Gulf Cooperation Council Countries Research Articles

Fuel and electricity pricing and subsidies in the GCC states: recent developments

ABSTRACT This paper discusses recent developments for fossil fuel (FF) and electricity pricing and consumption in the six Gulf Cooperation Council (GCC) states, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE), which together form the core of OPEC. These countries still subsidize FFs, albeit to varying degrees and UAE least so. The states have indicated a wish to reform their FF subsidies, which has led to a fiscal drain and lower than desired FF export revenues. Apart from UAE, none of these countries’ plans have however yet come to fruition. We discuss in some detail the political basis for such plans, and the factors making them more or less likely to be pursued and succeed. Long-term considerations, and pressures from budget balance, climate change and efficient economic allocation, all speak in favor of price reforms which will be overall beneficial to all the states. More modernistic views, taking over the countries’ political agendas, also push in the same direction. The paper also discusses similar recent developments in two comparator MENA countries, Iran (structurally most similar to the GCC countries), and Egypt (which has a more different economy and export base).

Emissions effect of financial development in the GCC: is the effect asymmetric?

AbstractObviously, financial development is one of the factors to consider in designing climate policies. We investigated the effects of financial development on co2 emissions alongside income, total factor productivity, and international trade in Gulf Cooperation Council (GCC) countries. Ignoring common factors can lead to erroneous findings and misleading policy recommendations. The same consequences occur if the nature of a factor’s effects is incorrectly considered. Hence, the Asymmetric Pooled Mean Group augmented with common unobserved factors—a cutting-edge method allowing for the discovery of not only the features of the pooled panel but also the characteristics of each country—was applied to data from 1992 to 2021. Additionally, we accounted for key properties of the panel time series data—cross-sectional dependence, non-stationarity and heterogeneity. To our knowledge, there is no such application for GCC countries, and only one internationally. In designing climate policy measures, a few key findings of our research are worth considering. (i) policies should account for factors common to GCC countries, as ignoring them makes co2 effects of financial development misleading. (ii) an upturn in financial development leads to less emissions than a downturn in it. This asymmetric effect implies that policies should boost financial development. (iii) co2 in GCC countries may converge to an identical relationship in the long run implying that there are common climate initiatives and projects that GCC authorities should work on jointly.

HDI, Oil Prices, Government Expenditures in GCC: Evidence from a Cross Sectional ARDL Approach

This study explores the relationship between oil prices and the Human Development Index (HDI) in the Gulf Cooperation Council (GCC) countries. It investigates whether oil prices remain the primary driver of economic growth and development in the region. The analysis employs a Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) approach and Cointegrated Autoregressive Distributed Lag (CCEMG) methods, following unit root and stationarity tests. The findings reveal an insignificant correlation between oil prices and HDI in the overall GCC countries. However, significant relationships are observed at the individual country level. These results suggest that policymakers in the region should prioritize economic diversification and focus on sectors such as tourism in Dubai and the specific policies implemented in Saudi Arabia to foster sustainable development.

Catalysts for Liquid Organic Hydrogen Carriers (LOHCs): Efficient Storage and Transport for Renewable Energy.

Restructuring the current energy industry towards sustainability requires transitioning from carbon based to renewable energy sources, reducing CO2 emissions. Hydrogen, is considered a significant clean energy carrier. However, it faces challenges in transportation and storage due to its high reactivity, flammability, and low density under ambient conditions. Liquid organic hydrogen carriers offer a solution for storing hydrogen because they allow for the economical and practical storage of organic compounds in regular vessels through hydrogenation and dehydrogenation. This review evaluates several hydrogen technologies aimed at addressing the challenges associated with hydrogen transportation and its economic viablity. The discussion delves into exploring the catalysts and their activity in the context of catalysts' development. This review highlights the pivotal role of various catalyst materials in enhancing the hydrogenation and dehydrogenation activities of multiple LOHC systems, including benzene/cyclohexane, toluene/methylcyclohexane (MCH), N-ethylcarbazole (NEC)/dodecahydro-N-ethylcarbazole (H12-NEC), and dibenzyltoluene (DBT)/perhydrodibenzyltoluene (H18-DBT). By exploring the catalytic properties of noble metals, transition metals, and multimetallic catalysts, the review provides valuable insights into their design and optimization. Also, the discussion revolved around the implementation of a hydrogen economy on a global scale, with a particular focus on the plans pertaining to Saudi Arabia and the GCC (Gulf Cooperation Council) countries. The review lays out the challenges this technology will face, including the need to increase its H2 capacity, reduce energy consumption by providing solutions, and guarantee the thermal stability of the materials.

