Blockchain Technologically Driven Innovation at the Gulf Cooperation Council Countries

PurposeThe purpose of this paper is to explore the intellectual capital (IC) performance of banks in Gulf Cooperation Council (GCC) countries and to empirically investigate if IC has an impact on financial performance as well as to identify the IC components that may be the drivers of the traditional indicators of bank success.Design/methodology/approachThe empirical data are drawn from banks’ annual reports over the three-year period of 2008 to 2010. Ordinary least squares regression analysis is constructed to examine the relationships between IC and the banks’ financial performance indicators. Pulic’s value-added intellectual coefficient method (VAIC) is applied to measure IC performance.FindingsEmpirical findings, after controlling for bank size and global financial crisis, indicate that IC is positively associated with bank financial performance indicators in all GCC countries. However, when VAIC is split into its three components, the relationships between these components and bank financial performance indicators are varied.Research limitations/implicationsThe main limitation of this study is the use of IC measurement model. Its basic advantage (simplicity and ease of use) is also its main limitation. The main problem is measuring the contribution of something which is not physical and cannot be easily quantified. The key issue is that the value created by IC is indirect. However, at present, no perfect solution is available for intellectual capital measurement, as the area is still exploring the best possible solutions.Practical implicationsThe results may extend the understanding of the role of IC in banking sector in GCC region and may give inputs to managers of GCC banks to structure relevant strategies to obtain, utilize, develop and retain IC. The findings also could help policy makers in GCC to formulate and implement policies for establishing a resilient banking sector.Originality/valueThis study adds to the literature by extending the knowledge of IC performance and its utilization for increasing the financial performance of GCC banks. There has only been one previous empirical study that explores the IC and its relationship with the traditional measures of bank performance in GCC region (only in Bahrain). It is the first comparative study across GCC countries.

Energy consumption accounts for most of global anthropogenic greenhouse gas emissions. Managing the growth in energy demand is therefore a key part of climate change mitigation. In the Gulf Cooperation Council (GCC) countries, energy consumption has been growing rapidly. Between 2004 and 2014, final energy consumption grew at an average annual rate of 6.8% compared to a global average of 1.8%. Energy efficiency can help GCC countries manage their energy demand growth, but it is difficult to measure energy efficiency, so analysts often rely on indirect indicators such as energy intensity. Frontier analysis can be used to measure energy efficiency, but is data intensive. To undertake frontier analysis for the GCC countries it was therefore necessary to construct a new dataset, which was used for corrected ordinary least squares to estimate underlying energy efficiency between 2004 and 2014 for two key sectors in the GCC countries: residential electricity and road transport gasoline. The results suggest that underlying energy efficiency generally improved in the GCC region, in contrast to the trend of rising energy intensity that the region has been witnessing. The energy efficiency improvements may have been driven by global technical progress and tighter global fuel economy standards, of which the GCC countries were beneficiaries. With the provision of high quality, recent data with shorter lag times, frontier analysis could be used to provide prompt feedback on the impact of energy efficiency policies and programmes, leading to better outcomes.

Hydrogen economy for sustainable development in GCC countries: A SWOT analysis considering current situation, challenges, and prospects

PurposeThis study objective is twofold. This study aims to present an institutional analysis of the implications of job localization programs in Gulf Cooperation Council (GCC) countries, such as Saudi Arabia, United Arab Emirates and Qatar. Further, it highlights the impacts of these programs on the accounting profession.Design/methodology/approachThis study is based primarily on the desktop research method, where data is collected from the review of previous studies, published data on Internet Websites and reports released by International organizations such as the United Nations. In addition, the study benefitted from conducting six interviews with government officials from GCC countries. Theoretically, this study draws upon insights from the institutional logics theory to discern higher-order institutions deriving job localization decisions in the GCC region.FindingsThis paper explained how job localization policies in the GCC region are informed by three central logics: economic, socio-political and professional. Despite contributing to achieving some socio-political goals for policymakers, these policies could have serious consequences for the practice of the professions and, hence, the local business environment. Besides, this paper highlighted the serious localization policies' impacts on the accounting profession, especially the quality of the workforce (accountants) and their job readiness.Practical implicationsThis study highlights the various implications of job localization policies for locals, foreigners, public and private sector entities and governments. Besides, it has recommended some actions to mitigate the negative influences of such policies on the surrounding society.Originality/valueThis study contributes to the literature by following an interpretative approach in explaining the localization of the accounting profession from an institutional perspective by bringing new evidence from GCC emerging markets.

