Research & Commentary Results

Egypt is not alone in having been knocked into a pit by the fallout from the COVID-19 pandemic, but it will have to dig itself out on its own. However, if Egypt is going to do so, it needs to rethink its approach to development, starting with looking for the silver lining to the pandemic. Is it possible to address existing issues that have been brought home by the exceptional circumstances? In this report, contributors dissect the weaknesses that make Egypt particularly vulnerable to external threats and examine ways in which to address these vulnerabilities and shore up the economy and the business and developmental environment.

With its successful turnaround, strategic location, and extensive infrastructure, Egypt is repositioning itself as a regional energy hub for not only Europe and the Middle East, but also for Africa. It is useful to reflect on the successful transformation of Egypt’s energy sector while also evaluating where the sector stands today and how it will react to the twin challenges of the COVID-19 global pandemic and the oil price shock.

For the last five years, the international community has tried a range of different approaches to mediating the Libyan civil war. All have failed. Most nations not actively fueling the war with weapons, money, training, and mercenaries now see that halting these destructive flows is critical to bringing the rival militias to the negotiating table. However, this will not be enough to solve the conflict. Once militias are cut off from external sources of support, the core economic issues that gave rise to the conflict will still remain. Only a new approach empowering Libyan economic reformers and reworking the economic system can fix the dysfunction. To achieve this, international actors need to facilitate the establishment of a Libyan-led International Financial Commission with the authority to restructure the economy.

Since 2011 Libya’s seemingly endless Wars of Post-Gadhafi Succession have not fundamentally been fought over the control of territory, but rather over the control of economic institutions, patronage networks, and the amorphous optics of legitimacy and international support. The most recent battle, the 2019-20 “War for Tripoli,” was about gaining access to the fonts of both legitimate and corrupt enrichment: letters of credit, smuggling networks, subsidized petrol, and control of those myriad institutions to which Libya’s sui generis economic system grants the ability to exert de facto fiscal, financial, and legal power. Therefore, although Hifter and his allies have been wholesale evicted from western Libya, the grievances they highlighted, preyed upon, and took advantage of remain unchanged.

Following the outbreak of the COVID-19 pandemic, the Tehran Stock Exchange (TSE) took a different path than the rest of the financial world. As markets around the globe plunged, the TSE soared to new heights. There has been a recent reversal, however, with the index falling sharply from its peak in early August and losing around 20 percent of its value over the course of a month. The story of the TSE is about the extreme measures a desperate government is willing to take to make ends meet. 

In a new briefing book released ahead of the U.S. elections in November, entitled Election 2020: Challenges and Opportunities for US Policy in the Middle East, MEI scholars lay out key issues across the region, highlight the U.S. interests at stake, and provide policy insights and recommendations for the path forward. 

Countries in the Horn of Africa can draw lessons from the Taiwanese because they are themselves attempting to make the same political transition Taiwan did, but have not yet achieved the needed reforms such as ensuring good governance, eradicating corruption, and developing economic self-reliance to reduce dependency on aid. Taiwan may not have the financial resources to win against the PRC’s checkbook-driven One-China policy in Africa, but it could overcome that disadvantage by convincing African nations that it can help them replicate the sustainable growth model of the “Taiwan Economic Miracle.” Taiwan’s recent diplomatic overtures in Somaliland seem like a step in that direction and could be a game-changer, not only for the Horn of Africa but for the continent as a whole.

Following the devastating explosion that rocked Beirut on Aug. 4, one of the first foreign state dignitaries to visit Lebanon to pledge support was Turkish Vice President Fuat Oktay. Oktay said that not only would Turkey help to rebuild the damaged port and the surrounding buildings, but it could also provide temporary support in the form of linking Turkey’s largest Mediterranean port, Mersin International Port, with the Port of Beirut.

The explosion at the Port of Beirut on Aug. 4 has resulted in a further escalation of the political and economic crisis in Lebanon. Its repercussions can already be deeply felt in neighboring Syria and are expected to take an even greater toll on the country given its complex links to Lebanon. This crisis is feeding into Syria through multiple channels and has severe implications for its ability to import goods and, ultimately, its food security.

The Jordanian government implemented one of the most comprehensive and effective COVID-19 responses in the region. While the government’s stringent measures did prompt some public discontent, the population largely accepted them. The government’s rapid and broad initial response was successful in thwarting a major public health crisis. Nevertheless, the kingdom has not been able to forestall the damaging economic consequences of COVID-19, which are bound to linger for years to come.

Reports emerged this week that President Bashar al-Assad traveled on Sunday to his ancestral hometown and Alawi stronghold of Qardaha for a meeting with members of the powerful Makhlouf family.

Oman’s independent and creative foreign policy has been a boost to a region fraught with instability, but the combination of a new sultan and an adverse regional environment means Muscat’s trademark foreign policy may be diminished.

“God has opened the door to unprecedented wealth for us,” said an enthusiastic Recep Tayyip Erdogan as he announced that Turkey had made its biggest-ever discovery of natural gas on Aug. 21. He promised that gas from the 320-billion-cubic-meter deep-sea find would reach consumers in 2023, but industry experts are skeptical and have raised questions about the feasibility of the discovery.

As the people of Iran and the region rise up against the regime in Tehran, it is time to prepare for what comes next and imagine what could lead to the region’s next renaissance: a Middle Eastern cooperative organization.