Let us analyze Iran’s current demographics, which – as happens everywhere – is at the basis of the labor force complexion and of the public investment volume, as well as productivity and private spending.
During the first years of Islamic revolution, soon after the advent of the regime, there was a 2.5 million increase in births. In the 2000s, the annual increase of newborns was only one million approximately, while currently there is a phase of further reduction in births.
There is also migration – another decisive factor in demographics – which, as already noted, is always at the basis of every country’s economic structure.
According to the 2016 population survey, the latest effective one carried out by the ayatollah regime, as many as 1.8 million Iranians -i.e. 2.2% of the current 82.407 million people – are of foreign origin.
Hence the presence of a wide share of young or very young people.
As can be easily inferred, this leads to a high rate of unemployment and youth unemployment, in particular.
As often happened in the past, there is also the regimes’ tendency to push the excess of working age population out of the country, also by means of war.
Considering the official data of September-October 2018, in the Shiite Islamic Republic of Iran the average unemployment rate is 12.2%.
According to the latest data, however, women’s unemployment rate is already equal to 19.8%, while the unofficial statistics of real unemployment among young people alone was 28.40% in the first quarter of 2018, with regional peaks of 35% and even 38% in some peripheral areas.
Another secondary, but inevitable effect of youth unemployment is the brain drain, as a result of which every year 150,000-180,000 graduates leave Iran.
A hidden tax that deprives Iran of 50 billion tax revenue, in addition to the loss of public (and family) costs for higher education.
Nevertheless, after 2015 – the year of the JCPOA with P5 + 1, i.e. China, France, the Russian Federation, Great Britain and the United States, as well as Germany’s participation – there was a significant economic growth that, however, did not facilitate Iran’s access to Iranian capital and assets which had been frozen due to sanctions.
Iran’s total frozen assets are still between 100 and 124 billion US dollars, with approximately 50 billion dollars which have recently been refrozen in the United States alone.
Hence the sanction phase has been characterized by a real collapse of the Iranian economy.
From a GDP growing by a yearly 6% in 2010, in 2015 – exactly the year in which the JCPOA was signed – Iran certified a mere 1.5% GDP increase.
In 2016, as a result of the lifting of some sanctions against it, the GDP grew by 12.5% and by over 4% in 2017.
Hence a record growth in 2016 – due to the JCPOA -but later considerable growth rates were still recorded, certainly higher than the miserable growth rates of the European GDP in those same years.
Before the US unilateral withdrawal from the nuclear deal with Iran, international banks had also predicted a 4.8% increase of Iranian GDP in 2018.
The current rate is instead 1.8%.
Sanctions, especially those regarding currency, always reach the target.
Currently, however, the US unilateral sanctions do not excessively affect Iran’s military system, which is mainly based on domestic technologies and patents and does not fear to be significantly damaged by the embargo and sanctions against it.
Nevertheless, since the announcement of the US withdrawal from the nuclear deal last July, the value of the Iranian currency has halved. So far the riyal has even lost 80% of its value as against the dollar.
Moreover, due to some natural disasters, Iran is currently forced to import much food from abroad, just now that its currency is worth ever less.
Moreover, as always happens, the great devaluation has led to high inflation: currently the Iranian inflation rate is realistically about 24%, while the Iranian government reports a 10.2% rate.
Iran has still approximately 90 billion US dollars of reserves, with the extraction of 3.79 million barrels / day (data of June 2018), but production will certainly decrease, considering the new partial sanctions imposed by the USA.
To the delight of Saudi Arabia, above all, whose crude oil production has a direct inverse correlation with Iran’s.
At strategic and military levels, if Iran wants to organize a war action, its first step will be the Strait of Hormuz.
Over 30% of the maritime oil traffic transits through this waterway (i.e. 18.5 million barrels / day),considering that it is the most used route by all the Arab exporting countries.
