Economic Diversification and Energy Transition in Iraq and the Gulf
To identify pathways to deal with demands for economic reform and volatility in resource revenue in Iraq, in November 2021 the Middle East Institute (MEI) and Iraq Policy Group (IPG) convened a high-level workshop on the side-lines of the American University of Kurdistan’s annual Middle East Peace and Security Forum. This report provides the insights and analyses of a select group of participants, and forms part of a series of forthcoming Iraq- and Gulf-focused reports and initiatives that MEI and IPG will be convening.
Bridging the Cost Gap: Three Labor Policies to Close the Wage Gap Between Saudi and Foreign Labor
Since the launch of Vision 2030 six years ago, Saudi Arabia has made considerable progress in reducing the labor-cost gap between national and foreign workers in the private sector. While the total unemployment rate has declined recently among nationals, it remains high at 11%. Drawing on evidence from Bahrain’s experience with labor market reform, this can be significantly reduced through policies designed to bridge the cost gap between citizens and foreign labor in the private sector.
Turkey: A new emerging gas player with resources and infrastructure
With its recent deepwater exploration success in the Black Sea and prominent geographic location for interregional hydrocarbon pipelines, Turkey can play a material role in shaping the geopolitical landscape today, especially in the natural gas sector. The country will face a strategic conundrum, whether to utilize newly discovered gas resources entirely for domestic needs and thereby reduce gas imports that come with political baggage as well as foreign currency expenditures, or export gas to capture foreign revenue that Ankara desperately needs.
Iraq once again leaps into the void, but not before political elites secure funding
For Iraqis, two key events last week will shape the rest of this year, but hopefully not many more to come. First, on June 8 the divided parliament voted in surprising harmony to pass the so-called “Food Security and Development Bill,” a controversial piece of legislation with a $17 billion price tag. Second, this was followed, almost overnight on June 9, by a call from firebrand populist Shi’a cleric Muqtada al-Sadr to lawmakers loyal to his movement to “prepare their resignations.” On June 12, the 73 MPs of the Sadrist Movement tendered their resignations, and Iraq leapt even deeper into the void of political uncertainty.
Morocco counters Russia’s weaponization of the food-energy nexus
After 100 days of war in Ukraine on Europe’s eastern flank, a critical new front has opened on Europe’s southern flank with the food crisis in Africa. As Europe faces a two-front, geo-economic war of attrition with Russia, Morocco’s plan to increase its fertilizer output by nearly 70% changes the strategic equation by countering Moscow’s ability to weaponize the food-energy nexus. In so doing, Morocco has demonstrated its increasing importance as a geopolitical partner for Europe and the United States in Sub-Saharan Africa.
Pakistan’s political crisis and the imperatives of economic reform
Beyond short-term austerity measures, Pakistan’s current federal and provincial governments need to push forward essential reforms — including in agriculture, energy, and local governance — that are key to ensuring the country’s political and economic stability and long-term growth prospects.
New Turkey-Uzbekistan Strategic Partnership Accelerates Turkey’s Rise as a Eurasian Agenda-Setter
The March 2022 elevation of the Turkey-Uzbekistan relationship to a “Comprehensive Strategic Partnership” provides the Ankara-led Organization of Turkic States with a new geopolitical heft. To preserve its autonomy in the face of Beijing’s growing regional dominance, Tashkent has turned to Ankara to act as a countervailing force in both economic and security affairs. Combined with the expanding Turkey-Pakistan strategic partnership, this makes Turkey a rising Eurasian agenda setter that will impact the strategic calculus of both Beijing and Washington.
Another blow for the unsteady Israeli coalition government
On June 6 Israel’s coalition government lost an important vote, in which more than half of the Knesset members on both sides voted against their own most fundamental beliefs in a desperate effort to either bring down the coalition or to save it. The substance of the legislation was barely more than a pretext, but the opposition smelled blood and was willing to do virtually anything to regain power.
A country in free fall, a corruptocracy in full swing: Why a building collapse in Iran matters
On May 23, 2022, Metropol tower, a 10-story commercial building in the city of Abadan in Iran’s oil-rich southwestern Khuzestan Province, collapsed, killing at least 41 people and trapping dozens more beneath the rubble. For an outside observer, this might seem like a tragic but random accident that could have happened anywhere. In reality, it is a stark illustration of a country mired in corruption and mismanagement.
The war in Ukraine and the new reality in Asian oil markets
One of the main long-term consequences of Russia’s invasion of Ukraine is the restructuring of export flows in the global oil market. This will have direct consequences for Middle Eastern players, forcing them to choose whether to compete with Russia and each other or continue to coordinate their efforts.
Higher oil prices are giving Algeria’s regime breathing room
As Russia’s war on Ukraine keeps oil and gas prices high, Algeria’s regime is replenishing its financial reserves after years of depleting them. This renewed budgetary space will make it easier for the government to deal with any hint of popular discontent. But rather than going back to splurging on new salary increases or other forms of accelerated rent distribution as it has done in the past, the regime seems to be adopting a more cautious approach this time around.
A false alarm or a wake-up call for Israel’s fragile coalition?
On May 19, Ghaida Rinawi Zoabi, one of Meretz’s two Arab Knesset members, announced she was leaving the governing coalition and her party. On May 22, however, it was announced that she had rejoined both. What happened and what does it tell us about the state of Israel’s fragile coalition government?
The Palestinian Authority’s economic “disengagement” looks a lot like the status quo
Palestinian Authority (PA) officials repeatedly deny acquiescing to the economic peace model with Israel, but such rhetoric is not reflected in their actions. In recent years integration between the Palestinian and Israeli economies has only deepened.
“Half of us were left behind while one of our colleagues back home was shot dead”
There are certain events that are so impactful that you remember exactly where you were and what you were doing when you heard about them. The killing of Shireen Abu Akleh, the veteran Al Jazeera journalist, last Wednesday in the occupied West Bank was for me just such an event — both because of who she was and what I was doing at the time.
