ABSTRACT
This chapter discusses the growing economic integration between the Gulf Arab states and the Mashreq region specifically, the formers growing investments in the latter. It traces the pattern of petrodollar recycling which has begun to shift Gulf Cooperation Council (GCC) investments from the US financial sector, US Treasury bills, US banks, and US direct investment to an increasingly diversified portfolio. The chapter outlines the underlying rationales for this shift in Gulf Arab investment. Although the 2008-10 international financial crises have impacted the Gulf Arab states, the GCC states remain key players in international investment. The chapter explores the question that explains increased Gulf Arab investments in the Mashreq, specifically the countries of Jordan, Lebanon, and Egypt. At a broader level of analysis, the chapter seeks to outline the broad structural trend in the global economy that underpins this new direction in Gulf Arab investment.