Nevertheless, the Strait of Hormuz which, at its narrowest, has a width of 33 miles, is also the waterway used for most Iranian oil exports. This significantly limits the possibility of a generalized block of the Strait of Hormuz, not to mention the fact that the headquarters of the US Firth Fleet is at short distance from Manama, the capital of Bahrain.
Obviously the only relatively credible threat of blocking the Strait of Hormuz is enough to make the oil barrel price rise significantly – and therefore this is what really matters.
Hence there is a direct link between the pursuit of the Iranian natural strategic goals and the increasingly difficult situation in Iran, subject to new and certainly not negligible unilateral US sanctions.
The more Iran wants, the more it will be punished on the markets and in the international geopolitical system.
Both the current US sanctions of last November and those imposed before the JCPOA, regard precious metals, the acquisition of US banknotes, or of technologies directly or indirectly linked to oil extraction or weapon manufacturing, as well as to the operations of oil transport and storage.
Obviously all payments to Iranian institutions or individuals cannot be made through US banks.
Hence, while a direct confrontation between Iran and the United States is currently unlikely, tension between the two countries is still conceivable – an escalation that also implies, at certain stages, war or semi-war operations.
A further variable of this scenario is Iran’s use of indirect or “hybrid war” strategies in the areas near Hormuz, or in any Middle East region where Shiites or the Iranian Armed Forces – above all, the Pasdaran – can start a war of attrition with the typical methods of hybrid war, guerrilla warfare, proxy war or strategic friction.
In particular, the ships of the Arab countries which are Iran’s “enemies” will be attacked by Iran in various ways, even without the possibility of identifying the attackers.
It is a highly likely scenario, but only if the Shiite republic feels to be encircled or under attack by Israel, the USA or the Middle East Sunni powers.
In fact, the Yemeni Houthi rebels have already attacked Saudi Aramco ships, during their crossing of Bab el-Mandeb Strait. If Saudi Arabia responded in the same way, this would give rise to a “small war” in the Strait, which is precisely what Iran wants, without ever directly creating the opportunity.
Approximately 5 million barrels / day transit through Bab el-Mandeb Strait to the Mediterranean, and the other way round.
Hitting these routes, without direct actions by the Guardians of the Revolution or by the less trusted Artesh, could be a possible option for Iran.
In so doing, however, Iran would antagonize Europe which, indeed, count for nothing strategically and militarily – but this could set a precedent for a US military action, with or without its regional allies.
Hence if we put in place a series of international financial, political and military pressures, we can think that – in the future – the USA can sit back to the negotiating table with Iran.
Currently, it seems that the United States is leaving the Iranian affair to Saudi Arabia and Israel – but probably it will not be enough.
Hence, according to the basic ideas of Iran’s current leadership in power, the negative reaction to the growth of Iran’s power does not depend on its threatening nature, but on the fear for the growth of a new Middle East actor, namely Iran.
Therefore, again according to the Iranian ruling class, only by pursuing the goals of Iran’s great autonomy and of an evident and significant power projection, will it be possible – in the future – to have an acceptable level of security for Iran and a good level of geoeconomic stability.
The Iranian leaders’ strategic-military theory, however, places both conventional and unconventional threats on an equal footing.
Nevertheless, according to Iran’s leadership, Iran’s expansion is related to the mere security and stability of the country and has exactly no expansionist aims.
This is what Iran’s leaders maintain. But how can peaceful expansion of commercial networks and routes be pursued if currently Iran has to move between potential or overt enemies?
Hence, as the Iranian leaders maintain, if their economy is further put in crisis, the Iranian government will start bilateral or trilateral negotiations with its neighbouring countries, thus creating transport, financial and commercial networks, besides the stable exchange of labor force, national currencies, goods and services.
The Iranian leaders think that, in this vast region, their country could arrange its new economic development, outside the framework of relations with the USA and, possibly, with the weak EU.
In other and even much clearer words: railways, roads, trade and IT networks between Iran and the Lebanon, Iraq and Syria.
This is one of the implications of the decisive role played by Iran in the Syrian war.
