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now that the United States is the world’s leading producer of petroleum, there is likely to be more cooperation between the Russians and the Arab Gulf states in an effort to ensure that global oil prices are favorable to their interests

In the span of less than a decade, the Middle East has gone from a region in which the United States was overwhelmingly predominant to one that Washington and Moscow contest

The Russians are not going away, they have a strategy to weaken the West, and it starts in the Middle East. Moreover, Moscow no longer has the ideological baggage of communism, making it easier for it to make inroads in the region

The Turks, Egyptians, Israelis, Saudis, and Emiratis are sophisticated observers of American politics. They recognize that the political dysfunction of Washington can affect bilateral relations. Over the last decade, Egypt, Saudi Arabia, and Israel have become divisive topics in the United States. There is also the spectacle of the American legislative and executive branches being unable to manage the most routine tasks of governance without getting bogged down in ideological warfare. This makes leaders in the Middle East who have long relied on American security nervous that the United States is in decline, and they have thus begun to pursue, however tentatively, another option — Russia.

Leaving the Saudis to bleed in Yemen is not just a strategic gain for Tehran, but also for Moscow, which would be only too happy to see Washington’s primary Arab ally stuck there and in need of a lifeline that U.S. policymakers are too ambivalent to provide

Moscow’s demonstration of military force in Syria is primarily against poorly trained militias, bands of extremists, and innocent children. The gunfight between Russian “mercenaries” and American soldiers in February that reportedly killed most of the Russian forces and no Americans indicates that whatever brute force Russia can bring to bear, they are simply no match for the United States. This is a fact that the U.S. ambassadors, envoys, and sons-in-law need to convey to decision-makers in Cairo, Ankara, and other capitals where Moscow is selling its military hardware.

the United States has to make it clear that there are consequences for this military trolling. There are, of course, risks of escalation in this approach, but there are also significant disadvantages to demonstrating weakness in the face of Russian provocations

If the United States is, as Secretary of Defense James Mattis averred in January, in a new era of great power competition, it is time the United States treated the situation as seriously as it is. Putin must be disabused of the notion that the Middle East is the most propitious place to begin weakening the West and the United States. Americans once before contained and rolled back Moscow’s influence in the region; there is no reason to believe that they cannot do it again — but only if they have the wisdom to recognize what is important in the world right now and the collective stomach to meet the challenge. It is no longer clear to those in the Middle East that they do.

even if Suez Canal traffic were miraculously to increase, the benefits of a major logistical hub on its flanks are less than certain. Neither Egypt nor any other Middle Eastern or North African country is a major manufacturing centre. Intra-industry trade, which is that essentially conducted within multinational corporations as they integrate production of goods in many countries, is abysmally low in the Middle East and North Africa, whereas it is booming in East Asia. So the question of what purpose a logistical hub would serve is highly pertinent.

the Red Sea is not exactly a hospitable political environment. The ongoing war in Yemen, increasing instability in Eritrea and Ethiopia, persisting violence in Somalia and Egypt, protracted conflict in Sudan and South Sudan, piracy, and growing competition for port access between the UAE, Saudi Arabia, Djibouti, China, the US and others contain the seeds for turmoil that could negatively impact tourism in the region

What benefits then might Egypt anticipate from the reported $10 billion investment? The principal one seems to be contracts for military owned or associated construction companies, just as was the case with the digging of the parallel channel to the Suez Canal.

As military men they are interested in generating business for that sector of the economy they have come to control. From their perspective the $10 billion is not an investment in Egypt's future so much as it is a payment to the Egyptian military for being supportive of Mohammad bin Salman and his ambitions

costs of what appears to be a large scale, military dominated construction project are economic, environmental and political

Turning military owned and associated construction companies loose in the southern Sinai and along the foreshores of the Gulfs of Aqaba and Suez is a recipe for environmental disaster, as the current situations on the Mediterranean North Coast and western shore of the Gulf of Suez attest. The fragile marine environment has already sustained enormous damage to reef and other aquatic life.

buying Egyptian political insurance for his $10 billion, a price that Egypt may ultimately find to be very high

In 2016, the military and other security institutions were given exemptions in a new value-added tax (VAT) law enacted as part of IMF-inspired reforms. The law states that the military does not have to pay VAT on goods, equipment, machinery, services and raw materials needed for the purposes of armament, defense and national security.The Ministry of Defense has the right to decide which goods and services qualify. Civilian businessmen complain that this can leave the system open to abuse. Receipts for a cup of coffee at private sector hotels, for example, add 14 percent VAT. Receipts at military hotels do not. Employees at the military-owned Al-Masah Hotel in Cairo told Reuters that no VAT was charged when renting venues for weddings and conferences.

The Ministry of Military Production is projecting that operating revenues from its 20 firms will reach 15 billion Egyptian pounds in 2018/2019, five times higher than in 2013/2014, according to a ministry chart. The ministry does not disclose what happens to the revenues. The chairmen of two of the firms said profits go to the ministry or are reinvested in the business.

