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The Saudi Arabian issue

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The 32-year old Prince Muhammad bin Salman, who  is the heir to Saudi Arabia’s throne, wants at first “to eradicate the roots of Islamic extremism” as soon as possible. This means that from now on the confrontation between Shiite Iran and Sunni Saudi Arabia will be downplayed from infra-Islamic clash of civilization to a normal and natural standard of regional warfare.

 The openings made by Muhammad bin Salman – designated as Crown Prince by his father after many years – such as allowing women to drive are very clear signs that the al-Saud Kingdom does no longer want to be a fundamentalist island in the Middle East nor a silent partner of the United States or of other countries.

 This implies the end of Sunni-Shiite clash of civilizations and the fact that Saudi Arabia agrees to set aside its traditional role as leader of an all-out struggle with the “Ali Sect” led by Iran.

 Let us not be misled by the first reactions to the Saudi official statements.

 The war against Qatar is primarily a fight against the “Muslim Brotherhoods” and the clash with a natural gas power, namely Qatar, against a necessarily oil power, namely Saudi Arabia.

 Other economic cycles, other buyers, other geostrategic and military development lines between Al Thani’s Qatari Emirate and the al-Saud Kingdom.

  Hence, from now on, Saudi Arabia wants to avoid a radical and global war throughout the Middle East to destabilize it and thus conquer the old and modern hegemony of Islam within the Greater Middle East.

 No longer pan-Islamic dreams of glory, but the protection of the Saudi Kingdom’s national interest.

 Hence there are two winners in the current fight: the first is Israel and hence the countries, excluding the United States, which want to reformulate their friendly presence throughout the old Fertile Crescent.

 It is also worth noting that Prince al-Walid, arrested by Muhammad bin Salman, was a fierce enemy of the current US President.

 It should be recalled that the United States led by President Donald  J. Trump yielded to the “Sunni NATO” project, namely the Islamic Military Alliance to Fight Terrorism, led by the Pakistani General Raheel Sharif.

 The “Sunni NATO”  headquarters are located in Riyadh, which still implies a hard line obviously against Iran and  India, as well as support to the fight against the Afghan Taliban.

 And if the “Sunni NATO” were the project of a strategic and economic internationalization of petromonarchies, thus isolating Iran in a future ever less profitable oil market?

 After the six Saudi Kings, from 1932 onward, Muhammad Bin Salman has inherited de facto power in the Kingdom by his father, Prince Nayef, thus replacing his half-brother who, however, is still a member of the clan holding true power in the Saudi family, the “Sudairy Seven”.

 The current strong man of the Saudi regime, namely the Crown Prince, was raised to the rank of second in the line of succession, in the first half of 2015. In fact, he has become an important personality on the world scene when ten years ago he destabilized – probably permanently – the al-Qaeda network in the Saudi Kingdom and last year decided  – together with his 55-year old cousin, Mohammed Bin Nayef – to exert the utmost pressure on the Houthi rebels in Yemen, a network of Shiites linked to Iran.

 For the al-Saud Kingdom, closing the doors to Iran in its area of ​​influence means to ensure a peaceful internationalization outside the regional Islamic universe, as well as to ensure the Kingdom’s permanent social and religious stability.

 Hence the war between the Shi’a Iranian Republic and the Wahhabi and Sunni Kingdom is bound to keep the Greater Middle East a hot spot and try to control the routes in the Persian Gulf, while the perimeters of the new Middle East global security are redefined outside Syria and the Lebanon.

 A system that the emerging power, namely the Russian Federation, will keep out of the US control lines, while Russia will further expand to Libya, the Lebanon and obviously to the rest of the Maghreb region, not to mention the Horn of Africa and Egypt.

 This is a new redesign of the Western balance of powers towards the Russian and Chinese ones – a new system emerging in the new external, but now essential peripheral areas of the Greater Middle East.

 Nevertheless there is an essential symbolic and political factor which should not be forgotten in the Shakespearean Royal Palace of Riyadh.