Dynamics of capital structure determinants: empirical evidence from GCC countries

AbstractThe study empirically examines the factors affecting the financing decisions of non-financial listed companies in Gulf Cooperation Council (GCC) countries. Using static and dynamic two-step generalized method of moments techniques, it analyzes unbalanced panel data from 364 non-financial companies across six GCC countries from 2011 to 2021. The findings partially support optimal capital structure theories, highlighting significant internal factors such as profitability, market-to-book ratio, firm size, earnings volatility, and growth opportunities that influence financing decisions. While no single theory fully explains the financing choices, the association of internal factors with book and market leverage is consistent. The study provides robust and generalizable results, aiding financial institutions and policymakers in formulating pro-development policies and regulations. This research facilitates better coordination between corporate managers and financial institutions, supporting the region’s economic transition. It is the first study to use extensive data from GCC non-financial firms to investigate financing decisions, offering valuable insights for investors and a basis for further analysis of capital structure choices in the region and beyond.

Human papillomavirus prevalence and genotypes in Gulf Cooperation Council countries: A scoping review 2017-2024.

Cervical cancer remains a global health challenge, claiming the lives of millions annually and having a significant impact on Gulf Cooperation Council (GCC) countries. Human papillomavirus (HPV), the primary causative agent, plays a central role, with regional variations in prevalence.1 The process from HPV infection to neoplastic changes takes 5-25 years to occur, hence, knowing its prevalence in our community is vital.2. PubMed and SCOPUS were searched to identify articles related to cervical and anogenital HPV prevalence and genotypes in Qatar, Kuwait, Bahrain, Oman, the United Arab Emirates (UAE), and the Kingdom of Saudi Arabia (KSA) published between 2017 and 2024. A total of 19 articles were included in this review. Eight studies were from KSA, four were from Kuwait, three were from the UAE, one was from Qatar, Oman, and Bahrain, and one presented data collectively from the KSA, UAE, Qatar, and Bahrain. The prevalence of HPV ranged between 4.7% and 77% in studies from the KSA, between 15% and 54.3% in studies from Kuwait, between 14.7% and 88% in studies from the UAE, was 8.1% and 31.3% in the two studies from Qatar, and was 17.8% and 20% in the studies from Oman and Bahrain, respectively. HPV 16 was the most prevalent high-risk genotype found in studies conducted in the KSA, UAE, Kuwait, and Qatar. In Oman, HPV 82 predominated. In Bahrain, the majority had other non-HPV 16/18/45 genotypes. In the UAE and Kuwait, HPV 11 was the predominant low-risk type, followed by HPV 6. In Qatar, HPV 81 was the most common low-risk type, followed by HPV 11. In Oman, HPV 54 was the most common low-risk type, followed by HPV 42. There are no studies with data on HPV prevalence and genotypes among women who have been vaccinated against HPV in GCC countries.

From petrodollars to green power: Fiscal stability and green transition in GCC economies

