On 15/12/2010 Dr. Bessma Momani gave Amman Institute staff a presentation entitled “Geopolitical Power of The Gulf” Dr.Bessma Momani is an associate professor in political science and history at the university Waterloo and senior fellow at the Centre for International Governance.

1. GEOPOLITICAL POWER OF THE GULF
Dr. Bessma Momani
Associate Professor/ University Of Waterloo
Department of Political Science
bmomani@uwaterloo.ca

2. What explains the growing
economic integration between
the Gulf Arab counties and the
Mashreq region (Egypt,
Lebanon, and Jordan)—
specifically, Gulf investments

3.  the six GCC states current
account surplus:
 $50 billion in 2003-2004;
$400 billion in 2007-2008
 $47.4 billion in 2009; to
about $124.2bn in 2010
 the GCC had $1.6 trillion
(or 225 per cent of its
GDP) to $2 trillion in
foreign assets at the end
of 2006
 67 % public owned
 33 % by private individuals

4. LET ME CONTEXTUALIZE THIS.....
 China:$1.1 trillion in foreign reserves
 42 per cent of its GDP
 Is public owned
 Long term domestic absorption
 GCC only 40 million people

5. WHERE DID GULF MONEY GO?

6.  Eco Reforms
 FDI problems
 Not just
structural
 Then oil prices

7. WHY GULF INVESTMENT IN MASHREQ?
Push factors Pull factors
 Out of US, because:  Structural eco reforms
9/11; Dubai Ports;  Deregulation;
Sovereign Wealth Funds privatization; market
 Eco diversification forces; FTA
 Financialization  ‘neighbourhood effect’
 SWFs  Horizontal networks
 Vs. wasted 1970s  Arab money managers
 Aware public  Regional peace
 Digital democracy dividend
 Young; W. educated

8. FUTURE STUDY...
 But, what are the lessons for Jordan?
 What does this mean for the region?
 How to explain investor behaviour?

9. Questions?