In terms of national defense, the Iranian Shiite leaders believe that the most important course of action in this sector is the establishment of excellent relations with the United Arab Emirates and Qatar, while a Saudi-Turkish axis is also emerging in the Iranian decision-makers’ minds.
A new Turkish-Iranian axis organized by the Russian Federation, leading to peace between Iran and Turkey – peace that regards Syria which, however, in the Turkish leaders’ view, could lead to a financial and oil alliance between the two countries, an alliance to which Russia would not be alien.
Furthermore, according to the Iranian leaders, the fight against Daesh-Isis was an operation to make Iran’s borders safe, especially with the Pasdaran’s interventions in Syria and Iraq.
The other strategic project pursued by the Iranian leaders is a stable and strong alliance with the Russian Federation.
From Iran’s viewpoint, all its recent military operations – even using the new scenario created by the “Arab springs” – have exploited the chaos spread by ISIS, for example in Iraq, with a view to creating a stable corridor between the Iranian territory and some Iraqi areas, exactly as it is happening in Syria in the new green line between Iran and Hezbollah’s Lebanon.
A geopolitics of “corridors”, which are at first military and then economic corridors.
Assad is therefore crucial for all Iranian projects, since he can link Iran with the Mediterranean.
With possible threats, especially asymmetric ones, by Iran, which could be launched from the Lebanese coast not only against the “traditional” opponents (Israel and the USA, of course), but also against the whole transit of goods to the Southern coasts of the EU which, obviously, has not yet realized it.
There will be Iranian naval bases on the Lebanese coast in the future.
Hence, within all this conceptual mechanism, we can see Iran’s current and future choices in the field of military and foreign policy:
1) increase of commercial ties with the countries bordering on the Shiite republic, through agreements including monetary, export, labour and financial support arrangements to leave the dollar area, as China and Russia do;
2) use of these relations for creating an “external circle” useful for Iran’s defense, with obvious needs to use remote positions for missiles and for anti-aircraft artillery, with the future establishment of a sort of “Shiite NATO”, which could be linked to the Shanghai Cooperation Organization (SCO);
3) creation of a balance between the loss of Iranian positions in the US market and the opening up of new opportunities in the European and Middle East markets, with the Iranian economic expansion to Azerbaijan and Uzbekistan;
4) future expansion of proxy wars in Yemen and, possibly, also in Saudi Arabia, possibly with an Iranian “seduction” operation vis-à-vis Manama and other Gulf Emirates, obviously in addition to further strengthening the link between Iran and Qatar;
5) probable direct threat to Israel, through Hezbollah, so as to verify the Israeli relations with European countries and the USA. The basic question of Iranian leaders is always the same: will Europeans, or even Americans, be willing to “die for Jerusalem”?
6) Planned mounting of tension in Bab el-Mandeb Strait, but with short demonstrative actions, of which Iran itself will be the first to observe their impact on the oil market and on the military structure of the Middle East;
7) Iran’s probable future creation of a sort of “Shiite common market”, but also open to other Sunni countries, which – however – will go along Khomeini’s traditional policy line: to expand the “revolutionary” Iran in the Central Asian axis, by unifying many countries having Shia minorities, such as Uzbekistan, the Hazarasin Afghanistan, Azerbaijan, and the Shia minorities in Pakistan, to which Iran could ensure social peace. A possible future strategy for Iran will be strengthening Shiite minorities so as to later deal with their Sunni governments.
Hence, many signals will be sent to us by Iran in the coming months and years.
Syria’s Kurds: The new frontline in confronting Iran and Turkey
US President Donald J. Trump’s threat to devastate Turkey’s economy if Turkish troops attack Syrian Kurds allied with the United States in the wake of the announced withdrawal of American forces potentially serves his broader goal of letting regional forces fight for common goals like countering Iranian influence in Syria.
