Expert regional analysis by MEI scholars and contributors.
The battle for control of the Yemeni heartland and its energy resources has reached a turning point. Yemen’s internationally recognized institutions are, once again, in crisis. In fact, the current infighting within the “government camp” threatens both the long-stalled implementation of the 2019 Riyadh Agreement and the political legitimacy of the newly-established Presidential Leadership Council.
The announcements in mid-August that both the United Arab Emirates and Kuwait will be returning their ambassadors to Tehran after six years provided the latest indication that the diplomatic ice has started to break in the Gulf region.
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The United States and its Gulf Arab partners need a new security arrangement that effectively shares the burden of defending against Iranian hostility and goes beyond deterrence.
The July 2022 leaders’ meeting took good steps on energy and food security, but Egypt and Saudi Arabia can help take the I2U2 to the next level when it comes to regional security.
Saudi Arabia and the UAE purchased $5 billion of U.S. air-defense missiles at a time when multiple American partners around the world are also looking to buy the same systems. The main effort in the Gulf will continue to be training and provisions of the material to develop an indigenous missile-defense capability.
After achieving respectable growth in 2021, the GCC member states now face the risk of monetary (over) tightening due to the need to follow the U.S Federal Reserve’s interest rate adjustments. These increases are not warranted, however, as the GCC economies currently face relatively moderate inflation. Instead, they should use the available fiscal space to mitigate the negative fallout of monetary tightening and make greater use of PPPs for future infrastructure development.
On Apr. 26, Egyptian President Sisi launched a call for political dialogue with all opposition parties except for the Muslim Brotherhood. Many opponents remain skeptical of the government’s recent change of heart. But some regime opponents have started being released from prison, and state media has again begun allowing critics of Sisi back on the air.
Egyptian President Abdel-Fattah el-Sisi’s recent, six-day European tour, which took him to Germany, Serbia, and France, aimed to boost his image and status as a central player on the world stage despite widespread criticism of his regime’s human rights record.
At the Jeddah summit in mid-July, President Joe Biden declared that “America is back,” a message that was welcomed by Saudi Arabia and Gulf media outlets. But Washington cannot maintain its influence and develop robust relationships in the Middle East without sustained American interest and effort, which have been oscillating with every change in administration.
The U.N.-sponsored truce of April 2022 is the longest pause in fighting Yemen has experienced since the Houthi armed rebellion broke out in September 2014 and the Saudi-led coalition forces intervened six months later. But although there is strong external interest in both extending and expanding the truce given the scale of turmoil in the global arena, credible progress remains lacking, while serious obstacles persist.
Expert regional analysis by MEI scholars and contributors.
Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
The last few years have seen a lot of consolidation in Gulf financial sectors. Not only do these mergers create economic benefits, the merged entities also become potent tools for economic development. The mega-funds and other major financial institutions are part of a trend where Gulf political elites sidestep ossified bureaucracies and instead centralize power in private entities over which they have even more control.