In a politically significant statement, Turkish President Recep Tayyip Erdoğan has asked the Afghan Taliban to “end the occupation of their brothers’ soil.” This follows a Taliban warning of severe consequences if Turkey were to remain in charge of security at Kabul Airport after the exit of American troops. Erdoğan’s message is likely to be interpreted differently by different stakeholders in the unfolding Afghan tragedy, a situation characterized by escalating violence, political uncertainty, and regional chaos.
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.
Consolidating Saudi-Omani relations under Sultan Haitham
Sultan Haitham bin Tariq al-Said arrived in Neom, Saudi Arabia, on July 11, 2021, in his first foreign trip since becoming the sultan of Oman on Jan. 11, 2020. At the start of his two-day visit to the kingdom he was met by King Salman and accompanied by a high-level Omani delegation. A slew of new agreements were signed across commerce, culture, and transport.
Exploring the rising workforce participation among Saudi women
In the past few months, several articles have been written on the significant rise in the Saudi female labor force participation rate (LFPR) from 17.7% in Q2, 2016 to 33.2% in Q4, 2020. Interestingly, this increase in female LFPR was not coupled with a rise in unemployment, which often occurs when workforce participation rises for a particular group. In fact, the unemployment rate among female nationals declined to its lowest level in four years, at 24.4% in Q4, 2020. However, it still remains over twice as high as that for male nationals. Another positive labor market indicator, albeit one receiving little attention from analysts, is the significant change in the employment rate among Saudi women. In other words, Saudi women not only increased their share in the workforce, but were also able to gain jobs once they entered the labor force.
On July 1, 2021, Serbian President Aleksandar Vučić, accompanied by Mohamed Alabbar, an entrepreneur and the chairman of UAE real estate firm Eagle Hills, attended a ceremony in Belgrade. It commemoratedthe final work on a tower within Waterfront Belgrade, a major real estate project funded by the UAE. The ceremony was an illustration of the growing ties between Serbia and the UAE, which over the past nine years has become Belgrade’s primary partner in the Arab world. The UAE has also emerged as a source of cash and an instrument of domestic political promotion for the Serbian leadership.
Singapore and the Gulf: Economic engagement beyond hydrocarbons
Oil and gas have long dominated trade and investment flows between Singapore and the Gulf. In the wake of two new projects — one in Singapore and the other in the United Arab Emirates — unveiled last month, this article considers whether Singapore and the Gulf are on the cusp of a new level and type of economic relations.
The Turkish government recently confirmed that the country has approved development plans to carve a new passage between the Black Sea and the Sea of Marmara. Cutting through forests and farmland, the new Canal Istanbul would run parallel to the Bosphorus for a total of 45 km (28 miles) with a depth of 20.75 meters (68 feet) and a width of 275-350 meters (900 to 1150 feet). Ground-breaking for the first bridge over the proposed canal is scheduled to take place on June 26. However, this will be a ceremony for domestic political consumption and by no means indicates that construction is really starting. Financing the massive project might prove impossible due to the environmental concerns and investment risks hanging over it.
With Netanyahu gone, the Abraham Accords will not only survive, they might even flourish
Some international concern has been voiced about the future prospects of the Abraham Accords under Israel’s new government. This stems from the perception that the normalization agreements Israel signed in 2020 with the UAE and Bahrain were the personal achievements of two former leaders — Donald Trump and Benjamin Netanyahu — and would not have happened without them. The question thus arises of whether the agreements can survive their departure from power. Not only will the Abraham Accords survive, they will now be able to flourish and reach new heights. Foreign Minister Yair Lapid’s statement that his first visit abroad will be to the UAE is a good indicator.
With the Hope Line, Iran aims to boost seawater transfer to fight growing drought
Blessed with milder temperatures than its Gulf neighbors as well as abundant rain and snow fall, Iran is one of the last countries in the region to introduce a seawater transfer plan to fight unprecedented levels of drought. The plan, once fully implemented, could help build water corridors linking the shores of Iran’s southern Gulf to those of its northern Caspian Sea. Named the Hope Transfer Line, the plan promises prosperity for farmers and industrialists, and potable water for communities in some 10,000 villages and urban areas located in so-called Red Zones, a category that applies to regions coping with severe water scarcity.
The policy consequences of Arab state normalization with the Assad regime
The recent push by a number of Arab states to normalize relations with the Assad regime is based on the false premise that the war is over and it is necessary to restore ties to lobby Damascus to change its relationship with Iran. Other regional dynamics are also a factor: The UAE, for example, sees it as a necessary balance against what it perceives as adversarial actions by Turkey with the Syrian jihadist group HTS in Idlib. Yet these rationales for rehabilitating the Assad regime are completely fallacious. The downsides and policy consequences will not only affect Arab states, but will also harm American interests, making it difficult for the U.S. to fully pivot to address the rising threat from China.
