The Arab Gulf states and the geopolitics of the energy transition

Abstract

The major oil-producing states of the Persian Gulf are now grappling with the fact that they must reshape their economies in light of the long-term global transition away from carbon-based sources of energy. Historically, oil has played a critical role in supporting the region’s political systems and underwriting its relatively high standards of living. In the years ahead, the Gulf states will attempt to remain in good standing internationally as oil and gas are managed out of the global economy through multilateral climate diplomacy. Several states have launched ambitious plans to expand the region’s renewable-energy sector, but for the foreseeable future they will continue to rely on revenues from selling oil abroad – particularly in Asia, where demand is rising.