Saudi weekly digest. XIV

Last week’s political and diplomatic news was mainly about the recent regional normalisation developments.

Perhaps the most welcomed report was that the Saudi delegation plans to meet with the Houthis in Sana’a to discuss a ceasefire. The permanent ceasefire talks would be facilitated by Oman and, if successful, would end nearly a decade-long conflict that has given grounds for what some say is the greatest humanitarian catastrophe in the 21st century.

Last Saturday, another concrete step resulting from the normalisation between Saudi Arabia and Iran was the Saudi delegation arriving in Tehran to discuss reopening diplomatic missions. These talks come after a seven-year break in diplomatic relations.

As mentioned two weeks ago, Saudi Arabia is normalising relations with Syria. The latter’s president, Bashar al-Assad, is reportedly invited to participate in the Arab leader's summit in May. Al-Assad’s attendance would formally conclude his regional isolation.

However,

The US is reportedly not pleased being left out in the normalisation deals between Saudi Arabia and its long-time foes Iran and Syria. The reports come after CIA’s chief surprisedly visited Saudi Arabia and met with the Crown Prince and his intelligence counterparts.

Perhaps another source of dismay to the US is…

Russian military vessel docking in the port of Jeddah for the first time. The vessel stopped off at Jeddah Islamic Port for crew rest and refuelling while returning to Russia. Last month Russia initiated naval exercises with China and Iran in the Arabian Sea to strengthen ties.

Two good news and one not-so-good report from last week about the economy.

Fitch Ratings has given Saudi Arabia a rating of 'A+' with a stable outlook, citing the country's continued financial strength, better control over public debt, and improved fiscal management as the reasons for this assessment. The rating agency also acknowledged the Saudi government's initiatives to enhance budgetary and economic policies, ensure better spending control, and reduce its dependence on oil revenues.

Supported by female employment, Saudi Arabia reached a single-digit unemployment rate in the last quarter of 2022 since 2003. The 8% unemployment rate is shy of just 1% of the goal targeted in Vision 2030.

In 2022, foreign investment in Saudi Arabia decreased by almost 60%, the most significant drop in over 15 years. According to data from the Saudi Central Bank, the total investment into the country last year was $7.9 billion, much lower than the $19.3 billion recorded in 2021.

E2E views on last week:

Saudis making up with their neighbours in the Middle Eastern community causes some mixed feelings in Washington.

The Kingdom’s critics in Washington must be pleased with the plan to initiate ceasefire talks between the Saudi delegation and the Houthis. On the other hand, there are elements of frustration regarding Saudi Arabia's reconciliation with Tehran. Washington’s displeasure likely comes from having lost an ally from the front against Iran’s nuclear ambitions.

While the Saudis are in the rapid process of normalisation and reestablishing diplomatic missions, they are unlikely to be best pleased with nuclear Iran. Even if they don’t like the idea of nuclear Iran, there isn’t much they can do about it, especially now that they are pursuing friendlier and less hostile relations.

There is something, however, that they can do and that is to become nuclear themselves.

Reports indicate that one of Mohammed bin Salman's requirements for normalising relations with Israel is to receive assistance from the US in acquiring nuclear technology. This assistance would initially be for civilian purposes but is unlikely to stop there.