Locational Decisions and Perceived Risk of U.S. Multinationals in the New Gulf Development States

Abstract

American multinational corporations have done business in the Persian Gulf since the oil and construction boom of the 1970s. In recent years, however, the types of companies and their choices of where to locate have evolved. With the explosion in oil prices since 1998, U.S. firms are increasingly choosing to locate in the smaller countries of the lower Gulf, particularly the United Arab Emirates (UAE). These countries have been using oil windfalls to expand their economies, creating new hubs for global corporations in non-oil sectors. Michael Ewers' project explores the decisions of U.S. corporations to locate in the Gulf, as well as corporate perceptions of security risks in these countries. The actions and perceptions of American firms in the Gulf can support or disrupt economic security in the region and affect the perceived security of U.S. commercial interests.