In fact, it is today that, after many years, Prince Muhammad bin Salman directly inherits the throne from his Father –  also thanks to a legal-political institution established by King Salman in 2017, namely the “Allegiance Council”, designed to make the process of succession in the Saudi Kingdom smoother and more orderly.

 Born on August 31, 1985, the heir to the throne Prince Mohammed is now 37 and has already been the youngest Defence Minister in the world.

 Even today, however – considering the strong autonomy of Mohammed Bin Salman –  the dynastic institution founded in 2007 seems to be not yet fully operational.

 Mohammed Bin Salman replaced his cousin in June 2017, as part of a major transformation of the political and strategic system inside the Saudi Royal Family.

 The whole network of high-profile “corrupt people” or “traitors” arrested in an anti-corruption sweep by the future Saudi King, is made up of 49 senior officers, Princes and Ministers – a police operation devastating the entire old system of political, financial and strategic equilibria that characterized the old pact of “petrodollar laundering”, which marked the union between the United States and Saudi Arabia when Henry Kissinger negotiated the whole operation, in perfect secrecy, at the end of the “Yom Kippur War” .

  The choice of Muhammad as heir to the throne, upon King Salman’s proposal, was accepted by 31 out of the 34 members of the Allegiance Council.

 Hence the policy line is now clear: the Kingdom wants to govern two parallel evolutionary lines: the exit from the oil-dependent economy, which Prince Muhammad Bin Salman has envisaged in his Vision 2030 program, and the creation of regional hegemony outside oil dependence from the United States, which is now autonomous from the Middle East oil thanks to its shale oil.

 In its already known project, the basis for Saudi Arabia’s  future hegemony regards the acceptance of two new factors: the US future energy autonomy with its “oil and shale gas” and hence Saudi Arabia’s exit from a guaranteed military and economic balance with the United States, as well as the historic collapse of oil barrel prices – oil which, according to the Saudi leaders, must be entirely left to  Shiite poverty and hence to Iran.

 Hence the “Vision 2030” program wants to reduce the Saudi dependence on oil and obviously the dependence of the national economy on the public sector.

 Moreover, the issue lies in making the Royal Family preserve its ability to distribute selective, but important resources to the most politically important walks of Saudi population – on a case-by case basis – to support the regime.

There is no more money for luxuries. The Saudi government’s money must be spent to preserve people’s support that is currently no longer guaranteed.

 In fact, without panem et circenses, it is hard to imagine – in the future – a reasonable stability of the Saudi Royal Family. And panem et circenses will be ever less a burden on US accounts.

  The future dollar equilibria and the end of the Euro as a global currency, as well as the end of the use of  petrodollars by Russia and China, make us think that the new ruling class in Saudi Arabia will be ever less pro-USA and ever more multilateral.

 And it is the Royal Family as such – not in the variety of its many groups – who shall bear responsibility for funds to  masses and for public charity that shall increasingly bear the costs of “liberalization”, of low wages and of the deprivation of union, political and clan protections.

 In fact, if Saudi Arabia does not plan its future “public charity” it will end up like the largely liberalized Lebanon or like the States that, after the crisis in the grain and food commodity market of 2008-2010, had to face the riots that –  manipulated by others – later turned into the “Arab Springs”.

 In this case the probable solution of the future King Mohammed will be greater democratization of choices to replace a reduction in income.

 A “European” solution.

 The Saudi “Vision 2030” project also implies liberalization specifically aimed at creating jobs and opportunities for companies in the service sector and in the tourist and entertainment business, in particular.

 But who are the “purged” of the new Saudi regime?

  They are 49 people, eleven Princes, four Ministers of the new regime that Muhammad Bin Salman – the first heir designated by his father, King Salman, to rule Saudi Arabia –  has agreed to put aside forever.

 There are clear signs of what will happen shortly.

 In this context, it is worth recalling the very important role played by the marginalization of Al Waleed bin Talal in the new Saudi financial and political context.

