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Understanding the Arab Gulf States of the 21st Century

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Recovery will be varied and based largely on countries' investments Depenndence strategies for vaccine distribution. While the full details of the reconciliation accord between blockading states — Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt — and Qatar are not publicly known, Azour told CNBC's Hadley Gamble that "any improvement in terms of opening up borders, improving economic relationship will provide an additional potential for growth. Therefore, there is always benefit from improving economic relationships, especially that we are now entering into a new phase in terms of globalization.

And this is something that will be valued.

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Airlines, manufacturing and food production are among the other areas that are likely to see major boosts. In the region more broadly, the improvement in outlook was based on "stronger-than-expected performance among oil exporters, as the absence of the second wave in some countries boosted non-oil activity, and the impact of the first wave was lower than expected," the IMF wrote in its regional outlook report. Still, the recovery outlook is patchy and will depend heavily on governments' vaccine plans.

This ranges "from countries with very well-diversified vaccine contracts and production capacity to fragile and conflict-affected states who are largely staes on COVAX," Azour wrote in his report. COVAX is a global scheme led by an international vaccine alliance and the WHO, established to ensure equitable vaccine access for every country in the world.

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The disparities are obvious: wealthy Middle Eastern states, like the UAE and Israel, are on track to vaccinate half their populations by March and boast the fastest vaccination campaigns in the world, while poorer countries and territories like Palestine are reliant in large part on COVAX and have not received vaccines for their general population yet. Countries who applied stronger fiscal responses to the Covid crisis "are also expected to have a stronger recovery inaided by a shallower trough in ," the IMF's report wrote. Skip Navigation. Markets Pre-Markets U. Key Points.

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VIDEO Squawk Box Europe. A security guard checks temperature of man arriving at a shopping mall in the Saudi capital of Riyadh on May 4,as malls reopen after authorities began a partial lifting of the lockdown. Capital Connection. Related Tags.]