PurposeThe purpose of the study is to adopt Morlet’s wavelet method to examine the differences in the level of volatility (i.e. riskiness) between the conventional and Shari’ah indexes during the COVID-19 pandemic (February 4 to June 19, 2020) on selected Association of South East Asian Nation (ASEAN) and Gulf Cooperation Council (GCC) countries. As a comparison, the equivalent time period of relative tranquillity is used; February 4 to June 19, 2019.Design/methodology/approachMorlet’s wavelet method is used in analyzing the volatility levels for both the conventional and Shari’ah indexes before and during the COVID-19 pandemic for the selected ASEAN and GCC countries.FindingsThis study has several findings; first, the markets in the ASEAN region appear to be more volatile during the pandemic than in the GCC region. Second, most of the Shari’ah indexes were more volatile during the COVID-19 pandemic than their conventional counterparts. Nevertheless, the GCC index pairs appear to show more similarities between both the Shari’ah and conventional index.Practical implicationsThe findings from this study indicate that investors, government, regulators and all other stakeholders should stay vigilant during a pandemic or health threat period as it has become a pertinent source of volatility spillovers. As such, investors should devise optimal asset allocation strategies, portfolio diversification and portfolio rebalancing measures, taking into consideration not only financial adversity but also public health gravity as a potential source of turbulent markets.Originality/valueThis study uses the wavelet method to examine the volatility level of both the Shari’ah and conventional indexes during the COVID-19 pandemic and its equivalent time frame in 2019. It has further added to the Islamic literature by comparing the volatility between selected ASEAN and GCC countries. The wavelet method is most appropriate for short-duration studies as it captures both the time and frequency domains of the time-series behavior.

Sickle Cell Health Awareness, Perspectives, and Experiences (SHAPE) Survey: Findings on the Burden of Sickle Cell Disease and Impact on the Quality of Life of Patients and Caregivers in Gulf Cooperation Council Countries

This study presents a comparative analysis of culture and business systems, focusing on their impact on multinational organizations operating in the United States and Gulf Cooperation Council (GCC) countries. The research aims to explore how cultural dimensions and business systems shape organizational practices, leadership styles and human resource management in these regions. Utilizing a comprehensive review of existing literature, the study draws on established cultural theories, including Hofstede’s cultural dimensions, Trompenaars' cultural value orientations and the GLOBE study, to establish a theoretical foundation for understanding cultural diversity. The analysis reveals clear cultural distinctions between the United States and GCC countries, each exhibiting unique cultural characteristics that significantly influence organizational behavior. The United States is characterized by a culture of individualism, innovation and competitive business practices, while the GCC region is defined by collectivism, religious values and hierarchical organizational structures. These cultural differences directly impact management practices, decision-making processes and employee relations within multinational organizations operating in these regions. Key findings emphasize the importance of cultural sensitivity, adaptive leadership and context-specific human resource management in enhancing organizational effectiveness across diverse cultural settings. The study concludes that multinational organizations must develop culturally adaptive strategies, invest in cultural awareness training and foster an inclusive organizational culture to achieve sustainable growth. Organizations are advised to continuously assess their cultural strategies and align their business practices with the cultural and business systems of their host countries. This study contributes to the understanding of the complex relationship between culture and business systems, offering valuable insights for scholars, business leaders and policymakers engaged in the global marketplace.

India and the Gulf Cooperation Council (GCC) countries have age old relations. Indians and people from these countries have frequently travelled to each other’s countries for trade as well as other activities. Indians have been traced in GCC countries for a long time. Indians going to those countries for business, work and other purposes have been a very old phenomenon. Even in pre-oil era, thousands of Indians went to earn a livelihood in GCC countries and many of them settled there forever. However, Indians going to work on a massive scale to these countries is a post-1973 oil era phenomena. The massive inflow of oil revenues consequent to the high rise in global oil price saw unprecedented level of economic development in these countries. However, such development required massive level of manpower, which these countries did not have and this is why these countries are characterized as capital rich labour scarce countries. The economic development in post-1973 oil era in these countries resulted in large scale import of manpower from abroad. As Indians were not new to these lands, the Indian workers also started migrating to these countries in search of employment and better life. Today Indians are present in each sector of economies of GCC countries. Millions of Indian migrant workers abound the GCC countries and contribute their bit in building those economies. However, this benefits them also as well as the Indian economy. These Indian migrant workers are crucial for both Indian as well as GCC countries. This study is a detailed probe into this phenomenon.