 Forbes reported he has a personal fortune of over 17 billion US dollars.

The investment of Prince Al Walid, the elder son of King Abdullah Abdulaziz and of Riad El Sohl, the Lebanese Prime Minister in the 1950s, are spread in the main Western areas: Twitter, Lyft, Eurodisney, Twentieth Century Fox, a tower in Jeddah, Saudi Arabia, which is the highest in the world and was supposed to open in 2019.

 He sold a yacht to Donald Trump, whom he hates, but has still significant investment in Apple, News Corp., as well as the ownership of the Savoy Hotel in London and the MBC satellite TV network. Other purged officials are the Head of the Saudi Arabian General Investment Authority, Amr al Dabbagh, as well as Ibrahim Assaf, the former Minister of Finance, and finally Bakr Bin Laden, the Head of the Binladen Group, a well-known real estate and investment group.

 Other purged officials include another former Saudi  Minister of Finance, Adel Fakieh, a reformer from day one, as well as Khaled al Tuwajiri, a manager of the Saudi traditional economic sector.

 They are all accused of having embezzled public funds to transfer them to their private accounts.

 A source of enrichment and “visible consumption” of the al-Saud extended family, as Veblen would have said.

 Now the family is no longer a single one and the Saudi  government will have a less corporatist and, above all, less personalist logic.

This Saudi “cleansing” operation marks the end of the old link between Arab internationalization and Sunni jihadist terrorism. Muhammad bin Salman’s reforms also marks the Saudi Kingdom’s closure to the flows of the market-world, while there is the re-emergence of the clash between Shiites and Sunnis in a new Middle East, where Saudi Arabia has already established a new relationship with Russia and Israel and decided to effectively follow Xi Jinping’s model, which involves a change of the regime through a fight  against “corruption”.

 It was one of the world’s economic leaders, namely al-Walid Bin Talal, to agree to support Gaddafi before his end in 2011, while the shadows were already casting over the Libyan leader.

 In fact, al-Walid ibn Talal attempted to sell one of its A340 Airbus for 120 million US dollars through a Jordanian broker, Daad Sharaf, who was very close to Gaddafi.

 Daad Sharaf also had to receive a 6.5 million Us dollar “brokerage” fee, but Prince Al Waleed sold to others the airplane probably already used to carry the Lockerbie attacker back to Libya.

 A network in which business mixed dangerously with the Saudi geopolitical operations – at a time when, on the one hand, Saudi Arabia supported the vague “fight against terrorism” and, on the other, fomented it.

 There is no need to recall here the long and very significant story of the relationship between the old Chief of the intelligence services, Turki al-Faisal, a very strong representative of the “Sudairy Seven” and of the network that led part of the Saudi establishment to play the crazy, but not senseless card of al-Qaeda.

 Furthermore, for al-Walid there are also charges – already known in the global financial circles – of corruption, bribery, embezzlement and insider trading.

 The strong reaction of the Royal Family currently in power against the part of al-Saud members who participated in the crazy rush of the “high” oil price phase – when everything was possible, both gains and illegality, as well as economic growth and frauds – is a very effective way to win support from the Saudi people, fed up with the idle rentier or “opulent ruling class” attitudes of some members of the Royal Family.

  Probably the end of the cycle between Sunni jihad and growth of the Kingdom will be the point in which the Greater Middle East will be redesigned: a de facto alliance between Saudi Arabia and Israel, both united by the Shiite danger, between the Golan Heights for Israel and South Yemen for Saudi Arabia; a new alliance between Saudi Arabia, Israel and Russia; China’s entry in the region; the new US positioning and obviously the often ridiculous irrelevance of the European Union.

 The system of the future King Muhammad – after the strange death of Prince Mansur Bin Muqrin in the region of Asir, Saudi Arabia, the husband of a daughter of old King Fahd and later Custodian of the Two Holy Mosques, as well as son of Muqrin al-Abdulaziz, who had been Crown Prince from January to April 2015 – will be a political balance in which keeping the country united and preserving the link between the Royal House and the Saudi people will be the beacon of the monarchy.