This study examines the influence of fiscal stability, characterized by fiscal buffers, on the green transition in the Gulf Cooperation Council (GCC) economies from 2005 to 2023. We apply two-way fixed effects, system generalized method of moments (GMM), method of moments quantile regression (MMQR), and panel causality analysis to explore these dynamics. Our findings underscore that a positive fiscal buffer resulting from a significant spread between oil prices and fiscal breakeven levels exerts a substantial positive impact on green transition efforts in GCC countries. The results reveal that countries with higher levels of renewable energy production capacity and urbanization demonstrate more pronounced advancements in green transition initiatives. Conversely, countries grappling with unstable macroeconomic conditions, such as high inflation and external debt, face considerable challenges in achieving significant improvements in green transition outcomes. Additionally, our analysis shows that fossil fuel energy fiscal subsidies negatively influence green transition efforts in the GCC region. Our study emphasizes that policymakers in GCC countries should pursue a dual-pronged strategy: leveraging positive fiscal buffers to diversify their economies in light of potential benefits from high oil prices, and channelling oil and fiscal revenues towards enhancing renewable energy production capacities. This approach aims not only to diversify economic foundations but also to strategically strengthen the infrastructure necessary for sustainable renewable energy transitions in the region over the long term.

Reducing Contract Disputes: A Comparative Analysis of FIDIC and GCC Standard General Conditions of Contract for Construction Projects

Contractors working in foreign countries face challenges and disputes due to differences between customized general contract conditions and the standard conditions of Fédération Internationale des Ingénieurs-Conseils (FIDIC) contracts. In the Gulf Cooperation Council (GCC) region, these conditions are primarily FIDIC-based but customized to local laws and practices. This study addresses the gap in understanding how these customizations impact contract administration and aims to minimize conflicts. The research compares FIDIC clauses on "Commencement, Delay, and Suspension," "Variation and Adjustments," and "Claims, Disputes, and Arbitration" with GCC standard clauses, focusing on party roles, time restrictions, repercussions, and entitlements. Using a comparative analysis methodology, the study examines contract documents and legal frameworks across GCC countries. Key findings reveal that late commencement notices can lead to significant delays and damages, with varied implications across Kuwait, Qatar, and the UAE. Additionally, contractors might incur costs for engineering services during delays. Variation and dispute procedures vary, with Kuwait, Qatar, and Saudi Arabia favoring litigation, while Bahrain, Oman, and the UAE prefer arbitration. This research enhances understanding of the key differences between adopted and standard contract provisions, offering insights to better manage construction projects in the GCC region.

Clinical Evidence of Frequent Home Hemodialysis Therapy in the Gulf Cooperation Council (GCC) Countries: A Preliminary Study of a Unique Experience

Clinical Evidence of Frequent Home Hemodialysis Therapy in the Gulf Cooperation Council (GCC) Countries: A Preliminary Study of a Unique Experience

Dynamics of Productivity in Oman: An Ordered Logistic Regression

This study investigates the nuances of labor productivity in Oman, set against the backdrop of decreasing productivity trends in the Gulf Cooperation Council Countries (GCC) regions since the 1980s. Albeit Oman's strategic initiatives like Vision 2040 to counteract this decrease, several challenges persist. Applying Order logistic regression, this research analyzed cross-sectional data gathered from 301 respondents to understand the impact of myriad factors: work ethics, cultural differences, skills, will, education, gender, marital status, and experience on productivity. It emerged that the work ethics and cultural nuances in the Omani scenario are sparsely researched. The finding of this study emphasizes the profound role of work ethics, skills, will, and educational qualifications in shaping productivity, with gender not presenting as a significant influencer. These findings can guide policymakers, HR professionals, and employers in devising strategies that accentuate work ethics, skill development, and cultural integration. Hence, the research is constrained by its cross-sectional nature, potential overlooked factors, and its specificity to the Omani milieu. Future researchers should endeavor to bridge these gaps for a holistic understanding of labor productivity in varied contexts.

Policy analysis of the triple burden of malnutrition in children below 5 years of age in Oman

