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The new leadership, like their predecessors, blames Iran for regional instability and the many conflicts going on.

as the Saudis described it to me, this new approach to grappling with their past is part of the leadership’s effort to make a new future for their country, including a broad-based economic reform program

“We did not own up to it after 9/11 because we feared you would abandon or treat us as the enemy,” the Saudi senior official conceded. “And we were in denial.”

it is an open question as to whether the Saudi people have been sufficiently prepared at all relevant levels in terms of education and skills to compete in the world economy, as they will need to do in a modernized economy. If not, social tensions and unrest may arise among those who are not prepared to compete.

For many years, I was accustomed to Saudi officials being vague and ambiguous. Now, our interlocutors were straightforward and business-like in discussing their past and their future plans. In past decades, my impression had been that the Saudis did not work hard. Now a team of highly educated, young ministers works 16- to 18-hour days on refining and implementing a plan to transform the country. The plan is the brainchild of Mohammad bin Salman and focuses both on domestic and regional fronts. Salman and his ministers exude commitment and energy.

Riyadh views modernization as the vehicle through which the Saudi state, at long last, can confront and defeat extremism, foster a dynamic private sector and master the looming economic challenges

Their Vision 2030 and National Transformation Program 2020 focus on shrinking the country's enormous bureaucracy, reducing and ultimately removing subsidies, expanding the private sector including attracting investment from abroad by becoming more transparent and accountable and by removing red tape.

Israel and Saudi Arabia share a similar threat perception regarding Iran and ISIL, and that old hostility need not preclude greater cooperation between the two states going forward

On some levels, the prospects for planned reforms are more promising in Saudi Arabia than they are in most other parts of the Middle East. Saudi Arabia has oil reserves and is not roiled in conflict: two important advantages

if the reform effort does work, Saudi Arabia is poised to become more powerful than before, enabling it to play a bigger role in regional dynamics including in balancing Iran and perhaps negotiating about ending the civil wars in the region. A true change in Saudi Arabia’s policy of supporting Islamist extremists would be a turning point in the effort to defeat them

the explicit ‘long war’ framing of the GWoT is a securitizing move of potentially great signifi cance. If it succeeds as a widely accepted, world-organizing macro-securitization, it could structure global security for some decades, in the process helping to legitimize US primacy

This article is about the strength and durability of that belief, and whether as a social fact it can be used to create a new political framing for world politics. In addressing this question I diff erentiate between a traditional materialist analysis of threat (whether something does or does not pose a specifi c sort of threat, and at what level) and a so-called securitizationanalysis (whether something can be successfully constructed as a threat, with this understanding being accepted by a wide and/or specifi cally relevant audience).4These two aspects of threat may run in close parallel, but they can also be quite separate. States, like people, can be paranoid (constructing threats where none exist) or complacent (ignoring actual threats). But since it is the success (or not) of the securitization that determines whether action is taken, that side of threat analysis deserves scrutiny just as close as that given to the material side

the only thing that changed is the belief that something had changed

reformulate the GWoT

Immediately following 9/11 NATO invoked article 5 for the fi rst time, thereby helping to legitimize the GWoT securitization.

In the case of Russia, China, Israel and India, the move has been to link their own local problems with ‘terrorism’ to the wider GWoT framing.

tied together several longstanding security concerns arising within the liberal order, most notably crime and the trades in drugs and the technologies for weapons of mass destruction (WMD). Within the frame of the liberal international economic order (LIEO), it is well understood that while opening state borders to fl ows of trade, fi nance, information and (skilled) people is generally to be promoted, such opening also has its dark side in which illiberal actors, mainly criminals and terrorists, can take advantage of liberal openness in pursuit of illiberal ends

There are fi ve obvious types of event that could signifi -cantly reinforce or undermine the GWoT securitization:ü the impact of further terrorist plans and/or attacks (or plans or attacks success-fully attributed to terrorists);ü the commitment of the United States to the GWoT securitization;ü the legitimacy of the United States as a securitization leader within interna-tional society;ü the (un)acceptability and (il)legitimacy of both the GWoT securitization as a whole or of particularist securitizations that get linked to it;ü the potency of securitizations competing with the GWoT

The escalation option would strengthen the GWoT securitization, and the reduction option would weaken it. More of the same does not look suffi cient to sustain the costs of a long-term macro-securitization unless the fear of escalation can be maintained at a high level.

Americans, like most other citizens of democracies, quite willingly surrender some of their civil liberties in times of war. But it is easy to see the grounds within American society for reactions against the GWoT securitization, especially if its legitimacy becomes contested. One source of such reactions would be civil libertarians and others opposed to the reasser-tion of government powers through a state of permanent fear and emergency. Another would be isolationists and ‘off shore balancers’ who oppose the current levels and logics of US global engagement

Grounds for opposition include its costs, in terms of both money and liberty, and the ineff ectiveness of a permanent increase in the state’s surveil-lance over everything from trade and fi nance to individual patterns of travel and consumption

US military expenditure remains largely aimed at meeting traditional challenges from other states, with only a small part specifi cally allocated for the GWoT. The signifi cance of the GWoT is much more political. Although a real threat from terrorists does exist, and needs to be met, the main signifi cance of the GWoT is as a political framing that might justify and legitimize US primacy, leadership and unilater-alism, both to Americans and to the rest of the world. This is one of the key diff erences between the GWoT and the Cold War. The Cold War pretty much wasUS grand strategy in a deep sense; the GWoT is not, but, as a brief glance at the USNSS of 2006 will show, is being promoted as if it were

