Saudi weekly digest. XLI

In the Middle East, when it rains, it pours; sadly, it's not rain that pours.

Last week's review discloses the Kingdom's diplomatic strides amidst regional tensions, robust stance in the global oil market, and a leap into hosting grandiose sporting events.

A brief look into politics and... oil

Saudi-Israeli Relations Amid Gaza Escalation:
Saudi Arabia has been involved in diplomatic efforts to de-escalate the ongoing Israeli-Hamas conflict. Crown Prince Mohammed bin Salman emphasised the Kingdom's dedication to halting the escalation during a call with Turkish President Tayyip Erdogan, underscoring the importance of ending Israeli assaults on Gaza. The unfolding conflict coincides with U.S-backed initiatives encouraging Saudi-Israeli normalisation, linking a potential defence deal between Washington and Riyadh to these diplomatic efforts​.

First High-Level Interaction Since Restoring Ties with Iran:
Amid the ongoing tensions in Gaza, Saudi Crown Prince Mohammed bin Salman and Iranian President Ebrahim Raisi held their first telephone conversation since the restoration of diplomatic ties brokered by China earlier this year. The leaders discussed the Israeli-Palestinian conflict, with Raisi emphasising the "need to end war crimes against Palestine" and the Crown Prince affirming Saudi Arabia's efforts in liaising with global and regional actors to stop the escalation​​.

Stability in Oil Supply Despite Middle East Tensions:
Oil prices remained stable as Saudi Arabia and other Arab nations reaffirmed their voluntary oil output cut agreement, easing concerns about supply disruptions amid Middle East tensions. This move reflects the nation's commitment to balancing the global oil market and stabilising prices, ensuring a steady oil supply on the international stage​.

Sports

Saudi Arabia's Bid for 2034 World Cup:
The Kingdom has formally expressed its intention to host the 2034 FIFA World Cup, reflecting its ambitious plans to become a global sports hub. This move is part of a broader strategy to diversify the economy and enhance its international standing in the sporting community​​.

UFC Makes Its Debut in Saudi Arabia:
The Ultimate Fighting Championship (UFC) is set to hold its first-ever event in Saudi Arabia on March 2, 2024, as part of the Riyadh Season festival.

And lastly...

Saudi Arabia's Sustainable Urban Development Initiative:
Saudi Arabia inked a cooperation agreement with the UN's Human Settlements Programme, promoting socially and environmentally sustainable urbanisation. This initiative aligns with the Kingdom's broader vision of fostering sustainable cities and addressing urbanisation challenges, marking a significant step towards achieving global sustainability goals​.

E2E thoughts:

The recent episodes of violence in the Gaza Strip have posed challenges and opportunities for Saudi-Israeli relations. The U.S.-backed push for normalising ties between the two nations comes at a sensitive time, with Saudi Arabia exhibiting a proactive diplomatic stance towards alleviating the crisis. Concurrently, the renewed dialogue between Saudi Arabia and Iran, facilitated by the shared concern over the Palestinian cause, presents a nuanced geopolitical triangle involving Saudi Arabia, Iran, and Israel.

Iran's role in the Israel-Hamas conflict symbolises the broader Shia-Sunni divide in the region, with Iran traditionally backing Hamas. The proxy warfare often witnessed in the Middle East finds another theatre in the Israel-Gaza conflict, where Iranian support for Hamas potentially exacerbates tensions. For Saudi Arabia, this scenario poses a delicate diplomatic challenge. On the one hand, there's a push for Saudi-Israeli normalisation, offering strategic alliances and potential defence pacts. Conversely, the age-old rivalry with Iran and the shared support for the Palestinian cause bring Saudi Arabia into a tight spot, balancing its newfound relations with Israel against its traditional stance on Palestine and its evolving ties with Iran.

The unfolding dynamics could potentially reshape the geopolitical landscape, emphasising Saudi Arabia's need to navigate these complexities with diplomatic finesse and strategic foresight. The Kingdom's engagement with Iran and Israel amidst the ongoing crisis reflects its endeavour to stabilise the volatile region, underscoring the delicate yet significant steps towards fostering regional peace and stability.