At the dawn of the Biden era of American foreign policy, a more mature, realistic Saudi foreign policy is emerging to match the shifting signals from Washington. In some measure, the Saudis are readopting elements that traditionally characterized their policy preferences before the meteoric rise of Crown Prince Mohammed bin Salman (MbS), the kingdom’s de facto ruler.
On Sept. 15, 2020, Emirati Foreign Minister Abdullah bin Zayed al-Nahyan, Bahraini Foreign Minister Abdullatif bin Rashid al-Zayani, then-Israeli Prime Minister Benjamin Netanyahu, and then-U.S. President Donald Trump met on the South Lawn of the White House to sign the Abraham Accords, normalizing relations between the two Gulf Arab states and Israel. Morocco followed suit several months later, signing a similar agreement with Israel on Dec. 22, and a week and a half after that, on Jan. 6, 2021, Sudan and Israel also agreed to normalize relations. A year on, these accords have had a significant, if not yet fully realized, impact on the Middle East, affecting everything from geopolitics and economics to tourism and people-to-people (P2P) ties, and they also reflect the changing dynamics in the region and beyond, particularly with the U.S. and China.
Amb. Dennis Ross and Karen Young join guest host Gerald Feierstein to discuss the progress of relations between Israel and the Arab world one year after the signing of the Abraham Accords, as well as the agreement’s economic impacts and what role the United States will play moving forward.
Israel and Egypt top growth expectations in MENA: A tale of two divergent strategies
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.
Since late June, Russia has expanded its diplomatic involvement in the Grand Ethiopian Renaissance Dam (GERD) dispute between Egypt, Sudan, and Ethiopia. While Russia has offered technical assistance to the GERD’s conflicting parties, it has refrained from inserting itself into the Nile dam dispute as a mediator and instead balanced the views of Egypt, Sudan, and Ethiopia in multilateral fora. Russia’s balancing strategy has been positively received in Sudan and Ethiopia but has created latent frictions with Egypt. Russia has persisted with this non-interference policy, as it has largely prevented a spillover of tensions over the GERD to other areas of cooperation with Egypt and believes that its position will help consolidate its partnership with Ethiopia.
It has been a year since the August 2020 announcement of the Abraham Accords, which normalized diplomatic relations between the UAE and Israel. The accords were later signed at a White House ceremony attended by President Donald Trump that September. In less than a year the UAE and Israel swiftly exchanged ambassadors. This was the highlight of the first year of normalizing relations between Tel Aviv and Abu Dhabi. During their first year the accords also successfully passed the unexpected, brutal test of the 11-day military escalation between Israel and Hamas that began in late May 2021.
The Uphill Economic Recovery from Covid-19 in the Gulf Cooperation Council
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.
An Indo-Abrahamic alliance on the rise: How India, Israel, and the UAE are creating a new transregional order
There is a new and little noticed geostrategic alliance on the rise. India, Israel, and the UAE have had surface-level, transactional relations for a long time. However, last year’s normalization agreements between Israel and several Arab states — chief among them, the UAE — along with Turkey’s bid to return as the leader of a Muslim order and the growing distance between the UAE and Pakistan have created an unlikely and unprecedented “Indo-Abrahamic“ transregional order. This emerging multilateral pact may fill the gap the United States is leaving in the Middle East and has the potential to transform the region’s geopolitics and geoeconomics.
All in the family: How an animated series reflects social change in Saudi Arabia
Masameer County, the Netflix animated television series taking Saudi Arabia by storm, reveals how the country’s creative class, over the last two decades, has posed awareness-raising questions while reevaluating the assumptions and terms used to discuss contentious social issues. This is not the Saudi Arabia of clerics, oil, and the royal family, but the one experienced by everyday people.
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.
Guled Ahmed, Mirette Mabrouk, and Mohammed Soliman join host Alistair Taylor to discuss the latest developments for the Grand Ethiopian Renaissance Dam (GERD), Egypt’s African diplomatic outreach, and the creative solutions required to meet the region’s growing energy needs.
