Abstract: From market, to enhanced attractiveness in the world of tourism and even to geopolitics, month-on-month, there is a clear trend that hoists the GCC countries to an elevated global position. This segment of our StratEGIC monthly takes a look into some of the specific changes unfolding in the Saudi Stock Exchange—changes that will impact the prosperity of the entire GCC and beyond. The second part looks at the election of an Emirati woman to the position of the UN’s World Tourism Organisation which is a reflection of the soft power on full display across the region. Finally, and crucially, the final section looks at processes of realignment and how the GCC is emerging as a bloc-of-choice for the EU.

Keywords: GCC Integration, Tadawul Access, Saudi Vision 2030, Regional Capital Markets, Economic Diversification, Geopolitical Realignment, GCC-Mediterranean Cooperation, Regional Multilateralism, Strategic Connectivity, Middle East Diplomacy, Tourism, UN, Culture, UNESCO

Gulf Integration Advances with Saudi Market Reform

Residents of Gulf Cooperation Council (GCC) countries are now free to invest directly in Saudi Arabia’s Tadawul stock market. Announced in mid-July 2025 by the Saudi Capital Market Authority, this reform removes previous restrictions that limited the participation of foreign individuals in the country’s capital markets. The change represents a significant step in aligning the Gulf’s financial ecosystems and reflects the broader ambitions of Saudi Arabia’s Vision 2030, which aims to diversify the national economy and position Saudi as a central player in global investment networks. This move has been enthusiastically welcomed across the region, as it opens the door for millions of residents in Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates to participate in one of the largest and most dynamic stock exchanges in the Middle East. Tadawul, with a market capitalisation of over $2.8 trillion (USD) and home to major companies such as Saudi Aramco, ACWA Power and Al Rajhi Bank, is a cornerstone of Saudi economic modernisation. The shift is expected to significantly increase cross-border capital flows, deepen regional financial ties and improve investment mobility within the Gulf.

More than a simple financial reform, this expansion shows that GCC countries no longer as a cluster of isolated national economies, but increasingly as an interconnected bloc capable of coordinated economic influence. The timing of this policy shift is particularly significant and comes on the heels of renewed drive in regional integration efforts, including the approval of a unified tourist visa for the GCC and new movement on long-discussed initiatives such as the Gulf railway project and customs union reforms. These developments signal the growing recognition by Gulf states that economic resilience and global competitiveness depend on shared infrastructure, harmonised regulations and collective access to markets—the same problems that still afflict the EU.

As global trade patterns become more fragmented and multipolar, the GCC is increasingly positioning itself as a bridge between regions, linking Europe, Asia and Africa through physical infrastructure and capital markets. Saudi Arabia’s role as a regional heavyweight and driver of reform is increasingly evident. The opening of the Tadawul to regional investors is not just a symbolic gesture, but a concrete step towards building the infrastructure of a truly integrated Gulf economy. In any case, the response from investors across the region has been swift and optimistic. According to economists, this reform could channel billions of dollars of new capital into the Saudi market in the coming years, especially if combined with continued regulatory harmonisation and deeper cooperation between regional financial authorities.

Moreover, as the GCC states pursue common digital infrastructure, cross-border payment systems and unified investment standards, access to each other’s capital markets will become increasingly essential. If supported, these reforms could lead to the emergence of a single Gulf financial ecosystem, where capital moves freely, investors operate smoothly across borders, and economic opportunities are shared more evenly across the region. As global economic power centres continue to shift and geopolitical uncertainty increases, the Gulf’s effort to align its financial future internally, while expanding international partnerships, could prove decisive. With this move, the GCC is sending a clear signal that it is not only modernising, but is doing so together.

Emirati Al Nowais Elected as First Woman to Lead UN World Tourism Organisation: First Moves and Global Level

Since her historic election as Secretary-General of the UN World Tourism Organisation (UNWTO) on May 30, 2025, Shaikha Nasser Al Nowais has begun laying the groundwork for a strategic vision centred on sustainability, digital innovation, and inclusive economic development. As the first Emirati and the first woman to lead the organisation in its 50-year history, her efforts signal not only a symbolic milestone but also a deliberate repositioning of global tourism priorities.

One of her first initiatives took place in Abu Dhabi, where she met with Zhang Yiming, the Chinese Ambassador to the UAE, between 23-24 July 2025. The high-level meeting focused on enhancing bilateral cooperation in tourism between the UAE and China, particularly through cultural exchange, digital transformation, and sustainable development. Al Nowais emphasised China’s vital role in the global tourism ecosystem and explored how closer collaboration could unlock mutual economic benefits and long-term strategic synergies.