Purpose This study aims to examine the impact of sector market competition on the ownership structure of publicly listed firms in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The authors employed the system-Generalized Method of Moments (GMM) model for panel data, utilizing over 93,000 data points from 6,215 firm-years across six GCC countries from 2010 to 2020. Findings The results reveal a statistically significant negative relationship between total block holders and institutional ownership for both Herfindahl–Hirschman and Tobin’s-Q competition proxies. This finding suggests that companies operating in monopolistic or oligarchic sectors are likely to attract block holder investors. Moreover, various firm- and country-level factors, including return on assets, growth, size, gross domestic product and political crisis, also exhibit significant relationships with specific ownership variables. Practical implications Investigating the influence of competition on block holders’ ownership in the GCC region may provide new insights into the role of competitive markets in fostering economic development, promoting investor protection and shareholder rights, enhancing market efficiency and competitiveness and implementing effective reform policies and strategies. Originality/value Despite the significant contribution of GCC countries to global oil commodities, limited market competition research has been conducted in these markets. This study aims to fill this gap by investigating the impact of various firm-, industry-, and country-level factors on firm ownership structure in the GCC region, focusing on the influence of market competition.

PurposeThis study aims to develop a scale for new ways of working (NWW) in higher education institutions in the Gulf Cooperation Council (GCC) countries. The study also intends to validate the psychometric properties of the developed scale.Design/methodology/approachThis study targeted the academic staff of universities in the GCC region. Out of the 1,200 questionnaires distributed, only 1,016 questionnaires represented valid responses. Because there was not a unified theory for NWW, the authors developed a six-dimension tool that covered all virtual work aspects and psychometrically validated.FindingsThe results of exploratory and confirmatory factor analyses confirmed a structural model of six factors: flexible work location; work–life balance; communication; workplace design at home; culture and motivation; and satisfaction. The model showed a satisfactory fit. The scale consisted of 32 items with a high Cronbach’s alpha value of 0.85, which demonstrated good internal consistency. The results also suggested that the NWW scale had adequate convergent and divergent validity.Research limitations/implicationsThe data for the current study is a cross-sectional that represents a single sector; therefore, it would be more interesting to include more sectors. The study findings contribute to the ongoing debate in feasibility and usefulness of NWW pre, during and post-Covid-19 crisis. This research has offered a new scale for measuring NWW that fits dynamic educational environment where continuous learning and innovation are the key critical factors for survival. For this reason, further future studies need to refine, validate and improve the current scale structure. Also, because the current scale is by no means conclusive, future studies may look at other work characteristics and contextual factors that determine the success of NWW.Practical implicationsPractitioners can use the results of the current study as an intervention tool to leverage NWW acceptance to regain benefits and mitigate negative consequences. In addition, policymakers may use the scale as an evaluation tool to examine the readiness of higher education institutions to counter the COVID-19 crisis.Originality/valueThe originality of this work stems from the fact that it is the first study to develop a scale for NWW and test its psychometric properties in higher education institutions in the GCC countries, a domain that has been ignored by the extant literature.

Sustainability development now leads to business transformation plans supported by the significant role of accountants. In this paper, we relate how can the accounting profession contribute to achieving the United Nations Sustainable Development Goals (SDGs); industry, innovation, and infrastructure (SDG9). Hence, the paper explores the level of achievement in reducing the CO2 emissions in the Gulf Cooperation Council (GCC) countries and the role of the accounting profession. Our findings indicate that on average GCC countries have some distance to travel to reach the target of carbon emission reductions. The paper found that the accounting profession can contribute to this indicator through participating in the decision-making process in companies and reporting high-quality information that affects the society and environment. Thus, GCC countries should consider activating the role of professional accountants to accelerate their efforts toward achieving the SDGs.

