Saudi weekly digest. XXIX

Perhaps last week’s most eye-catching report was the Gulf neighbourhood’s emerging rift between MBS and MBZ.

Saudi Crown Prince Mohammed bin Salman has accused the UAE of betraying Saudi Arabia, marking a significant deterioration in their relationship. The two leaders, once close allies, have not spoken in over six months due to disagreements on various issues, including their approach towards Iran, relations with Russia and the US, and the conflicts in Sudan and Yemen.

Some other reports from the political front.

Turkish President Recep Tayyip Erdogan embarked on a three-country Gulf tour, starting with Saudi Arabia, to attract foreign investment for Turkey’s struggling economy. Erdogan’s visit, which included meetings with King Salman and Crown Prince Mohammed bin Salman, focused on joint investment and commercial activities. The tour took place as Turkey grapples with currency devaluation and soaring inflation.

Saudi Arabia summoned the Swedish ambassador over protests in Sweden where copies of the Quran were burned. The Saudi foreign ministry condemned the act, which it says is offensive to Muslims worldwide and could fuel hatred, violence, and extremism.

Business and Economy

Saudi Arabia is reportedly seeking a $2.7 billion loan to fund the early stages of its ambitious, innovative megacity project, Neom. The loan, currently under negotiation with local lenders, could be completed in the next few months.

Saudi Arabia’s Public Investment Fund (PIF) is trying to enhance local investors’ participation in its projects, enabling establishments to carry out development work to the highest quality standards. This move is part of a broader strategy to diversify the Saudi economy and stimulate local investment.

Saudi Aramco has completed its purchase of a 10% stake in China-based firm Rongsheng Petrochemical Co. for $3.4 billion, marking the continued growth of Aramco’s downstream presence in China. This investment signifies Saudi Aramco’s strategic expansion in one of the world’s largest energy markets.

Saudi Arabia and Japan are strengthening their bilateral trade relations in the energy sector, focusing on mineral development and mining. Both countries want to invest in rare earth resources crucial for producing electric vehicles, reflecting a shared interest in decarbonisation and economic diversification.

Something that has both defense and economic essence is the fact report that…

Saudi Arabia purchased Turkish drones during President Erdogan’s visit, marking a significant shift in defence relations between the two countries. This move is part of Saudi Arabia’s broader strategy to diversify its defence partnerships.

On the societal and environmental front…

Saudi Arabia has been ranked the 28th best country for expatriates, outranking the United States, which came in 30th. The survey, which considered factors such as quality of life, ease of settling in, and personal finance, placed Mexico as the most desirable place for expatriates to live globally. Bahrain was the top choice in the Middle East and North Africa, ranking ninth globally.

Saudi Arabia will host the MENA Climate Week 2023 in Riyadh in collaboration with the United Nations Framework Convention on Climate Change (UNFCC). The event, scheduled for October 8-12, will focus on the “Global Stocktake” theme to assess progress towards achieving the climate change objectives outlined in the Paris Agreement.

E2E thoughts

After multiple normalisations in the region in recent times, we are seeing new cracks on the surface of the neighbourly relations. Saudi Arabia is not new to diplomatic conflicts and is more and more assertive in standing up for its interests. Time will tell how this development will evolve, but this is something to keep an eye on.

Hopefully, a slightly more substantial written piece will consider the relationship between the two in the coming weeks.