Towards a Better Middle East

Report: 1 to 15 December 2021

This report is also available in Arabic.

The Beautiful city of Amman. Photo credit: Trip Advisor.

With all except Lebanon, countries in the region have been recording positive developments that aim to improve the socioeconomic welfare of its ordinary citizens. As for the small Phoenician country, it is still mired with rampant corruption and governed with unaccountable politicians. Regardless, the area as a whole is improving due to great geopolitical shifts in the world and local efforts to transform economies on more sustainable ones.

1- The socio-economic situation

Egypt

Corona cases, deaths and recovered are distributed as follows:

-369,198 corona confirmed cases

-306,605 recovered

-21,060 deaths

Egypt will announce a stimulus package to support the strategy of transition to a green economy during March, according to Deputy Minister of Finance, Ahmed Kojak. Photo credit: https://www.egypttoday.com/.

As Egypt continues to diversify its economy, the country’s General Organization for Export and Import Control declared that non-oil exports from Egypt reached $21.35 billion going up by 26% when compared with last year. This growth is attributed to the expansion of the industrial sector, escpecially when considering the increase in chemical and fertilizer production. With the increase in the partnerships and bilateral deals with other countries, the volume of its exports are increasing and its economy is expanding. With the influx of partners within Egypt’s grasp, it has been continuosly signing development agreements that aim to transform Egypt into a more modern economy. In the period 2020 to 2021 for instance, 4.5 billion USD was pumped  into Egypt’s economic blood stream, to bolster the banking and financial sector alone.

Meanwhile, Egypt is executing forward-looking ideas that fall in the Green Economy spectrum. According to Deputy Minister of Finance, Ahmed Kojak, Egypt will announce a stimulus package which will support the strategy of transition to a Green economy. However, the whole ordeal will start during the beginning of the next fiscal year. Nevertheless, Egyptian leaders so far have succeeded in delivering on their promises. It would be no surprise the Egyptian economy will become the second largest Arab and African economy during 2022, as the IMF put it.

Jordan

Corona cases, deaths and recovered are distributed as follows:

-1,010,033 corona confirmed cases

-931,323 recovered

-11,982 deaths

Ahmed Hanandeh Jordan’s Minister of Digital Economy and Entrepreneurship. Advanced infrastructure and youth talent pave way for Jordan’s growing ICT sector.

In an attempt to facilitate and attract new investments into Jordan, and to further digitalize the economy, the government created the new initiative “Jordan Source”. Not only it is a pragmatic decision that can mitigate the effects of COVID-19, it a chance for Jordan’s graduates and youth talents to find jobs. Since more than 50 per cent of Jordanians are under 24 years with 22 per cent holding degrees in IT, Computer Science and Engineering, the government took this innovative decision to restore its economy and make use of its precious human resources. Recently, Fitch Ratings issued the outlook on Jordan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at 'BB-'. Meanwhile, the World Bank estimated that Jordan’s real GDP is projected to grow by 1.9 per cent in 2021, as economic indicators suggest so.  With its investment in technology, Jordan may soon find itself in a very attractive spot regarding foreign companies and incoming investors.

Iraq

Corona cases, deaths and recovered are distributed as follows:

-2,088,359 corona confirmed cases

-2,056,237 recovered

-23,994 deaths

More oil, more money. But is this really sustainable in the long run? Arab News.

The Iraqi government is currently pinning its hopes on the rising oil prices as global demand is increasing. Iraqi oil minister expects oil prices to reach over 75 USD during a time when inflation is set to decrease in the coming month. This should provide Iraq with the necessary financial resources to launch a civil service reform aimed at increasing the public sector’s efficiency. This might also be a golden opportunity to further diversify its economy. Already, the country’s non-oil sector has rebounded by 12% and therefore it would be wise to capitalize on such an achievement. The truth is, Iraq needs further development plans that aim to pull it away from oil-reliance. The sudden surge in oil production is indeed temporary and the world is moving in the direction of more sustainable options.

Lebanon

Corona cases, deaths and recovered are distributed as follows:

-690,054 corona confirmed cases

-640,860 recovered

-8,848 deaths

One Lebanese Family leaving Lebanon because of dire socioeconomic conditions. Al-Monitor.

Lebanon continues to shock the world by how it has transformed from the ‘Switzerland’ of the Middle East to where it is today: a cesspool of corruption, unaccountability, and megalomania. People who used to take the streets to protest all the wrong happening in the country have either lost confidence in the cause, have left the country, or are just too busy trying to put food on the table. Lebanon is in a deplorable stage as now more than ever it is being drained of youth-  the actual people who can build the country- and the many talented people who are finding better job prospects abroad. All that is remaining in the country is a depressed population that has to face massive electricity cuts, exceedingly low wages, no better job prospects whatsoever, and an increasing crime activities conducted by armed groups or cash-starved military personnel.

