الرئيسية » Brexit » The Brexit and the GCC Interest

The Brexit and the GCC Interest

The Brexit and the GCC Interest

 Britain is the world’s fourth receiver of foreign direct investment according to the World Investment Report for 2015 with net investment reached 68 billion USD. On the contrary, Brexit proponents believe that leaving the European Union will save money for Britain, and will enable Britain to enter into more flexible commercial agreements with countries from outside the EU which accomplish economic growth.

Some Asian countries lead part of direct and indirect investments in the UK with total investments reached above £ 74 billion Pound Sterling by the end of 2014. Meanwhile, Indian investments surpassed the Chinese investments by double. In the same context, India ranked third in the number of direct projects in the UK after USA and France.

As an example, I mention TATA Indian Company, the owner of the British Jaguar Land Rover Automotive. This means that the Indian investors, just as other investors, are looking for a market where they can market their products without legal or tax barriers that exist in the British market; this exemplifies the capital flight from Britain.

By returning to the title of the article, the GCC opportunity and the Brexit benefits, I might need to refer to the GCC attraction of the capital fled from Britain searching for investment opportunities, then the rearrangement of this capital and re-exporting it to a country such as India (which might be the original homeland of that capital) but through GCC contribution.

On the GCC – Indian side, there are unprecedented political activities manifested in the mutual visits that aim at enhancing the commercial exchange between the two parties along with the discussions about the future of the Indian work force that is valued at seven million workers inside the GCC with 40 billion USD of workers’ remittances. This creates Arab leverage for investments inside India or for maintaining the oil and gas exports share from the GCC, particularly if the issue proposed as “oil for food” satisfies both parties. If we move to discuss the energy issue we will find that there’s no reason why global energy prices are falling more than demand, but at the same time I appreciate the GCC position preventing new investments in the international energy sector. This position imposes pressure on the energy prices causing them to decrease in order to control any new investments that might increase the global surplus of energy accompanied by decreased demand as a result of the slowdown of the world’s economic growth and the crowding out of the countries exporting oil to have a share in the GCC oil.

Foreign investments barriers result from the fact that India doesn’t allow investments in certain important and vital sector, only Indian investors or entities are allowed to invest in such sectors. Here I need to return to the context of this article, why don’t the GCC receive the capital that fled from Britain? Particularly the Indian capital so that the GCC might have Indian partners that facilitate investing in previously inaccessible sectors.

The alternative that I personally prefer is that the GCC companies get benefit from their British counterparts who aim at getting out of Britain searching for new emerging markets to compensate the deficiency resulted from the commercial loss of the EU. This refers to the British companies and governments’ ability to create investment opportunities and global acceptance to emerging countries similar to India, depending on the infrastructure that assist the British investor such as banks and logistics companies that support the external projects. In addition to the Indian’s system, public acceptance of the British investors that allows British investors to obtain investment opportunities which might be blocked for investors from the GCC.

At the end, this article focused on India, Indian investors in Britain, and blocked investment opportunities in India as a result of the nature of the relationship between Indian and Britain and the Indian perspective of the historical colony. The article also tackled the GCC-Indian relations, as it highlights that this combination might create an investment pillar that serves the interests of the ones departed the EU along with the GCC interest in searching for markets that receive the oil exports and companies that build new economy which doesn’t fully depend on oil. Finally this pillar serves India that needs every penny to build the Indian ambition to become the new China within the coming decade.

 Mohammad Khataybeh

chairman of Finance Department

University of Jordan

khataybeh@ju.edu.jo

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التالي:
محمد عبدالله خطايبة

عن محمد عبدالله خطايبة

حاصل على درجة الدكتوراه في الاقتصاد المالي من University of Birmingham البريطانية عام 2013, ودرجة الماجستير في المالية والمصرفية الدولية من University of Salford البريطانية عام 2006 والبكالوريوس في العلوم المالية والمصرفية من جامعة اليرموك الاردنية عام 2005. حاصل على جائزة الحسين للتميز والابداع لأحسن بحث في السياسة النقدية للعام 2018. يعمل حاليا برتبة استاذ مساعد في الجامعة الاردنية ورئيساُ لقسم التمويل, وعضو مجلس ادارة ورئيس لجنة التدقيق في شركة دار العمران للهندسة والتخطيط, وسابقاً ولمدة اربع سنوات في الجامعه الهاشمية منها رئيساً لقسم العلوم المالية والمصرفية لمدة سنتين, وقد سبق وان عمل كباحث اقتصادي لاحد مشاريع الاتحاد الاوروبي بالتعاون مع Aston University البريطانية ومحاضراً غير متفرع لليوم في جامعة اليرموك لمساقات الماجستير. يُشرف على عدد من طلبة الماجستير ولدية العديد من الابحاث العلمية المنشورة ومشارك ومحكم منتظم في عدة مؤتمرات دولية. مدرب معتمد لدى المجمع الدولي العربي للمحاسبين القانونيين للمؤهلين IACPA و IACMA للجانبين الاقتصادي والمالي محلياً واقليمياً, ينشط في الادارة المالية الدولية وسلوك محافظ البنوك التجارية والتمركز المصرفي والتنافسية.

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