Research & Commentary Results

For the second time in the past two decades, a large number of Afghans find themselves escaping chaos. Twenty years ago, it was the American invasion of Afghanistan after the terrorist attacks of 9/11 that caused a large wave of refugees. More recently, the hasty American withdrawal from the country and the ensuing Taliban takeover have created another wave of refugees.

For Iran, Washington’s Afghanistan fiasco has been touted as confirmation that U.S. policy in the Islamic world is doomed to fail. The immediate geopolitical and ideological gains, however, could be overshadowed by the potential challenges that a Taliban-ruled Afghanistan may pose for Iran’s security and regional interests in the long run.

Egypt is currently the fastest-growing Arab exporter of liquefied natural gas (LNG), according to a report released by the Organization of Arab Petroleum Exporting Countries on Aug. 16. The report showed that Egypt exported around 1.4 million tons of LNG in the second quarter of 2021, having not exported any LNG during the same period in 2020.

بينما يشاهد العالم استيلاء طالبان على أفغانستان وما أعقب ذلك من أحداث متلاحقة، يبدو الأمر وكأنه “ديجافو” أو تكرار لمعاناة أبناء هذه الأمة. ومع عودة طالبان إلى وادي باميان، وهو أحد مواقع التراث العالمي لليونسكو الذي أجاز فيه الملا عمر تدمير تمثالين من القرن السادس لبوذا قبل 20 عامًا، ندرك أننا شاهدنا هذا الفيلم من قبل ونعرف كيف تكون نهايته.

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.

OPEC+ oil producers are unlikely to step back from their plans to increase production, as both the short-term market forecasts and long-term expectations of structural changes in the global oil market are forcing producers to focus more on market share expansion.

The images of desperate Afghan citizens trying to leave their country, beyond highlighting a massive human tragedy, may become a symbol of the so-called war on terror. Many of those Afghans already understand the feeling of abandoning their homes, because their families experienced it. They know what happens when foreign armies withdraw from their country and the tragedies that can ensue. The difference this time, however, was the deadline — only a few weeks.

Right now, Afghanistan is on the cusp of an economic collapse, not some Chinese investment bonanza. Its immediate challenges are existential. And until economic, political, and security conditions stabilize, and legal and regulatory frameworks for investments are in place, Afghanistan’s connectivity and mineral wealth dreams will remain just that.

The viability of Eastern Mediterranean natural gas resources has long been a source of debate for reasons including cost considerations, market demand, and regional geopolitical tensions. The past couple of years have further complicated the debate, introducing new questions about the role of these resources in supporting post-pandemic economic recovery or helping more advanced markets achieve net-zero policies by replacing coal and other fuel sources (a particularly relevant topic of debate given Europe and Asia are key export targets for East Med gas).

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.

Unanticipated swiftness of victory can be potentially befuddling, even for the victor. After the Taliban’s dramatic and largely bloodless capture of power, their leadership has struggled to finalize the structure of a government that will rule the country. The group, however, has attempted to use the interregnum period to indulge in a rebranding exercise. Statements issued by its spokespersons in Kabul as well as in Doha indicate that the group does not wish to take revenge on the “collaborators” of the fallen government. Instead, it wishes to form an “inclusive” government, which although it will be governed by sharia, may still have role for former government servants and women. However, this could only be a feeble attempt at building a narrative, which the group will find hard to sustain, even in the short term.  

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.

On Aug. 25, Iran’s parliament voted on the cabinet of its new president, Ebrahim Raisi, approving 18 out of the 19 ministers put forward. Raisi’s government is full of revolutionaries likely to adopt a hardline approach to domestic and international affairs, leading to heightened geopolitical risk and potentially prolonging the country’s economic crisis.

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.

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.