The US successfully generated and led the macro-securitization of the Cold War against communism generally and the military power of the Soviet Union in particular. It was aided in this both by the broad acceptability of its own qualities as a leader in the West, and up to a point even in the Third World, and by the fact that other states, especially west European ones, plus Turkey, Japan and South Korea, shared the fear of communism and Soviet military power

A weight of punditry agrees that the Atlantic has got wider, to the point where even the idea that there is a western community is now under serious threat.

states might support or oppose the GWoT not only on its merits, but also because of how it plays into the global hierarchy of power

In terms of the GWoT securitization as a whole, some of the lines of opposition are the same in the rest of the world as they are in US domestic debates, particu-larly over what kinds of emergency action it legitimizes. To the extent that the GWoT becomes associated with actions that seem to contradict the values that the West seeks to represent against the likes of Al-Qaeda, the legitimacy of the securitization is corroded

By hardening borders, homeland security measures erode some of the principles of economic liberalism that they are designed to defend; and the same argument could be made about the trade-off between enhanced surveillance under the GWoT and the civil liberties that are part of the core referent object of western civilization

Most western leaders (the ever undiplomatic Berlusconi having been a notable excep-tion) have tried hard right from the beginning not to stage the GWoT as a war between the West and Islam. They have trodden the diffi cult line of maintaining that, while most of the terrorists speak in the name of Islam, that does not mean that most adherents of Islam are terrorists or supporters of terrorists. But despite this, the profoundly worrying relinking of religion and politics in the United States, Israel and the Islamic world easily feeds zero-sum confl icts. This linkage could help to embed the securitization of the GWoT, as it seems to have done within the United States and Israel. If religious identities feed the growth of a ‘clash of civilizations’ mentality, as seems to have happened in the episode of the Danish cartoons, this too could reinforce the GWoT securitization. It could, equally, create a reaction against it from those who feel that their particular religion is being mis represented by fundamentalists, and/or from those who object to religious infl uence on politics. The latter is certainly part of what has widened the gap between the US and Europe

Al-Qaeda and its like, while clearly posing a threat to the West, do not represent a plausible political alternative to it, Islamist fantasies about a new caliphate notwithstanding. The contrast with the Cold War could not be more striking. Then, the designated opponent and object of securitization was a power that represented what seemed a plausible political alternative: one could easily imagine a communist world. The post-9/11 securitization focused neither on an alternative superpower nor on an alternative ideology, but on the chaos power of embittered and alienated minori-ties, along with a handful of pariah governments, and their ability to exploit the openness, the technology, and in some places the inequality, unfairness and failed states generated by the western system of political economy

Iraq. The US and British governments attempted to justify the invasion by linking Saddam Hussein’s regime to both terrorists and WMD. This securitizing move was successful within the United States, but vigorously contested in many other places, resulting in serious and damaging splits in both the EU and NATO. Russia was generally very supportive of the GWoT securitization, seeking to link its own diffi culties in Chechnya to it, but Putin joined Germany and France in strong opposition to the US-led invasion of Iraq. The ill-prepared occupation that followed the successful blitzkrieg against Iraq only deepened the splits, with many opponents of the war agreeing with Dana Allin’s assessment that ‘Iraq was probably the war that bin Laden wanted the United States to fi ght’,29and Wilkinson’s that it was ‘a gratuitous propaganda gift to bin Laden’.30 During the 2004 US election, even John Kerry began to argue the point that invasion of Iraq was distracting eff ort away from the GWoT.31 As the political disaster in Iraq continues to unfold, it is hard to avoid the conclusion that it was both a tactical and strategic blunder of epic proportions in relation to the problem of global terrorism represented by Al-Qaeda

There are quite a variety of possible candidates for competing securitizations. Rising sea levels or approaching asteroids, or the spread of a new killer plague, could easily put planetary environmental concerns at the top of the securitiza-tion agenda. But in conventional mode the most likely threat to the GWoT as dominant macro-securitization comes from the rise of China

It was perhaps only the perceived remoteness in time of China achieving superpower status that prevented this securitization from becoming the dominant rhetoric in Washington during the 1990s. As time marches on, the rise of China becomes more real and less hypothetical

Given an ongoing disposition within Washington to construct China as a threat, the likely increase in Chinese power, both relative and absolute, and the existence of tensions between the two governments over, inter alia, Taiwan, trade and human rights, it is not diffi cult to imagine circumstances in which concerns about China would become the dominant securitization within the United States

o long as China conducts its so-called ‘peaceful rise’ in such a way as not to threaten its neighbours or the general stability of interna-tional society, many outside the United States might actually welcome it. Europe is likely to be indiff erent, and many countries (e.g. Russia, China, India, Iran, France, Malaysia) support a rhetoric of multipolarity as their preferred power structure over the predominance of the United States as sole superpower.

Because a world govern-ment is not available, the problem pits international society against global uncivil society

Wilkinson, who has solid credentials as a hard foe of the terrorists, echoes a sentiment widely held across the political spectrum when he says that ‘If we undermine or destroy our hard-won liberties and rights in the name of security against terrorism we will give the terrorists a victory they could never win by the bomb and the gun.’28 In this respect it is of more than passing interest that all of the current strategies being used to pursue the GWoT seem actively to damage the liberal values they purport to defend.

