USIP, Aug 07 (but released on-line 28 Jul 07):

Iraq and the Gulf States: The Balance of Fear
Summary

• Iraq’s Persian Gulf neighbors supported the U.S. invasion of Iraq in order to preserve the status quo—a weak and self-absorbed Iraq—rather than to impose a new one. However, the overthrow of Saddam Hussein and its aftermath have not brought stability to the Gulf States as much as they have shifted the most serious challenges from external threats (of a hostile Baghdad) to internal threats (the threat of conflict spillover from Iraq).

• Kuwait fears the growth of Iranian influence in Iraq and the possibility that Iraqi Shia unrest will spill across its own borders. Although many Kuwaitis question the wisdom and capacity of the United States in managing Iraq’s internal problems, Kuwait has provided significant support to U.S. military action in Iraq and the country’s reconstruction efforts.

• Qatar has supported U.S. military actions in Iraq by hosting the U.S. Central Command but still maintains the perception of nonalignment. For example, Doha hosts prominent former Iraqi Baathists, not to mention Saddam’s own family members.

• The interest of the United Arab Emirates (UAE) in Iraq is secondary to its concern over Iran, with which it has a long-standing dispute over ownership of three islands in the Gulf. The unresolved dispute with Tehran over the islands heightens the UAE’s concerns about the rising Iranian influence in Iraq.

• To bolster its relationship with the United States, the UAE offered training to hundreds of Iraqi troops and police recruits in 2004–2005, hosted the first Preparatory Group Meeting for the International Compact with Iraq in September 2006, and funded reconstruction efforts in Iraq through the United Nations and the World Bank.

• On post-Saddam regional security issues, member states of the Gulf Cooperation Council (GCC) seem to be more “market takers” than “market makers,” showing little inclination to shape the nature of a larger and potentially more powerful neighbor. Instead, they are focused on immediate choices for calibrating a proper relationship with Washington in a way that accommodates many other important relationships.
Full 16 page report at the link.