Background: Oman faces the triple burden of malnutrition (TBM) among children under 5 years of age, characterized by stunting, overweight, and wasting. This critical issue impacts children’s healthy development and the country’s progress toward the UN Sustainable Development Goal three addressing good health and well-being. Methods: This study employs secondary data analysis to investigate the prevalence and trends of stunting, overweight, and wasting among children under 5 years of age in Oman, compared with selected Gulf Cooperation Council countries and the Organization for Economic Co-operation and Development (OECD) countries. Data sources include the United Nations International Children’s Emergency Fund, the World Health Organization, and the World Bank Group. Kingdon’s Multiple Streams Framework (MSF) and Howlett’s Policy Implementation Theory are used to critically analyze Oman’s strategies for improving child malnutrition. Results: The prevalence of stunting in Oman decreased from 12.3% in 2012 to 11.6% in 2022. The percentage of children who are overweight increased significantly from 2.9% in 2012 to 6.5% in 2022, surpassing trends in OECD countries. The incidence of wasting was 9.3% in 2017. Conclusion: The three critical aspects to address TBM in Oman are (1) policy gaps (the need for regular follow-up of children under the age of 5 years), (2) implementation barriers (need for regular program review and stakeholder engagement), and (3) the need for tailored interventions. These challenges can be rectified by (1) implementing an expansion of nutrition programs through early education in childcare facilities, (2) increasing parental awareness, and (3) increasing collaboration with healthcare providers (through childcare health programs) for continuous monitoring and support.

The spillover effects among financial stress, investor sentiment, and GCC stock markets: evidence under the bearish and bullish market states

ABSTRACT This study delves into an exploration of volatility spillover between financial stress, investor sentiment, and stock market index returns in the Gulf Cooperation Council (GCC) countries using the DCC-GARCH, wavelet coherence, and BEKK-GARCH models. A robustness check, applying Diebold and Yilmaz’s (2012, 2014) methodology, verifies network measures across markets. Significant patterns in financial stress index were observed during crises, with strong co-movement between financial stress, investor sentiment, and stock returns, especially during COVID-19 pandemic. Volatility transmission from stock returns to investor sentiment and the financial stress index was notable in some markets. Additionally, we found a significant volatility transmission from the financial stress index to market returns during periods of bearish stress in Bahrain and Kuwait and bullish stress across all countries. These findings offer insights for investors and fund managers optimizing portfolios and managing risk exposure.

The impact of the Russian-Ukrainian War on the food security of the Kingdom of Saudi Arabia

The economic and social impact of the Russian-Ukrainian war was the focus of this study, which aimed to assess its effect on the food security of the Kingdom of Saudi Arabia. To achieve its objectives, the study utilized published data, food security index measures, and standard economic analysis. The findings revealed that the Kingdom's food security environment index increased from 58.1% in 2012 to 69.9% in 2022, indicating moderate food security throughout this period. The index was lower than the estimated counterpart for the rest of the Gulf Cooperation Council countries but exceeded the global average (113 countries) by 12.38% in 2022. Furthermore, the study demonstrated that a 10% increase in the estimated food production index and real per capita income led to a 2.72% and 6.55% increase in the food security index, respectively. Conversely, a 10% rise in the estimated consumer price index for foodstuffs resulted in a 1.74% decrease in the food security index. Despite the challenges posed by the Russian-Ukrainian war, the food security index is projected to improve for the Kingdom of Saudi Arabia, expected to increase from 72.4% in 2024 to 75.6% in 2030, attributed to the country's policy of investing in agriculture abroad and focusing on local agricultural investments such as vertical expansion, protected agriculture, and agricultural practices. This strategic approach ensures high-quality produce and facilitates significant financial surpluses, enhancing the country's capacity to import goods from overseas.

Government ownership as a moderator between earnings management and firm performance: Insights from GCC countries

The study’s objectives are to investigate the relationships between earnings management, government ownership, and corporate performance in the Gulf Cooperation Council (GCC) region during the period 2017–2021, utilizing a dataset comprising 188 companies. It further explores the moderating role of government ownership in the association between earnings management and company performance. The study used the panel regression data analysis to investigate the relationship between the variables under the study. Employing linear regression and moderated linear regression, the research discerns notable patterns. The result shows a positive effect emerges between government ownership and corporate performance. Conversely, the result shows a negative association is observed between earnings management and corporate performance. Finally, the moderating role of government ownership in GCC countries is a good governance mechanism to mitigate the agency problem.

