Gulf Cooperation Council Boosts Investments and Energy Deals in Central Asia Amid Ukraine Conflict

The Gulf Cooperation Council (GCC), led by the United Arab Emirates and Oman, has significantly increased investments and energy deals in Central Asia as Russia's invasion of Ukraine continues. The UAE and Oman recently signed investment agreements totaling 129 billion dirhams ($35.12 billion), covering key sectors such as renewable energy, green metals, railway, digital infrastructure, and technology.

These deals represent a significant achievement in the bilateral relations between the two countries, aiming to leverage their collective strengths to achieve shared goals of advancement and prosperity. Notable agreements include a 117 billion dirham industrial and energy megaproject, a 660 million dirham technology-focused fund, and an 11 billion dirham UAE-Oman rail connectivity project. The two nations have also formed a strategic alliance to enhance economic and trade ties.

The GCC's strategic moves come as the countries seek to diversify their economic relationships and reduce dependence on traditional energy markets amid ongoing geopolitical tensions caused by the Ukraine conflict. Oman's Sohar Port is set to house a new $1.6 billion liquefied natural gas (LNG) bunkering plant, a joint venture between OQ and TotalEnergies. The Marsa LNG project, the first of its kind in the Middle East, is expected to have significant economic implications for Oman, bolstering treasury revenues and enhancing local value through collaborative investments.

Why this matters: The GCC's increased investments and energy deals in Central Asia highlight the region's strategic importance as global powers seek to secure their economic interests amid geopolitical uncertainties. These developments could reshape the balance of power and influence in the region, with potential long-term implications for global energy markets and international relations.

Investcorp, an alternative asset manager, has partnered with China's sovereign wealth fund, the China Investment Corporation (CIC), to launch the $1 billion Investcorp Golden Horizon platform. The platform, anchored by institutional and private investors from GCC countries and CIC, aims to invest in high-growth companies in Saudi Arabia, other GCC nations, and China, focusing on sectors such as consumer, healthcare, logistics, and business services. "The partnership between Investcorp and CIC is seen as a testament to Investcorp's franchise in the GCC region, and the two companies are looking to strengthen financial and industrial ties between China and the GCC countries," according to the provided summaries.

Key Takeaways

• GCC, led by UAE and Oman, increases investments in Central Asia amid Ukraine conflict.
• UAE and Oman sign $35.12B deals in renewable energy, green metals, rail, and tech.
• Oman's Sohar Port to host $1.6B LNG bunkering plant, a joint venture with TotalEnergies.
• Investcorp and China's CIC launch $1B platform to invest in high-growth companies in GCC and China.
• GCC's moves aim to diversify economic ties and reduce dependence on traditional energy markets.