Research & Commentary Results

At its Sept. 23 meeting, the Central Bank of the Republic of Turkey (CBRT), in a surprise move, cut its policy rate (1-week repo rate) 100 basis points to 18.00%, while headline inflation was 19.25% (currently 19.58%). This is an interesting development as most central banks around the world have just started preparing to implement tighter policies.

China’s recent multi-sectoral engagements in Turkey suggest that the Black Sea region’s significance is on the rise in Beijing, and under President Erdoğan, Turkey has consistently sought its favor and investment.

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

Vision 2030 promises a transformation of Saudi Arabia’s economy, and the financial sector will be crucial to achieving this. The sector will facilitate private investment focusing on small and medium-sized enterprise (SME) financing, fund mega-projects, and be a driver for diversifying away from oil. As a result, banks’ role must go from being distributive and largely passive to developmental and active. This article will highlight how the role of the Saudi banking sector has been transformed in the last five years and how its composition is changing to cope.

We rarely miss an opportunity to criticize our Gulf Arab partners — sometimes rightly so — for not doing enough to safeguard collective interests. But one must acknowledge that on Afghanistan, and especially our just-completed exit from the country, most of our Gulf Arab partners absolutely shined. They deserve a ton of credit for the role they played in our large, challenging, and deadly evacuation — a role which was nothing short of indispensable.

Just before visiting Turkish-occupied Northern Cyprus in late July, Turkish President Recep Tayyip Erdoğan gave Serbia an unpleasant surprise. He announced that Turkey would lobby to increase the number of countries that recognized independent Kosovo. Erdoğan stated on July 19, “Now 114 countries recognize Kosovo, and we want that number to increase. We hope that this year at the United Nations General Assembly, at the meeting I will have with [U.S. President Joe] Biden, we will discuss this topic again, that we will work together on the recognition of Kosovo.”

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

While the Black Sea has historically been an area of significant geostrategic importance, this has not made it a vibrant zone of commerce, transport, energy, tourism, or cultural exchange. Rather, it has become a theater of struggle for dominance and competing geopolitical and geo-economic interests. This situation has been exacerbated by conflict between Russia and countries in the region, like Ukraine and Georgia, that have sought closer ties with the West and aspire to NATO membership and EU integration. These developments have dire consequences for regional security and stability, disrupting political and economic ties in the area and beyond. A long-term solution to the region’s security issues could be based on intensifying trade relations and increasing economic interdependence between the states. This paper identifies major barriers to closer regional trade and economic cooperation and outlines ways to overcome them.

Many analysts oversimplify the political conflict between Iran and Saudi Arabia as one driven by sectarianism or Shi’a-Sunni tensions that has shaped the two states’ outlook and actions in the Middle East. However, their political differences are actually much more complex and deeper rooted.

At the dawn of the Biden era of American foreign policy, a more mature, realistic Saudi foreign policy is emerging to match the shifting signals from Washington. In some measure, the Saudis are readopting elements that traditionally characterized their policy preferences before the meteoric rise of Crown Prince Mohammed bin Salman (MbS), the kingdom’s de facto ruler.

Suddenly and seemingly without warning, Russian forces amassed in Crimea and near the Ukrainian border in April 2021. Heavy armor, long-range missiles and artillery, modern air forces, and elite airborne infantry units deployed into positions that raised alarm in Ukraine and throughout Europe. The situation today appears stable, but reports of new and upgraded hardware, including unmanned vehicles, demand a fresh evaluation of the Russian way of war.

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.

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

Masameer County, the Netflix animated television series taking Saudi Arabia by storm, reveals how the country’s creative class, over the last two decades, has posed awareness-raising questions while reevaluating the assumptions and terms used to discuss contentious social issues. This is not the Saudi Arabia of clerics, oil, and the royal family, but the one experienced by everyday people.

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