Yemen, widely known for its cultivation of the narcotic qat leaf and tourist kidnappings, may be an unlikely candidate for membership of the wealthy oil-producing nations of the GCC.
So it was no surprise that recent discussions about the region's poorest country joining the GCC Federation of Chambers were lost in the noise of the UAE's surprise withdrawal from the monetary union.
Earlier, Abdul Karim al Arhabi, Yemen's deputy prime minister, said Saudi Arabia was supporting the country's bid to join the GCC, which it hoped to achieve in 2015.
However, economists remain sceptical.
The economic gap between Yemen and its GCC neighbours is enormous. Scenes of rugged-looking barefoot traders haggling over ceremonial daggers in Sana'a's souks are worlds apart from the gleaming new malls of Riyadh, Doha and Dubai, where top designer brands are on display.
While Yemen's estimated population of 23 million is almost equal to that of Saudi Arabia, it is by far the poorest country in the Middle East.
Its estimated annual per capita income of US$900 (Dh3,305.25) compares with an average of $35,000 across the GCC, which consists of Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman.
Some seven million Yemenis chew qat, a mildly narcotic leaf. Qat cultivation is straining the country's scarce water supplies with an estimated 145,000 hectares (ha) dedicated to growing the crop, up from about 80,000ha a decade ago.
Yemen also faces a myriad social problems and has a history of terrorist attacks, most recently in March when four South Korean tourists were killed in a bomb blast in the south, which was followed three days later by an attack on a South Korean delegation investigating the case.
Last September, a radical group calling itself the Islamic Jihad attacked the heavily fortified US embassy in Yemen, killing 17 people, including civilians.
An unsteady ceasefire between rebels and government troops in the north may also make it an undesirable economic neighbour for the oil-rich Gulf states. But it may also provide an incentive for them to embrace the country.
"Yemen could become a failed state," says John Sfakianakis, an economist with the Saudi British Bank (SABB) in Riyadh. "Bringing it under the GCC umbrella is a pressing topic. You already have one failed state on the other side of the ocean, Somalia, and you don't want to have another one on the Arabian peninsula itself.
"There has been a bit more dynamism in the issue recently. The momentum is increasing the more Yemen is showing signs that terrorism is beginning to take a strong foothold."
Despite a lack of clear rules for the accession of a member state, Mr Sfakianakis says there are "definitely informal discussions".
The GCC was created "in response to a four-fold threat from fundamentalist Iran, Baathist Iraq, the two poor and overpopulated Yemens, plus Soviet intervention in Afghanistan, which threatened involving the Gulf region in wider conflicts," according to the European Institute for Research on Euro-Arab Co-operation. Yemen was two countries until 1990.
By bringing it into the GCC, the group would go back to its roots of a political union with a strong security agenda.
"The GCC was established as a security club," says Mustafa Alani, the program director of security and terrorism studies at the Gulf Research Centre.
"You must deal with Yemen's security issue from the economic side. You must make the opportunity to open the door economically."
So far, Saudi Arabia has been the most active in developing economic ties with Yemen.
"Take the nicest hotel you can find in Sana'a. It is run by the Saudis," says Mr Alani. Apart from private investment, Saudi Arabia has been the most generous with government grants for projects in Yemen such as education, water and power.
Now, many economists and analysts are calling for the GCC to take more ownership in the economic development of the country and become more active in developing its economy, for example through the Arab Development Fund.
But for now, there has been little more than lip service paid to Yemen's entry into the select club of six.
"King Abdullah (of Saudi Arabia) has said before that Yemen should be a full member, but no practical steps have been taken," says Mr Alani.
Yemen's previous pushes to join the GCC (it first sought entry in 1996) have not been taken very seriously by the six members.
"It is not going to happen any time in the near future," says a UAE government adviser who did not want to be named. In 2002, Yemen and the GCC signed a protocol defining relations that was considered a first step towards its full membership.
Most observers believe that GCC member states are willing to support a partial membership, but are hesitant about going all the way. "Until now I don't see them genuinely wishing for full membership," says Mr Alani. "There is no evidence so far."
GCC countries could engage Yemen by allowing it into economic committees, or including it in the Customs Union. In 2002, Yemen joined some GCC-affiliated, non-political bodies related to health and sports.
Intra-regional trade in the GCC has risen strongly in recent years but off a relatively low level. Economists say the country may have to develop its economy before full membership of the GCC becomes a genuine proposition.
"The economic gap is very wide," says Mohieddine Kronfol, the managing director at Algebra Capital. "On the other hand there is no real reason for Yemen not to be more economically productive. It has a nice location for trade, it has some oil and gas, but it needs a lot of investments."
Traditionally, Yemen's largest export has been its labour force. Up to two million Yemenis worked in Saudi Arabia until most were expelled when their country sided with Iraq in the First Gulf War.
"Yemenis could replace expats from other Asian countries," says Mr Alani.
The country could profit if it agreed on workforce contingencies with neighbouring countries, or if one day Yemenis had GCC identity cards.
But the notion of Yemenis moving around more freely may be threatening to many of their GCC neighbours, notably Saudi Arabia.
"GCC countries are terrified and none of them want to be importing any of these social problems," says an economist who did not want to be named.
This is particularly true for Saudi Arabia which shares Yemen's borders, he says.
@Email:uharnischfeger@thenational.ae
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
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Results:
6.30pm: Handicap (Turf) | US$175,000 2,410m | Winner: Bin Battuta, Christophe Soumillon (jockey), Saeed bin Suroor (trainer)
7.05pm: UAE 1000 Guineas Trial Conditions (Dirt) | $100,000 | 1,400m | Winner: Al Hayette, Fabrice Veron, Ismail Mohammed
7.40pm: Handicap (T) | $145,000 | 1,000m | Winner: Faatinah, Jim Crowley, David Hayes
8.15pm: Dubawi Stakes Group 3 (D) | $200,000 | 1,200m | Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.50pm: Singspiel Stakes Group 3 (T) | $200,000 | 1,800m | Winner: Dream Castle, Christophe Soumillon, Saeed bin Suroor
9.25pm: Handicap (T) | $175,000 | 1,400m | Winner: Another Batt, Connor Beasley, George Scott
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
COMPANY%20PROFILE
%3Cp%3ECompany%20name%3A%20CarbonSifr%3Cbr%3EStarted%3A%202022%3Cbr%3EBased%3A%20Dubai%3Cbr%3EFounders%3A%20Onur%20Elgun%2C%20Mustafa%20Bosca%20and%20Muhammed%20Yildirim%3Cbr%3ESector%3A%20Climate%20tech%3Cbr%3EInvestment%20stage%3A%20%241%20million%20raised%20in%20seed%20funding%3Cbr%3E%3C%2Fp%3E%0A
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
MATCH RESULT
Al Jazira 3 Persepolis 2
Jazira: Mabkhout (52'), Romarinho (77'), Al Hammadi (90' 6)
Persepolis: Alipour (42'), Mensha (84')
UAE currency: the story behind the money in your pockets
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
THE SPECS
Engine: 1.6-litre turbo
Transmission: six-speed automatic
Power: 165hp
Torque: 240Nm
Price: From Dh89,000 (Enjoy), Dh99,900 (Innovation)
On sale: Now
