Research Briefing | May 10, 2021

MENA | Is the GCC facing up to its climate change quandary?

Ipad Frame - MENA-Is-the-GCC-facing-up-to-its-climate-change-quandary

Climate change is an increasingly important issue in the GCC region and is receiving a sharper focus in growth and diversification plans in countries such as Saudi Arabia and the UAE. The region has several competitive advantages, not least in relation to solar and hydrogen power, that suggest it need not just fall victim to declining oil demand.

What you will learn:

  • The region needs to be fearful of rising temperatures. Oxford Economics’ research shows that the economic impact of global warming rises for countries that are already among the hottest in the world. The GCC belongs to this group.
  • Although dependent on oil and a manufacturing sector based on energy competitiveness, the GCC economies are undergoing transition and have longheld plans to diversify.
  • This means ambition and spending could be higher in the GCC than in other parts of the world, which could enable rapid progress in new sectors. This presents opportunities but also carries risks – GCC countries need to get it right or risk becoming old and dusty oil states.

Back to Resource Hub

Related Services

Post

Big shifts are underway in Russia-China trade

Data for Q3 on the volume of China's imports of crude from Russia show a drop against the June level. Rather than an indication that China's demand has peaked, this may be a sign that China is preparing for the Russian oil price cap recently agreed by G7 by shifting some of its purchases to the grey market.

Find Out More

Post

Levelling up is unlikely under the Liz Truss government

The government's levelling up ambition has probably been made more, not less, difficult by the new "Plan for Growth". Policies of lower taxes, less regulation, and a smaller state are unlikely to have much beneficial impact on long-term growth at the national level, let alone in those regions with long track records of underperformance.

Find Out More