GCC Economic Presence in the Mediterranean and the Outlook for EU-GCC Cooperation

Between 2003 and 2008, foreign direct investments (FDI) from the Gulf Cooperation Countries (GCC) have strongly increased in the Mediterranean region, fuelled, on the one hand, by a strong rise in oil prices and, on the other hand, by an improved investment climate, as well as rapid economic growth of the Mediterranean countries. As a consequence, since 2003, GCC FDI has been playing a key role in the economic development of the Mediterranean region. The increased economic presence of GCC countries in the Mediterranean region has raised interest in possible cooperation between the European Union (EU) and the GCC in this area. The development of renewable energy sources in the Mediterranean has been identified as a key sector to boost this cooperation. However, many key issues are still to be addressed before it may blossom. From an EU-GCC-Mediterranean cooperation perspective, another project of the Union for the Mediterranean, the Mediterranean Business Development Initiative focused on Mediterranean small and medium enterprises (SME), looks more promising, thanks inter alia to the expected structural reassessment of GCC foreign direct investment after the Dubai financial crisis.