 No longer a predatory ruling class, also in relation to the West, but an elite who wants the Kingdom’s political expansion, as well as its economic transformation and hence the end of the oil-dependent economy – a regime that wants to play all its strategic cards, well aware that a King (the United States) is leaving and another King (the Russian Federation) is entering the scene in the region.

 And also aware that Israel is now a well-acquired fact in the Middle East.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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The Russian bear in Lebanon

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It turned out that the Biden-Putin summit on May 16 has established a wider effect than anyone would expect.

It exceeded by far political analysis, especially in Lebanon. The summit almost coincided with the Russian economic delegation’s visit to Beirut on the 18th of the same month and the announcement of its study results to initiate investments projects in Lebanon.

The results revealed the Russian delegation’s future plans in rebuilding the oil refineries in Zahrani and Tripoli and rehabilitating the latter’s port. Regardless of the projects, the Russian companies intend to deal with, if they are approved and encouraged by good signs changes can be relied upon. It means that Lebanon has taken an important leap in its economic policies by gradually moving towards the East.

Naturally, Lebanon’s orientation towards the East “if it happens” will not be absolute and definitive, but rather principled and partial. This is an important matter by itself. It is marked as a qualitative leap that may minimize the private companies’ monopolization of energy imports, which will be directly reflected, firstly, in electricity production in Lebanon, and secondly in facilitating the provision of petroleum products in Lebanon. Such projects became a necessity, in particular, after the collapse of the Lebanese lira against the American dollar.    

Logically, changing the reality of the production of electricity will reveal immediate results. It will be reflected in the change in the rehabilitation of the economic infrastructure fields in Lebanon. It will also positively reflect in other vital areas, such as determining the prices of food commodities, which became outrageously high. 

Accordingly, one of the most important reasons for the obscene rise in food prices is related to the high costs of transportation in the last month alone. It is almost above the purchasing power of the Lebanese. For example, the prices of vegetables and fruits, a non-imported commodity, which is not supervised by government support, remained within reasonable prices; however, once the diesel prices started rising, it directly affected the prices of the seasonal vegetables and fruits.

In addition, there are unseen accomplishments that will go with the entry of Russian companies, which is creating new job opportunities in Lebanon. Lately, it was reported that unemployment in Lebanon will reach 41.4% this year. It is a huge rate, which the Lebanese media, in general, use to provoke people against the current resigned government. However, it neglects to shed the light on the importance of the Russian investment in creating new job opportunities, which will affect all social groups, whether they were transporters, building workers, porters, cleaners, or university graduates.

The companies coming to Lebanon are directly supported by the Russian state. However, they are private companies, a fact that has its advantages. They are familiarized with dealing with other Western international companies. Russian companies have previously coordinated with French and Italian companies in Lebanon, through contracts concluded for the extraction of gas in Lebanese fields and in other fields outside Lebanon. Russian- European coordination process is also recognized in rebuilding Beirut’s harbor. A German company will rebuild the docks, while the French will rebuild the containers or depots, and the Russian companies will rebuild the wheat silos.

It seems that the process is closely related to the future of Lebanon and the future of the Chinese project, the New Silk Road, [One Road, and One Belt]. However, it is not clear yet whether the Russian companies will be investing in Tripoli’s refinery and in regenerating and expanding its port or it will be invested by the Chinese companies. If this achievement is accomplished, then Tripoli will restore its navigating glorious history. Tripoli was one of the most important ports on the Mediterranean. Additionally, there is a need for the Russian and the Chinese to expand on the warm shores of the Mediterranean Sea.

Secondly, the project will boost Tripoli and its surroundings from the current low economic situation to a prosperous economic one, if the real intentions are there. The results in Tripoli will be read as soon as the projects set foot in the city. Of course, this will establish another Sino-Russian victory in the world of economy and trade, if not in politics as well.

