a new vital source of capital. Growing their investments in various sectors from logistics and infrastructure, to new energy, real estate, hospitality, tech and agriculture among others, enhanced the GCC countries global presence. Saudi Arabia’s Public Investment Fund (PIF) has been notably active as have the UAE’s Abu Dhabi Investment Authority AIDA and Qatar Investment Authority QIA and have taken up positions in various international markets with the prospect of ambitious returns.

Recognizing the strategic location of the Gulf and its unique proximity and accesses to a significant number of the major global destinations, it has become a natural hub for travel, transport and transshipment. This, in tandem with its bounty of petroleum, accounts for the success of Dubai and the Emirates Airline. The same is true for Qatar Airways operating from Doha that provides an alternative and with Etihad of Abu Dhabi has added to the competitive mix in reviving air travel to make it affordable, yet comfortable and efficient. 

Saudi Arabia: Vision 2030 and Beyond

The Kingdom of Saudi Arabia Vision 2030 launched in 2016 is an initiative reshaping the Kingdom’s economy, reducing its reliance on oil, promoting sectors like tourism, infrastructure and technology. ‘Neom’ which translates to new future, is a bold, ambitious and futuristic infrastructure project aligned with Vision 2030 and the modernisation of the country which has a history stretching back over 7000 years.

Bahrain: Financial Hub with Historical Charm

The Kingdom of Bahrain is an island nation in the Gulf that measures around 760 km squared. It is famous for its pearls, considered to be the best quality pearls in the world and has been so since antiquity. In recent surveys Bahrain placed as the fastest growing financial services centre in the world with the fastest growing economy in the Arab world. The Kingdom has a liberal economic structure, the most versatile and freest banking system in the Middle East, boosted by Islamic banking and the petroleum and aluminium industry. The Island is connected to the mainland of Saudi Arabia by the 25 km long King Fahd Causeway which was inaugurated in 1986 and has strengthened the cultural and social bonds between these nations and has also had economic benefits. 

Kuwait: Wealth and Stability

The Kuwaiti Dinar (KWD) is the highest valued currency on the foreign exchange markets today. The KWD is a highly sought after currency due to the country’s stable economy owing to its well established petroleum industry. Kuwait’s oil reserves account for 9% of the world reserves located in the Burgan, the second largest oil field in the world. With a GDP per capita of U$D 58,000 Kuwait is ranked among the wealthiest nations in the world. Considering that Gulf currencies in colonialist occupation was pegged to the Indian Rupee which in turn was pegged to the British Pound Sterling, is a remarkable achievement.

Oman: Preserving Nature and Culture

The Sultanate of Oman has become a drawcard for golfing in the Gulf. Several internationally acclaimed tournaments take place annually in Oman and offers 3 championship courses that rank among the top 100 in the world, attracting golfers from all around the world. Another tourist attraction is the 3,000 km of coastline of natural pristine rugged beaches as well as white sandy beaches. Visitors can enjoy long walks, outdoor camping, picnics and a range of water sport activities. Oman has chosen to protect the natural ecology which is home to a diverse flora and fauna and sea animals. By maintaining the traditional architecture it is preserving the heritage of the Arab culture and way of life. 

Qatar: LNG Leader and Global Influencer

Qatar became the first Arab country to host the FIFA World Cup of Football in 2022 which showcased the capabilities of the nation to host an event of such magnitude. It was also a display of the hospitality of the Qataris and the charm of Arab culture. As the world’s largest exporter of liquefied natural gas (LNG), Qatar wields significant energy influence and the football World Cup boosted the nation’s global recognition.

The United Arab Emirates (UAE): A Global Icon

The UAE has been a pioneer in the vision of leadership and has overhauled the desert dust bowl into an infrastructure and architectural marvel. The constructing of unique and state of the art buildings, including the Burj Khalifa, as well as breath-taking shopping malls, museums, and ultramodern transport networks, the country has grown into a most sought after destination. The Dubai International Airport has become a super connector for worldwide air travel, processing an average of 91 million passengers every year. Emirates, a flagship airline company which began with two aircrafts in 1985, today has a total of 250 aircrafts, operating 3600 weekly flights to 150 cities in 80 countries across six continents.  

Tourism

Tourism numbers to the nations of the Arabian Peninsula continue to increase in multiples and recognizing the compounded potential of travel, tourism and hospitality, the nations have implemented strategies to capitalise on the opportunity presented. The visionary development projects have attracted highly skilled and talented professional and experts in every sector from new energy to entertainment. In some countries the expats outnumber the local population and has led to a real estate boom.

The Asian Football Federation is supporting Saudi Arabia’s bid to host the premier event of the beautiful game in 2034. With over 3,5 billion fans, the passion and love for the sport has inspired Saudi Arabia to host this world event as the country prepares to welcome fans from around the world. The local Saudi Pro League which was rebranded in 2008 is attracting top level players from Europe to boost the popularity of the sport in the country. By offering lucrative contracts to prominent professionals, it is aligned with the opening up and modernisation that the rapidly transforming region is experiencing.

In the petroleum rich environment it is evident that motoring enthusiasts abound in the Gulf and the same is true for marine and boating aficionados. Some of the most expensive super cars and hyper cars can be found on the streets, while many are personally customised to the owners requests. The super luxurious mega yachts docked in the harbours or sailing around the Gulf belonging to super rich Arab Sheikhs match the opulence and grandeur of the lifestyle. 

Well known personalities, athletes and celebrities have made real estate investments in the Gulf, some even making it their home away from home. The opening up has also attracted entertainment superstars to perform in the once conservative Gulf. However, the tradition of date farming, raising of the famed equestrian Arabian Horse, camel breeding and camel racing and falconry remain an integral part of the Arabic culture. The spirit of the nomadic Bedouin Arabs still live on, preserving the acute knowledge they have of the harsh desert terrain to which they were adapt at surviving, and skilled at thriving in.  

Peace and Prosperity

The GCC countries have leveraged their energy wealth and are diversifying their outdated economic models and aligning them to the modern dynamic and transformed geo-politic that is emerging. The advent of the internal combustion engine brought forth an epoch changing industrial and commercial revolution that thrust the world into a new logistics and infrastructure paradigm. 
The scarcity of water in the desert and the abundance of oil is a twist of irony in the story of the Arabian Gulf’s remarkable journey. From ancient trade routes to modern economic and cultural hubs, it is a testament to its resilience and vision. By addressing challenges and capitalizing on opportunities, the GCC nations can continue to shape global dynamics, solidifying their position as a cornerstone of trade, tourism, and investment in the 21st century.

As the region embraces technological innovation, cultural preservation, and sustainable development, the Arabian Gulf stands poised to redefine the future of global connectivity and prosperity.