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GCC StratEGIC Monthly—December 2024

BY Daniela Palumbo

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30 December 2024

GCC StratEGIC Monthly—December 2024

Abstract—2024 marked a transformative period for the Gulf Cooperation Council (GCC, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE——as they advanced their national visions while addressing regional and global challenges. Key developments included progress in economic diversification, with projects like Saudi Arabia’s NEOM and the UAE’s growth in non-oil sectors, alongside sustained leadership in energy markets and investments in renewables. The GCC demonstrated technological progress through advancements in AI, smart cities, and water sustainability, positioning the region as a leader in innovation. Geopolitical efforts underscored regional stability and expanded global partnerships including through Qatar’s mediation role in the ongoing Israel-Hamas conflict. Social reforms advanced inclusivity, labour protections, and gender equality, reflecting a balance between cultural heritage and global norms. Challenges such as economic instability and climate impacts revealed a pragmatic, centralised decision-making style distinct from the EU’s more bureaucratic approach. Looking ahead to 2025, the GCC’s focus on renewable energy, green technologies, and cultural modernisation underscores its growing influence on the global stage.

Keywords—Gulf Cooperation Council (GCC), economic diversification, renewable energy, Artificial Intelligence (AI), Geopolitics, stability, partnerships, NEOM.

GCC Year-in-Review: 2024 in Perspective

22024 marked a transformative period for the Gulf Cooperation Council (GCC, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE——as they advanced their national visions while addressing regional and global challenges. This year’s key developments highlight the GCC’s focus on economic diversification, energy leadership, technological innovation, and cultural reform. Economic diversification remained central to GCC strategies. Saudi Arabia made significant progress on key projects within NEOM, particularly The Line, a linear smart city set to revolutionise urban living and reduce dependency on oil revenues. The UAE further solidified its diversified economic model by hosting major global forums and sustaining impressive growth in non-oil sectors. Oman and Bahrain focused on enhancing the contributions of small and medium enterprises while streamlining regulatory reforms to attract foreign direct investment. Energy developments reflected a dual strategy of maintaining leadership in fossil fuel markets while heavily investing in renewable tools. Qatar expanded its liquefied natural gas (LNG) export capacity, securing its position in global energy markets, while the UAE and Saudi Arabia prioritised hydrogen and solar projects.

The GCC’s commitment to technological advancement came to the forefront in 2024. The UAE maintained its leadership in artificial intelligence (AI) through comprehensive frameworks integrating AI across both government and private sectors. Saudi Arabia advanced its ambitious smart city projects, with NEOM and Kuwait’s Silk City showcasing futuristic urban environments driven by automation, sustainability, and the Internet of Things. Oman addressed water scarcity challenges by introducing advanced desalination technologies with minimal environmental impact. These initiatives position the GCC as a regional technological leader, drawing parallels with the EU’s digital transformation agenda while illustrating differences in governance styles, with the GCC adopting a more centralised approach.

In geopolitics, GCC countries pursued stability, regional leadership, and expanded global partnerships. Saudi Arabia deepened its ties with Asian markets, particularly China and India, while maintaining crucial relationships with the US and the EU. The UAE leveraged its (2023) hosting of COP28 to promote climate diplomacy, securing agreements on carbon capture and green energy financing. Qatar’s role as mediator in regional conflicts further bolstered its diplomatic profile. Unlike the structured and often bureaucratic foreign policy mechanisms of the EU, the GCC adopted a more flexible and pragmatic approach that capitalised on the individual strengths of its member states.

Social reforms across the GCC signalled an ongoing shift toward inclusivity and progress. Saudi Arabia reached a milestone in women’s workforce participation. The UAE continued to attract global talent through progressive visa reforms and initiatives like the Abrahamic Family House–an interfaith complex in Abu Dhabi that fosters interfaith dialogue. Kuwait and Bahrain made strides in labor reform, improving protections for expatriate workers. These developments demonstrate the region’s effort to balance cultural heritage with global norms. While the EU remains very advanced in its social policy, its diversity of member state priorities often leads to contentious debates, contrasting with the more unified reforms seen in the GCC.

The GCC faced a range of challenges in 2024, including economic fluctuations, climate impacts, and geopolitical tensions. Efforts to stabilise oil markets amidst global unpredictability reflected a coordinated approach. Saudi Arabia led regional initiatives to enhance disaster preparedness and climate resilience. The bloc collectively supported conflict resolution in surrounding regions, with varying degrees of success. When compared to the crisis management approaches of the EU and UK, the GCC’s responses revealed a pragmatic focus shaped by regional priorities.

Looking Ahead to 2025

As the GCC prepares for 2025, it is able to drive forward key priorities. Investments in new energies and green technologies are set to dominate the economic and environmental agenda. Strengthened ties with emerging markets in Asia and Africa will likely shape trade and foreign policy strategies. Cultural reforms and technological innovation promise to enhance the region’s global standing further. These forward-looking statements draw upon insights from the International Energy Agency (IEA), World Bank, and leading international think tanks. The ethical and cultural shifts occurring in the GCC reflect a nuanced modernisation process. Progress in gender equality, labour rights, and interfaith dialogue highlights the region’s evolving identity. These changes invite ongoing discussions about balancing tradition with the pace of globalisation, providing a compelling narrative of transformation within a unique cultural framework.

2024 underscored the GCC’s growing influence on the global stage. By balancing tradition with innovation and forging strategic partnerships, the region is well-positioned to navigate the complexities of the 21st century.

(30/12/2024)