Syria’s economic freefall continues despite Arab League return
Syria’s dramatic readmission into the Arab League in May was perceived as a turning point for the country’s fortunes. Although Damascus may have come in from the cold diplomatically, there has been little change on the economic front, where the situation remains dire. Since the start of May, the Syrian pound has lost over 70% of its value and shows no sign of stabilizing.
The successes and failures of Turkey’s new economic team
It has been two months since Turkey’s new economic team took over and some progress has been made. Market normalization has begun and the risk of a balance-of-payments crisis has been reduced. At the same time, however, inflation is gaining new momentum, the budget deficit is sharply worsening, and no reform agenda has yet been announced to tackle these threats.
Five factors to watch in US diplomatic efforts on a possible Israel-Saudi deal
Forging a deal establishing open, normal bilateral ties between Saudi Arabia and Israel would be a major feat with plenty of potential perils along the way — the diplomatic equivalent of climbing Mount Everest. If done right, the result would be historic and transformative for the Middle East with positive geopolitical repercussions. Here are five factors to watch as the Biden administration continues its efforts to produce a major diplomatic breakthrough in the region.
Japan looks to the Gulf as it bets big on hydrogen
As a trailblazer in hydrogen diplomacy, Japan is seeking to develop a new pattern of energy interdependence with its longstanding partners, the Gulf Arab states — countries that are promising production bases for and exporters of green hydrogen and ammonia, and whose leaders have come to regard the development of clean hydrogen as an attractive way to diversify their economies.
A defense treaty is not how Biden should fix the Saudi relationship
The United States has likely reached a crossroads in its relationship with Saudi Arabia. President Joe Biden can reconcile with Riyadh and use its influence to reshape the Middle East to Washington’s liking and stabilize the global energy markets. Or else the Saudis most probably will tie their fortunes much closer to China, thus complicating America’s top foreign-policy priority.
Realigning priorities: Egypt's strategic shift toward Qatar, Turkey, and Iran
While some analysts attribute Egypt’s realignment toward Turkey, Qatar, and Iran to a change in the foreign policies of its influential allies, the UAE and Saudi Arabia, it can be argued that Egypt’s shift is primarily motivated by its domestic dynamics and its unfulfilled foreign policy objectives between 2014 and 2018. Egypt’s realignment, in that sense, seeks to achieve multiple unmet domestic and regional aims.
Changing dynamics reshape power networks in Yemen’s “two Hadramawts”
Since 2015, Yemen’s largest governorate, Hadramawt, has been informally divided between two distinct centers of power with different military loyalties and external backing. The balance of power within the governorate is no longer fixed, however. Changes in Hadramawt’s military, political, and economic dynamics are reshaping power networks in the governorate and beyond, with implications for the conflicting agendas of the Saudis, Emiratis, and Houthis.
Turkey's role after the Black Sea grain deal collapse has become even more critical
During the 500 days since Russia’s invasion of Ukraine, the Middle East avoided a catastrophic food crisis, thanks in part to the Black Sea grain initiative. Russia’s decision to cancel that agreement is raising fears that the return of supply shortages and skyrocketing wheat prices could quickly plunge the most vulnerable countries of the region into crisis.
Climate Change Threatens Turkey’s Role as a Food Supplier to Europe and the Middle East
The persistence of high food inflation in Turkey belies a deeper problem. Turkish agrifood production cannot adequately cope with increasing water scarcity due to climate change. Challenging Turkey’s own food security, the growing crisis also threatens Turkey’s role as a food supplier to Europe and the Middle East. Regional food supply chain breakdowns due to a decline in Turkish production would create a debilitating economic impact on both regions.
The new wave of dealmaking by Gulf sovereign wealth funds
For resource-rich countries such as Gulf oil and natural gas producers, sovereign wealth funds have emerged as promising tools to save for future generations, mitigate the effects of outsized economic shocks, and/or be deployed as reserve investment and strategic development funds to spend on human, natural, social, and physical capital.
Regional Environmental Cooperation Between Israel and Its Neighbors
As environmental challenges become a priority for countries across the Middle East and the Mediterranean, this creates new opportunities for regional environmental cooperation, including between Israel and its neighbors. Despite being limited in scope and facing several key obstacles, regional cooperative endeavors are taking place, including on both the bilateral and multilateral levels, and efforts to sustain and expand them are underway. This new report, written under the auspices of the Israel Climate Forum, addresses the importance of regional environmental cooperation in the Middle East and Mediterranean, examines the scope of such cooperation between Israel and its neighbors, and spells out opportunities, obstacles, and recommendations for increased coordination and joint action, including the role the U.S. and Europe can play.
Mastering the growing crisis in the South Caucasus: A role for the West and Turkey
The South Caucasus region needs a clear push from the West to ensure its long-term stability and achieve a pro-Western orientation. But no lasting solutions in this space will be possible until there is an end to the war in Ukraine that fulfills the interests of both Ukraine itself and the broader West. The United States and the European Union, in cooperation with other key players — foremost Turkey — must showcase greater determination, flexibility, and coordination when it comes to their policies toward the region.
