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.
These developments come against the backdrop of multiple U.S. hints that Washington is potentially willing to circumvent sanctioning the participating parties under the Caesar Act.
Elisabeth Kendall and Nadwa al-Dawsari join Charles Lister to discuss Al-Qaeda in the Arabian Peninsula (AQAP) and its place in Yemen’s persistent internal conflict.
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.
The central media apparatus of the Islamic State group is mis-reporting on the activities of its cells in central Syria. Rather than exaggerating their capabilities, something that it is conventionally assumed to be doing all the time, its Central Media Diwan appears either to be deliberately under-playing them, or, less likely, to be unaware of their full extent, possibly due to communication issues.
On Aug. 24 Algeria broke off its already minimal bilateral relations with Morocco, declaring this was due to the kingdom’s “hostile actions” and accusing it of involvement in the wildfires that struck the Kabylia region earlier that month. The heightened tension between the two countries brings into focus regional uncertainty and may spell the end of their limited collaboration in the energy sector.
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.
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.
Peter Bergen and Colin Clarke join guest host Charles Lister to discuss Bergen’s new book, The Rise and Fall of Osama Bin Laden, as well as the Biden administration’s handling of the US withdrawal from Afghanistan and concerns about the country once again becoming a safe haven for Al Qaeda under the Taliban.
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.
A week and a half after the fall of Kabul, the world has yet to fully recover from the shock of how quickly the Ghani regime collapsed. As U.S. and international forces continue their evacuations and many Afghans struggle to leave for Western countries, the formation of a new government in Kabul has picked up pace. The Taliban have been consulting all stakeholders to form a government that has broad support from a variety of Afghan populations — one they say will be “inclusive” and “Islamic” — but what that will actually mean or look like in practice is as yet unclear.
Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
Amid typical governmental absenteeism, Hezbollah’s Secretary-General Hassan Nasrallah announced on Aug. 19 that the party had secured fuel shipments from Iran. He asserted that the first of many fuel tankers would set sail to Lebanon that same day. Hours later, U.S. ambassador to Lebanon Dorothy Shea declared that the U.S. was working closely with Egypt, Jordan, and the World Bank to find solutions to Lebanon’s crippling fuel shortages. Shea’s comments imply a U.S. willingness to loosen Caesar Act restrictions that would otherwise prevent Lebanon from importing natural gas and electricity through Syria from Egypt and Jordan respectively. The two announcements have been in the making for weeks, but both come at a time when Lebanon’s physical and human infrastructure is crumbling in the absence of essential fuel supplies and energy sources.
One of the most consequential changes in the Middle East’s geopolitical map is happening at the water’s edge. Along the entire eastern rim of the Mediterranean basin, global and regional actors are engaging in a spate of port capacity expansions, new private port construction, and the sell-off of major state-owned ports that will determine who sits atop the region’s global trade flows for decades to come. The international competition to rebuild Beirut’s port is one key puzzle piece in this larger process that is reconfiguring the Levant’s maritime commercial architecture and, as a consequence, the geopolitical contours of the Middle East.
The possibility that the Lebanese government could opt for China to reconstruct Beirut’s port has raised alarm in Washington and European capitals given China’s already outsized commercial port presence in Egypt, Israel, and Greece. Increased Chinese involvement in Lebanon’s port operations could consolidate Beijing’s hold over the commercial connectivity architecture of the Levant. Re-orienting global commercial flows between Europe, the Middle East, and Asia according to Beijing’s priorities would make China’s Belt and Road Initiative a dominant organizing principle in the international relations of the Middle East. The most effective way to offset China’s ambition may be to facilitate Mediterranean rivals France and Turkey to jointly rebuild Beirut’s port.
The two countries in the Middle East with the highest growth expectations for 2022 are Israel and Egypt. Fitch Solutions estimates that MENA-wide GDP will grow by 3.6% in 2021, after a contraction of 4% in 2020. Egypt and Israel are the only countries within the region expected to grow their economies beyond the size of their pre-COVID-19 levels for 2021.