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The changing role of the Gulf in the international political economy

ABSTRACT In the past half-decade, the role of the Gulf in the international political economy has changed dramatically. The region’s position as a supplier of world hydrocarbons has slipped, even as local consumption of oil and gas continues to expand. Gulf investments have shifted from the industrialized countries to the Middle East and North Africa. Saudi Arabia no longer exercises disproportionate influence in the Group of 20. Finally, relations with the People’s Republic of China and India have become truly interdependent, which gives the Gulf the capacity to exercise leverage over these two rising powers, despite its diminished position in global affairs.