Mr. Trump’s threat coupled with a call on Turkey to create a 26-kilometre buffer zone to protect Turkey from a perceived Kurdish threat was designed to pre-empt a Turkish strike against the People’s Protection Units (YPG) that Ankara asserts is part of the outlawed Kurdish Workers Party (PKK), a Turkish group that has waged a low-intensity war in predominantly Kurdish south-eastern Turkey for more than three decades.
Like Turkey, the United States and Europe have designated the PKK as a terrorist organization.
Turkey has been marshalling forces for an attack on the YPG since Mr. Trump’s announced withdrawal of US forces. It would be the third offensive against Syrian Kurds in recent years.
In a sign of strained relations with Saudi Arabia, Turkish media with close ties to the government have been reporting long before the October 2 killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul that Saudi Arabia is funding the YPG. There is no independent confirmation of the Turkish allegations.
Yeni Safak reported in 2017, days after the Gulf crisis erupted pitting a Saudi-UAE-Egyptian alliance against Qatar, which is supported by Turkey, that US, Saudi, Emirati and Egyptian officials had met with the PKK as well as the Democratic Union Party (PYD), which Turkey says is the Syrian political wing of the PKK, to discuss the future of Syrian oil once the Islamic State had been defeated.
Turkey’s semi-official Anadolu Agency reported last May that Saudi and YPG officials had met to discuss cooperation. Saudi Arabia promised to pay Kurdish fighters that joined an Arab-backed force US$ 200 a month, Anadolu said. Saudi Arabia allegedly sent aid to the YPG on trucks that travelled through Iraq to enter Syria.
In August last year, Saudi Arabia announced that it had transferred US$ 100 million to the United States that was earmarked for agriculture, education, roadworks, rubble removal and water service in areas of north-eastern Syria that are controlled by the US-backed Syrian Democratic Forces of which the YPG is a significant part.
Saudi Arabia said the payment, announced on the day that US Secretary of State Mike Pompeo arrived in the kingdom, was intended to fund stabilization of areas liberated from control by the Islamic State.
Turkish media, however, insisted that the funds would flow to the YPG.
“The delivery of $100 million is considered as the latest move by Saudi Arabia in support of the partnership between the U.S. and YPG. Using the fight against Daesh as a pretext, the U.S. has been cooperating with the YPG in Syria and providing arms support to the group. After Daesh was cleared from the region with the help of the U.S., the YPG tightened its grip on Syrian soil taking advantage of the power vacuum in the war-torn country,” Daily Sabah said referring to the Islamic State by one of its Arabic acronyms.
Saudi Arabia has refrained from including the YPG and the PKK on its extensive list of terrorist organizations even though then foreign minister Adel al-Jubeir described in 2017 the Turkish organization as a “terror group.”
This week’s Trump threat and his earlier vow to stand by the Kurds despite the troop withdrawal gives Saudi Arabia and other Arab states such as the United Arab Emirates and Egypt political cover to support the Kurds as a force against Iran’s presence in Syria.
It also allows the kingdom and the UAE to attempt to thwart Turkish attempts to increase its regional influence. Saudi Arabia, the UAE and Egypt have insisted that Turkey must withdraw its troops from Qatar as one of the conditions for the lifting of the 18-month old diplomatic and economic boycott of the Gulf state.
The UAE, determined to squash any expression of political Islam, has long led the autocratic Arab charge against Turkey because of its opposition to the 2013 military coup in Egypt that toppled Mohammed Morsi, a Muslim Brother and the country’s first and only democratically elected president; Turkey’s close relations with Iran and Turkish support for Qatar and Islamist forces in Libya.
Saudi Arabia the UAE and Egypt support General Khalifa Haftar, who commands anti-Islamist forces in eastern Libya while Turkey alongside Qatar and Sudan supports the Islamists.
Libyan and Saudi media reported that authorities had repeatedly intercepted Turkish arms shipments destined for Islamists, including one this month and another last month. Turkey has denied the allegations.