War is seldom good for liberal values even when fought in defence of them

Equalizing starts from the assumption that the root causes of terrorism lie in the inequalities and injustices that are both a legacy of human history and a feature of market economies. The long-term solution to terrorism in this perspective is to drain the waters in which the terrorists swim by redressing the inequalities and injustices that supposedly generate support for them. It is not my concern here to argue whether this contested cause–eff ect hypothesis is correct or not. My point is that if a policy along these lines is pursued, it cannot avoid undermining the foundations of a competitive market economy

f inequality is the source of terrorism, neo-liberal economics does not provide a quick enough solution

terrorism poses a double threat to liberal democratic societies: open direct assaults of the type that have become all too familiar, and insidious erosion as a consequence of the countermeasures taken

f it is impossible to elimi-nate terrorists, as is probably the case, then this drive risks the kind of permanent mobilization that inevitably corrodes liberal practices and values

If the priority is to preserve liberal values, one is pushed towards the option of learning to live with terrorism as an everyday risk while pursuing counter-measures that stop short of creating a garrison state.

The necessary condition for doing so is that state and society raise their toleration for damage as a price they pay for openness and freedom. Kenneth Waltz long ago made the point that ‘if freedom is wanted, insecurity must be accepted’,38 though it has to be said that this part of his analysis has made little impact on US thinking about national security

if terrorism is a problem of the long term, as it well might be for advanced industrial societies, it would require a level of democratic sophistication and commitment rather higher than anything yet seen

Europe is more resilient and better able to defend its values without resorting to excesses of securitization. By comparison, the United States seems a softer target, too easily pricked into intemperate reactions that in themselves work to under-mine what it claims to stand for

the role of “The Sheikh” was invented, as mediator between the government and the inland population. Unlike the wise and elderly tribal sheikhs who were appointed through tribal consensus, these “sheikhs” were co-opted by the government. They did not protect the independence of the tribes, they did not arbitrate disputes, and they had little power in local affairs. Still the power of these sheikhs for hire was “exalted, since it was through them that decrees of government were transmitted to the tribesmen.”17 Although they were viewed as “agents of the occupier,” the Bedouins were left with no choice but to turn to them in issues pertaining to their economic and political lives

Prior to 1952, “Egypt had the largest consumer market for hashish in the Middle East. Turkey, Lebanon and Syria were the largest regional producers of the drug.”20 The smuggling route ran through the more accessible desert areas of the Middle East, crossing the TransJordanian Plateau, the Negev, and the North Sinai to Egypt. With the ousting of King Farouk in 1952, Abdel Nasser started to fortify the North of Sinai to prepare for nationalizing the Suez Canal. As a result, the smuggling route had to move to the mountainous and inaccessible South Sinai. Thus, the South Sinai “smuggler” came into being, and made use not only of his unemployment, but his nomadic prowess and knowledge of his cavernous terrain. The logic was, if the state treated them as outsiders, then they might as well exist outside the law. After all, smuggling was more lucrative than any grazing or menial government job could ever be

the smuggling business continued even after the Israeli occupation of the Sinai Peninsula in 1967. “Assuming that the Egyptian border guards would be given a cut of the drugs as a bribe, they chose to allow the smugglers to continue operating the drug traffic to Egypt, on the logic that drug use by Egyptian soldiers could only benefit Israel.”21 However, when the Eilat-Sharm road opened in 1972, the Israelis feared that the inexpensive drug might find its way into their own lucrative drug scene, and effectively ended all activity

Whereas the Egyptian administration distributed a sadaga, meaning charity, through their hired sheikhs, the Israelis personally distributed basic food staples from the American charitable organization CARE to the heads of every family.25 They also organized visits to villages in Israel, built a total of eleven clinics, offered formal vocational courses in Dahab and Sharm El Sheikh, employed half the Bedouin population in the oil fields, and in military and civilian construction, and at the request of the sheikhs, built them a total of thirteen schools in South Sinai alone. The Bedouins, who had expected to be dealt with impersonally, were quite amused with the new perks. Still, while most embraced change, they never let their guard down. In other words, there were no illusions of loyalty. Israel was still seen as an “occupying power.”

the Israelis also created “The Exotic Bedouin.”

One way for the Bedouins to mark their territory was to come up with an image that would help define and differentiate them. As a result, the “Muslim Bedouin” was born. The issue of self-definition became an urgent one when relations with outsiders ceased to be conducted through sheikhs and Bedouins came into increasing contact with the West. They felt that all Westerners, whether tourists or soldiers, Israelis or Europeans, Jews or Christians, invaded their privacy and threatened their traditions and customs.28 For example, in keeping with the Sinai image as an exotic, all-natural paradise, the tourists sunbathed in the nude, a practice that Bedouins took great offense to. When they expressed their dismay and requested that the behavior of tourists be regulated, Israeli authorities responded by explaining that they wanted nothing to do with the issue. Seeing that the “Bedouins were not permitted by either Israeli or Egyptian law to impose their own laws on non-Bedouins.. the problem could not be resolved.”29 In response, the Bedouins encouraged an Islamic revival of a very paradoxical nature. They still worked in tourism and came into contact with tourists everyday, but all the money made was “purified” by lavish expenditure on mosques and shrines of Saints and excessive manifestations of religious zeal. “‘We are Muslims,’ (they said) ‘they are the Jews.’”30

While the Bedouins were trying to disassociate themselves from the West, Egyptian policy was heading in the other direction. To complicate matters even more, “state-supported Muslim institutions, such as Al-Azhar University, invested this official policy with an Islamic sanction.”31 Result was an institutional type of Islam, one that was mainly constructed to fight the remnants of Nasser’s socialist regime. In this context, it was hard for the Muslim Bedouin to demonstrate loyalty merely by waving the flag of religion. The fact that Egypt signed a peace treaty with Israel did not help bridge the gap either. Were the Bedouins to be viewed as fellow Egyptian returning from exile or were they treacherous collaborators?32 More importantly, which of these images was more beneficial to the state?

