When Saudi Arabia suddenly announced in early April that it would reduce its oil production by 500,000 bpd, followed shortly thereafter by several other OPEC+ members, bringing the total cut to 1.1 million bpd, Japan was greatly concerned. In spite of Japan’s serious efforts to work toward a carbon-neutral society, the country is still heavily dependent on oil, the overwhelming majority of which comes from the Persian Gulf.
The road to Marrakech: US-China tensions loom over IMF/WB spring meetings
Last week’s spring meetings of the IMF and World Bank in Washington, D.C., were an important occasion for financial and economic leaders from the MENA region to meet with their counterparts from these IFIs and major bilateral donor countries. At the same time, they serve as a lead up to the important Annual Meetings that will be held in Marrakech, Morocco, in the fall — the first time they will be hosted by an Arab or African country.
It is clear that the era of US hegemony in the Gulf, and the Middle East more broadly, is over. What is less certain is what security system will replace it and whether it will better serve regional security and US interests.
The Gulf is becoming a more crowded geopolitical space than ever, with external powers such as China, Russia and India increasing their involvement in the region to safeguard their economic interests, while local powers, most notably Saudi Arabia, the UAE and Qatar, are rising and pursuing a more independent foreign policy course.
Qatar doubles down on LNG amid energy market volatility
The oil and gas sector has been the dominant driver of Qatar’s economy. Over the years, although that sector has remained the major focus of Qatari investments, the emphasis has increasingly shifted towards the expansion of the country’s gas production and LNG export capacity. While the construction boom ahead of the 2022 FIFA World Cup powered the Qatari economy in recent years, income generated by the expansion of the country’s LNG production and export capacity is likely to drive the economy for many years to come — both despite and partly because of the market turmoil caused by the fallout from Russia’s invasion of Ukraine in February 2022.
China and the Saudi-Iran rapprochement: Implications for Yemen
The conclusion of the China-brokered Saudi-Iranian détente on March 10, which aims to thaw long-standing enmity and manage competition between the two regional arch rivals, has multi-layered implications for Yemen.
Arab women break boundaries and stereotypes in Middle Eastern militaries
As Women’s History Month in the U.S. draws to a close, women in the armed forces of several Middle Eastern countries continue to achieve historic milestones, with many now serving as pilots, engineers, peacekeepers, and in special forces units. The role of women is steadily increasing as the result of new initiatives, policies, and gradually changing mindsets in the Middle East.
Missed opportunities: The billions sacrificed annually to generate electricity in the GCC
The GCC governments still cover over 40% of the cost of domestic electricity production. Yet, electricity subsidy bills alone do not reflect the full extent of their economic losses. Once the forgone revenues from the export of natural gas and oil used to meet rising domestic energy demand are added in, the total economic cost of the GCC’s electricity is too great to ignore.
A Saudi-Houthi deal won’t bring lasting peace in Yemen
The recent agreement to restore diplomatic relations between Saudi Arabia and Iran raised hope among Western leaders and some Yemen watchers that it could help bring an end to the war in Yemen. The international community, however, can do more harm than good if its actions are driven by hope and desperation rather than a careful reading of the reality on the ground. Yemen must not be a sacrificial lamb for improving relations between Iran and Saudi Arabia.
Expert Views: Opportunities to enhance water security in MENA
Water resources are a key component of global sustainability, especially in light of the mounting environmental challenges posed by climate change. We asked some of MEI’s Climate and Water Program scholars to share their perspective on strategies and opportunities that could most readily alleviate the region’s water security concerns.
Economic Diversification, Energy Transition, and the Labor Market in Iraq and the Gulf
As part of a continued collaboration with the Middle East Peace and Security Forum held in Iraqi Kurdistan at the American University of Kurdistan, the Middle East Institute and the Iraq Policy Group held a workshop on Nov.15, 2022 focusing on challenges of economic diversification, energy transition, and impacts on labor markets in Iraq and the Gulf region. This report provides the insights and analyses of a select group of participants from the workshop.
The Gulf Arab states, while major oil and gas producers, can play a significant role in supporting global efforts to achieve net-zero goals. They are not only endowed with great potential for renewable energy resources as well as some of the world’s lowest carbon content fuels, but also with, to varying extents, sizable financial resources. Yet, to unlock such huge potential, the Gulf Arab states will need to systematically identify and address the various challenges in their path to net zero.
The traditional 20th-century pillars of U.S.-Saudi bilateral relations are energy and security — a reflection of Cold War dynamics and the critical role that Saudi Arabia plays in the global economy as an energy superpower. Now, in 2023, Riyadh and Washington should think beyond energy to explore opportunities and address critical challenges in areas such as tech and cyber, which could ultimately cement their strategic relations for the 21st century.
