Sameer Lalwani writes in the WashingtonNote, here.
" ... And contrary to the popular belief of oil windfalls recklessly squandered, there is good evidence to suggest Saudi's constructive investments in the rest of the region affords it considerably political leverage. Dr. Steffen Hertog has analyzed the most current regional economic that reveals a marked increase in cross-border investment by Gulf Cooperation Council (GCC) states in the Middle East. As a result, he concludes the GCC, with Saudi as the most pivotal heavyweight, are poised to play a key stabilizing role in the region (particularly Syria and Lebanon) that would certainly be in America's interest:
With its emerging role as the dominant economic hub of the region, the GCC arguably is a potential anchor of stability in the Arab world. Relatively weak in military terms, it has a vested interest in political calm, as it can then flex its economic muscle. At a time in which American hegemony has become of questionable value even to its "moderate" allies, the GCC might be willing to play a more assertive role based on its economic resources.
Needless to say, no amount of Gulf capital can buy stability amid a mess of epic proportions, as in Iraq (although Gulf money has been helping significantly to shore up the economy of the war-wrecked country). Still, the "soft power" of Gulf capital is not an academic point. As more and more GCC money is channeled into Syria, for example, Gulf political influence there is bound to increase. Its regime in rather dire economic straits, Syria will be increasingly reluctant to alienate Gulf governments--which are not capable of micromanaging the investment decisions of their business classes but can certainly use their moral suasion to indicate which investment destination is not palatable. Similarly, Gulf FDI imparts considerable soft power in Lebanon, where it will play an important role in reconstruction..."
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