“The Villain” was born; an all-encompassing figure who stood for many ills all at once. He was uncivilized, lawless, treacherous, and dangerous. The most important thing for the state was to cater to the economic interests of Cairo’s elite in the Sinai, from the military and the industrialists, to the members of political parties and ministers. This goal could only be achieved through a label that would blunt Bedouin capacity to organize, gain sympathy, and attract media attention. In 1980, “Law 104, providing for state ownership of desert land and thus making the whole Sinai government property was changed to permit private ownership.”33 The law had some devastating effects on the Bedouins. Their land claims were not legally recognized, and they were subsequently displaced “with no government compensation.”34 In their place, the land was repopulated with peasants to solve the unemployment problem in the urban center. The once virgin coast became littered with grotesque infrastructure that paid no heed to damaging the natural balance of the environment; thousands of them were framed and sent to prison after the terrorist attacks on Sharm El Sheikh and Dahab in 2004 and 2005

a 20 million pound wall was built in Sharm El Sheikh to isolate the “dangerous” Bedouin from the tourist “paradise” beyond

every Bedouin stereotype out there has been readily absorbed and exploited by the Bedouins themselves

All what is left of Bedouin life is its cultural identity, and they hold on to that dearly. “The Bedouin is not Egyptian,” a young man in a white cotton head dress said, “The Sinai is not Egyptian or Israeli. It is Bedouin.” This is all that is left. In the age of state-systems, modernization and globalization, the world is becoming increasingly hegemonic and indigenous cultures are losing the battle. The world might like to think that it is without borders, but say that to a Bedouin and wait for a response.

“I think there is a sort of vision developing between Syria and Turkey where they could serve jointly as a regional trade hub, linking Europe with the Gulf and other parts of the East,” said Nabil Sukkar, a Damascus-based economic analyst.

a real social and cultural rediscovery, with Turks and Arabs warming to each other after long years of hostility. Syria, after all, was born out of the Ottoman Empire’s dismemberment in 1920, and its identity was built in large part on the rejection of its former masters in Istanbul.

Many Syrians say Turkey feels much closer to them culturally than Iran or Saudi Arabia, two important allies of recent decades. Turkish films and television shows are often dubbed into Syrian Arabic and become huge hits here. One film, “Valley of the Wolves: Iraq,” portrayed Turkish agents taking revenge on American soldiers for massacres carried out on Arabs in Iraq, in a neat parable of recent policy shifts.

“Before, we were afraid to come here,” said Omer Sonmez, a Turkish businessman who first visited Syria three months ago, and now crosses over regularly to trade roasted pumpkin seeds and other foods. “We thought it would all be so closed, with no women on the street. But when you talk to Europeans, they say the same thing about Turkey!” “And look,” Mr. Sonmez added, glancing around at the crowds emerging from Aleppo’s covered market. “We are not so different. Even our faces are similar.”

Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.

“Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.

Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.

attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.

While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.

This time around, Washington has chosen to go it alone on Iran, after an intense but ultimately fruitless effort by Britain, France, and Germany to devise a compromise to save the nuclear deal. That awkward episode, in which the president appeared wholly uninformed about the talks, was a feature, not a bug; spurning compromise is the modus operandi for U.S. policy toward Iran, as the latest U.S. statements ruling out sanctions waivers or exemptions make clear.

without the reinforcement of multilateral measures or broad diplomatic support, the Trump administration is deploying U.S. sanctions on Iran as a bludgeon rather than a scalpel in hopes of wreaking maximum havoc on Iran as quickly as possible. The financial measures targeting Iran effectively cast a much wider net than traditional trade sanctions, and the risk of steep fines or worse—loss of access to the U.S. economy—acts as a powerful deterrent for individual and firm decisionmaking even in the absence of government buy-in.

Iran sends its largest oil volumes to China and India, where diverse and reliable energy supplies are critical components of economic growth and national security. Both governments can draw upon ample access to bespoke financial institutions and other creative workarounds that sustain trade with Iran and are likely to seek to exploit the opportunity to press Iran for discounts and favorable payment arrangements

As Iran’s OPEC governor, Hossein Kazempour Ardebili, observed: “You cannot place sanctions on two OPEC founder members and still blame OPEC for oil price volatility. … this is business, Mr. President—we thought you knew it.”

Through considerable internal turmoil and external conflicts, Iran has been a mainstay of global energy markets for a century; the only previous sustained rupture in Iranian supply came at the hands of a British embargo in 1951-53. That blockade ended with official American conspirators helping to effect the ouster of a troublesome Iranian leadership. At the time, this seemed like a victory for Washington; over the long term, that U.S. intervention to topple nationalist prime minister Mohammad Mossadeq proved to be a disaster for American interests and for Iran.

America’s open antagonism provides Tehran with another excuse to intensify repression and divert blame for the country’s woes

“The Renaissance Dam is not designed to hold back huge amounts of water, but rather to let the water pass for the generation of hydro-electricity.” Mohammed El-Mongy, of the Water Institute of the Nile, claims that having legal and financial ownership rights in the dam could allow Egypt to reduce loss of water by 6 percent through ensuring water is released right before the peak agricultural season. During his assessment of the Renaissance Dam, Islam Awad, a geotechnical consultant engineer at Dar El-Handasah, discovered that water losses from evaporation could be minimised by 5 percent, equivalent to 0.58 BCM, by storing water in Ethiopia for a period of time before it reaches Egypt.

Egypt’s arid climate causes 10 BCM, about 12 percent of its stored water, to evaporate per year. Evaporation rates reach as high as 2,970 mm/year in Egypt, about half of what is lost in Ethiopia at a rate of 1,520 mm/year.

