Council Countries Research Articles

Working Capital Management and Profitability Relationship: The Role of Macroeconomic Indicators

The aim of this article is to search for the relationship between working capital management (WCM) and profitability under different macroeconomic conditions. The dataset includes 179 companies from Gulf Cooperation Council (GCC) countries for a six-year period. Results reveal a nonlinear relationship between CCC and profitability in a way that, shorter CCC periods have opposite direction with profitability yet as the period increases this relation turns to be positive. The partial effect of CCC has a more significant influence than those of its components. However, overall significances of the components are higher. Gross profit and operating profit margins have high responsiveness against WCM changes. Among macroeconomic indicators, inflation and unemployment are distinctive in models yet GDP per capita has a moderate influence on profitability. To the best of our knowledge, this is the first study to examine the WCM-profitability relationship with a focus on macroeconomic variables in the GCC region.

Primary hyperparathyroidism in Saudi Arabia revisited: a multi-centre observational study.

PurposePrimary hyperparathyroidism (PHPT) is a common cause of hypercalcemia and remains understudied within the Arabian population. The present study, the largest of its kind within the Gulf Cooperation Council (GCC) countries, aims to determine the demographics and clinical presentation of PHPT in Saudi Arabia.MethodsIn this multi-center retrospective study involving three tertiary hospitals in different geographic locations of Saudi Arabia namely, Riyadh, Al Ahsa and Jeddah, a total of 205 out of 243 confirmed PHPT cases aged 16 to 93 years old were included (N = 96 from Riyadh; N = 59 from Al Ahsa and N = 50 from Jeddah). Demographics, clinical manifestations and surgical outcomes were recorded as well as laboratory and radiologic investigations including serum parathyroid hormone (PTH), 25(OH)D, adjusted calcium, estimated glomerular filtration rate (eGFR) and nuclear scan outcome.ResultsPHPT cases appeared to increase over time when compared to other local studies published so far, with 12.8 cases per 100,000 hospital population. Females outnumber males (3:1) with 86% seen as out-patients. The average age was 59.8 ± 15.5 years. Abnormal PTH scan was seen in 171 patients (83.4%). Kidney stones was the most common renal manifestation (32 cases, 15.6%) and osteoporosis was the most common skeletal manifestation (67 cases, 32.7%). Al Ahsa had the highest prevalence of multiple comorbidities at 54% and the highest prevalence of obesity as a single comorbidity (17%) compared to other regions (p < 0.05). Jeddah recorded the highest prevalence of osteoporosis with bone and joint pains (30%) (p < 0.05).ConclusionComparison of present data with previous local studies suggest an increasing trend in PHPT cases in Saudi Arabia. Regional variations in the clinical presentation of PHPT were observed and warrant further investigation.

GCC Countries’ Financial Scenario: FDI Impression on GDP

Foreign direct investment is accumulation of equity capital, borrowings, and plough back of gains. Foreign financing inflows have significant effect in transforming economy of a nation. However, this investigation makes an effort to test the significance of FDI inflows on GDP apropos constituent countries of Gulf Cooperation Council. The study commenced with the motive to check the trend in FDI inflows and its growth rate, FDI’s impression on GDP, and impact of FDI on per capita GDP in GCC countries. The study is based on secondary data and analytical research design is applied. The study utilized a data of GDP and per capita GDP pertaining from 2000 to 2019. Statistical techniques, such as two-way ANOVA and pair-wise comparison, are applied. It can be concluded that there is cogent variation in GDP and per capita GDP due to inflow of FDI among GCC countries.

Bank Efficiency and Oil Price Volatility: A View from the GCC Countries

The study investigates the banks' efficiency in the Gulf Cooperation Council (GCC) countries' members (GCC). The efficiency of the banking sector is a cornerstone in the financial development of a country. It has also become a prominent label in both economic and financial lexicons due to the lucid importance of the financial intermediation function it provides. The banking industry is considered the backbone of the financial system in oil exporting countries of the GCC region. In general, the advancement and stability of the banking sector are inextricably related to the total economic output as measured by the GDP and to the stability of the financial system in particular. This study aims to evaluate how efficient banking is in the six countries of the GCC bloc, and to assess the effect of the oil price shock in 2014 on the bank’s efficiency in these countries. This study employs the 2-stage Data Envelopment Analysis (DEA) methodology for this aim. This model assigns efficiency scores for GCC banks over a period of time from 2008 to 2016 in the first stage. The second stage of the model regresses the aforementioned efficiency scores against a variety of financial and macroeconomic variables to depict the main determinants of bank efficiency and to assess the banking sector's resilience to global shocks as well as to macroeconomic conditions. The empirical outcomes of this study indicate that the global financial crisis (GFC) in 2008 and the oil price shock in 2014 had a significant negative impact on the efficiency scores of the GCC banks. The findings also show that domestic macroeconomic indicators have a greater impact on bank efficiency than institutional or bank-specific variables.JEL Classifications: E6, E44, Q4, G21 Doi: 10.28991/ESJ-2022-06-03-07 Full Text: PDF