“Simply put, as Qatar has become the go-to financier of the Muslim Brotherhood and its more radical offshoot groups around the globe, Turkey has become their armorer,” said Turkey scholar Michael Rubin.
Ironically, the fact that various Arab states, including the UAE and Bahrain, recently reopened their embassies in Damascus with tacit Saudi approval after having supported forces aligned against Syrian President Bashar al-Assad for much of the civil war, like Mr. Trump’s threat to devastate the Turkish economy, makes Gulf support for the Kurds more feasible.
Seemingly left in the cold by the US president’s announced withdrawal of American forces, the YPG has sought to forge relations with the Assad regime. In response, Syria has massed troops near the town of Manbij, expected to be the flashpoint of a Turkish offensive.
Commenting on last year’s two-month long Turkish campaign that removed Kurdish forces from the Syrian town of Afrin and Turkish efforts since to stabilize the region, Gulf scholar Giorgio Cafiero noted that “for the UAE, Afrin represents a frontline in the struggle against Turkish expansionism with respect to the Arab world.”
The same could be said from a Saudi and UAE perspective for Manbij not only with regard to Turkey but also Iran’s presence in Syria. Frontlines and tactics may be shifting, US and Gulf geopolitical goals have not.
‘Gadkari effect’ on growing Iran-India relations
If the ‘Newton Effect’ in physics has an equivalent in international diplomacy, we can describe what is happening to India-Iran relations as the ‘Gadkari Effect’.
Like in the case of the 18th century English scientist Isaac Newton’s optical property of physics, the minister in the Indian government Nitin Gadkari – arguably, by far the best performing colleague of Prime Minister Narendra Modi – has created a series of concentric, alternating rings centered at the point of contact between the Indian and Iranian economies.
‘Gadkari’s rings’ around the Chabahar Port in the remote province of Sistan-Baluchistan in southeastern Iran are phenomenally transforming the India-Iran relationship.
The first definitive signs of this appeared in December when the quiet, intense discussions between New Delhi and Tehran under Gadkari’s watch resulted in the agreement over a new payment mechanism that dispenses with the use of American dollar in India-Iran economic transactions.
Prime facie, it was a riposte to the use of sanctions (‘weaponization of dollar’) as a foreign policy tool to interfere in Iran’s oil trade with third countries such as India. (See my blog India sequesters Iran ties from US predatory strike.)
However, the 3-day visit to Delhi by the Iranian Foreign Minister Mohammad Javad Zarif on January 7-9 highlighted that the application of the payment mechanism to the Indian-Iranian cooperation over Chabahar Port holds seamless potential to energize the economic partnership between the two countries across the board. In a historical sense, an opportunity is at hand to make the partnership, which has been ‘oil-centric’, a multi-vector ‘win-win’ relationship.
The meeting between Gadkari and Zarif in Delhi on Tuesday signaled that the two sides have a ‘big picture’ in mind. Thus, the opening of a branch of Bank Pasargad in Mumbai is a timely step. Pasargad is a major Iranian private bank offering retail, commercial and investment banking services, which provides services such as letters of credit, treasury, currency exchange, corporate loans syndication, financial advisory and electronic banking. (It is ranked 257th in the Banker magazine’s “1000 banks in the world”.)
Bank Pasargad is establishing presence in India just when the Chabahar Port has been ‘operationalized’ and a first shipment from Brazil carrying 72458 tons of corn cargo berthed at the port terminal on December 30.
More importantly, the discussions between Gadkari and Zarif have covered proposals for a barter system in India-Iran trade. Iran needs steel, particularly rail steel and locomotive engines “in large quantities, and they are ready to supply urea,” Gadkari told the media.
Then, there is a proposal for a railway line connecting Chabahar with Iran’s grid leading northward to the border with Afghanistan. Zarif summed up the broad sweep of discussions this way:
“We had very good discussions on both Chabahar as well as other areas of cooperation between Iran and India. The two countries complement each other and we can cooperate in whole range of areas… We hope that in spite of the illegal US sanctions, Iran and India can cooperate further for the benefit of the people of the two countries and for the region.”
