Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
The Gulf Arab states, while major oil and gas producers, can play a significant role in supporting global efforts to achieve net-zero goals. They are not only endowed with great potential for renewable energy resources as well as some of the world’s lowest carbon content fuels, but also with, to varying extents, sizable financial resources. Yet, to unlock such huge potential, the Gulf Arab states will need to systematically identify and address the various challenges in their path to net zero.
The traditional 20th-century pillars of U.S.-Saudi bilateral relations are energy and security — a reflection of Cold War dynamics and the critical role that Saudi Arabia plays in the global economy as an energy superpower. Now, in 2023, Riyadh and Washington should think beyond energy to explore opportunities and address critical challenges in areas such as tech and cyber, which could ultimately cement their strategic relations for the 21st century.
Even as the Iran-backed Houthi rebels pursue back-channel talks with Saudi Arabia as Riyadh looks for a major de-escalation in the coming weeks, they have also been ratcheting up the pressure on the internationally recognized Republic of Yemen Government. The Houthis’ strikes on government-controlled critical infrastructure exhibit the same strategic use of Iranian-supported non-conventional warfare tactics seen in their previous cross-border attacks into Saudi Arabia and the United Arab Emirates.
Although U.S.-Saudi bilateral ties are on the mend, ambiguities and the transactional nature of the 1945 oil-for-security covenant contribute to mistrust and tensions. The burden of fixing or stabilizing the relationship is a shared responsibility. It’s time for Washington and Riyadh to reconfigure their security ties in accordance with new U.S. geopolitical priorities and new Saudi defense requirements. This report lays out such a process.
A Saudi-Houthi agreement now looks increasingly likely, but it is highly doubtful that such a deal by itself will end the multi-layered war or build a sustainable peace.
As a condition of its $3 billion loan from the IMF, the Egyptian Central Bank confirmed its pledge to maintain a durably flexible exchange rate. The Egyptian pound quickly and sharply dropped, but economists are cautiously optimistic that Egypt can sustain the current crisis and repay its debts. The government is walking a tight rope, attempting to raise revenues and attract investments without exacerbating the tough living conditions at home.
Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
Despite formal agreements and vast financial resources, Saudi Arabia has largely failed to integrate the various armed groups in Aden and southern Yemen under one national security sector. This adds to Riyadh’s ineffectiveness in establishing military-political influence in southern Yemen or in limiting the UAE’s continuing leverage. In an effort to boost its influence, since late 2022 Saudi Arabia has established new armed formations in Aden and nearby governorates, such as the Nation Shield Force.
Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
Facing the profound challenge of trying to diversify its energy supply while a destabilizing war rages on in Ukraine, Germany has looked to several Gulf monarchies to forge new energy partnerships. Notwithstanding heated domestic debates over controversial topics such as their human rights record, Berlin should consider a more comprehensive strategic approach toward the Gulf monarchies that encompasses issues beyond energy supply, such as joint efforts in regional integration and development.
Expert regional analysis by MEI scholars and contributors.
Gulf states are collectively investing billions of dollars in developing renewable energy. Yet climate change patterns in neighboring regions, combined with rising average temperatures, could eventually trigger more serious climate migration problems for the Gulf countries themselves.
The Gulf states are often overlooked as indirect beneficiaries of the Russia-Europe energy war. In what ways and to what extent have they leveraged it? Are these benefits sustainable?