Evaluation and Design of Large-Scale Solar Adsorption Cooling Systems Based on Energetic, Economic and Environmental Performance

In hot and dry regions such as the Gulf Cooperation Council (GCC) countries, the cooling demand is often responsible for more than 70% of electricity consumption, which places a massive strain on the electricity grid and leads to significant emissions. Solar thermal driven Silica-Gel/Water adsorption chillers, used for space cooling, could provide low carbon emission cooling and reduce the reliance on grid electricity. However, a meticulous design is required to make this both economically and environmentally beneficial. This paper aims to evaluate the solar thermal adsorption chiller performance based on large-scale cooling demand through a TRNSYS simulation for 1 year of operation. The proposed system consists of two main parts: first, the solar loop with evacuated tube solar collectors; and second, the adsorption cooling system with a silica-gel/water adsorption chiller. A neighbourhood of 80 typical 197 m2 villas in Riyadh, the capital city of the Kingdom of Saudi Arabia (KSA), was taken as a case study. The solar adsorption cycle’s performance has been compared to the conventional vapour compression cycle in terms of energy, economic and environmental performance. In addition, a parametric study has been performed for the main design parameters. Results reveal that the system can reach a solar fraction of 96% with solar collector area of 5500 m2 and a storage tank volume between 350 and 400 m3. Furthermore, the annual energy cost can be reduced by 74% for the solar adsorption system compared to the conventional vapour compression cycle. Meanwhile, the CO2 saving percentage for the solar adsorption cycle was approximately 75% compared to the conventional vapour compression cycle. Carefully designed solar thermal cooling systems can reduce greenhouse gas emissions while covering a large scale of cooling demands. This can reduce the strain on the electricity grid as well as greenhouse gas emissions.

The Role of Renewable Energy Investment on Achieving Economic Growth at the Gulf Cooperation Council Countries

Study aims to investigate the renewable energy investment effect on achieving the economic growth (EG) at countries of Gulf Cooperation Council (GCC) for the period of 2010–2019. The percentage of renewable energy investment of total investments is an explanatory variable, and EG is a dependent variable. This research focuses on analyzing literature review to demonstrate how investment in renewable energy impacts the achievement of EG, and it also tries to explain this effect in the GCC countries for this period by utilizing Regression Analysis in E-Views. The research reaches significant and positive effect of renewable energy investment on EG at UAE, KSA, and Qatar but showed insignificant effect of renewable energy investment on EG in Bahrain, Kuwait, and Oman for the period (2010–2019).

Research Networking Activities Support Sustained Coordinated Observations of Arctic Change

Rapid Arctic environmental change requires improved collaboration across observing activities that support adaptation and response from local to pan-Arctic scales. The Research Networking Activities in Support of Sustained Coordinated Observations of Arctic Change (RNA CoOBs), in partnership with the Food Security Working Group (FSWG), supports an Indigenous-led project on food security. These efforts tie into the broader goals of the Sustaining Arctic Observing Networks (SAON) Roadmap for Arctic Observing and Data Systems (ROADS). SAON is an open initiative of the International Arctic Science Committee and the Arctic Council, uniting Arctic and non-Arctic countries and Indigenous, regional, and global organizations that support improved observing network development and integration. SAON has been advancing a partnership development framework under ROADS that adds value to different observing activities by providing common context and identifying shared goals.