Another possible benefit of the Renaissance Dam is its reduction of siltation, a process where soil erosion or sediment spill creates large particles that pollute water. By acting as a barrier, the dam could reduce approximately 160 million tones of silt which flows in the Blue Nile every year, and therefore increases the Aswan Dam’s efficiency in power generation.

The Renaissance Dam could also have economic benefits if Egypt pursues economic integration with Nile Basin countries and become an investment partner in the project. Egypt’s close proximity to Ethiopia, feasibility of transportation and demand for power, would create a favourable climate for cooperation with Ethiopia. Only 40 percent of the project is locally funded, which means that Egypt could invest in the remaining  60 percent guaranteeing some ownership rights. “Egypt can play a proactive role to economically integrate the 400 million inhabitants that live in the Nile Basin countries,” says Ana Cascao, Programme Manager at Stockholm International Water Institute (SIWI).

Historically, Egypt is seen by many of its African neighbors as being hegemonic and quasi-colonial in its water usage.

In his short tenure, Mohammed Bin Salman has blazed a trail of bold and bloody moves domestically and regionally that were norm busting, counterintuitive and precedent breaking. While every Saudi monarch since 1932 had interfered in Yemen’s domestic affairs politically, militarily and often aggressively, only Muhammed Bin Salman as the leader of the wealthiest Arab country waged a war to destroy the already weak and fractured economy and infrastructure of the poorest Arab country. His air war soon turned into a rampage of indiscriminate bombings and blockades amounting to possible war crimes, creating the worst humanitarian crisis in the world today. Save the Children organization has estimated that 85,000 children might have died of malnutrition and starvation since the bombings began in 2015.

Saudi Arabia has had border disputes with Yemen and most of her smaller Gulf neighbors for many years. On occasions it tried to use coercive methods mostly employing tribes to settle these disputes the most famous of which was the Buraimi Oasis dispute of the 1940’s and 50’s, involving Saudi Arabia, Oman and what is now the UAE. But ever since the formation of the Gulf Cooperation Council in 1981 to coordinate economic, political and potentially military policies, disputes were expected to be resolved amicably among member states; Saudi Arabia, Kuwait, UAE, Qatar, Bahrain and Oman. The grouping never amounted to an alliance and now it is in tatters because of political, personal and ideological tensions involving mainly Saudi Arabia, Bahrain and the UAE vs. Qatar.

The man who condemned civilians in Yemen to a slow death, blockaded neighboring Qatar, cracked down harshly on peaceful activists at home, ordered the brutal killing and dismemberment of Jamal Khashoggi abroad, and engaged in a brazen shakedown of other Saudi royals, was in the process of trying to add to his list of depredations, the resumption of armed conflict in Lebanon.

Mohammed Bin Salman has trapped himself in a war in Yemen that he cannot win, but he has already lost his campaign against Qatar.

the case can be made that Mohammed Bin Salman’s war in Yemen made the Houthis more dependent on Iran and gave Iran and Hezbollah a military foothold on the Arabian Peninsula that did not exist before the war. The blockade of Qatar led to improved political, economic and trade relations between Doha and Tehran, and increased Turkey’s military profile in the Gulf for the first time since the collapse of the Ottoman Empire a century ago.

Much has been written about Mohammed Bin Salman as a ‘reformer’, but most of the focus was on the ‘historic’ decision to allow women to drive, (a decision any new ruler was expected to take) to open up movie theatres, and to allow men and women for the first time to watch together sport competitions. The crown prince was praised because he wanted to diversify the ‘one crop economy’ and make it less dependent on hydrocarbon production, through greater foreign investment, an issue the Saudi elites have been discussing for years. At best these measures are necessary for any nation to survive let alone thrive in the modern world. But there was not a single serious decision to politically empower the population, or to open the public sphere even very slightly

the short reign of Mohammed Bin Salman has been more despotic than previous rulers. No former Saudi Monarch has amassed the executive powers, political, military and economic that the crown prince has concentrated in his hands except for the founder of the ruling dynasty King Abdul-Aziz  Al Saud. His brief tenure has been marked by periodic campaigns of repression. Long before the murder of Khashoggi, scores of writers, intellectuals and clerics were arrested for daring to object to the crown prince’s decisions. Many are still languishing in jails with no formal charges. Even some of the women activists who pushed hard for years to lift the ban on women driving, were incarcerated on trumped up charges of ‘treason’. Women are allowed to drive now – but the crown prince would like them to think that this is because of his magnanimity, and not their struggle- but they are still subject to the misogynistic and atavistic female guardianship system, which treat adult women regardless of their high education and accomplishments as legal minors.

Jamal Khashoggi is the last of a long trail of Arab journalists and men of letters murdered by their governments at home and abroad. But he was the first one to have a reputable, international medium, the Washington Post that published his columns in English and Arabic, which was one of the reasons that enraged the crown prince. Jamal, was the first journalist millions of people all over the world watched walking his last steps toward his violent death

Iran said earlier this month that it has connected its Financial Electronic Messaging System (SEPAM) to the financial messaging system developed by the the Bank of Russia, SPFS, and trade is increasing and expected to continue growing in the coming months.

