Tag Archive for: Saudi Arabia

Trump brings AI, not democracy, to the Middle East

US foreign policy no longer pursues strategic influence through ideological alignment but through advanced technological primacy and infrastructural reach.

When US President Donald Trump returned to the Middle East earlier this month, he did not arrive bearing promises of democracy, stability or shared values, unlike previous administrations. Instead, he brought semiconductors, AI data centres and tech CEOs.

The centrepiece of the trip was a sweeping deal to deliver hundreds of thousands of Nvidia’s most advanced chips to the United Arab Emirates and Saudi Arabia, backed by plans to construct the largest AI campus outside the United States. For decades, US foreign policy has sought to export freedom and democracy. Now, as one US official noted, Washington wants to ‘spread American AI’.

The abrupt reversal of Biden-era restrictions on chip exports to the Gulf shows that Washington is adjusting to a rapidly shifting geopolitical and geoeconomic terrain. In this situation, the Gulf can leverage its capital and strategic positioning, potentially changing the trajectory of US pre-eminence in the region.

This shift is being driven, in no small part, by China. In early 2025, Beijing unveiled DeepSeek’s R1 large-language model, reportedly trained at a fraction of the cost of US-based OpenAI’s ChatGPT. But its deeper significance to the non-Western world lies in the fact that AI power can now be scaled strategically, affordably and beyond the boundaries of Western infrastructure. In Gulf capitals, the emergence of Beijing’s AI was read as a geopolitical signal that China presented an alternative to dependence on the West, meaning it could also be used to hedge against potential US tech export restrictions.

Some Western narratives portray Trump’s willingness to share advanced technologies as a generous concession. But it is more likely an effort to entangle Gulf states in US-led technological ecosystems. This entanglement involves anchoring US cloud infrastructure in the region, supplying chips that require US servicing, and promoting platforms that lock partners into proprietary software environments. As the US’s petrodollar-enabled power is receding, this ultimately preserves Western influence by making access to critical infrastructure conditional and asymmetrical. Washington acted to bind the region to US systems only after China emerged as a viable alternative for the Gulf and before regional states thoroughly drifted into competing technological spheres.

The Gulf is not blind to this reality and is not waiting to be persuaded. DeepSeek is already integrated into ARAMCO data centres in Dammam. Closer integration with Chinese systems gives Middle Eastern states leverage and reduces the incentive to be a passive recipient of technology or a subordinate node in Western-led security frameworks. Instead, Gulf states are actively shaping their own roles as financiers, developers and brokers in the global AI economy. An understated dynamic is that much of Silicon Valley’s innovation pipeline is now being significantly bankrolled by Gulf sovereign wealth funds.

In 2025, Saudi Arabia’s Public Investment Fund increased its shares in Amazon by more than 50 per cent. Abu Dhabi’s Mubadala Investment Company, one of the emirate’s three major funds, has emerged as a major US tech backer. Through MGX, an Abu Dhabi-based AI vehicle, Mubadala co-invested US$30 billion alongside Microsoft and BlackRock, and joined OpenAI’s US$6.6 billion raise in 2024. These funds are now embedded in the very infrastructure that sustains Western tech innovation ecosystems.

In that light, Trump’s entourage of venture capitalists and platform CEOs offering access to cutting-edge technology should not be viewed as an end in itself. The advanced chips pledged to Emirati and Saudi firms are rather a means to an end; they are the cost of retaining access to Gulf capital.

This recalibration is particularly stark when contrasted with how the US engages its smaller partners. In the Pacific islands, for instance, Washington has offered subsea cable infrastructure on the condition that they reject Chinese terrestrial networks or risk disconnection from the broader system. But that logic fails in the Gulf because the Middle East’s economic situation gives it greater negotiating power.

Some might still believe that the US can reassert its model of AI exceptionalism. But the outcomes of this trip suggest the US accepts that this is no longer the case. Instead, Washington under Trump is showing that it will share, compromise and, when necessary, concede if it ultimately results in the ‘best’ deal for the US economy. Australia and other US allies should ensure that such deals are not just economically rewarding but also contribute to their security.

The recent developments in the chip domain do not necessarily indicate the collapse of US power, but they are nevertheless transformational. The US remains a formidable actor, but it is no longer the sole architect of a new world order underpinned by technological supremacy. And if the US must hand over the crown jewels of its AI economy to avoid being outflanked by emerging tech powers, and to stay relevant, so be it. That may be the price that needs to be paid.

A roadmap for liberal democratic revitalisation

On time for the Year of Elections, a deftly crafted book, Defeating the Dictators: How Democracy Can Prevail in the Age of the Strongman, by Charles Dunst, tackles how liberal democracies can develop resilience in the face of autocratic attractiveness.

Dunst is the foreign policy adviser to US Senator Michael Bennet, a Democrat from Colorado. I recently spoke with Dunst in Washington, DC, about his prescriptions based on the idea that success begins at home. Following is an edited version of our conversation:

Brown: Tell me more about the appeal of authoritarianism. What makes liberal democracy such a hard sell today?

Dunst: I’ve picked up a theme at book events over the last 18 months. I first noticed it at a February 2023 London discussion with UK parliament staffers and think tankers—all people working in a democratic government or supporting democracy from the outside. I opened by asking how many of them had been to Shenzhen, Abu Dhabi, Dubai or Singapore—world-class cities in autocracies. Half of them raised their hands. Then I asked: ‘How many of you felt that some things worked better in those cities? Was Singapore’s metro system better than London’s? What about the Dubai airport? Did it work better than Heathrow? Did you feel that the UAE was better governed than the United Kingdom?’ Those same 50 people raised their hands.