The Impact of Corporate Governance on Bank Risk-taking: Evidence of Islamic Banks in Gulf Cooperation Council (GCC) Countries

Purpose — This study investigates the impact of Islamic corporate governance variables on risk-taking within a sample of 31 Islamic banks (IBs) operating in six countries in the Arab Gulf region during the period 2013–2022. Design/Methodology/Approach — The study utilises content analysis and employs two econometric models: the random-effect generalised least squares (GLS) technique and the generalised method of moments (GMM) approach. Findings — The findings reveal that two characteristics of Sharīʿah supervisory boards (SSBs), namely cross membership and knowledge in accounting and finance, have a negative impact on bank risk. However, it is observed that SSB size demonstrates a positive correlation with bank risk-taking, indicating that SSBs face challenges in effectively performing their supervisory role. Furthermore, it is noted that during the pandemic period, banks demonstrated significantly higher levels of credit risk and global risk. Originality/Value — This research provides a valuable addition to the existing literature by conducting the inaugural analysis of the relationship between SSBs and bank risk-taking in the Arab Gulf region, adding to the understanding of Islamic corporate governance dynamics. Research Implications — The study suggests reinforcing the structure of SSBs in IBs in the Gulf Cooperation Council (GCC) countries by appointing members with educational backgrounds in business, accounting, and finance. Furthermore, it supports the idea that the presence of shared scholars in IBs facilitates rational decision-making by SSBs and contributes to reduced risk-taking. Haut du formulaire

Financial Interdependencies: Analyzing the Volatility Linkages between Real Estate Investment Trusts, Sukuk, and Oil in GCC Countries

This study investigates the financial interconnections among Real Estate Investment Trusts (REITs), sukuk (Islamic bonds), and oil in Gulf Cooperation Council (GCC) nations. The study sample comprises S&P GCC Composite Equity Real Estate Investment Trusts (REITs) Shariah, the S&P GCC Bond and Sukuk Index, and the OPEC crude oil basket on a daily basis. The duration of coverage spans from 2014 until the beginning of 2024. The TVP-VAR methodology is utilized to examine the interrelationship among the assets. The results indicate that Real Estate Investment Trusts (REITs) and oil are sources of volatility transmission, whereas sukuk is a recipient of volatility within the network. Examining the net pairwise directional linkages of two assets, namely REITs and oil markets, reveals that they transfer their volatility to the sukuk market. Moreover, a reciprocal relationship exists between REITs and oil regarding volatility spillover. It means that REITs act as transmitters to the oil markets during specific periods, while the influence is reversed at other times. This study implies that portfolio managers and investors can discern the volatility patterns of assets in order to enhance their risk-management techniques. For policymakers, comprehending the interdependence of certain asset classes provides valuable knowledge for formulating regulations that might stabilize the financial system and foster economic growth. From a research and academic perspective, this study enhances understanding of the interconnections between different financial asset classes and pricing dynamics in financial markets.

A Systematic Review of the Impact of Dietary and Lifestyle Factors on Colorectal Cancer Prevention in Gulf Cooperation Council Countries.

Colorectal cancer (CRC) remains a significant health burden in the Gulf Cooperation Council (GCC) countries, necessitating a deeper understanding of modifiable risk factors. Thus, the aim of the study was to evaluate the impact of dietary and lifestyle factors on the prevention of CRCin GCC countries. Studies were identified through electronic searches and reviewed based on relevant keywords. Databases searched included Ovid's MEDLINE, EMBASE, Google Scholar, and Web of Science, covering titles and abstracts published between January 1, 2000and July 25, 2024. The search strategy encompassed four thematic areas: "colorectal cancer,""adults above 18," "risk factors," and "GCC countries." The primary focus was on dietary and lifestyle factors. Two reviewers screened titles and abstracts to determine whether the inclusion criteria were met. A total of 1,883 records were identified across these databases. After removing 513 duplicate records, 1,370 records were screened based on titles and abstracts. Of these, 1,284 records were excluded, leaving 86 full-text articles for assessment. Eight studies were ultimately included in the final systematic review, consisting of seven case-control studies and one cross-sectional study. In GCC countries, a diet rich in fruits, vegetables, and fiber has shown protective effects against CRC, while high red meat and refined carbohydrate intake may increase risk. Regular physical activity reduces CRC risk, though the impact of smoking remains inconclusive. Evidence regarding dairy products is contradictory. There is a shortage of high-quality longitudinal studies, highlighting gaps in current research and underscoring the need for larger studies with consistent methodologies.