“I don’t want to be a local shop. I want to be a company that has the capacity to export and compete internationally.”

Egypt’s military, the biggest in the Arab world, has advantages.It enjoys financial support from Saudi Arabia and the United Arab Emirates, staunch supporters of Sisi since he toppled the group they see as a threat to the Middle East, the Muslim Brotherhood. Western powers see Cairo as a bulwark against Islamist militancy. Egypt receives $1.3 billion in military aid annually from the United States alone.

Among projects the Ministry of Military Production announced in 2017 was a plan to plant 20 million palm trees with an Emirati company and build a factory to make sugar from their dates. It agreed with a Saudi company to jointly manufacture elevators. The military inaugurated the Middle East’s biggest fish farm on the Nile Delta east of Alexandria.

The Ministry of Military Production signed a memorandum of understanding with China’s GCL Group last week to build a solar panel factory worth up to $2 billion. The military has taken over much of the construction of intercity roads from the Ministry of Transport and now controls the toll stations along most major highways.

Economists and investors say reforms tied to a $12 billion three-year IMF program signed in Nov. 2016 should lay the ground for economic expansion. But foreign investors are still shying away from Egypt, apart from those focusing on the more resilient energy sector. Non-oil foreign direct investment fell to about $3 billion in 2017 from $4.7 billion in 2016, according to Reuters calculations based on central bank statistics.  

foreign investors were reluctant to invest in sectors where the military is expanding or in one they might enter, worried that competing against the military with its special privileges could expose their investment to risk. If an investor had a business dispute with the military, the commercial officer said, there was no point in taking it to arbitration. “You just leave the country,” he said.

The chairmen of two military engineering companies, Abu Zaabal Engineering Industries Co and Helwan Engineering Industries Co, said in recent years it had become much easier to access financing through the Ministry of Military Production.

In 2015, the defense minister issued a decree exempting nearly 600 hotels, resorts and other properties owned by the military from real estate taxes

Military companies receive an exemption from import tariffs under a 1986 law and from income taxes under a 2005 law. Cargoes sent to military companies do not have to be inspected.

At bustling Cairo squares, people line up to buy subsidized meat and other food handed out from trucks sponsored by the military. Sisi said he had instructed the military to enter the market “to supply more chicken to push down prices.”Some disagree with such measures on the grounds the military’s mission is to protect the country from external threats.“We have reached a point where they are competing even with street vendors,”

Iraq has been dominated by non-Arab Iran after the majority Shiites took over power following the 2003 U.S.-led invasion. Saudi Arabia now considers Iraq as a potential bulwark against Iran rather than a puppet state controlled by Tehran

On a state visit to Riyadh last month, Iraqi Prime Minister Adel Abdul Mahdi oversaw the signing of 13 agreements whereby Saudi Arabia pledged to pump a billion dollars into its neighbor's economy

As part of its outreach to Iraq, Saudi Arabia has also softened its position on Shiite Islam, long seen as antithetical to the official Wahhabi creed of the kingdom. In a nod to its often restive Shiite minority mainly in the east, Riyadh plans to open a consulate in the Iraqi holy city of Najaf, to which many Saudi Shiites travel for pilgrimage

The Islamic Republic exported more than $1.66 billion worth of tomatoes alone to Iraq in 2017 and is the country's top source of everything from pig lard to human hair. Iran jumped from the Arab nation's fifth biggest non-oil exporter in 2016 to its biggest in 2017, bypassing China. Iraqi supermarket shelves are often stocked with cheap Turkish and Iranian products

"I don't think there's any illusion in Riyadh that Iraq will sever relations with Iran,"

After Iran cut off power to Iraq because of payment disputes last year, Saudi Arabia offered to sell it to Baghdad at a fraction of Iranian prices

The Saudis "have been relatively successful" in Iraq, said James M. Dorsey, senior fellow at Singapore's S. Rajaratnam School of International Studies and its Middle East Institute. "They need, however, to follow up on promises and capitalize on the fact that, unlike the Iranians, they have the cash to do so."

Still, Saudi Arabia continues to detain and even execute Shiites in large numbers on suspicion of spying for Iran, among other charges

Calls for the United States to pull back reject US intervention and hegemony in the Middle East, but they also seek to insulate the United States from the damage past policies have inflicted on the region and distance Americans from the peoples impacted.

The decline of US hegemony and its dominance of global economic and political systems, Schweller explains, has led Americans to “demand a more narrowly self-interested foreign policy” that seeks to insulate Americans from “the vagaries of markets and globalization.” The animating logic of America First, however, does not focus on the country’s global role as much as on the view embraced by Trump’s populist support base that US policy should counter the (perceived) threats posed by transnational flows and interdependence.