SOEs, Foreign Investments &amp; Competition: A View from the Gulf States

State-Owned Enterprises (SOEs) directly compete with private companies, including foreign investors. The scope of applicability of competition law towards SOEs constitutes one of the key features of national competition protection regimes. Two approaches (models) can be identified in this area: the equality approach (competition law applied in the same manner towards the public and the private sector; the model is based on the neutrality principle); and the differentiation approach (excluding fully the application of competition law on SOEs). The second model is usually justified by important social and economic goals, mainly by a necessity to provide highquality public services. However, the differentiation model may negatively affect both domestic competition and the investment atmosphere. The Gulf Cooperation Council (GCC) countries adopted competition laws that generally put SOEs and the public sector in a broader sense out of scrutiny of competition law regime. The paper aims to check what reasons lie behind a rejection of the neutrality principle in GCC’s competition laws, specifically if competition protection regimes are patterned on antitrust laws from liberal economies. By identifying how the differentiation approach to addressees of competition laws is reflected at a legislative or practical level in most GCC’s countries, the article tends to assess the impact of national competition laws on Foreign Direct Investments (FDI) in the Gulf region. competition law, Gulf States, neutrality principle, State-owned enterprises, foreign investments, national champions

Predicting Joint Effects on CubeSats to Enhance Internet of Things in GCC Region Using Artificial Neural Network

Satellite telecommunication systems promise to bridge digital gaps and deliver wireless communication services to any corner of the world. However, despite satellites’ global connectivity and wide footprint, still atmospheric and dust impairments are open challenges that face satellite systems, especially at high-frequency bands in arid and semiarid regions. Therefore, this paper aims to predict joint effects of atmospheric and dust attenuations in Gulf Cooperation Council (GCC) countries on CubeSat communications using Artificial Neural Network (ANN). The prediction model has been carried out using a massive Multiple-Input Multiple-Output (MIMO) antenna payload at K-frequency Bands. Consider these joint effects have positive relations in calculating satellites link margin, which leads to obtaining efficient communication system, delivering better quality of service (QoS), and enhancing Internet of Things (IoT) connectivity, or even Internet of Space Things (IoST). Predicated results infer that the ANN attenuation predictions, along with the 5G MIMO antenna on-board the CubeSat, offer much promise channel model for satellite communications, which in turn leads to not only supporting IoT connectivity but also reducing power consumption, thus enhancing lifetime of CubeSat. Also, this study can provide a reference for CubeSat engineers to guarantee large-capacity communication.

Identification of Risk Factors Associated with Fatal Intersection Crashes and Assessment of the In-Service Safety Performance of Signalized Intersections and Roundabouts in Abu Dhabi

Several research studies conducted in North America and Europe have consistently shown that converting signalized intersections into roundabouts leads to safety benefits. These studies have led North American and European transportation agencies to convert hundreds of signalized intersections into roundabouts over the last few decades. Meanwhile, the Emirate of Abu Dhabi, the largest emirate in the United Arab Emirates (UAE), has replaced many of its long-standing roundabouts with signalized intersections (i.e., controlled by traffic lights) despite the fact that no UAE-based scientific study comparing the safety performance of these two intersection types can be found in the literature. Hence, the objectives of this paper are to (i) identify factors that significantly contribute to fatal intersection-related crashes and (ii) assess the in-service safety performance of signalized intersections and roundabouts. It is anticipated that the findings from this research will provide road designers and decision-makers with much needed scientific guidance on which factors contribute to fatal intersection crashes as well as on whether converting existing roundabouts into signalized intersections improves public safety or not in Abu Dhabi. The findings from this research should also benefit neighboring Gulf Cooperation Council (GCC) countries considering their similarities in road design, traffic characteristics, and driving culture.

The Islamic Republic’s Foreign Policy through the Iranian Lens: Initiatives of Engagement with the GCC

ABSTRACT Despite the often perceived rigidity of its ideology and inflammatory rhetoric, Iran’s foreign policy is inherently pragmatic while nonetheless moving within the institutionalised frame of its revolutionary discourse. An alternative perspective on the Islamic Republic’s and Persian Gulf relations is offered by analysing Iran’s discursive and practical initiatives of constructive engagement with the Gulf Cooperation Council (GCC) countries during Hassan Rouhani’s presidency through the Iranian lens. This includes strategies of discursive persuasion and initiatives such as “World Against Violence and Extremism” (WAVE) as well as the “Hormuz Peace Endeavor” (HOPE), both aimed at building confidence and improving Iran’s legitimacy in the region.

Initiative and Visions: Synergy between Development Strategies of China and the Arab States

The economic development of Arab states faces long-time impediments, including the paradox between security and development, de-industrialisation, and market fragmentation. Reflecting on the above-mentioned problems, the Arab states have put forward development strategies for themselves in the first two decades of the 21st century. There are different focuses in the three categories of these strategies, namely labour-intensive industrialisation and urbanisation plans adopted typically by Egypt, Morocco, and Tunisia, economic diversification plans adopted mainly by the Gulf Cooperation Council (GCC) countries, as well as post-conflict reconstruction and development plans of Iraq and Syria. This paper argues that, in terms of trade and investment, capacity relocation and technology transfer, as well as infrastructure construction and market integration, these development plans have considerable potential to be strategically synergized with China’s Belt and Road Initiative, and the various featured paths of synergy of development strategies (SDS) have emerged accordingly. To better implement the Sino-Arab SDS, both sides have created various major “interfaces,” including multilateral and bilateral governmental dialogue mechanisms, the participation of China’s state-owned enterprises in the landmark projects of Arab states, and the market-oriented cooperation between their private sectors.