But the economic capacity of Iran-Russia relations is limited and Moscow doesn’t want to jeopardize its interests in a confrontation between Iran and the United States. So, although launching a special financial channel could boost bilateral trade, the increase wouldn’t be all that significant. For Iran, the regional aspect of launching this channel is more important than its bilateral dimension.

the transport capacity between the Far East, India, Russia and Europe is 30 million tons of cargo, expandable to 100 million tons. Mohammad Eslami, Iranian minister of roads and urban development, emphasized Iran will increase its share of cargo transported between the East and West. One of Iran's options for achieving this goal is the INSTC. According to Eslami, Iran, Russia and Azerbaijan will launch their integrated transport system by the end of 2020

boosting trade and financial ties with Iran could help fulfill Russia's political goals of reducing US pressure on Iran, saving the Iran nuclear deal and maintaining long-term regional relations with Iran

Russia doesn’t want to lag behind its rivals in taking advantage of Iran's large market. Iran and China recently updated a 25-year, $400 billion economic agreement signed in 2016. Europe hopes to expand trade with Iran through INSTEX. If the European and Chinese plans are realized, Russia's access to the Iranian market will decline and Moscow’s political goals will be challenged.

China even discussed taking a stake in Saudi Aramco, the state-owned oil firm, which is preparing for a public listing

King Salman, and especially crown prince Mohammed bin Salman, have launched an ambitious campaign to shock the country out of oil-dependency and diversify the economy under the auspices of its Saudi Vision 2030 plan. It’s culminated in the unusual six-week trip to Asia that includes stops in Japan, Malaysia, Indonesia, Brunei, and the Maldives as Salman courts foreign investors

Xi couched China’s future role in the Middle East in purely economic terms, citing his country’s ambitious One Belt One Road initiative, China’s state-run Xinhua News reported. He stressed China would continue its longstanding policy of non-interference in the Middle East, in contrast to the United States and European counterparts

But China has steadily ramped up involvement in the region as its dependence on Middle Eastern oil grows. Beijing began building its first overseas military outpost, a naval base in Djibouti on the Horn of Africa, in 2016. And it funneled thousands of peacekeepers to U.N. missions, including in oil-rich countries like South Sudan.

The decision to implement the new system was quickly reversed, however, over fears that the simmering bread crisis could provoke wider tumult. Seeking to allay citizens’ concerns that the move was a prelude to a reduction in their quotas of subsidized bread, Moselhy held a televised press conference on the day of the protests, apologizing to “all citizens who had not received bread” and asserting that their quotas would remain untouched. Promising to resolve the crisis within 48 hours, he blamed bakery owners for the crisis, hinting they were making profits off the subsidized flour they received from the government.

In the last six years, government spending on food and fuel subsidies has represented more than a quarter of annual government expenditure (more than the country spends on education and health services combined)

a thriving black market for the subsidized wheat, which is often resold by the bakeries at a profit rather than turned into bread

“The patience of Egyptians is wearing thin,” Cairo University political scientist Hassan Nafaa told Al-Monitor. “Despite the economic pressures they are facing, citizens have so far restrained themselves from protesting because they are weary after two revolutions. They also fear further turmoil as they see the civil wars in some of the neighboring Arab countries. But if people are hungry and if their basic needs are not met, there is likely to be another rebellion,” he warned, adding that if that happens, “It would be messy and bloody.”

Tensions have been simmering since the pound’s depreciation — a key requirement by the International Monetary Fund for Egypt to secure a $12 billion loan needed to finance the country’s budget deficit and shore up dwindling foreign currency reserves. Economists and analysts have lauded the flotation as “a much-needed reform that would restore investors’ confidence in the economy, helping foster growth and job creation.”

shrinking middle class was already struggling with flat wages, high inflation and mounting unemployment

Sisi’s approval ratings, which according to a poll conducted in mid-December 2016 by Baseera (Egyptian Center for Public Opinion Research) fell by 50% during his second year in office

the weak currency is helping the economy by boosting exports and luring back tourists. A 25% increase in non-petroleum exports in January (compared with the same month last year), along with new loans from the IMF and other sources, is beefing up foreign currency reserves, according to The Economist. The weaker currency is also proving to be a blessing in disguise for local manufacturers as more consumers are opting to purchase local products, which are more affordable than their imported alternatives

The real test will be the government’s ability to stave off unrest that could undermine the progress made so far. Nafaa said it is possible to quell the rising anger over soaring prices “through more equitable distribution of wealth, better communication of government policies, transparency and accountability.”

“The government must also ease the crackdown on dissent, release detainees who have not committed terror crimes and bring more youths on board,”

History shows that when sponsoring a client dictatorship becomes a sacred pillar of Washington’s foreign policy, client rulers become extremely dependent upon U.S. support, prioritizing their relationship with Washington over their own people. In Jordan’s case, the government has preserved U.S. dominance in the Middle East and protected Israel while neglecting Jordanians’ own woes.

Policymakers fear that reducing any part of their support will destabilize their client state, which could not survive without it. The only option is to perpetuate the current system, even though that regime’s own policies are clearly destabilizing it.

Jordan’s transformation into a U.S. dependency began during the Cold War. Washington replaced the fading British in the late 1950s as its great protector, a logical move given the need to back anti-Soviet regimes everywhere. Jordan had no oil. However, so long as Jordan endured, it could be a geopolitical firebreak insulating Israel and the oil-rich Arabian Peninsula from the radical forces of communism and Arab nationalism.

Washington helped build the Jordanian state. Foreign aid was one mechanism. In many years, U.S. economic aid exceeded all domestic tax revenues, the only thing keeping “Fortress Jordan” from collapsing into insolvency. While Jordan today receives support from many donors, including the International Monetary Fund, U.S. economic support remains uniquely fungible: It comes mostly in cash, it is guaranteed, and it now exceeds $1 billion annually.

the U.S. Agency for International Development began designing and operating much of Jordan’s physical infrastructure in the 1960s, doing the basic task of governance—providing public goods to society—for the monarchy. When Jordanians get water from the tap, no small feat in the bone-dry country, it is because of USAID. Even the Aqaba Special Economic Zone, a mega-project aimed at turning the Red Sea port city of Aqaba into a regional commercial hub, was funded and designed by U.S. technocrats.

