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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.

Basim Razzo, who survived a 2015 airstrike in Iraq that killed his wife, daughter, and two other family members and destroyed two homes he valued at $500,000, was offered a “condolence payment” of $15,000, which an Army attorney said was the capped limit. Razzo rejected it as “an insult.” But after Italian aid worker Giovanni Lo Porto was killed by a U.S. drone strike that same year while being held hostage by Al Qaeda, the U.S. paid his family $1.3 million as a “donation in the memory” of their son.

Between 2003 and 2006, the Defense Department paid out more than $30 million in solatia and condolence payments to “Iraqi and Afghan civilians who are killed, injured, or incur property damage as a result of U.S. or coalition forces’ actions during combat,” according to the Government Accountability Office. But in more recent years, the sums paid out have plummeted. From 2015 to 2019, for example, the U.S. paid just $2 million to civilians in Afghanistan.

Since at least World War I, the U.S. military has been paying compensation for harm to civilians. During the Vietnam War, solatia payments, as they are called, were a means for the military to make reparations for civilian injuries or deaths without having to admit guilt. In 1968, for example, the going rate for adult lives was $33. Children merited half that.

In March, Sens. Chris Murphy, D-Conn., and Elizabeth Warren, D-Mass., asked Defense Secretary Lloyd Austin to open a new investigation into the airstrike that disabled Al Manthari, as well as 11 other U.S. attacks in Yemen. The Pentagon did not respond to repeated requests for comment on what actions, if any, Austin has taken in response to the request. In a letter to Murphy and Warren shared with The Intercept, Colin H. Kahl, the Pentagon’s top policy official, did not even address the issue of new investigations.

The total cost exceeded $21,000. The average per capita income in Yemen is around $2,200.

The U.S. has conducted more than 91,000 airstrikes across seven major conflict zones and killed as many as 48,308 civilians, according to a 2021 analysis by Airwars, a U.K.-based airstrike monitoring group. But only a tiny fraction have received any type of reparations. In 2020, Congress began providing the Defense Department $3 million each year to pay for deaths, injuries, or damages resulting from U.S. or allied military actions, but in the time since, the U.S. has not announced a single ex gratia payment, leaving victims like Al Manthari to fend for themselves.

“Payments would be a drop in the bucket for the U.S. military, but there is clearly no system to help people. It’s even unclear that allocated funding, like the USAID Marla Fund, is currently being used for that purpose.”

“If we, as a U.S. legal action charity, cannot get a substantive response from CENTCOM, what hope do civilians harmed by U.S. drone strikes living in Somalia, Syria, or Afghanistan have to access accountability?”

“When I spoke with a CENTCOM lawyer, he was very clear that they did not want the public to have the perception that there is an official process. They also shy away from using the word ‘claims’ because, I think, they are concerned that it suggests some sort of a legal application.”

Asked if the fact that the U.S. military has taken no further action against a man previously deemed too dangerous to live was a tacit admission that Al Manthari is — as two independent investigations found — innocent of any terrorist ties, a U.S. military spokesperson demurred. “I’ll follow up with policy,” he said on June 6. “I’ll get back to you.” He never did.

“Far too many cases have been erroneously dismissed despite painstaking research from human rights groups and journalists. And even when the U.S. government confirms it caused civilian casualties, it has rarely made ex gratia payments or other amends. … The result is that civil society groups and journalists have had to fill this gap, from conducting rigorous investigations the government should be doing, to setting up crowdfunding campaigns to support victims. That’s just not how accountability is supposed to work.”

Economists and Egyptian businessmen have long complained that the military’s role in the economy crowded out the private sector and scared away foreign investors. The army, the country’s most powerful institution, is exempted from some taxes and its businesses are notoriously opaque.

Cairo was forced to go to the IMF last year after foreign investors withdrew about $20bn from Egypt’s debt markets around the time of Russia’s invasion of Ukraine. The capital outflow triggered a foreign currency crisis and forced Cairo to turn to Gulf states for a multibillion-dollar bailout.

