How can Europe benefit from Gulf economic diversification?
EMERGING EUROPE
Whether Gulf states can wean off the black gold and truly diversify their economies is an issue that stretches back a generation. It is also one that Europeans will be watching closely, given their own interests and need to see the Gulf economies succeed.
In May, the European Union (EU) and the Gulf Cooperation Council (GCC) inked a strategic partnership.
As well as backing regional stability and boosting security cooperation, the partnership provides a framework for the two to expand their economies ties, beyond current forms of energy production and supply to cleaner forms along with greater investment in other, high-tech sectors.
The partnership coincides with what appeared to be a relatively promising environment in the Gulf. A recent spate of ‘mega-listings’ of public companies raises the question of whether these developments are a flash in the pan or if sustained change is possible. The post-pandemic context has been exceptionally good for Gulf states in economic terms. Since the start of 2022, 11.4 billion US dollars has been raised through IPOs in the region. Among the money raised was more than two billion US dollars for the Abu Dhabi-based petrochemicals company, Borouge.