Paradoxically, the collaboration over Chabahar Port, which has been a “byproduct” of India-Pakistan tensions, is rapidly outgrowing the zero-sum and gaining habitation and a name in regional security. There are many ways of looking at why this is happening so.
Clearly, both India and Iran have turned the Chabahar project around to provide an anchor sheet for spurring trade and investment between the two countries. This approach holds big promises. There is great complementarity between the two economies.
Iran is the only country in the Middle East with a diversified economy and a huge market with a fairly developed industrial and technological base and agriculture and richly endowed in mineral resources. It is an oil rich country and the needs of Indian economy for energy, of course, are galloping.
Second, Chabahar Port can provide a gateway for India not only to Afghanistan and Central Asia but also to Russia and the European market. Logically, Chabahar should be linked to the proposed North-South Transportation Corridor that would significantly cut down shipping time and costs for the trade between India and Russia and Europe.
Thus, it falls in place that the Trump administration, which keeps an eagle’s eye on Iran’s external relations, has given a pass to the Indian investment in Chabahar. Prima facie, Chabahar Port can provide access for Afghanistan to the world market and that country’s stabilization is an American objective. But then, Chabahar can also provide a potential transportation route in future for American companies trading and investing in Afghanistan and Central Asia.
According to a Pentagon task force set up to study Afghanistan’s mineral wealth, that country is sitting on untapped rare minerals, including some highly strategic ones worth at least 1 trillion dollars. Indeed, President Trump has pointedly spoken about it to rationalize the US’ abiding business interests in Afghanistan. Now, from indications of late, conditions have dramatically improved for an Afghan settlement that provides for enduring US presence in that country.
We must carefully take note that Iran is in effect supplementing the efforts of Pakistan and the US to kickstart an intra-Afghan dialogue involving the representatives from Kabul and the Taliban.
Importantly, China has also adopted a similar supportive role. A high degree of regional consensus is forging that security and stability of Afghanistan should not be the stuff of geopolitical rivalries.
The bottom line is that Iran’s own integration into the international community, which the Trump administration is hindering, is inevitable at some point sooner than we believe.
The disclosure that behind the cloud cover of shrill rhetoric against Iran, Washington secretly made two overtures to Tehran recently to open talks shows that Trump himself is looking for a deal to get out of the cul-de-sac in which his Iran policies have landed him.
Washington cannot but take note of the constructive role that Tehran is playing on the Afghan situation. (Interestingly, Zarif and Zalmay Khalilzad, US special representative on Afghanistan who go back a long way, have paid overlapping visits to Delhi.)
There is an influential constituency of strategic analysts and opinion makers within the US already who recognize the geopolitical reality that American regional policy in the Middle East will forever remain on roller coaster unless and until Washington normalizes with Tehran. They acknowledge that at the end of the day, Iran is an authentic regional power whose rise cannot be stopped.
From such a perspective, what Zarif’s discussions in Delhi underscore is that while Iran is keeping its end of the bargain in the 2015 nuclear deal, it is incrementally defeating the US’ “containment strategy” by its variant of “ostpolitik”, focused principally on three friendly countries – Russia, China and India.
This is where much depends on the Indian ingenuity to create new webs of regional partnerships. There are tantalizing possibilities. Remember the 3-way Moscow-Baghdad-Delhi trilateral cooperation in the bygone Soviet era?
That is only one model of how the three big countries – Russia, India and Iran – can have common interest to create sinews of cooperation attuned to Eurasian integration. It is a rare convergence since there are no contradictions in the mutual interests of the three regional powers.
The Indian diplomacy must come out of its geopolitical reveries and begin working on the tangible and deliverable. That will make our foreign policy relevant to our country’s overall development. Gadkari has shown how geo-economics makes brilliant, purposive foreign policy. Equally, he followed up diligently what needed to be done to get Chabhar project going so that an entire architecture of cooperation can be built on it. Zarif’s extraordinary remarks testify to it. Even a hundred theatrical performances on the Madison Square Garden wouldn’t have achieved such spectacular results in a short period of time.