Egypt had been paying the world’s highest real interest rate to attract the portfolio inflows it used to finance its current account deficit.

the weak pound has added to inflationary pressures. Core inflation rose to 24.4 per cent in December

Tehran has previously lodged a complaint against Iran International over its programming, but Ofcom ruled that the London-based television network had not broken any rules.

British newspaper The Guardian reported in Oct. 2018 that Iran International had financial ties to MbS. The Guardian charged that the TV network was "being funded through a secretive offshore entity and a company whose director is a Saudi Arabian businessman with close links to the Saudi crown prince." A month later, Iran International issued a statement denying any links to any governments, including Saudi Arabia, and insisted that it "does not advocate any movement or party or government." Some of Iran International's high-profile staff have stirred controversy for often expressing opinions on social media that may be in contravention of the outlet's editorial guidelines.

Iranian authorities have long taken issued with foreign-based Persian-language news networks, accusing them of being tasked with attacking the Islamic Republic. Salami's warning to the Saudi royal family comes as Tehran and Riyadh are working toward mending relations and re-establishing diplomatic ties. The IRGC commander's apparent criticism of Saudi media indicates that it will be brought up in the anticipated next round of talks between the two sides in Iraq.

All countries — especially G20 countries — that have submitted “updated” NDCs that were no more ambitious than their previous commitments, and countries that have not yet communicated new or updated NDCs at all, should update their NDCs and long-term strategies in a credible, ambitious manner

developed countries must lead on climate ambition — they are the laggards in living up to their climate promises despite their overwhelming contribution to the climate crisis

After COP26, it was noted “with deep regret” the failure of developed countries to meet the $100 billion goal they originally promised to achieve by 2020, feeding into the credibility gap and hamstringing the ability of developing countries to plan further climate action.

clear finance targets for mitigation, adaptation and loss and damage finance

$600 billion in climate finance from 2020-2025

Developed by organizations from the Global South, ACT2025’s new Call for Enhanced Implementation lays out where concrete action is needed in the lead-up to and at the conference.

countries must also prepare their National Adaptation Plans and Adaptation Communications

developed countries need to provide grant-based funding to finance adaptation plans, especially through the Adaptation Fund and other entities of the Financial Mechanism established under the UNFCCC.

despite an urgent plea from climate-vulnerable countries, the proposal for a new loss and damage financing facility was  rejected by developed nations. Instead, at COP26, countries established the Glasgow Dialogue to discuss possible arrangements for loss and damage funding, with the first discussion to be held in June 2022.

even the most effective adaptation measures cannot prevent all losses and damages, which are a present-day reality for vulnerable people in certain regions

Countries also made progress at COP26 on the operationalization and funding of the Santiago Network on Loss and Damage (SNLD), which aims to provide developing countries with technical assistance on how to address loss and damage in a robust and effective manner. Sufficient financing for the SNLD is crucial to ensure technical support for developing countries and to create a new method in encouraging technical assistance that is country-owned and emphasizes local expertise.

The first Global Stocktake process must be done in a way that is inclusive, raises awareness, ensures the meaningful participation of Global South organizations, and paves the way for a comprehensive outcome that promotes increased NDC ambition and is centered around equity. Additionally, the UN Secretary General should hold countries and non-state actors accountable to develop a robust accountability system for commitments made outside of the UNFCCC process.

Shortly after COP27, we will be more than a quarter of the way through the decisive decade — what will the world have to show for it? Now is the time for solidarity and ambitious, real, on-the-ground action and support that will deliver justice for vulnerable countries and communities. While realizing countries’ differentiated responsibilities and capacities, the world needs to be all in, all together on climate.

Things have turned out very much worse than Oslo’s bitterest critics could have imagined, particularly in the Gaza Strip and Jordan Valley

The second enabling policy was Israel’s relentless campaign of mass violence throughout the occupied territories, and the Gaza Strip in particular, to crush the 1987-1993 uprising. It didn’t succeed, but as Graham Usher perceptively noted at the time, it did lay the basis for widespread Palestinian acquiescence, and quite a bit of enthusiasm, in these territories for the false promises of Oslo. 