Current Epidemiological Characteristics of Imported Malaria, Vector Control Status and Malaria Elimination Prospects in the Gulf Cooperation Council (GCC) Countries.

Malaria is the most common vector-borne parasitic infection causing significant human morbidity and mortality in nearly 90 tropical/sub-tropical countries worldwide. Significant differences exist in the incidence of malaria cases, dominant Plasmodium species, drug-resistant strains and mortality rates in different countries. Six Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and United Arab Emirates, UAE) in the Middle East region with similar climates, population demographics and economic prosperity are aiming to achieve malaria elimination. In this narrative review, all studies indexed in PubMed describing epidemiological characteristics of indigenous and imported malaria cases, vector control status and how malaria infections can be controlled to achieve malaria elimination in GCC countries were reviewed and discussed. These studies have shown that indigenous malaria cases are absent in Bahrain, Kuwait, Qatar and UAE and have progressively declined in Oman and Saudi Arabia. However, imported malaria cases continue to occur as GCC countries have large expatriate populations originating from malaria-endemic countries. Various malaria control and prevention strategies adopted by GCC countries including more stringent measures to reduce the likelihood of importing malaria cases by prior screening of newly arriving expatriates and vector elimination programs are likely to lead to malaria elimination in this region.

Does social reporting matter? Empirical evidence

Purpose This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards. Design/methodology/approach A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs. Findings The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure. Research limitations/implications This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough. Social implications The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries. Originality/value To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.

Optimizing the Power Generation of a Wind Farm in Low Wind Speed Regions

The aim of this research is to optimize the power generation of a wind farm (WF) in order to maximize the energy output, especially in low wind speeds regions such as UAE. A new WF was proposed to be built in Sir Bani Yas Island in the UAE. This project was chosen to act as the main case configuration for this research. Four configuration parameters were proposed and assessed as follows: (1) inserting smaller turbines between the original larger main turbines; (2) changing the spacing between the turbines; (3) substituting new higher efficiency turbines in place of the existing ones; (4) moving the WFs to completely new locations in different emirates within the UAE. Through using the WindFarm simulation software, the impact of these four strategies was analyzed and calculated. The main finding of this research indicates that introducing more efficient WT units has a great impact in that it can increase output by 24.5%. Bearing in mind that the UAE has a vision for a renewable energy, as well as the Gulf Cooperation Council (GCC) countries, this paper will draw a novel recommendation to optimize the wind power generation in this low-speed region.

Do the Telecom Giants in Oman – Omantel and Ooredoo have the Same Financial Status?

Purpose: The purpose of the study was to investigate the difference between the financial position of Omantel and Ooredoo and to investigate the performance efficiency of Omantel and Ooredoo. Design/methodology/approach: The secondary data was obtained from the annual reports of Oman's major telecom providers listed in the Muscat Securities Market (MSM) for the period 2015 to 2020. The data collected from the financial statements were analyzed using ratio analyses with the help of excel. Findings: The study revealed that Omantel had a better performance compared to the private telecom sector – Ooredoo in terms of current assets, non-current assets, shareholders’ equity, operating profit, and net profit. The study further confirmed that Omantel performed well over the years 2015 to 2020. Research limitations/implications: The study confirmed that the Oman telecom financial performances can be measured using current assets, non-current assets, liabilities, shareholders’ equity, operating expenses, operating profit, and net profit which can be a good measure to adjudge the financial performances of the telecom sector in Oman. Social implications: The study helps the stakeholders of the Oman telecom to understand the factors and the telecom-related customer services that might help to enrich the financial performances of the Oman telecommunication sector and to make necessary changes in the strategy and suitable decisions accordingly. Originality/Value: The study was restricted to two major Oman telecom service providers selected and the study had relied mostly on quantitative techniques involving financial statement analyses. The study can be extended to all the telecom providers in Gulf Cooperation Council (GCC) countries including the most determining factor viz. growth performance. Keywords: Financial Statement Analysis, Oman Telecom, Growth performance, Omantel, Ooredoo, Current assets, Equity, Comparative Analysis.