The entry of the Russians and the Chinese into the Lebanese field of commerce has international implications. It will come within international and global agreements or understanding. Nevertheless, it is a sign that the Americans are actually losing their grip on Lebanon. This entry will stop the imposition of a limited number of European-oriented Lebanese monopolizing companies, which have dominated the major Lebanese trade of oil and its products. Dominance is protected with the “illusion” of meaningless international resolution. It is true that the Americans are still maneuvering in several places; however, this is evident to the arbitrariness of decisions making in the U.S. today. It is the confusion resulting from ramifications of the “Sword of Jerusalem” operation in Palestine; it seems that they do not have a clear plan towards policies in the region, other than supporting “Israel”.

If the above is put into action, and the Russian companies start working within a guarantee agreement with the Lebanese state. This means a set of important issues on the international and regional levels. And it also means that the Americans would certainly prefer the Russians to any Chinese or Iranian economic direct cooperation in Lebanon.

Firstly, it is clear that in their meeting Mr. Biden and Mr. Putin reached a kind of consent to activate stability in the region. Two years ago, the Americans had a different plan. According to an established source, the Americans actually intended to strike internal stability in Lebanon and ignite another civil war round, before finalizing stability in Syria. This assertion tunes with David Hale’s, an American envoy to Lebanon, a declaration about the American anger over the $10 billion spent in Lebanon to change the political reality and overthrow Hezbollah from the government. Consequently, the American project is behind us now. Russia and China need to invest in the stability of Lebanon, in order to secure their investments in the process of rebuilding Syria.

Secondly, the Lebanese state guarantee, which the Russians require, is directly related to the lack of confidence in the Lebanese banking policies, which have lost their powers as a guarantor for investments after the role they played since November 17, 2019 till today. It proved the inefficiency of the financial policies of the Lebanese banks, which was based on the principle of usury since the nineties of the last century. In addition, a state guarantee will enable the Russian companies to surpass the American sanctions. 
The state guarantee increases the value and importance of the Lebanese state as an entity in the region, and this can be understood from Macron’s statements after the explosion of Beirut port last August when he said that Lebanon’s role in the region as we know it must change. 

Thirdly, if we consider the history of international unions in the world, including the European Union, the (Persian) Gulf Cooperation Council and others, they started as economic alliances before they end as political alliances. Therefore, at this historical stage and in order to work on the economic recovery of Lebanon, which needs more investments instead of falling under the burden of more debts. Lebanon needs to head East towards economic unity with Syria. In cooperating with two superpowers, Lebanon and Syria can form an economic bloc on the Mediterranean shores, a bloc that can get Lebanon out of the vortex of Western absurdity and expand its alliances and horizons to be a real economic and cultural forum where the East and the West can meet.

From our partner Tehran Times

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A New Era in US-Jordan Relations

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President Joe Biden meets with Jordan's King Abdullah II in the Oval Office of the White House in Washington, Monday, July 19, 2021. (AP Photo/Susan Walsh)

King Abdullah of Jordan is the first Arab leader who met American President Joe Biden at the White House. The visit has reaffirmed the strong and long-standing Jordan-US strategic partnership and reinvigorated the bilateral engagement for working together on security issues, and economic development on the basis of shared values and priorities. The King’s visit to Washington reaffirmed Jordan’s value as a reliable ally who plays a critical role for stability in a highly volatile region.

Jordan’s value is multi-dimensional and ranges from bilateral military cooperation, intelligence sharing and joint global counterterrorism operations including as a member of the Global Coalition to Counter ISIS and the Combined Joint Task Force-Operation Inherent Resolve to deployment of almost three thousand (3,000) American troops to Jordan as part of the ongoing campaign to combat regional terrorism. The US has expanded military footprint to Jordan after Washington’s decision to withdraw forces from Syria and reduce military presence in the Turkish airbase of Incirlik. In addition, the kingdom’s geopolitical position in the heart of the Middle East provides a viable alternative for logistical support to the American military taking into consideration the US decision to withdraw from Afghanistan and close three bases in Qatar. Notably, the remaining supplies from the three Qatari bases along with the Support Mission have been transferred to Jordan and have become part of the Area Support Group-Jordan that operates as the Base Operations Support Integrator to back contingency operations and military-to-military engagements within the US Army Central Command’s area of responsibility.

