Reinvesting petroleum wealth

The United Arab Emirates naturally wants to reinvest some of its oil wealth in a way that will survive once the oil reserves are either pumped dry or (given a successful transition to other energy systems by the world at large) no longer wanted. One small piece in THIS puzzle is the UAE's announced project on the Mediterranean coast, The goal is to make Ras al-Hekmaa, west of Alexandria, a great world tourism Mecca.

The project could in time attract as much as $150 billion in investment capital. Egypt is dealing specifically with ADQ, a sovereign investment fund for Abu Dhabi.

The opposition press in Egypt appears to have gotten wind of this weeks ahead of the formal announcement. It isn't playing well. The country's government selling a beautiful stretch of coast to foreign investors!

But the Egyptian government's decision has been catalyzed by its foreign exchange crisis. We will see how the politics of it will play out.

My thoughts, though, are with the UAE at this point. It has of course occurred to them, since they are not run entirely by dummies, that petroleum money won't keep flowing their way forever. The world, with the prompting of weather disasters related to climate change, will wean itself off of the fossil fuels, and economies built on extraction will have to be ready for it. Thus, the investment of that money through vehicles such as ADQ into opportunities that will survive such a transition.

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