Secondhand smoke exposure among adolescents in the gulf cooperation council countries: analysis of global youth tobacco surveys

This study aimed to analyze patterns and predictors of secondhand smoke (SHS) exposure among adolescents (12–16 years old) in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Nationally representative data from the most recent Global Youth Tobacco Survey in each country were analyzed (N = 17,220). SHS exposure at home, in public places, and at school was assessed. Descriptive statistics summarized exposure prevalence overall and by sex. Multivariable logistic regression examined factors associated with each SHS exposure’s outcome. The results showed that SHS exposure was high overall, with exposure at home and school ranging from 12.7 to 20.7%, respectively, in Oman to 39.4% and 36.7%, respectively, in Kuwait. Almost half of the adolescents reported exposure to SHS in public places, with a prevalence of 40.8% in Saudi Arabia to 65.9% in Kuwait. The prevalence of exposure varied between countries, with the highest rates occurring in Kuwait. Girls had higher exposure at home, while boys had higher exposure in public and at school. Factors associated with higher exposure included parental smoking, friend smoking, and tobacco advertising. The belief that SHS is harmful was associated with lower home exposure. In conclusion, adolescents in the Gulf Cooperation Council countries are exposed to concerning levels of SHS, especially in public places. These findings underscore the urgent need for stronger tobacco control policies, including comprehensive smoke-free laws covering all public venues, to protect youth from SHS exposure. Additionally, the results support the development of targeted interventions promoting smoke-free homes and social norms against smoking.

Mangrove forest regeneration age map and drivers of restoration success in Gulf Cooperation Council countries from satellite imagery

Mangrove forests are found across the Gulf Cooperation Council (GCC) region despite challenging environmental extremes, including highly variable temperatures and hypersalinity. Understanding the biophysical and anthropogenic factors that influence mangrove forest growth is key to locate suitable areas for regeneration and afforestation activities. The main objectives of this study were to develop a mangrove forest regeneration age map that represents the age of all the existing secondary mangroves in the past 37 years (1986–2023). Long-term Landsat satellite imagery, the random forest classification algorithm, and logistic regression analyses were used to identify the existing secondary mangroves and determine the underlying drivers that contribute to the successful afforestation of mangroves in the region. Our results showed that only around 8.5% of secondary mangrove forests in the GCC region were older than 30 years, with mangroves younger than 5 years being the most abundant age class (41.3%). Saudi Arabia and Oman have the highest percentages of young mangroves, while relatively older secondary mangrove forests were most common in Bahrain, Qatar, and UAE. The current trends in overall mangrove area show that the UAE and Saudi Arabia have the largest total mangrove area among the GCC countries, followed by Qatar, Oman, Bahrain, and Kuwait. The results of the stepwise logistic regression show that the main drivers that influence mangrove regeneration are lower elevation, lower slope, higher available soil moisture, lower average temperatures, higher precipitation, greater proximity to freshwater sources, lower population density and greater distance from agricultural and urban areas. Our results aim to offer support to decision-making in selecting optimal areas for new planting initiatives in the region.

The Impact of Inflation on the Performance of Stock Markets in the Gulf Cooperation Council Countries

This study explores the interplay between inflation and stock markets in Gulf Cooperation Council (GCC) countries from the 1990s to the early 21st century. Utilizing a PANEL time series model and Autoregressive Distributed Lag (ARDL) approach, we focus on the financial sector, emphasizing stock market performance. Our analysis of annual data reveals a significant, long-term impact of inflation on GCC stock markets, emphasizing a reciprocal relationship. We observe stability in this impact and identify potential variations among GCC countries. The study contributes valuable insights into the economic dynamics of the GCC region, with implications for investors, policymakers, and researchers navigating the intricate connection between inflation and stock market behavior.