Research & Commentary Results

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.

Recently, a notable trend has emerged among Alawites in Syria’s Assad regime-held areas, including those from powerful families. Writers, journalists, and rank-and-file Alawites have taken to social media platforms to express their deep frustration with the regime’s economic policies and the centralized nature of the dictatorship under President Bashar al-Assad, as well as his wife Asma al-Assad’s outsized influence and corruption linked to her secretive “economic council.”

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.

With its strategic prioritization of the Indo-Pacific and European theatres, the United States has had to significantly adjust its defense posture in the Middle East through new concepts and procedures to safeguard collective security interests.

The result is at least the beginning of a more dynamic and flexible approach to military deployment in the US Central Command (CENTCOM)’s Area of Responsibility. Instead of emphasising large and permanent basing, the United States will surge assets and resources from other locations depending on threats and needs.

In the race to manage climate change, the UAE is ramping up its efforts in a bid to accelerate its transition to a green economy. In the first two weeks of July 2023, it published several important documents laying out its actions and objectives, including a revised version of the national climate pledges it made under the Paris Agreement, as well as a number of targeted policies and strategies.

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.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

In the summer of 2016, I was honoured to be asked by former US national security advisor Stephen Hadley and former US Secretary of State Madeleine Albright to help design a wargame, or a simulated crisis, to test whether more or less US engagement in the Middle East would be more beneficial for US interests and regional security.

The crisis revolved around a fictitious incident at sea between Saudi and Iranian naval forces. We postulated that several small attack craft belonging to the Iranians confronted a Saudi frigate in the Arabian Gulf southwest of the island of Abu Musa.

After 500 days of coping with the debilitating impact of Russia’s invasion of Ukraine, Egypt’s economy is faltering. At the core of the crisis is its fragile food security. Now, the Egyptian economy is fast approaching a tipping point and Cairo has no alternative but to boost its domestic agrifood production. In addition to building out its infrastructure, Egypt must also adopt cutting-edge agritech solutions to improve the water-use efficiency of the crops themselves.

The Jordanian government has sought to further develop the Bethany Beyond the Jordan baptism site in an effort to boost the tourism sector and the broader economy. But striking the right balance between economic, religious, political, and environmental considerations won’t be easy.

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.

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.

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.

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.