Jordan’s value also stems from its critical role in addressing the overwhelming humanitarian needs created by the conflicts in Syria and Iraq as well as in hosting almost two million registered Palestinian refugees.

Support of Two-state Solution

The fact that Jordan remains at peace with Israel and is a key interlocutor with the Palestinians adds to the kingdom’s reliability to mediate and advance initiatives that support the two-state solution. This presupposes the resetting of Jordan-Israel relations. Washington is well-placed to offer its good offices and help restore trust between the two neighboring countries. The twenty-seventh year Jordan-Israel peace treaty shows not only the possibilities for coordination and co-existence but also the ceilings to peace with Israel in the absence of a solution to the Israeli-Palestinian conflict. A “cold peace” and quiet, limited cooperation are currently the maximum possibilities vis-a-vis a “warm peace” that will unlock Jordan-Israel cooperation and potential.

It is nevertheless noteworthy that the last five years have been discerned by the previous American administration’s lack of appreciation of the complexity of the Israeli-Palestinian conflict. The Trump peace proposal, known as “the Vision”, not only undermined the long-established aim of a two-state solution but also reinforced discussions over alternatives including a one state outcome to the Israeli-Palestinian conflict; different measures of annexation, such as Israeli annexation of Area C in the West Bank; “exotic options” such as a federation in which Israel and Palestine share certain aspects of sovereignty; potential unilateral Israeli initiatives with most prevailing a Jordanian model, in which Jordan takes control of the West Bank and Palestinians are given Jordanian citizenship; and, reinforcement of the notion that “Jordan is “Palestine””.

Practically, Jordan can serve as honest broker in any future Israeli-Palestinian peace process, but as the late King Hussein stated in an interview with The New York Times in 1991 “Jordan should not be, cannot be, will not be a substitute for the Palestinians themselves as the major aggrieved party on the Arab side in a process that leads to peace”. The cited statement is fully embraced by Jordan’s current leadership.

Acknowledgment of Jordan’s Custodianship

The public acknowledgement by the American President of the kingdom’s special role as custodian of the Muslim holy places in Jerusalem is translated into a vote of confidence and a commendation for Jordan’s efficient safeguarding of religious sites for decades.  As known, Amman pays the salaries of more than one thousand (1,000) employees of the Jerusalem Waqf Department and its custodianship role is carried out on behalf of all Islamic nations. The kingdom holds the exclusive authority of the Jordanian-appointed council, the Waqf, over the Temple Mount/ Haram Al Sharif and has spent over 1 billion dollars since 1924 for the administration and renovation of Al Aqsa mosque.

Jordan has admittedly served at multiple occasions as credible intermediary for Israel and the Palestinians to suspend tensions in the old city of Jerusalem, particularly at the Temple Mount/Haram Al-Sharif and pursues a successful administration of religious funded schools favoring moderate religious education and religious tourism. Jordanian moderation has guaranteed co-existence of the three monotheistic religions in Jerusalem at a time when on the contrary, counties like Turkey funnel millions of dollars in charity projects in Jerusalem promoting the ideology of the Muslim Brotherhood.

Overall, Jordan’s custodianship has proved to be successful in maintaining delicate arrangements for the benefit of all religions and parties involved.

American Loan Guarantees

The King’s discussions with the American President also centered on the economic challenges exacerbated by the effect of the pandemic and the enhancement of bilateral economic cooperation. Admittedly, Jordan showed strong leadership and governance with early actions that reduced the coronavirus pandemic pressure on the kingdom’s health system. The Jordanian government imposed a nationwide lockdown and severe social distancing measures at a much earlier stage of the pandemic than other Middle East countries.

