Research & Commentary Results

One of the most consequential changes in the Middle East’s geopolitical map is happening at the water’s edge. Along the entire eastern rim of the Mediterranean basin, global and regional actors are engaging in a spate of port capacity expansions, new private port construction, and the sell-off of major state-owned ports that will determine who sits atop the region’s global trade flows for decades to come. The international competition to rebuild Beirut’s port is one key puzzle piece in this larger process that is reconfiguring the Levant’s maritime commercial architecture and, as a consequence, the geopolitical contours of the Middle East.

The possibility that the Lebanese government could opt for China to reconstruct Beirut’s port has raised alarm in Washington and European capitals given China’s already outsized commercial port presence in Egypt, Israel, and Greece. Increased Chinese involvement in Lebanon’s port operations could consolidate Beijing’s hold over the commercial connectivity architecture of the Levant. Re-orienting global commercial flows between Europe, the Middle East, and Asia according to Beijing’s priorities would make China’s Belt and Road Initiative a dominant organizing principle in the international relations of the Middle East. The most effective way to offset China’s ambition may be to facilitate Mediterranean rivals France and Turkey to jointly rebuild Beirut’s port.

The two countries in the Middle East with the highest growth expectations for 2022 are Israel and Egypt. Fitch Solutions estimates that MENA-wide GDP will grow by 3.6% in 2021, after a contraction of 4% in 2020. Egypt and Israel are the only countries within the region expected to grow their economies beyond the size of their pre-COVID-19 levels for 2021.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

The Cipher Brief:  Did you ever envision that the U.S. would pull out so quickly or completely leaving the Afghan military on its own without U.S. air support?  

General Votel: I did not anticipate this during my time – but once the President sets a hard departure date – then a fast withdrawal is inevitable.  No Commander wants to accept unnecessary risk with troops on the ground when you are up against a clearly articulated departure date.

Weeks before the official U.S. military withdrawal, Afghanistan is unraveling rapidly as the Taliban continue their swift military advance. They now control more than two-thirds of the country and half of the provincial capitals. With the government’s hold on Kabul in doubt, the Biden administration has dispatched troops to evacuate U.S. citizens from the country. We asked experts and scholars from across MEI to weigh in with their thoughts on the situation and what it means for the country, the wider region, and key international players.

The Afghan government appears to be in a state of precipitous collapse. At least a dozen provincial capitals have fallen to the Taliban in a week. The Taliban now control around 66% of the country.

The debate about whether Afghanistan was worth thousands of U.S. lives and a trillion U.S. taxpayer dollars should have occurred before those lives were lost and the money was spent. The decision to pull out our remaining 2,500 troops was made after all of that was done. That minimal number of troops preserved everything we fought for in the last two decades. We had significantly reduced the risk to our forces and the expense to the U.S. taxpayer. 

As we near the 13th anniversary of the end of the Russia-Georgia war, we reflect on the continuing tragedy of Russia’s invasion and occupation of Georgia. The consequences of this Russian aggression continue to place a heavy burden on Georgia today. Since 2008, we have witnessed the country’s tremendous commitment to overcoming Russia’s malign influence. Georgians’ overwhelming and bipartisan support for the country’s path toward EU and NATO integration has not been diminished — despite continuous Russian pressure.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

Lashet and Baerbock represent two very different German foreign policies with large-scale implications for Europe’s Eastern front.

As the United States exits from Afghanistan, on the eve of the 20th anniversary of the 9/11 attacks, it is important to reflect on the broader and longer-term reverberations of that withdrawal. In examining the withdrawal, peace process, and the recent dynamic of militia building and Taliban control, it’s becoming clear that a different transnational threat to U.S. interests is emerging.

The future of economic growth in the GCC is looking better than some analysts expected in the depths of the downturn in 2020. What may be different in this recovery compared to previous economic crises in the Gulf is a more limited fiscal policy space, and more variance among GCC countries in their ability to rebound with smart stimulus. As the global economic recovery now strengthens oil demand, taking advantage of this interim period of the global energy transition will mean accelerating government spending in areas where it can make a long-term impact on productivity growth and increased labor force participation among citizens in the private sector, especially women. Some governments will be able to accelerate productivity, including using highly skilled foreign labor and favorable long-term residency regimes, and others will be simply treading water to satisfy immediate demands of their populations.

While Western banks saw their valuations drop substantially during the first 18 months of the COVID pandemic — and have yet to recover — the declines among Saudi banks have been smaller and their valuations are now closer to, if not above, their pre-pandemic levels. Identifying the drivers of this seemingly contradictory trend helps us better understand the shifts within the Saudi banking sector and the growing impacts of policies related to Vision 2030, the country’s long-term economic development and diversification program.

Although it is home to the Horn of Africa’s main transshipment hub, a host of foreign military bases, and a booming local service sector, Djibouti faces a number of major economic challenges, including new and growing competition, dangerous reliance on Ethiopian power and water supplies, climate change, and high levels of debt. This is why Djibouti needs a Plan B for what comes next after the presidency of its long-time leader, Ismail Omar Guelleh, in power since 1999.

STMicroelectronics, one of Europe’s leading semiconductor manufacturers, will very shortly inaugurate a new production line in Morocco to manufacture electronic chips for American electric car pioneer Tesla. The production line is the latest example of a larger trend among international firms to look to Morocco as an attractive location for “nearshoring.” Through Rabat’s smart infrastructure investments and careful management of its foreign partnerships, Morocco has already exploited this trend to emerge as Africa’s leading automaker. Now with an auto chip production line dedicated to electric vehicles (EVs), Morocco is positioning itself to become a center for EV production while turning itself into a strategic component of Western semiconductor supply chain resilience.