Britain’s Gulf Diplomacy in Transition: Economic and Strategic Power Developments in Oman and Bahrain, 1971-2021

Abstract

British power and influence in the Gulf has been in a constant state of flux since the first commerce and defence treaties were signed between British agents and local rulers in 1820. This power, whether hard and overt through the secondment of military assets and control over domestic affairs, or soft and more covert such as the acceptance of officer cadets in British military academies or expertise sharing between financial organisations, determines the influence that the British Government and private sector companies have over local Gulf affairs. This study assesses the development of aspects of British power in Oman and Bahrain since the official withdrawal from Gulf affairs took place in 1971, focusing specifically on the economic and strategic legacy left behind after the political infrastructure of the Persian Gulf Residency was dismantled. The foundations on which the British legacy in both Gulf states is based can be traced back to the Residency era, between 1820 and 1971. The roles that individual Britons held in Oman at the point of withdrawal, as personal advisors hired in a personal capacity by Sultan Qaboos, seconded by the British Government to lead the military resistance against uprisings in the Dhofar, and to develop the domestic oil industry established an element of reliance and trust on the British presence. Conversely in Bahrain, by 1971 the British presence had already been diluted since the Second World War, with a prominent American presence in the key economic and military sectors. American oil companies held drilling licences across Bahrain and a large military contingent contributed to domestic defence. As a result of withdrawal, Britain has had to adapt its power projection to enhance influence over foreign and commercial policy priorities in an increasingly important Gulf region. This power legacy transitioned almost instantly in Bahrain when the British protectorate ceased, shifting from hard to soft means, but in Oman, elements of hard and soft power combined, termed ‘smart power’. In the five decades since Britain’s withdrawal from the Gulf, the British Government has utilised its capabilities to secure influence in the affairs of Oman and Bahrain, even if decision makers are unaware of the power implications of their actions. British military academies are still able to attract a constant number of Omani cadets but a majority of those from Bahrain have increasingly opted to accept secondments to American academies. Governmental financial support for arms sales to Oman are significantly higher than to Bahrain, largely because the number of orders and reliance on British weapons has remained high despite increased competition from countries that were historically barred from trading with the Gulf states. Similarly, differences between Britain’s relations with Bahrain and Oman have emerged in financial cooperation, consulting, energy affairs and military training since the 1970s. Few studies exist that focus on the British legacy in the Gulf, and none have analysed this legacy from a power dimension. Using archival documents released since 1971, Hansard archives of parliamentary debates, trade and investment data, interviews with former and current practitioners of policy in both Gulf states, and contemporary governmental documents, this study offers an important assessment of the power that Britain has retained in a part of the world that was always on the fringes of the British Empire. Historically, Britain could rely on its hard power in the Gulf to achieve policy aims, but since withdrawal it has become reliant on the willingness of the local rulers to retain their ties to Britain, largely as a result of the inducements offered by Britain and what these rulers could gain from their continued cooperation with their former protector. In the post-withdrawal era, Britain’s influence has become increasingly precarious as other states have encroached into the former British sphere of influence. British power and influence remains significantly stronger in Oman than Bahrain, with attraction and proven expertise forming a critical element of Britain’s diplomatic efforts to remain relevant within a rapidly developing region.