Much of the mainstream foreign policy debate in opposition to Trump has revolved around voices advocating for the US to return to a more modest, more multilateral version of its role as a global hegemon that seeks to rebuild the liberal international order.[4] Others are calling for an all-out mobilization against the rise of China and Russia.[5]

Support for restraint has accelerated with recognition of the declining strategic importance of the Middle East and the absence of major threats from the region to core US interests. With the massive expansion of US domestic energy production, Americans increasingly question the US military presence in the Persian Gulf and security commitment to allies in the region. Meanwhile, with unchallenged Israeli control over Palestinian territories, its military capacity that includes nuclear weapons and growing ties between Israel and Arab Gulf states, Israel is in a more secure strategic position than it has ever been. Advocates of restraint also understand that Iran has a limited ability to project conventional military power and even if it wielded a nuclear weapon, its use could be deterred. Lastly, restraint recognizes that the hyper-militarized approach of the global war on terror engages US forces in continuous military operations that are politically unaccountable and often exacerbate the political and socioeconomic conditions that foster armed non-state actors and political violence in the first place.

restraint fails to address the legacies of past US involvement in the region. The hope of insulating the United States from regional instability and future conflicts is also unlikely to be sustainable in the long run.

the Israeli right and their US supporters—including the evangelical right and Islamophobic populists—have been unconstrained in their efforts to shape US goals and policies based on a close identification with the Israeli right and Israeli militarism at the expense of the Palestinians

While advocates of restraint have long opposed excessive US backing of Israel, without the mobilization of domestic political forces that seek to dissociate the United States from Israeli militarism and support Palestinian human rights, a future US president dedicated to restraint will likely find little strategic value or political support for reversing current policies beyond trimming the price tag.

maintain close ties to the Saudi regime and other Arab Gulf states through flows of petrodollar recycling in the form of massive arms sales that sustain American jobs, corporate profits and campaign donations

Americans inside and outside of government will not quickly abandon the benefits they receive from economic, military and political ties to Gulf rulers

today US ties to the Gulf are being shaped by invented security rationales and material interests. Networks of arms sales, private military contractors, logistics firms and Gulf-funded think tanks—often with cooperation from Israel and its backers—have defined US policies by portraying Iran as a strategic threat, supporting arms sales in the name of so-called economic security and defending the strategic importance of protecting the rule of autocratic elites. At the same time, many segments of the US military and national security state have deeply rooted interests in maintaining bases and military-to-military ties in the region

In the foreseeable future, the Middle East will likely experience more instability and conflict due to, in large part, the legacy of US policies over the past two decades, which include the invasion of Iraq, interventions in Libya and Syria, the fostering of proxy wars, the promotion of neoliberal economic reforms, massive arms sales and support for aggressive actions by regional allies such as Israel and Saudi Arabia

the increased capacities for self-organization by armed non-state actors has helped sustain the regional environment of turbulence

It is unlikely that the United States could reclaim the diplomatic credibility needed to rebuild norms of restraint and balancing after having embraced militarism and unilateralism for so long

developments in the region will likely impact other US interests relating to the global economy, rivalry with China, climate change, nuclear proliferation and refugee flows

while the ideological and media infrastructure that mobilized fears to build the spurious case for the Iraq war have been temporarily disrupted, similar processes could be activated in the future to convert fears, such as of an Iranian cyberwar capability, a Chinese naval base in the region, or a resurgence of ISIS, into a strategic threat requiring a US response

the work of forging an alternative path for the United States in the Middle East, one that embraces sustainable anti-imperialism and demilitarization, must go beyond redefining US strategic interests to transforming domestic political, economic and ideological forces that shape US ties to the Middle East

In Notes on a Foreign Country, Suzy Hansen tries to diagnose the current era of anxiety and confusion felt by Americans living in an era when aspects of US exceptionalism and global hegemony are waning. She writes, “It is also perhaps the first time Americans are confronting a powerlessness that the rest of the world has always felt, not only within their own borders but as pawns in a larger international game. Globalization, it turns out, has not meant the Americanization of the world; it has made Americans, in some ways, more like everyone else.”

The effort to envision an alternative, post-exceptionalist US role in the world requires refashioning the debate so that Americans come to view the insecurities experienced by societies abroad as counterparts to the challenges Americans face at home.

Within the turbulent Middle East regional system, efforts to promote security would require not only an end to US military primacy and dominance but also a limit on regional and external interventions, the demobilization of the numerous armed non-state militias and proxy forces and a reversal of processes of state erosion and territorial fragmentation.

Americans need to envision a new internationalism that no longer seeks to remake the world in the American image but defines a new way for living within it

While we may not know exactly how much Arab regimes spend on their militaries, we do know that they are among the world’s leading importers of arms—an industry rife with corruption—and the largest recipients of military aid. As SIPRI has documented, six of the top 10 importers of major arms were Arab countries, totaling nearly one-third of all global imports ($146 billion) between 2015 and 2019. In 2017—the last year for which full data are available—four of the top 10 purchasers of U.S. arms were Arab countries, and nearly one-third of all U.S. weapons sales ($36.6 billion), along with roughly $5 billion in U.S. security aid, went to Arab regimes.

When IFIs provide assistance, even emergency aid, to Arab governments, they should condition the funds on transparent budgets, including a full accounting of military expenditures