The General Intelligence Directorate, glorified by Western journalists as an Arab version of Mossad, spends as much time smothering Jordanian dissent as battling terrorism. It owes much of its skills and resources to the CIA.

Of course, being a U.S. protectorate brings occasional costs. Dependency upon Washington’s goodwill, for instance, gave Abdullah little room to halt the Trump administration’s “deal of the century.” That provocative plan to resolve the Israeli-Palestinian dilemma incensed Abdullah, as it favored Israel’s land claims while sidelining Jordan’s traditional front-line role as mediator to the conflict.

Washington cannot imagine any other kind of Jordan, because it never had to. It may yet learn the hard way.

The Middle East remains a revolutionary place, as six of its autocratic rulers have lost power to mass uprisings in the last decade. Whether Jordan is next depends upon if the monarchy can fundamentally rethink its approach, rather than fall back upon the United States for affirmation.

could reflect a sea change in the UAE’s power projection tactics on the Red Sea and the Horn of Africa. On the surface, it appears as if the UAE is retrenching from the region. In October 2019, the UAE officially withdrew its military presence from Aden, and on Feb. 18, the UAE dismantled its base in Assab, Eritrea, which assisted its military intervention in southern Yemen.

UAE is reorienting its Red Sea strategy away from direct military intervention and toward a synthesis of economic investment and remote power projection. The UAE’s transition from a security-premised to economy-focused strategy in Somaliland, which was illustrated by Abu Dhabi’s September 2019 conversion of its proposed military base in Berbera into a civilian airport, was a critical dimension of its strategic reorientation. The UAE’s expanded economic footprint in Somaliland, which will result from Naqbi’s appointment, is complemented by its prospective construction of an Ethiopia-Eritrea oil pipeline and provisions over $200 million to Sudan’s agriculture sector.

UAE is also quietly consolidating a sphere of influence around the Bab el-Mandeb Strait

If the UAE’s closer economic cooperation with Somaliland extends to the security sphere, as Gabobe postulates, Abu Dhabi will be able to expand its maritime security role in this region, even though it is not part of the formal Red Sea coalition established in January 2020.

The UAE’s expanded influence in Somaliland will sharpen its rivalries with Turkey and Qatar in the Horn of Africa and complement its residual network of Southern Transitional Council-aligned militias in southern Yemen.

Most infamously, this led to a student-led seizure of the American embassy in Tehran 40 years ago this month, an action that toppled Iran’s liberal-leaning provisional government and permanently escalated tensions between Washington and Tehran.

Over the course of the past 40 years, Iran has routinely witnessed all varieties of rallies and riots; sit-ins by families of political prisoners; labor strikes by teachers, truckers, and factory workers; student demonstrations over everything from free speech to dormitory conditions and cafeteria food; soccer riots; and marches and sit-ins sparked by localized grievances. These manifestations have never been limited by geography or class.

The durability of the Islamic Republic is perhaps the most important legacy of 1979 revolution. None of the extraordinary developments within or around Iran over the course of the past 40 years has managed to significantly alter it — not the considerable evolution of Iranian society, nor the country’s steady reengagement with the world, nor the incremental reforms advanced by various factions within the establishment. In many respects, the structure of power in the Islamic Republic seems even more firmly embedded today than it was at any point since its precarious creation.

if war, internal upheaval, regional turmoil, natural disasters, crippling economic sanctions, and near-constant infighting among the political establishment have failed to weaken theocratic authority, perhaps any hope for change is simply futile

Iran’s “lost generation” is now approaching the age of the revolution itself, and the absence of a promising political or economic horizon has become painfully acute — and not simply for elites, but for the larger population of Iran’s post-revolutionary youth. These Iranians have benefited from the revolution’s dramatic expansion of educational opportunities and broader social welfare infrastructure. That legacy and the regime’s populist promises have shaped their expectations for a better life and sense of political entitlement to a functioning, responsive government.

The Iran Human Rights Documentation Center recorded more than 1,200 labor actions related to non-payment of wages between January 2017 and November 2018. The apex came in the final days of 2017 and early 2018, when what apparently began as a provincial political stunt quickly flared into a spasm of furious demonstrations. Within 48 hours, protests were convulsing in at least 80 cities, and the refrains of the demonstrators had catapulted from economic grievances to explicit denunciations of the system and the entirety of its leadership

It is clear from Tehran’s reaction to the latest eruption of protests that the leadership is unnerved, and for good reasons: the rapid progression from mundane, localized demands to radical rejection of the system as a whole; the transmission and coordination of protests via social media rather than mediated through the more manageable traditional press; the engagement of the government’s core constituency, the rising middle class; and the near-instantaneous dispersion from local to national.

In each of Iran’s most significant turning points over the past 150 years — the Tobacco Revolt, the Constitutional Revolution, the oil nationalization crisis, the 1979 revolution — financial pressures intensified and expedited the political challenge to the status quo.

Tehran today is facing an epic, interconnected set of crises: the crisis of unmet expectations, which feeds a crisis of legitimacy for a system whose waning ideological legitimacy has been supplanted by reliance on a more prosaic emphasis on state performance and living standards. Iran’s predicament is exacerbated by the uncertainties surrounding leadership succession, both with respect to the position of the supreme leader, who marked his 80th birthday earlier this year, and the legions of senior officials from the same generation who helped shape the post-revolutionary state from its inception.