Colonization of course commenced immediately after Israel occupied and initiated the “creeping annexation” of the West Bank and Gaza Strip in June 1967, but Oslo was nevertheless a critical turning point. Although the settlement enterprise constitutes a grave breach of the 1949 Fourth Geneva Convention and a war crime under the Rome Statute of the International Criminal Court (which is the primary reason Israel refused to ratify it), the Oslo Accords as a matter of design make no reference to international law. Further, the sponsor of the Oslo process, the United States, has spared no effort to ensure that international law is not applied to Israeli conduct towards the Palestinians beyond the confines of Oslo, that it is not held accountable for its actions, and that it can continue to act with unrestricted impunity. In other words, the United States ensured that Oslo was implemented beyond the purview of the norms and rules established to govern international conduct. 

Israel’s response to the 1994 Hebron Ibrahimi Mosque massacre by a fanatic Israeli-American settler, which it instrumentalized to further entrench its control over Hebron and the mosque rather than confront the settlers, provided an early, definitive indication in this regard. It bears recalling that this response was led by Rabin, his fellow Nobel Peace Prize laureate Shimon Peres, and their military commander Ehud Barak, not Binyamin Netanyahu or Itamar Ben-Gvir.

Every time Israel engaged in a new act of colonization, such as the construction of the Har Homa settlement on Jabal Abu Ghnaim in 1997, it was tolerated on the pretext of keeping the process alive

If, for the sake of argument, we take claims that Oslo was supposed to conclude with Palestinian statehood seriously, ignoring reality on the ground on the pretext of preserving the diplomatic process helped ensure its failure.

A second key Israeli policy enabled by Oslo is Palestinian fragmentation

Israel succeeded in making Oslo’s transitional phase a permanent arrangement, in the process transforming the Palestinian Authority (PA) into a local subsidiary of the Israeli state

if a Palestinian from the West Bank or Gaza Strip seeks to pursue a claim against Israel for an act committed between 1967 and 1995, let’s say against the Israeli military for unlawful use of force in 1976 or during the 1987-1993 uprising that rendered the claimant quadriplegic, the PA is under an obligation to ensure that the claimant brings the case before a Palestinian rather than Israeli court, and that any financial judgement by that court in the claimant’s favor is paid out by the PA rather than Israel. If the claimant despite the above brings the case before an Israeli court, and an Israeli judge rules in the claimant’s favor, on account of unlawful actions by the Israeli military years before the PA even existed, the PA is required to immediately reimburse Israel the full amount of compensation awarded to the Palestinian by the Israeli court. Article XX perfectly encapsulates the thoroughly lopsided nature of Oslo, the imbalance of power it codified, Israel’s insistence upon achieving retroactive impunity, and its determination to hold its victims responsible for its crimes against them. In my view nothing better demonstrates that this is a conflict between occupier and occupied and nothing else.

the enormous economic windfall Israel derived from the Oslo Accords and its integration into the global economy. Most importantly it led the Arab League to renounce its boycott of Israel and – crucially – of companies that do business with Israel. For all its shortcomings this boycott was exponentially more effective than the current Boycott, Divestment, and Sanctions (BDS) movement, and for example kept major Japanese and South Korean firms out of Israel and quite a few Western ones out of the Arab world. It is often forgotten that during the 1970s and 1980s Israel was something of an international pariah, but in the wake of the 1991 Madrid Middle East diplomatic conference and thereafter Oslo was able to normalize relations with much of Africa, South Asia, and Southeast Asia

While Oslo promised Palestinian economic development in exchange for political paralysis, growth materialized only temporarily from the desultory baseline where it stood in 1993 at the conclusion of a prolonged uprising. A sharp reversal in fact commenced in the years leading up to the 2000 eruption of the Al-Aqsa Intifada on account of Israeli policy, and this deterioration has continued at an accelerated pace ever since. What Oslo did achieve was to catapult Israel into the ranks of the Organization of Economic Cooperation and Development (OECD), of which it has since 2010 been a full member. It is virtually inconceivable Israel would have acquired this status without Oslo.

