Gulf states use new oil riches to gain regional influence

Gulf states use new oil riches to gain regional influence

Abu Dhabi CNN — Big Gulf Arab oil states are using the newfound riches they’ve reaped as a result of the Ukraine war to build economic bridges with their poorer neighbors, some of whom they once considered adversaries.

The monarchies are now doubling down on economic cooperation. At the heart of this diplomatic initiative are sovereign wealth funds, which are working to secure regional stability through billions of dollars’ worth of investments.

Saudi Arabia and the United Arab Emirates – both of which are generating massive returns from this year’s oil price hikes – are taking the lead with such investments, entrenching themselves in countries that have faced unrest in part because of economic distress.

Middle Eastern energy exporters, including Gulf countries, are expected to see a windfall of around $1 trillion dollars over the next four years on the back of this year’s oil boom, said the International Monetary Fund (IMF) last week.

“Money talks,” Michael Maduell, president of the Sovereign Wealth Fund Institute in Las Vegas, told CNN. “Sovereign wealth funds can be used as foreign policy tools, a sort of soft power.”

After almost a decade of a combative regional policy, Saudi Arabia and the UAE are moving towards a less confrontational