Research & Commentary Results

The (UAE is laying the groundwork for regional supremacy in AI. By fostering a web of novel institutions and partnerships, the Gulf state aims to augment its capacity to execute lofty AI policy initiatives. Further signaling its resolve, Abu Dhabi is lavishing the nascent sector with a host of incentives: financial privileges, office space, and even health care coverage. The embrace of AI comes as the UAE is cultivating emerging technologies as a means of boosting and diversifying its rentier economy, as well as signaling its innovation capacity and viability as a global trade powerhouse.

Through its Belt and Road Initiative, China seeks to play a larger role in the Black Sea region. China has been wooing littoral states in hopes of securing new markets for its goods and investing in infrastructure projects. But some worry that there is more to Chinese actions in the region than meets the eye. The worry is that China will increase its political and diplomatic clout in a region that is considered vital for Russian interests and create tension between Moscow and Washington. Despite the uneasiness in the West about China’s increasing presence in the Black Sea, there is not enough focus on the issue in the scholarly debates in Western capitals. The MEI’s Frontier Europe Initiative aims to contribute to the debate on the role of China in the Black Sea. We hope the articles in this report will help to address several important unaddressed questions.

What does a Biden presidency mean for the economy of Iran? The short answer is: not much. While the Iranian public considers his election good news for the country, these sentiments are fleeting and will soon fade. The reason is simple: Even if Joe Biden decides to reengage with Iran or reenter the 2015 nuclear deal on his first day in office, a Biden presidency will not change many crippling realities for the Iranian economy.

Iraq’s economic and fiscal crises, which came to the forefront this year following the onset of the coronavirus pandemic, were bound to happen at some point. What corona and the ensuing drop in oil prices and declining demand for oil did is accelerate the timing, according to the recently released Iraqi government white paper, a report of the Emergency Cell for Financial Reform. What the paper doesn’t predict is that in the next 6-12 months, and possibly beyond, we could see a worsening of the crisis with both current and future governments trying to adjust oil production and revenues in an effort to contain public discontent.

Algeria is at a critical stage in its energy sector development. The nation has both the potential and the incentive to maximize its natural resources and become a renewable energy leader. In addition to its status as the second-most-populous country in North Africa, Algeria is noteworthy for its relative size, wealth, location, gas reserves, renewable energy potential, and greenhouse gas emissions. Recent oil and gas price volatility and increasing domestic electricity demand provide impetus for Algeria to prioritize clean energy investment.

On June 17, 2020, the U.S. State Department’s special envoy to Syria, Joel Rayburn, announced the beginning of the “summer of Caesar,” promising a wave of sanctions designations under the newly activated Caesar Syria Civilian Protection Act. Summer has come and gone, but there’s little to show for it.

The Caesar Civilian Protection Act sanctions on Syria, which were signed into law by U.S. President Donald Trump in December and took effect on June 17, have polarized the international community. Most European countries have supported the Caesar Act’s use of sanctions to punish Syrian President Bashar al-Assad for war crimes, but Russia and China have stridently criticized the legislation.

Landlocked Afghanistan has begun using the Chinese-operated Pakistani port of Gwadar for transit trade — a development Pakistani officials see as marking the start of Gwadar’s role as a gateway port through the China-Pakistan Economic Corridor. Pakistan’s hope to develop the Arabian Sea port into a gateway for Afghanistan, Central Asia, and China’s Xinjiang region has been a long-standing one — and it is misguided. Islamabad should instead focus on local drivers to build the port and use it as a vehicle to develop the impoverished, but resource-rich region of southern Balochistan.

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.