Energy offers GCC rationale for real economic union



When the leaders of a regional grouping wanted to build economic cooperation as a road to greater political unity, they looked to energy and heavy industry as the key.

This is not the GCC in 2012, but the European Coal and Steel Community, the forerunner of today's European Union, first proposed in May 1950 by the visionary French foreign minister Robert Schuman.

The idea of a closer Gulf federation, raised by King Abdullah of Saudi Arabia last December, suddenly returned to prominence this month at the GCC leaders' meeting in Riyadh. But with only Bahrain enthusiastic and Qatar giving a probably tactical welcome, the prospects of immediate closer union seem doubtful. As with Europe, economics may be a better place to start - and petroleum is the Gulf's key resource, as coal was for Europe in the 1950s.

Economic links within the Gulf are surprisingly weak.

Even for the open UAE, just 5.6 per cent of its trade is with the other GCC states, less than with Iran. The Emirates imports almost as much from Somalia as it does from Kuwait. This is partly because of the GCC's rather similar economies, founded on exporting oil and capital, and importing food, manufactured goods and skilled labour.

Yet the energy sphere is a natural place to further economic integration - in three particular areas.

The first is the traditional oil sector. This is dominated by the behemoth national oil companies - Saudi Aramco, Abu Dhabi National Oil Company (Adnoc), Kuwait Petroleumand Qatar Petroleum. None of these operates in another GCC country. The region's private companies, such as Kuwait Energy and Sharjah's Dana Gas, are not present in other GCC countries either (indeed, Kuwait Energy does not even have assets in Kuwait).

With very similar geological and operational challenges, imagine the benefits if Adnoc and Saudi Aramco, or Petroleum Development Oman and Kuwait Petroleum, were to swap stakes in a field or refinery.

It might also persuade the laggards among the region's national oil companies to up their game to match the best. It is not impossible: Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, already produces oil and gas in Oman, Bahrain and Qatar.

The second is in gas and power. Five GCC countries are short of gas - one, Qatar, has an abundance. The Netherlands' giant Groningen field led to the gasification of Western Europe from the 1950s and, ironically, to the eclipse of coal.

This has not happened in the Gulf. Qatar exports gas to the UAE and modest amounts to Oman (via Mubadala's Dolphin pipeline), but Saudi opposition prevented extension of the pipeline network to neighbour Bahrain and to Kuwait.

Electricity cooperation has been more successful, with the establishment of the GCC grid. But this is still limited in capacity, and essentially provides emergency back-up power. A truly integrated electricity market, with regular trading, is a long way off.

The third area is future energy. The UAE, via its environmental vehicle Masdar, the emirate's civil nuclear programme, and Dubai's strategy of energy diversification, has taken the lead. Saudi Arabia and Kuwait have announced ambitious solar power plans, while Qatar has concentrated more on desalination and dry-land agriculture.

Yet all the GCC countries face similar climatic and policy challenges. Common issues include developing safe use of nuclear power, capitalising on the region's renewable-energy potential, and advancing carbon capture and storage to keep hydrocarbons environmentally acceptable.

As with the other EU forerunner, the atomic energy organisation Euratom (founded in 1957), joint programmes would be preferable to each state's reinventing the wheel.

As it did in Europe, economic cooperation offers a path to closer union that postpones thorny debates over sovereignty - and creates a self-sustaining dynamic for greater prosperity.

Robin Mills is head of consulting at Manaar Energy, and author of The Myth of the Oil Crisis and Capturing Carbon

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

THE BIO: Mohammed Ashiq Ali

Proudest achievement: “I came to a new country and started this shop”

Favourite TV programme: the news

Favourite place in Dubai: Al Fahidi. “They started the metro in 2009 and I didn’t take it yet.”

Family: six sons in Dubai and a daughter in Faisalabad

 

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

The five pillars of Islam
Tips to keep your car cool
  • Place a sun reflector in your windshield when not driving
  • Park in shaded or covered areas
  • Add tint to windows
  • Wrap your car to change the exterior colour
  • Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
  • Avoid leather interiors as these absorb more heat
The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

Water waste

In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.

Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.

A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.

The Emirates is the world’s third largest per capita water consumer after the US and Canada.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

How being social media savvy can improve your well being

Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.

As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.

Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.

Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.

Torrena said that “most people believe that dieting and keeping fit is boring”.

However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.

“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.

People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

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Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

The biog

Name: Shamsa Hassan Safar

Nationality: Emirati

Education: Degree in emergency medical services at Higher Colleges of Technology

Favourite book: Between two hearts- Arabic novels

Favourite music: Mohammed Abdu and modern Arabic songs

Favourite way to spend time off: Family visits and spending time with friends

Match info

Uefa Champions League Group H

Juventus v Valencia, Tuesday, midnight (UAE)

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young