Palestinians, whether within the West Bank and Gaza Strip, within Israel, in its prison system, or in the diaspora, have been organizing and resisting in myriad ways. Most importantly, they have despite massive and systematic state violence and repression, and betrayal by their own leaders and Arab governments, refused to surrender – putting into practice “the power of refusal” advocated by Said. In doing so the Palestinians have retained the overwhelming support of the international community, and even in the West public opinion increasingly recognizes that Israel is a structurally racist, colonial state

when the succession commences Israel is likely to promote a model where different Palestinian population concentrations – Hebron-Bethlehem, Ramallah, Jericho, Nablus-Salfit-Jenin, Qalqilya-Tulkarm – are administered by a series of local chieftains

even this model, a regional version of the failed Village Leagues of the 1980s, may prove unpalatable to the lunatics currently running the Israeli asylum. These are forces agitating for wholesale, formal annexation and then some, and which thanks to the inexorable rightward shift of Israeli society, and international and regional support and acquiescence (not unrelated phenomena) are only gaining in strength and power.

Whitehouse and Swann describe the fully fused state, when commitment to one group dominates over all others, as a “form of alignment with groups that entails a visceral feeling of oneness with the group. This feeling is associated with unusually porous, highly permeable borders between the personal and social self.” In other words, an insult, a compliment or an injury to the group or another member of the group is perceived as an insult, a compliment or an injury to the self, as most people can recognize when someone from outside the family insults a family member.

In Jordan, no one I interviewed ever put their nationality in the top three, but rather chose family, tribe or region, religion or “Arabness.” (There was one exception, and it turned out he was working for the security services.)

they have come to feel that no one is coming to their rescue, a feeling reinforced by the example of Syria: Not only did the world not act to prevent Syrian deaths, but the world — including Arabs — also ignored President Bashar al-Assad’s brutality against his own Palestinian population.

once an individual is fully fused to an identity, all positive and negative experiences serve to reinforce that single identity, with ever more rigid policing of the boundaries of “us” and “them,” and ever-shrinking spaces for communicating with the “other.”

“The Holocaust for Israelis and the Nakba for Palestinians condense into two words a multitude of horrific experiences suffered by millions of people,” he wrote, describing a trauma not only for those who experienced them directly but also for their descendants; both are just within living memory. “When members of the victimized group are unable to bear the humiliation, reverse their helplessness, or mourn their losses, they pass on to their children powerful, emotionally charged images of their injured selves.”

Israel’s occupation causes daily, ongoing fear and humiliation among the Palestinian population, as well as challenges to everyday existence that dampen the energy to act. But, as Fromm writes, “Young people may succumb to apathy temporarily but a return to rage is always a possibility, in part as a vitalizing alternative to helplessness or despair.” That is, the violence we have witnessed from Palestinians is a natural response to Israel’s occupations when framed in terms of psychology; as an Israeli colleague of mine put it back in 2019, “There is no chance for peace without first ending the occupation.”

Extreme states of belonging to a single group have enabled the most extreme violence seen throughout history and around the world, from suicide bombings to kamikaze attacks during times of war.

For these people, Hamas’ actions symbolized a reassertion of dignity and pride in an Arab identity against an unjust oppressor. This single massacre, which included whole families shot in their beds, has prompted more demonstrations of support for the Palestinian cause than any other occasion in the past few decades. In Jordan, pro-Palestinian protesters only dispersed from the Israeli border after the Jordanian army used tear gas.

“apocalyptic mindset,”

classic asymmetric warfare, laid out in an al Qaeda manual taken up by the Islamic State, “The Management of Savagery,” which advocates baiting the enemy’s military into wars they cannot afford and depleting them — as was achieved by 9/11 at a financial cost of mere hundreds of thousands of dollars, compared to the trillions spent on the subsequent 20-year “war on terror.”

In times of low stress, even a hardened identity does not fear the other and can exhibit curiosity, or at least a lack of animosity, toward an out-group. But this retreat isn’t available to groups whose security is at risk. Fully fused large-group identities, with psychological boundaries hardened by both inherited trauma and daily fear, have another damaging implication for the prospects of peace. This is the perceived threat of reaching across the divide, including gestures of reconciliation. It is felt as betrayal to build bridges with the other and is experienced as a psychological wound.