Eventually, as happened 40 years ago in Iran, even the most well-fortified regime will shatter.

Fiscal crises caused by falling prices limit governments’ room for domestic maneuver and force painful political choices

The economic profile of the Gulf states is not, however, typical of most oil-producing states. Most have a much lower ratio of oil reserves to population. Many large oil exporters have large and rapidly growing populations that are hungry for consumption, social spending, subsidies, and investment

In February, even before the coronavirus hit, the International Monetary Fund was warning Saudi Arabia and the United Arab Emirates that by 2034 they would be net debtors to the rest of the world. That prediction was based on a 2020 price of $55 per barrel. At a price of $30, that timeline will shorten. And even in the Gulf there are weak links. Bahrain avoids financial crisis only through the financial patronage of Saudi Arabia. Oman is in even worse shape. Its government debt is so heavily discounted that it may soon slip into the distressed debt category

Ecuador is the second Latin American country after Argentina to enter technical default this year.

Populous middle-income countries that depend critically on oil are uniquely vulnerable. Iran is a special case because of the punitive sanctions regime imposed by the United States. But its neighbor Iraq, with a population of 38 million and a government budget that is 90 percent dependent on oil, will struggle to keep civil servants paid.

Algeria—with a population of 44 million and an official unemployment rate of 15 percent—depends on oil and gas imports for 85 percent of its foreign exchange revenue

The oil and gas boom of the early 2000s provided the financial foundation for the subsequent pacification of Algerian society under National Liberation Front President Abdelaziz Bouteflika. Algeria’s giant military, the basic pillar of the regime, was the chief beneficiaries of this largesse, along with its Russian arms suppliers. The country’s foreign currency reserves peaked at $200 billion in 2012. Spending this windfall on assistance programs and subsidies allowed Bouteflika’s government to survive the initial wave of protests during the Arab Spring. But with oil prices trending down, this was not a sustainable long-run course. By 2018 the government’s oil stabilization fund, which once held reserves worth more than one-third of GDP, had been depleted. Given Algeria’s yawning trade deficit, the IMF expects reserves to fall below $13 billion in 2021. A strict COVID-19 lockdown is containing popular protest for now, but given that the fragile government in Algiers is now bracing for budget cuts of 30 percent, do not expect that calm to last.

Before last month’s price collapse, Angola was already spending between one fifth and one third of its export revenues on debt service. That burden is now bound to increase significantly. Ten-year Angolan bonds were this week trading at 44 cents on the dollar. Having been downgraded to a lowly CCC+, it is now widely considered to be at imminent risk of default. Because servicing its debts requires a share of public spending six times larger than that which Angola spends on the health of its citizens, the case for doing so in the face of the COVID-19 crisis is unarguable.

Faced with the price collapse of 2020, Finance Minister Zainab Ahmed has declared that Nigeria is now in “crisis.” In March, the rating agency Standard & Poor’s lowered Nigeria’s sovereign debt rating to B-. This will raise the cost of borrowing and slow economic growth in a country in which more than 86 million people, 47 percent of the population, live in extreme poverty—the largest number in the world. Furthermore, with 65 percent of government revenues devoted to servicing existing debt, the government may have to resort to printing money to pay civil servants, further spurring an already high inflation rate caused by food supply shortages

The price surge of the 1970s and the nationalization of the Middle East oil industry announced the definitive end of the imperial era. The 1980s saw the creation of a market-based global energy economy. The early 2000s seemed to open the door on a new age of state capitalism, in which China was the main driver of demand and titans like Saudi Aramco and Rosneft managed supply

The giants such as Saudi Arabia and Russia will exploit their muscle to survive the crisis. But the same cannot so easily be said for the weaker producers. For states such as Iraq, Algeria, and Angola, the threat is nothing short of existential.

Beijing has so far shown little interest in exploiting the crisis for debt-book diplomacy. It has signaled its willingness to cooperate with the other members of the G-20 in supporting a debt moratorium.

In a century that will be marked by climate change, how useful is it to restore profits and prosperity based on fossil fuel extraction?

The shock of the coronavirus is offering a glimpse of the future and it is harsh. The COVID-19 crisis drives home that high-cost producers are on a dangerously unsustainable path that can’t be resolved by states propping up their uncompetitive oil sectors. Even more important is the need to diversify the economies of the truly vulnerable producers in the Middle East, North Africa, sub-Saharan Africa, and Latin America.

Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed

In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.

When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.

The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible

fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008

In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.

In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices

A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both

For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.

The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.

For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide

cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.

the myth of authoritarian stability

A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region

What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]

From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.

profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.

While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.

the central bank’s reserves, which include domestic borrowing from local banks, now stand at minus $5bn, a historic low as of 2 June. Experts are fearful of a balance of payments crisis if Ankara continues to follow the same route.

“There was an avalanche of phone calls from current and former ministers, MPs and everyone you could think of to Simsek to accept Erdogan’s offer and come in as the economy minister,” one source familiar with Simsek’s negotiations with the president told Middle East Eye. “They were telling him that he has to save the Turkish economy.” The source said in the end Simsek had to accept the offer: you can only say no to Erdogan so many times.

There are concerns among international investors and local economists that Erdogan could fire Simsek in the near future if an aggressive interest rate hike slows growth and costs jobs ahead of next year’s municipal elections. Erdogan is determined to recapture Istanbul, Ankara and Antalya from the opposition.

Erdogan is known for appointing rivals into key positions to use them as checks on each other.

People close to Simsek also told MEE that soon after taking office, the new finance minister told his circle that the economic situation was worse than he had imagined.

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.