Recently, Lebanese Minister of Social Affairs Hector Hajjar announced the launch of a long-delayed ration card program and other temporary economic measures to offer some relief to Lebanese citizens trapped in poverty. However, many sceptics are not really confident that such a plan will work as there is no more money in the treasury and the World Bank doesn’t seem  willing to finance the project. Moreover, Lebanon's central bank set a new rate of 8,000 Lebanese pounds to the U.S. dollar for withdrawals from bank deposits, aiming to decrease the intensity of the “haircut”. However, soon after Lebanon’s central bank’s announcement, the dollar value in the parallel market spiked again as a result of malpractice by currency exchange mafias.

In short, Lebanon’s problem in not that complicated: Vile people, with great financial and political means controlling the country. It takes great courage and determination to stand up to these people, a luxury no one has anymore.

Palestine

Corona cases, deaths and recovered are distributed as follows:

-433,985 corona confirmed cases

-425,777 recovered

-4,576 deaths

The new initiative is definitely needed to give Palestine some space to breathe. Photo credit: https://english.wafa.ps/.

Despite Palestine’s challenging economic situation and all the obstacles it faces with Israel, its neighbor Jordan has extended a hand during Palestine’s hard circumstances. The reality is, Jordan and Palestinian relations have been given a massive boost incidentally by the Israeli policy of refusing to carry out any talks or negotiations. According to Khalid Al-Esseily, the Palestinian national economy minister, if things were to go smoothly, Palestine can expect a 1-billion-dollar a year from the 9 agreements they signed. Yet, Jordanian and Palestinian leadership still have to contend with Israel’s grip on Palestine’s economy. Till today the Israeli government limits the number of goods Palestine has the right to acquire and has placed constricting curfews on roads critical for Palestine’s economy. Nevertheless, this new breakthrough spells good news for both Palestine and Jordan: Palestine’s economy will receive a push, and Jordan will give Palestinians incentives to stay in their lands rather than seeking to relocate to Jordan.

Syria

Corona cases, deaths and recovered are distributed as follows:

-49,272 corona confirmed cases

-30,473 recovered

-2,814 deaths

Syria will host an Arab energy conference in 2024 following a unanimous vote from members of the Organization of Arab Petroleum Exporting Countries during a virtual meeting, the country's energy ministry said Thursday (Shutterstock).

Syria is now entering a new stage whereby former countries who were in confrontation with it, are now willing to cooperate. When time and time again, an option such as war has failed, friendlier less nerve-wrecking alternatives might be better. Also, the new Biden administration has shown less interest in dealing with issues related to the Middle East in general and Syria specifically. This might be due to the fact that the US administration is busy responding to what’s happening in eastern Europe with Russia, and in the pacific with China. In any case, it all spells good news for Syria.

Over the past months, Gulf countries have been taking slow steps in re-engaging Syria diplomatically. However, one massive indication or declaration of gulf intentions is the declaration that Syria will host in 2024 an Arab energy conference.  According to the country's energy ministry the decision came during an unanimous vote from members of the Organization of Arab Petroleum Exporting Countries during a virtual meeting. Although the new development is in a few years from today, this forecasts how things are going to develop during the coming period. On a related note, Crimea (recently annexed by Russia) is seeking to expand economic ties and partnership with Syria with a meeting to be held in the future. Moreover, Iranian delegations are currently visiting Syria to re-activate past economic agreements.

The only thing Syria needs to tackle, in case Gulf countries are interested in heavily investing in the country,  is the rampant corruption and the overbearing bureaucratic red tape. Such two issues need to be handled by the government if they care to make themselves more attractive to foreign investment.

Cyprus

Corona cases, deaths and recovered are distributed as follows:

-140,851 corona confirmed cases

-124,370 recovered

-610 deaths

Cyprus Energy Minister Natasa Pilides speaks to the Associated Press in an interview at her office in the capital Nicosia.

Cyprus and a consortium made up of ExxonMobil and Qatar Energy signed a natural gas exploration and production sharing contract relating to an offshore field, as indicated by Minister of Energy, Commerce and Industry Natasa Pilides. Although the news was welcomed by the Cypriot people as it will bring great economic benefits, Turkey was not so pleased about it. The signing involved Block 5, an area which Turkey unilaterally claims exploration rights. Nevertheless, there is no doubt that the project will continue according to plan despite any interference. In addition to the great strides Cyprus achieved in terms of reacting to corona and transitioning to a green economy, the tiny Mediterranean country has a really bright future.   

Communication and Public Relations Department