Purpose This study investigates how the Russian invasion of Ukraine affected the stock markets of the Gulf Cooperation Council (GCC) countries in comparison to Europe and explores the varying responses of GCC markets. Design/methodology/approach Using an event study framework, the impact of the Russian invasion on equity markets in Europe and the GCC countries was analyzed by calculating abnormal returns around the event day, February 24, 2022. The study’s null hypothesis posits that abnormal returns on and around the event day are zero. Findings The analysis of abnormal returns revealed a negative impact of the event on both Europe and the GCC countries on the event day. While European markets continued to show negative abnormal returns, GCC markets rebounded with positive abnormal returns. The study also found diverse responses among GCC markets. Originality/value This paper is the first to examine the effects of the Russian invasion of Ukraine on the GCC countries and compares the market reactions to a political event in an energy-exporting region versus an energy-importing region. It also highlights the differences in responses among GCC stock markets, which may be influenced by market size and energy exports to Europe.

The Gulf Cooperation Council (GCC) countries are located in the driest part of the world with an annual per capita water availability of 500 m3 compared to the world average of 6000 m3. Agricultural water demand, which is more than 80% of the total water consumption, is primarily met through the massive exploitation of groundwater. The enormous imbalance between groundwater discharge (27.8 billion m3) and recharge (5.3 billion m3) is causing the excessive lowering of groundwater levels. Therefore, GCC countries are investing heavily in the production of nonconventional water resources such as desalination of seawater and treated wastewater. Currently, 439 desalination plants are annually producing 5.75 billion m3 of desalinated water in the GCC countries. The annual wastewater collection is about 4.0 billion m3, of which 73% is treated with the help of 300 wastewater treatment plants. Despite extreme water poverty, only 39% of the treated wastewater is reused, and the remaining is discharged into the sea. The treated wastewater (TWW) is used for the landscape, forestry, and construction industries. However, its reuse to irrigate food and forage crops is restricted due to health, social, religious, and environmental concerns. Substantial research evidence exists that treated wastewater can safely be used to grow food and forage crops under the agroclimatic conditions of the GCC countries by adopting appropriate management measures. Therefore, GCC countries should work on increasing the use of TWW in the agriculture sector. Increased use of TWW in agriculture can significantly reduce the pressure on freshwater resources. For this purpose, a comprehensive awareness campaign needs to be initiated to address the social and religious concerns of farming communities and consumers. Several internal and external risks can jeopardize the sustainable use of treated wastewater in the GCC countries. These include climate change, increasing costs, technological and market-driven changes, and regional security issues. Therefore, effective response mechanisms should be developed to mitigate future risks and threats. For this purpose, an integrated approach involving all concerned local and regional stakeholders needs to be adopted.

While contemporary artists in the Gulf Cooperation Council (GCC) countries understand how the thematic and aesthetic limits imposed on their work can lead to various forms of censorship, their widespread, deliberate self-censorship and blatant avoidance of certain content is perhaps more worrying. But not all creative productivity is whitewashed. Blurred lines and unclear constraints may yield unsuspected ingenuity, enabling artists to circumvent the censors, while many adopt conceptualist aesthetic choices as a means of pushing boundaries on freedom of expression, amidst an already complex matrix of governments, sponsors, patrons, ideologies, and alliances. With information and communication technologies, and other social media platforms permeating the region, artists can access otherwise unheard communities, gain new followers, and initiate important conversations. Such changes happen gradually and spaces for criticality are therefore pivotal. The nuances and contradictions of artistic censorship and self-censorship in the GCC region are explored, focusing on key actors and interlocutors.

This paper examines the influence of regulatory quality (RQ) on the link between foreign direct investment (FDI) and bank stability in Gulf Cooperation Council (GCC) countries. Through panel data analysis for 128 banks (Islamic and conventional) from the six GCC countries, the study reveals that FDI adversely affects bank stability of the GCC region; stability of Islamic banks shows a greater exposure to the adverse effect of FDI compared the stability of conventional banks. However, higher RQ weakens the adverse effects of FDI on the stability of banks in the GCC region. Islamic banks display a more significant role in allowing RQ to mitigate the detrimental effect of FDI on the stability of the overall banking system. This finding underscores the role of Islamic banks in stabilizing the GCC’s financial system. The study offers clear understandings for regulators, policymakers, and risk managers, emphasizing the need for careful regulatory quality management, particularly during increased foreign capital inflows to safeguard monetary and financial stability amidst FDI.