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Policy Reports

Analyses of current topics in the Gulf region

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IMAGO / ANP

Strategic Hydrogen

Gulf Sovereign Wealth Funds and the Reordering of Global Energy Power

While hydrogen and low-carbon energy solutions have lost momentum in many Western economies and policy agendas, Gulf Cooperation Council (GCC) states continue to position themselves as key players in an emerging post-carbon energy economy. In this context, Gulf Sovereign Wealth Funds (SWFs) not only provide essential capital but also actively shape their countries’ strategic approaches to the energy transition. This policy report analyses the distinct paths Gulf states are pursuing to balance the risks and opportunities of an emerging hydrogen economy – and explores the conditions that will ultimately determine their success.

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The Power of Capital

How GCC Sovereign Wealth Funds are Shaping Defence Industries

Sovereign Wealth Funds (SWFs) play a pivotal role in the economic development and diversification efforts of Gulf Cooperation Council (GCC) states. Reflecting the region's rapidly evolving security landscape and threat perceptions, SWF investment and engagement are increasingly tied to defence and defence-related industries. Despite an apparent convergence on defence as a strategic sector, SWFs' respective approaches differ when it comes to ownership, control, scale, and international engagement. This policy report analyses the distinct ownership models, risk appetites, and strategic priorities adopted by Oman, Saudi Arabia, and the UAE in this regard.

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Regulating Passport-Based Wage Differentials in the Gulf

A Driver for Onward Migration

GCC states rely heavily on foreign talent, yet retaining highly skilled expatriate remains a persistent challenge. Citizenship-based hierarchies and limited settlement pathways continue to shape wage disparities, job mobility, and long-term prospects, prompting many professionals to pursue onward migration. This policy brief examines how these structural constraints influence mobility decisions and outlines targeted reforms to address labour market inequalities and strengthen talent retention across the Gulf.

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Regulating Stepwise Migration in the Nepal-Gulf-Europe Corridor

Challenges and Recommendations

Migration from Nepal is shifting beyond its traditional destinations in the Gulf and Malaysia, with a growing number of workers reaching Europe through stepwise migration pathways. Yet, this trend remains largely unrecorded and unregulated, falling outside existing governance and tracking systems. This policy brief examines the drivers and implications of stepwise migration among Nepalis, identifies key governance gaps, and outlines policy recommendations to better regulate and safeguard this emerging corridor.

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A Relationship at a Crossroads

An ambitious agenda for future EU-GCC economic relations

Amidst stalled negotiations between the European Union (EU) and the Gulf Cooperation Council (GCC) over a free-trade agreement, this policy brief argues for measures to mould new trade and investment flows that play to each bloc’s strengths. To transform their economic relationship, the two blocs should focus on equitable, mutual, and pragmatic economic outreach towards one another, enhanced by an EU-GCC Human Capital Strategy and bilateral agreements encompassing emerging sectors such as clean energy.

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The Local Link

Municipal partnerships as drivers of GCC-EU cooperation

The projected doubling of the world’s urban population by 2050 positions cities as critical engines of sustainable development. Against this background, the policy brief proposes establishing a thematic GCC-EU sister-city network to advance shared goals on a municipal level. Such a partnership network strengthens GCC-EU cooperation at the local level, creating a solid, dynamic foundation to bridge periods when national- and bloc-level collaboration slows or stalls.

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Migration Policy Reforms and Mobility Decision-Making

High-Skilled Second-Generation Residents in Qatar, the UAE, and Saudi Arabia

Gulf Cooperation Council (GCC) countries have introduced far-reaching migration reforms to attract and retain global talent. These reforms have affected a distinct group: second-generation residents born and raised in the Gulf who remain non-citizens despite deep social integration. Yet, while some perceive recent reforms as opening pathways to extended residence and stability, others continue to experience structural limits to long-term belonging. This policy report examines how legal frameworks shape mobility decisions, education and career strategies and whether current reforms are sufficient to retain the Gulf’s own home-grown talent in an increasingly competitive landscape.

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Retaining Talent

Strategic Pathways for Highly Skilled South Asian Migrants in Saudi Arabia’s Knowledge Economy

Saudi Arabia’s Vision 2030 seeks to build a knowledge-based economy, placing highly skilled migrants at the centre of its economic transformation. While the Kingdom has introduced initiatives to attract global talent, limited long-term residency pathways and perceptions of permanent temporariness present challenges for retaining skilled professionals and fully leveraging their contribution to national development. This policy brief examines how highly skilled migrants and long-term residents perceive residency frameworks, career progression, and long-term prospects in Saudi Arabia, and assess the implications for strengthening talent retention to advance the Kingdom’s knowledge economy ambitions.

© Smarterpix/Pazemin

Second Generation Highly Skilled Pakistanis in Dubai

Drivers of Secondary Migration

The United Arab Emirates has experienced a sharp rise in highly skilled migrant professionals, reflecting its strategic shift toward a knowledge-based economy. For Pakistan – one of the UAE’s key migrant-sending countries – this transformation presents new opportunities for skilled workers, while also raising questions about long-term integration, stability, and talent retention. This policy report explores how migration policies and legal frameworks shape professional and personal trajectories. It examines the implications of emerging residency schemes, such as the Golden Visa, and derives policy considerations to support the UAE’s long-term economic and development objectives.

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Beyond the Gulf

Rethinking Stepwise Migration, Citizenship Penalty, and Filipino Nurses in the UAE

The United Arab Emirates has become a key destination for highly skilled healthcare professionals from the Global South, with Filipino nurses forming the backbone of its expatriate healthcare workforce. Yet, despite strong qualifications and critical contributions, wage disparities and limited career advancements due to nationality-based labour market hierarchies persist. This policy report examines the professional experiences and migration trajectories of Filipino nurses in the UAE, explores how labour market hierarchies and residency frameworks influence career mobility, job security, and onward migration intentions, and assesses the implications of recent labour reforms.

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About this series

The Policy Reports of the Regional Programme Gulf States offer insights and analyses on current developments in the Gulf States and the Gulf region at large. They contribute to a better understanding of the region and serve as a platform for German, European and the Gulf scholars to exchange and disseminate ideas and knowledge about the region for the broader policy community.

Philipp Dienstbier
Philipp Dienstbier_Portrait
Director of the Regional Programme Gulf States
philipp.dienstbier@kas.de +962 6 59 24 150