*Nitin Jairam Gadkari is an Indian politician and the current Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation in the Government of India.
First published in our partner MNA
Reasons behind the eventual withdrawal of Kuwait from PGCC
After several years since the beginning of Syria crisis, the Persian Gulf Arab states are changing their policies towards this county, and following the move of UAE and Bahrain, Kuwait will soon expand its relations with Syria.
Along with this policy change, the Arab leaders of Persian Gulf countries are warming up their ties with Israel.
The Arab-Israel relations get closer but Kuwait does not agree with this policy and intends to maintain its foreign policy outside Israeli influence, but it’s possible as a result Kuwait might be separated from the PGCC.
In this regard, it should be noted that the Persian Gulf Cooperation Council was an organization that was set up in 1981 to control Iran and was attempting to take steps to control Iraq, too.
Alongside these issues, the international and regional powers’ role in influencing these countries also reflects the lack of trust between the PGCC countries. For instance, while Qatar hosts a Turkish military base, this is seen as a threat to Saudi Arabia, the UAE and Bahrain.
A recent international summit was held in Doha, Qatar, by high-profile figures, while earlier the Persian Gulf Cooperation Council summit in Riyadh took place with the absence of Qatar, Oman and the UAE’s leaders.
By holding this important summit and gathering outstanding international figures from Iran, Turkey and Russia, Qatar has shown that it could be more widely recognized in the international arena despite the hostile actions of the Persian Gulf Arabs states with the Doha blockade.
On December 12, 2019, Riyadh hosted the first Arab-African conference of foreign ministers of six countries bordering the Red Sea and the Gulf of Aden, a strategic area vital to global shipping.
During the summit an agreement was made on the establishment of a legal regime for the Red Sea and the Gulf of Aden. The objective of the Red Sea and Gulf of Aden regime was to support world trade, international shipping lanes, regional stability and the investment and development of the member states. The plan, proposed by the King of Saudi Arabia, will be implemented in pursuit of security and stability in the region.
The Saudi Ministry of Foreign Affairs announced on December 12 that Saudi Arabia agreed to establish a Red Sea regulatory regime aimed at strengthening security and investment in the Red Sea bordering countries.
According to the statement, the seven countries are Saudi Arabia, Egypt, Sudan, Djibouti, Yemen, Somalia, and Jordan.
The conference also features a new Saudi-led regional bloc that shows the Persian Gulf Cooperation Council’s failure.
Regarding the normalization of relations with Tel Aviv and the “deal of the century”, we are also seeing disagreements among members of the Council. Kuwait is one of the countries that disagrees with the policy of normalization of relations with Israel by some member states of PGCC. Kuwait has never wanted to be dominated by the Saudis. We also see a sharpening of the country’s disagreements with Saudi Arabia over joint oil fields, too.
This disagreement is over the Neutral Zone, and area of about 5,700 square kilometers. Its dividing line begins north of Khafji oil field and runs straight to the west.
Kuwait disagrees with the resumption of oil extraction from the neutral zone without its recognition, and calls for its control as a Kuwaiti-dominated area.
Kuwait has discovered that Saudi Arabia is not a true friend of the Persian Gulf states, but an interventionist in the Persian Gulf states’ internal affairs.
Kuwait knows that the deal Saudi Arabia and its allies, the Emirates and Bahrain made with Qatar may repeat with Kuwait and Oman. In fact, what caused Qatar not to invade Saudi Arabia, Bahrain and the UAE was the resistance and meddling of Kuwait and Oman.
Accordingly, Kuwait seeks to strike a balance between the three countries. Although Kuwait has military and security ties with the U.S., it well knows that the U.S. is constantly threatening regional security. No one has forgotten what Trump said about Saudi Arabia, : “You might not be there for two weeks without us”.
First published in our partner Tehran Times
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