We are now seeing mass hardening of psychological barriers in the region and globally, with many unable to see faults on their side or, conversely, laudable elements on the other. And it is not just rhetoric

there is a shrinking space for empathy and dialogue

Conflict resolution in such a situation seems meaningless: Neither side wants nor can even conceive of a relationship with the other, so what is the possible basis for negotiation, let alone peaceful coexistence?

all around the world people have told me a version of “No one has suffered as we have suffered.” Victimhood limits our ability to see others also as victims, to everyone’s detriment, for violence is then justifiable, and this is what fuels ongoing wars. It is unclear who can address the intergenerational wounds of the past, but without that work, nothing can improve.

as the civilian death toll rises the Gulf states will come under growing pressure at home and across the Arab world to condemn Israel and sever ties. Still one thing the Gulf leaders can all agree on: they want the war to end. The financiers gathering in Riyadh this week want to talk about billion-dollar ideas for travel, trade and tourism. None of them is likely to come to fruition if there is a risk of missiles flying overhead

Ukraine accounts for 90 per cent of Lebanon’s wheat imports and is a leading supplier for countries including Somalia, Syria and Libya. Lebanon is “really struggling with an already high import bill and this is only going to make things worse,”

Russia also provides its Black Sea neighbour Turkey with more than 70 per cent of its wheat imports

Even before the Russian invasion of Ukraine, inflation in Turkey had had hit a 20-year high of 54.4 per cent in February. “The war is only going to exacerbate the cost of food,”

“What’s critical here is that the Black Sea offers a logistical and price advantage . . . Costs will rise significantly when [Turkey] buys from the US or Australia,” he said. “Even if the war ends tomorrow, Ukraine’s planting season has already been disrupted and it will impact the 2022 harvest regardless.”

The UN World Food Programme, which procures grains and food to distribute to poorer countries, bought just under 1.4m tonnes of wheat last year of which 70 per cent came from Ukraine and Russia.

The last time wheat prices spiked to these levels in 2007 and 2008 because of severe production declines in leading producing countries such as Australia and Russia, protests spread through nearly 40 countries from Haiti to the Ivory Coast, while a jump in grain prices in 2009-10 is regarded as one of the triggers of the Arab Spring uprisings in the Middle East.

Egyptian authorities say their wheat inventories will last until mid June and the Egyptian local harvest should start coming in by mid April. Any rise in subsidised bread prices and further increase in food inflation in Egypt “increases the threat of social unrest,”

Wheat inventories are tight everywhere and as Chinese and South Korean buyers of Ukrainian corn, used to feed livestock, sought sellers elsewhere, EU agricultural ministers on Wednesday discussed allowing farmers to boost production using the 10 per cent of land they usually leave fallow in response to the war in Ukraine.

“The supply chain is broken,”

Iran's influence can also be seen through its links with Iraq's Hashed al-Shaabi, a former paramilitary force made up mainly of pro-Iran militias that have since been integrated into the regular forces.

Last month, Iraq's government handed the Hashed control of a new public company, endowed with around $68 million in capital.The Al-Muhandis firm's mission in oil-rich but war-ravaged Iraq is "provincial rehabilitation and development: infrastructure, housing, hospitals, factories",

In November, Iraqi Foreign Minister Fuad Hussein said it was "not fair" to consider his coalition government "an attachment" to Iran's.The Iraqi Kurdish diplomat pointed to its multi-party and multi-confessional make-up as showing "balance" between the different forces.But pro-Iran parties appear to now have free rein, after rival Shiite leader Moqtada Sadr tried for months to name a prime minister and prevent Sudani's appointment.

the United States still remains present, with around 2,500 US troops stationed in Iraq as part of ongoing efforts to combat the Islamic State group.

Washington monitors Iraq's banking system to ensure Iran is not using it to evade existing restrictions, and US influence is present via "the threat of financial sanctions"."The United States is staying in Iraq so as not to totally abandon the country to Iran,"

In 2018, Tunisia signed an agreement to join the "Belt and Road" initiative, which was established by China in 2013. Bin Mabrouk went on to say: "After Algeria announced that it will join the group, we will also announce our intention to join BRICS." Alegria had earlier announced plans to join the BRICS group next year.