Jordan withstood the pandemic’s impact with minimal loss of life but with a significant cost to its economy. As of June 2020, most restrictions on economic activity were lifted turning Jordan into one of the first Arab countries to reopen. Gross Domestic Product (GDP) has contracted in 2020 by 3.5 percent after growing 2 percent in 2019 due to losses in state revenues because of fewer remittances and a weakened tourism market.

To cope with the direct negative effects of the pandemic on its state budget, the Kingdom received $396 million from the International Monetary Fund (IMF). The amount of finance has specifically helped address the country’s balance of payments needs and allowed for higher spending on healthcare, and assistance to households and companies most affected by the pandemic. Despite that the IMF provided in March 2020 another multi-year $1.3 billion loan package to Jordan, the pandemic has caused a $1.5 billion shortfall in its balance of payments.

This complex economic reality along with Jordan’s moderation in the Arab world justify continued robust annual American economic assistance to the kingdom in the form of budgetary support (cash transfer), USAID programs in Jordan, and loan guarantees. US cash assistance should increase in the coming years taking into consideration that it is directed to refugee support and to segments of the economy that are mostly affected by the pandemic like foreign debt payments and fuel import costs. Overall, a pledge should be made for Jordan in American congress for the authorization of moreUS sovereign loan guarantees that will help the kingdom weather the pandemic’s adverse medium-to-long-term effects on its economy. US sovereign loan guarantees will allow Jordan to issue debt securities that are fully guaranteed by the American government in capital markets, effectively subsidizing the cost for the Jordanian government to access financing.

It is also noticeable that in a genuine effort to help the kingdom contain the pandemic and safeguard public health, the American administration proceeded with the delivery of over 500 thousand covid-19 vaccines to Jordan highlighting American commitment to international vaccination programs including that of the kingdom.

US-Jordan Defense Partnership

The strategic US-Jordan defense relationship was reflected in the discussions that were conducted between the Jordanian King and the American President. American support for the modernization of Jordan’s F-16 fighter jets has been at the forefront of the agenda with the aim of achieving greater interoperability and effectiveness for the Jordanian Armed Forces.  The American President recognized Jordan’s contribution to the successful international campaign to defeat ISIS and honored as an example of heroism the memory of captain Muath al-Kasasbeh who was executed in 2015 by the terrorist organization’s militants.  

Jordan has suffered avowedly from terrorism throughout the years and works collectively at regional and international levels to eliminate all its forms. The kingdom lost two prime ministers, Haza’a Al-Majali and Wasfi Al-Tal, as victims of terrorism and experienced a series of terrorist attacks like the simultaneous suicide bombings against three hotels in Amman in November 2005 that led to the loss of life of American, Israeli, Palestinian, and Jordanian nationals.

In effect, Jordan is the third-largest recipient of annual American foreign aid globally, after Afghanistan and Israel. A Memorandum of Understanding on American foreign assistance to Jordan commits the United States to providing $1.275 billion per year over a five-year period for a total of $6.375 billion (FY2018-FY2022). Renegotiations on the next such agreement for FY2023-FY2027 is estimated that will aim at increasing the American commitment to Jordan, a key ally in the fight against international terrorism whose military should be in position to procure and maintain conventional weapons systems.

On the whole, Jordan is a steadfast security partner of the United States in the Middle East whose moderation and pragmatism helped the kingdom weather regional and world challenges. As 2021 and past years have showed, Jordan’s position as a bridge between the Levant and the Persian Gulf provides it a unique geopolitical standing, in a way that nowadays Amman is granted with a significant security, diplomatic and humanitarian role that signals a new era in US-Jordan relations.

