Research & Commentary Results

Vision 2030 promises a transformation of Saudi Arabia’s economy, and the financial sector will be crucial to achieving this. The sector will facilitate private investment focusing on small and medium-sized enterprise (SME) financing, fund mega-projects, and be a driver for diversifying away from oil. As a result, banks’ role must go from being distributive and largely passive to developmental and active. This article will highlight how the role of the Saudi banking sector has been transformed in the last five years and how its composition is changing to cope.

On July 24, Beirut and Baghdad signed a governmental framework agreement under which Iraq pledged 1 million tons of heavy fuel oil to Lebanon over a full year.

On Aug. 25, Iran’s parliament voted on the cabinet of its new president, Ebrahim Raisi, approving 18 out of the 19 ministers put forward. Raisi’s government is full of revolutionaries likely to adopt a hardline approach to domestic and international affairs, leading to heightened geopolitical risk and potentially prolonging the country’s economic crisis.

In an automotive first for North Africa, German automaker Opel will soon begin producing electric cars in Morocco. Opel’s electric car manufacturing in Kénitra leapfrogs China’s plan to build electric cars in Egypt, giving Morocco’s automotive industry an important first-mover advantage. The move also represents a strategic gain for European automotive manufacturing over China. As a gateway to West Africa, Morocco provides Opel and its parent company Stellantis a nearby production base for the eventual cost-effective export of electric vehicles to rapidly expanding markets in Sub-Saharan Africa.

We rarely miss an opportunity to criticize our Gulf Arab partners — sometimes rightly so — for not doing enough to safeguard collective interests. But one must acknowledge that on Afghanistan, and especially our just-completed exit from the country, most of our Gulf Arab partners absolutely shined. They deserve a ton of credit for the role they played in our large, challenging, and deadly evacuation — a role which was nothing short of indispensable.

Mick Mulroy and Ken Tovo join host Alistair Taylor to discuss their recent paper on how US intelligence and military operatives effectively collaborated with local Kurdish partners in Northern Iraq in the early 2000s, why it was a successful partnership, and what lessons it may provide for future operations. The paper, “Irregular Warfare: A Case Study in CIA and US Army Special Forces Operations in Northern Iraq, 2002-03,” is available now on MEI’s website.

The failure of the Afghan army is a reminder that Pentagon-led security cooperation programs are more expensive and less effective than those led by spies.

There is a puzzle in the profits of Gulf Cooperation Council (GCC) firms, especially conglomerates. Even as the size of GCC economies has grown considerably in the last two decades, corporate profits have been flat. With a goal of economic diversification to expand private sector business and job opportunities for citizens, the imperative to create an environment for growth is acute for regional governments. Tarek Fadlallah, CEO of Nomura Asset Management Middle East and a member of the Program on Economics and Energy Advisory Council, lays out some of the challenges for Gulf economic diversification and improved corporate profitability.

A reinvigorated international approach to Yemen is possible. The current architecture for advancing a negotiated peace is being challenged by both international and local developments. The protracted nature of the conflict, the risk that it could worsen, and local political developments over the past two years necessitate a recalibration of the peace process, informed by realities on the ground, the urgent needs of the population, and the demand for security. Evolving coalition priorities, renewed U.S. engagement, and the appointment of a new U.N. special envoy may be an opportunity to advance conflict resolution. Achieving greater unity among southern actors will be key to the success of national-level talks and is urgently needed to prevent a further descent into violence, extremism, and humanitarian catastrophe.

While the Black Sea has historically been an area of significant geostrategic importance, this has not made it a vibrant zone of commerce, transport, energy, tourism, or cultural exchange. Rather, it has become a theater of struggle for dominance and competing geopolitical and geo-economic interests. This situation has been exacerbated by conflict between Russia and countries in the region, like Ukraine and Georgia, that have sought closer ties with the West and aspire to NATO membership and EU integration. These developments have dire consequences for regional security and stability, disrupting political and economic ties in the area and beyond. A long-term solution to the region’s security issues could be based on intensifying trade relations and increasing economic interdependence between the states. This paper identifies major barriers to closer regional trade and economic cooperation and outlines ways to overcome them.

Speaking at a public event earlier this month, Egyptian President Abdel-Fattah el-Sisi made the surprise announcement that the next step in the country’s economic reform agenda will include the removal of bread subsidies. He becomes the latest in a long line of presidents to target the bread subsidies that provide cheap sustenance to a country of (now) over 100 million people at a huge cost to the state, although none of his predecessors ever successfully managed to remove or significantly reduce them.

Despite their unique characteristics and contexts, the Russian occupation of two regions in Georgia and its annexation of Crimea in Ukraine share a variety of similarities when it comes to the human rights situation on the ground.

الدولتان في الشرق الأوسط اللتان تتمتعان بأعلى توقعات نمو لعام 2022 هما إسرائيل ومصر. وتقدر مؤسسة فيتش سوليوشنز أن الناتج المحلي الإجمالي على مستوى منطقة الشرق الأوسط وشمال إفريقيا سينمو بنسبة 3.6% في عام 2021، بعد انكماش بنسبة 4% في عام 2020. هنا نجد أن مصر وإسرائيل هما الدولتان الوحيدتان في المنطقة اللتان يُتوقع نمو اقتصادهما بما يتجاوز حجم مستويات ما قبل كوفيد-19.

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.

As the Great Game between the United States and China unfolds on a global scale, American and Chinese leaders have to make a choice — will they clash more openly in a struggle to dominate Afghanistan and its neighboring regions or will they rein in their ambitions and jealousies to accomplish goals that benefit themselves and many others?