1. Oil politics in the Gulf
Said Al-Rahbi
Photo: A man rides a camel through the desert oil field of Sakhir, Bahrain. December 20, Hasan Jamali/Associated Press)

2. Agenda Oil in the Gulf Oil as a political weapon
Nationalization of oil
Dutch Disease
Economic sectors in the Gulf
Has the era of oil gone and the tax era came?
Did the (oil) sun go to sunset?
Post-oil diversification ,the Transition to a Post-Oil Economy

3. Oil in the Gulf
WWII: Europe devastated .France and Britain emerged from the war more exposed
turned the balance completely in favor of the US in the race for oil
Oil discovery in the GCC: Bahrain (1931,US), Saudi Arabia (1938,US), Kuwait(1938,US,UK), Qatar (1940,UK) and Oman (1956,UK).
OPEC founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, Venezuela)
Arabian Gulf is the most important single geographical zone in the world 35.6% of the world’s oil reserves are located here.
“If you want to control the world you need to control oil. All oil. Anywhere” Michael Colon

4. Oil as a political weapon: The 1973 Arab Oil Embargo
What? The OPEC oil embargo was a decision to stop exporting oil to the United States and other Western countries. Oil price increase from $3.39 in 1973 to $12.93 in 1978.
why? to protest American military support for Israel in its 1973 war with Egypt and Syria.
It was a key factor in Japan's economic transition away from oil and energy-intensive industries and pumping huge investments into industries such as electronics
British documents revealed that the US thought of using force to seize oil fields in the Middle East during the war of October 1973 when Arab countries banned oil exports

5. Nationalization of oil
Around the 1970’s the Gulf countries began to nationalize oil operations.
Motives: Exploitation of foreign companies, The rise of political nationalism and Successful experiences of nationalization in other countries

6. National oil companies (NOCs).
Saudi Government 100% (1980)
-Omani government (60%)
-Shell (34%),
Total (4%) and Partex (2%)
(1974)
Bahrain government 100% (1997).
Qatari Government 100%(1977)
UAE government (100%)
Kuwaiti government 100%(1975)
National oil companies (NOCs).
MNC’s continued to manage 70% of the production despite the nationalization.!!!!!!

7. Classification of financial systems for oil and gas
Contractual Agreements
Production sharing contract (PSC)
Service agreements
Concession Agreements or License agreement
Pre-1940

8. Oil accounts for about half of the GDP of the Gulf states
Source :

9. Dutch Disease https://youtu.be/9_1G10pJa50
Graphic by Nik harron. For illustrative purposes only

10. Has the era of oil gone and the tax era came?
Most of the GCC countries  cut fuel subsidies .
Saudi: reduce the salaries and benefits of ministers and members of the Shura Council, and to reduce the remuneration of employees in the government sector in the effort to control spending after the decline in oil revenues.
Qatar: imposed an airport tax on passengers on tickets
The Value Added Tax (VAT) that will be implemented for the first time in the GCC starting January 2018

11. Did the (oil) sun go to sunset?
“It is fair to say that the Stone Age ended, not because the stones ran out, the same can be said about the oil age”
Natural gas(expensive)
Coal(environment)
electric car
solar energy
Hydrogen(expensive)
Atomic Energy

12. Post-oil diversification the Transition to a Post-Oil Economy
International experience shows that diversifying away from oil is very difficult but possible ( Norway ,Malaysia, Indonesia, and Mexico)
Long-range economic and social development strategies in the Gulf Cooperation Council (GCC) countries emphasize the importance of economic diversification (Saudi Arabia’s long-term strategy 2025, Vision 2020 in Oman, Vision 2021 inthe United Arab Emirates, Vision 2030 in Bahrain, and Qatar National Vision 2030)
the experience of Dubai business-friendly environment, light regulations, modern infrastructure, and efficiency in project implementation showcase Dubai as a model for the region.

13. Conclusion
No doubt that Oil plays a vital role in the development of the Gulf states.
The Gulf states can use oil as leverage to solve the dilemma of the Palestinian issue
The beginning of the end of the oil age in the Gulf.
Producing mindset should replace the Consumption mindset .

14. https://www. mentimeter

15. References
Tim Callen, Reda Cherif, Fuad Hasanov, AmgadHegazy, and Padamja Khandelwal “Economic Diversification in the GCC: Past, Present, and Future.” Staff Discussion Note 14/12, Washington, December.
Staff. (2014, October 22). How can low oil prices affect Gulf economies?. Retrieved from
Kimberly Amadeo . (2017, July 01). OPEC Oil Embargo: Causes and Effects of the Crisis.Retrieved from
Daniel Yergin, The Prize: The Quest for Oil, Money, and Power (New York: Free Press, 2003), p. 108.
John M. Blair, The Control of Oil (New York: Vintage Books, 1978), pp
صغبيني، طوني، ”الأزمة الاخيرة"، ط (1)، بيروت، الدار العربية للعلوم ناشرون، 2001.
Yenigun, Cuneyt (2016), “Regional Power of The Middle East”, (in) Sects, Ethnicity and Conflict Resolution, Reyyan Dogan (ed), TASAM Press, Ist.,