Glycemic Control among Patients with Diabetes and Comorbid Depression in Gulf Countries

Background: People with diabetes suffering from depression are at greater risk of suffering from an episode of diabetic burnout which can have adverse outcomes on their health. Objectives: The primary objective is to review the relationship between depression and glycemic control among patients with diabetes in the Gulf Cooperation Council (GCC) countries. Methods: MEDLINE, EMBASE, PsychINFO, and GLOBAL HEALTH databases were systematically searched without language restriction to identify relevant studies that examined the relationship between glycemic control and depression among patients with diabetes in (GCC) countries. Reference lists and Google Scholar were also searched for additional studies. Research was conducted by two reviewers independently and disagreements were resolved by discussion. Results: Our search revealed nine studies were published between 2004 and 2018 and a total of 2199 subjects with diabetes. Majority of the participants were diagnosed with type 2 diabetes mellitus (DM). Out of the 9 articles included in the synthesis, only five of them have reported a significant association between depression and glycemic control; on the other hand, four articles showed nonsignificant association. The prevalence rates of depression among diabetic patients ranged from 12.5% to 61.8%. Conclusion: Depression was associated with poorly controlled HbA1c. However, this association was not significant across all studies. Considering the high rates of DM in these countries, better quality studies are needed to assess the depression comorbidity and its impact on glycemic control for better cost-effective treatments and to inform practice.

JORDAN'S POSITION TOWARDS THE DIPLOMATIC CRISIS IN THE PERSIAN GULF

The wave of protests that rocked the Arab countries since February 2011 has not spared the relatively prosperous region of the Persian Gulf.The gradually growing tension between the countries of the Cooperation Council for the Arab States of the Gulf led to a conflict between these states, and subsequently to a diplomatic crisis, which also affected neighboring countries that are not part of the Cooperation Council for the Arab States of the Gulf. During the conflict in the Persian Gulf, also referred to as the "Qatar Crisis of 2017," a number of Arab countries boycotted and adopted sanctions against Qatar.

GCC countries' market risk premia and US monetary policy announcements

PurposeThis paper aims to examine if the market risk premiums of the Gulf Cooperation Council (GCC) countries are particularly higher on prescheduled US monetary policy announcement days. The findings shed light on the causality relationship from the state of the global economy to the GCC equity markets as well as their integration with the rest of the world.Design/methodology/approachThe author takes the standard event-study approach, following Fama et al. (1969). As the announcement days are prescheduled, the impact of the announcements on the GCC markets' risk premia allows for test of causality, while other studies address predictability and association.FindingsThe author finds that excess returns are higher, both economically and statistically, on announcement days in most individual GCC countries and the region overall. Moreover, additional compensations may not appear on the exact days of announcement in a few countries; rather, on the days right before or after announcements, possibly due to information leakage or gradual diffusion. My results show that there is a causal relationship from the state of the global economy to the GCC equity markets' risk premia. This new evidence supports integration between the Gulf region's and the world's financial markets.Practical implicationsThe evidence of risk–return transmission from US monetary policy announcements to GCC countries' equity indices supports integration between the region's and the world's financial markets. The study results will help guide investors' and corporations' investing, capital budgeting and portfolio evaluation decisions.Originality/valueThis paper extends the announcement literature (Savor and Wilson 2013, 2014) by examining the responses of the GCC countries, the major players of the global oil markets. The empirical analysis documents a causal relationship from the state of the global economy, as revealed by US monetary policy announcements, to the GCC equity indices. This new evidence supports increased integration between the Gulf region and the world, a finding that investors and corporations should consider when making investing, capital budgeting and portfolio evaluation decisions.

Social Inclusion and Exclusion in GCC Labour Policy Transformations: Evidence from Qatar and Saudi Arabia

Over the past five years, labour policies in the countries of Gulf Cooperation Council (GCC) have witnessed significant transformations driven by numerous macro-level challenges, such as demographic imbalance, dependence on hydrocarbon economy, political and security crises. Despite the challenges&amp;#39; commonality across the GCC, yet, policy responses related to labour were different from country to another.&#x0D; &#x0D; This article explores the macro-level challenges facing labour policymaking in the GCC, followed by an examination of social inclusion/exclusion patterns targeting expatriate workers in Qatar and Saudi Arabia due to the recent labour policy transformations. Both countries were selected to provide in-depth contextual analysis of the radical shift towards inclusion in Qatar and exclusion in Saudi Arabia.