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GCC states race for foreign investment

Despite the Saudi-led effort to bury the hatchet with Qatar, unified economic policies are coming up against by GCC countries’ needs to win foreign investment post-COVID.
A Kuwaiti trader wearing a protective mask follows the market at the Boursa Kuwait stock exchange in Kuwait City on March 1, 2020. - Boursa Kuwait decided to close the main trading hall due to the COVID-19 coronavirus disease developments. Stock markets in the oil-rich Gulf states plunged on March 1 over fears of the impact of the coronavirus, which also battered global bourses last week. All of the seven exchanges in the Gulf Cooperation Council (GCC), which were closed the previous two days for the Muslim

Despite the reconciliation process set in motion last month at the Gulf Cooperation Council summit in Riyadh, there are signs that economic competition between the six GCC member states is heating up as the double shock of the COVID-19 crisis and the volatility of oil prices weigh on Gulf economies, causing high sovereign debt levels.

Saudi Arabia announced that after 2023, it will cease contracting with international companies with regional headquarters located outside of the kingdom.

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