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Chinese FM Wraps Up his Visit to Egypt

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Wang Yi, the Chinese State Councilor and Foreign Minister, visited Egypt on July 18, 2021, in El Alamein City, northwest Egypt. The Chinese Foreign Minister is the first foreign official to visit this strategic city.

Wang Yi met with his Egyptian counterpart, Sameh Shoukry, during his visit to Egypt, and they discussed bilateral relations between the two countries. This year marks the 65th anniversary of the establishment of diplomatic relations between Egypt and China. Egypt is the first Arab country to establish diplomatic relations with China and the first African country to do so. In the Arab world, the Islamic world, Africa, and developing countries, Egypt has long been one of China’s most important strategic partners. At the international level, the two countries mutually support one another. The meeting between Egypt’s Foreign Minister and China’s Foreign Minister focused on three main issues: the Covid-19 vaccine, the One Belt One Road Initiative, and international and regional issues such as Palestine and Syria

Covid-19 Vaccine

Both Egypt and China have a long history of cooperation and friendship. Before the outbreak of the Covid-19, the two countries’ relations were based on economic and trade cooperation, with China being Egypt’s first trading partner for the eighth year in a row since 2013, and the volume of trade exchange between the two countries exceeding $14.5 billion in 2020. However, as the outbreak Covid-19, cooperation between the two countries expanded to include medical cooperation. Egypt and China worked together to combat the virus. Egypt sent medical supplies to China, and China sent medical supplies and Chinese vaccine to Egypt. In addition, in December 2020, the two sides signed a cooperation agreement on COVID-19 Vaccine Production and China dispatched technical teams to Egypt to assist in the vaccine’s local manufacture. As a result, Egypt is considered Africa’s first vaccine manufacturer.

One Belt One Road Initiative  

Egypt is an important strategic partner in building the Belt and Road Initiative. According to CGTN, the Egyptian president, Abdel Fattah al- Sisi, stated that:” Egypt supports the Belt and Road Initiative(BRI).” He added that Egypt is ready to strengthen cooperation with China in the fields of economy, trade, industry, science and technology, and expand human exchanges within the framework of the “Belt and Road Initiative.” One Belt and One Road Initiative is one of the most important initiatives of the twenty-first century, announced by President Xi Jinping during official visits to Indonesia and Kazakhstan in 2013. Egypt was one of the first countries to participate in this initiative. In 2014, Egyptian President al-Sisi expressed in an interview that China’s One Belt and One Road Initiative was an “opportunity” for cooperation between China and Egypt. Egypt was willing to participate in it actively.

International and Regional Issues

Regarding the international and regional issues, the two sides exchanged views and coordinated positions on some issues as Palestine, Syria issues. It’s worth mentioning that Wang Yi paid a visit to Syria the day before his trip to Egypt, marking him the first Chinese official to visit Syria since the country’s civil war began. China supports the Syrian sovereignty and rejects foreign interference in Syria, and also rejects the regime change. The Egyptian Minister Sameh Shoukry also discussed with his Chinese counterpart Wang Yi the GERD issue. According to Sky News, Shoukry explained Egypt and Sudan’s positions as two downstream countries, the importance of preserving the interests of all parties and not jeopardizing the downstream countries’ water security, and the importance of engaging in intensified negotiations under the auspices of the African Union presidency. The two sides signed an agreement on the Egyptian-Sino Intergovernmental Cooperation Committee at the end of their meeting.

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The European Commission has today adopted a Recommendation for a Council decision authorising the opening of negotiations for an EU-UK...

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South Asia13 hours ago

Why France holds the key to India’s Multilateral Ambitions

Authors: Prof. Nidhi Piplani Kapur and K.A. Dhananjay As Indian Foreign Secretary Harsh Shringla pitches for permanent membership and reforms...

Americas15 hours ago

As Refugees Flee Central America, the Mexican Public Sours On Accepting Them

Authors: Isabel Eliassen, Alianna Casas, Timothy S. Rich* In recent years, individuals from Central America’s Northern Triangle (El Salvador, Guatemala,...

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