A key topic was cultural tourism. Shaikha Al Nowais proposed projects that showcase the UAE’s diverse cultural heritage, with Sharjah—named a UNESCO Creative City in 2019—serving as a model. These initiatives aim to attract Chinese tourists through immersive experiences such as heritage festivals, artisan workshops, and guided visits to archaeological sites like Mleiha, currently under consideration for World Heritage status. The goal is to build deeper cultural bridges while increasing inbound tourism from one of the world’s largest outbound markets.

Sustainability, aligned with the UAE’s Vision 2030, was another cornerstone of the dialogue. The two sides discussed eco-friendly tourism models, referencing Masdar City as an urban prototype for low-impact development. Ideas included integrating solar energy and water-efficient systems into hospitality infrastructure, potentially in collaboration with Chinese firms specialising in green technologies. These initiatives are part of a broader ambition to position tourism as a force for climate resilience and resource-conscious growth.

Digital transformation was also high on the agenda. Shaikha Al Nowais and Ambassador Zhang explored developing tourism apps, AI-powered booking systems, and multilingual smart guides tailored for Chinese travellers. These tools could be connected to the UAE’s Dubai AI Seal framework, ensuring innovation in safe and trusted digital tourism platforms. Such cooperation would leverage China’s advanced digital ecosystem and help modernise the UAE’s tourism offering.

Another important dimension was workforce development. Both parties discussed the possibility of launching bilateral training programs in areas such as sustainable hospitality, event management, and tourism technology. These initiatives would support the UAE Artificial Intelligence Strategy 2031 and prepare tourism professionals for the demands of a rapidly evolving sector.

While specific timelines and budgets have not yet been disclosed, the scope of this early engagement underlines Al Nowais’s proactive approach. By cultivating strong international partnerships and aligning tourism with broader developmental goals, she is positioning the UNWTO to play a more decisive role in shaping a resilient and inclusive global tourism future.

Gulf-Med Alliance Grows as World Order Reshuffles

The GCC is rapidly establishing itself as a strategic-diplomatic actor beyond the Middle East, with its latest move consisting of a targeted effort to build closer ties with Mediterranean countries. During the Dubrovnik Forum, held 11-12 July 2025, the Gulf’s commitment to Europe and North Africa was emphasised in order to strengthen a broader strategy to promote stability in a context of growing geopolitical tensions.

The Dubrovnik Forum, hosted annually by Croatia, brought together ministers and diplomats from Europe, the Middle East and North Africa under the theme ‘Navigating Global Fragmentation: Shared Responsibilities for Security and Prosperity.’ As traditional alliances (re: NATO and the EU) internal tensions and global powers such as the US, China and Russia vie for influence, small and medium blocs are increasing their diplomatic engagement and the GCC is clearly among the most ambitious given its  unique ability to shape trade corridors, energy flows and geopolitical alignments. 

Deepening ties with countries such as Italy, Greece, Egypt, Croatia and Tunisia, the GCC is positioning itself as a hub in a redefined world order, characterised less by the dominance of superpowers and more by regional cooperation. Discussions during the event focused on the creation of joint sources on infrastructure, particularly transport corridors connecting Gulf ports to the Mediterranean coast, as well as collaborations in the field of green energy, such as hydrogen production and LNG trade agreements. Security also featured prominently on the agenda, with a particular focus on maritime stability in the eastern Mediterranean and the Red Sea. This focus on the Mediterranean is in line with the broader diplomatic rebalancing of the Gulf. 

Over the past two years, the GCC has actively hosted high-level dialogues involving countries such as Armenia and Azerbaijan, Iran and Western interlocutors, and even Ukraine and Russia. These efforts reflect an emerging strategy of ‘regional multilateralism,’ in which the GCC acts as a geopolitical mediator capable of operating in different arenas and demonstrating its own pragmatic and visionary strategy. Faced with rivalry between the major powers that increasingly marginalises the Global South, the Gulf states are leveraging their wealth, neutrality and geographical position to become platform states, serving as meeting places, investment hubs and energy suppliers for a changing world. This openness goes hand in hand with internal integration efforts, such as the recently announced unified GCC tourist visa. These policies not only strengthen the bloc internally, but also make it more attractive as a consistent and predictable partner externally. The growing visibility of the GCC in forums such as Dubrovnik signals a quiet but deliberate shift: the Gulf is no longer content to be merely a regional player, but is becoming a proactive global actor. In the coming years, whether the Gulf-Mediterranean axis becomes a stabilising force in global affairs will depend not only on diplomatic momentum, but also on sustained political will to build institutional frameworks, invest in connectivity, and resist the temptation to be drawn too deeply into the gravitation of any single major power. But for now, the message is clear: the Gulf is ready to lead.