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Gulf leaders sign deal to end years-long dispute

Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Gulf leaders sign deal to end years-long dispute:


Context:

Gulf leaders have signed a “solidarity and stability” deal after leaders of Saudi Arabia and Qatar publicly embraced, bringing Doha back into the regional fold after a three-year-long rift.

 What was the dispute?

Saudi Arabia had led a coalition of countries in the Gulf and beyond to cut ties and transport links with Qatar in June 2017, charging that it was too close to Iran and backed radical Islamist groups allegations that Doha denied.

Why peace in the region is important?

  1. Any kind of instability in the Middle East tends to send up oil prices, and the longer prices stay high, the more likely it is that it will cost more to fill up your tank.
  2. Qatar is the world’s biggest supplier of LNG and Egypt and UAE are key recipients.
  3. India depends on Qatar for 90% of its natural gas requirements.
  4. Qatar’s Sovereign Wealth Fund and other state-owned entities, as well as Qatari private investors, are looking at investment options in infrastructure in India.

InstaLinks:

Prelims Link:

  1. Location of Qatar.
  2. World’s top oil exporters and importers.
  3. India’s oil imports.
  4. What is LNG?

Mains Link:

Discuss why peace in middle East is important for India.

Sources: the Hindu.