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.
Morocco finds on-ramp into EV manufacturing through electronic chip production for Tesla
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.
Jardin d’Afrique: A moving memorial to forgotten migrants
In Zarzis, on Tunisia’s southern coast, Algerian artist Rachid Koraichi has created a moving memorial to the thousands of migrants who have died crossing the Mediterranean. A hybrid of graveyard, garden, and art installation, Jardin d’Afrique has become the final resting place for over 300 souls whose bodies washed up on the shore of this tourist town.
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.
Egypt, Ethiopia, and Sudan are caught in a dangerous deadlock over the Nile River and despite what the international community seems to think, the risk of military confrontation among the three nations is not at all far-fetched. Addis Ababa began the second phase of filling the reservoir behind its giant Grand Ethiopian Renaissance Dam (GERD) in early May without an agreement with the riparian nations — Egypt and Sudan. However, much has changed over the past year and the second filling has played out rather differently from the first last July. In the intervening months Egypt has ramped up its diplomatic outreach and emerged as an influential player in the Nile Basin, the Horn of Africa, and East and Central Africa. Cairo succeeded in forging strategic alignment with Khartoum to exert diplomatic pressure on Addis Ababa, forming webs of alliances with different regional powers across East and Central Africa and the Horn of Africa to project power and influence, and exerting geopolitical forward pressure on Ethiopia in parallel with the diplomatic track to solve the GERD dispute.
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.
The June 12 election for the National Assembly, the lower house of the Algerian parliament, shows that the country is stuck between, on the one side, a political system led by President Abdelmadjid Tebboune and backed by the army that rejects deep change and, on the other side, a population that has lost faith in the old system. Preliminary results announced June 15 indicated the phoenix-like return of discredited political parties that had strongly supported former President Abdelaziz Bouteflika, deposed in 2019. But in a sense President Tebboune is now more isolated than ever. His remark that he didn’t care about the record low voter turnout in the election shows the distance between him and most of the Algerian public.
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.
Is Morocco willing to jeopardize its relationship with Europe over the Western Sahara?
The scene was a familiar one, even if the scale was not. On May 17 and 18, thousands of migrants entered Ceuta, one of two Spanish enclaves in North Africa that border Morocco. The record flow of irregular migrants surpassed 12,000 people over the course of two days. The Spanish authorities quickly understood that this surge in migration was about more than the usual human desperation that has driven large numbers of people over fences and across water in an effort to enter Europe in recent years. Morocco, troubled over Madrid’s stance on its territorial claims over the Western Sahara, decided to retaliate.
