Page 24 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

10 Dubai & Co.

Qatar is, in some ways, the upstart of the GCC. Its wealth boom
is relatively recent and is driven by an upsurge in revenue from nat-
ural gas, though it also has substantial oil resources. Qatar may,
according to some projections, have the world’s highest GDP per
capita by 2011. In building its economy, Qatar has learned from the
experiences of its neighbors and is actively promoting knowledge-
based industries; several leading universities, including Cornell,
have opened campuses in Qatar, and GE has a research facility there
as well. Politically, Qatar is managing a balancing act, acting as a
key US ally and locale of large military bases while also providing
a home for Al-Jazeera, the outspoken media voice of Arab and
Islamic perspectives on world affairs.
Bahrain has been the GCC’s Wall Street for decades and is
home to hundreds of financial institutions. Its offshore status and
proximity to Saudi Arabia made it a natural home for capital in the
wake of the oil booms of the 1970s—especially after Beirut, which
had been the GCC’s key banking hub since 1975, was shaken up by
political instability. Bahrain’s economy is diversifying into other
sectors as well, including manufacturing and heavy industry. Kraft
has even built a food-processing facility there. Like New York’s
own Wall Street, Bahrain is actively engaged in an effort to retain its
banking hub status as competing financial centers pop up: regional
competitors are in the UAE, Qatar, and Saudi Arabia.
Kuwait is a pocket of prosperity within the GCC—a country
with a small population and large oil revenues. Since the first Gulf
War, Kuwait has quickly rebuilt and undergone significant reform.
Kuwait’s parliament exercises a significant amount of influence in
the GCC and is observed closely by other GCC countries as one
example of the slow shift toward democratization. Kuwait’s role in
the globe is that of exporter—both of oil and of dollar-denominated
capital. The country is therefore very important for financial
institutions worldwide.
Oman, the sixth country of the GCC, has in some ways the
most natural economy. Oman has a genuine and growing middle
class, which has been exhibiting increased consumerism along the
model of other emerging markets in recent years. Oman’s economy
is a mix of energy, services, retail, finance, tourism, and other sec-
tors. As an attraction to visitors and global firms, Oman also boasts
a range of natural beauty and diversity—from mountains to