Something similar has played out during other book engagements. Indian journalists have asked me why democracy is better if the Gulf States and Singapore deliver for their people despite not being democracies. Perhaps most striking was a radio conversation I had with John Maytham on one of South Africa’s leading programs. He opened by asking his listeners how many of them would forego some freedoms for a ‘country that works’. Around 90 of the 100 or so people who called answered affirmatively. I was floored, but the host said he understood why callers, frustrated with ineffective democracy, would rather live in what they considered a high-functioning autocracy. For them, he explained, Rwanda is the model, not Singapore or the UAE. This sentiment—an international yearning for a mythical autocracy that delivers better than democracies do—is the crux of the problem and why I wrote Defeating the Dictators.

Brown: What makes China, Saudi Arabia, Singapore, and other ‘successful’ autocracies so different from past competitors like the Soviet Union? 

Dunst: Modern autocracies are flawed. But many are durable, and some have thrived—think China (at least until recently), Singapore and the Gulf states. These ‘successful’ autocracies have similarities. They combine relatively free markets and reasonably secure property rights; some but not all count on natural resources for their wealth. The Asian ones are blessed with historically high-quality (if undemocratic) political institutions and social structures that leaders rediscovered after colonialism.

They are nothing like the Soviet Union. The West won the Cold War, in part, because Soviet illiberalism never succeeded. The system never had legitimacy at home nor abroad, because it never worked economically. The same isn’t true of autocracies today. China is, by some counts, the world’s largest economy when adjusted for purchasing power. Singapore and Vietnam have also successfully married authoritarianism with market economics. Autocracies account for about 35 percent of global income, compared with only 12 percent in 1992. This success means that today’s autocracies are not so brittle. There is no guarantee that China or Saudi Arabia will collapse under the weight of their own flaws as the Soviet Union did.

The Cold War is not a good model for today’s competition. China’s economy is too intertwined with ours to bifurcate the world. Still, the Cold War can serve as a model for how a competitor or a set of competitors can motivate us to get our own homes in order. Fixing problems at home helped us to defeat the dictators then; it is key to defeating them again today.

Brown: Can you say more about shoring up governance at home. How did we get away from good governance principles and practices? 

Dunst: After the Cold War, there was a sense that liberalism won and would continue to win—and that we didn’t need to spend so much energy on upkeep. As a result, our social safety nets declined and money seeped into our politics. And while I am a supporter of deepening and expanding America’s trade relationships with the world, the way we did so in the 1990s and early 2000s didn’t account for—or mitigate—the effects on those workers displaced by such trade at home. That displacement has since fuel widespread anger with policymakers in DC and opposition to free trade itself, which is now undercutting America’s ability to deepen trading relationships with critical partners in the Indo-Pacific, Latin America and beyond.

I wrote this book for a global audience—my publisher is British—and tried, for the most part, to avoid offering US-centric solutions. I’ve lived in Cambodia, Hungary and the United Kingdom and leaned on those experiences as well as travel to other regions to offer prescriptions that may benefit many places. Meritocracy in government staffing, for instance, is critical for advanced economies like Australia and developing ones like Malaysia. The same is true, too, of accountability, trust, long-term thinking, reforming the social safety net, investing in human capital and building 21st century infrastructure like undersea cables. Immigration, my last chapter, is probably the only one that applies mostly to advanced economies, where native birth rates are low and the topic is politically charged.

Brown: What is the connection between resiliency in places such as the United States and Australia and democracy promotion abroad? 

Dunst: Put simply, loss in confidence at home produces disruptive politics that leads to worse governance and a further loss in confidence. This vicious cycle of ineffective governance and cynical politics then weakens democracy’s attractiveness abroad, where high-functioning autocracies are increasingly seen as models. Southeast Asian policymakers already yearn for China’s previous double-digit growth rates and Singapore’s effective governance, not the US’s perceived political chaos. Across the Middle East, people prefer Saudi- or UAE-style governance over the United Kingdom’s five prime ministers in five years. Many South Africans, as I found, would rather live in autocratic Rwanda than their own democracy. Only better performance at home will inspire people to become more like us, rather than like our autocratic competitors.

BrownStephen Krasner makes a case for good-enough governance and for meeting authoritarians ‘where they are’ to promote common interests. What do you make of that argument?

Dunst: I don’t neatly divide the world between democracies and autocracies, and I don’t think most policymakers do, either. Australia and the US should push partners to improve human rights and governance when possible, but democracies need friends beyond their own small clique. Shoring up democracy at home and selling our model abroad does not mean cutting off or downgrading ties with partners like Singapore and Vietnam. We should cultivate these relationships to advance our national interests and produce domestic success through mutually beneficial trade or cooperating on shared security challenges. In the Indo-Pacific and elsewhere, there is, as you say, a need to meet governments ‘where they are’ without compromising our values and interests.

Of course, the egregious abuses and maliciousness of some autocratic governments—like those in Iran, Myanmar (since the 2021 coup), North Korea, Russia and Venezuela—prevent mutually beneficial cooperation. That’s fine; we cannot and should not try to be friends with everyone.

China is a different challenge. To paraphrase US and German officials, Russia is the current storm, whereas China is the long-term challenge of climate change. China is the only country with the intent and potential ability to reshape the US-led rules-based order in accordance with Beijing’s preferences—to, in short, create a China-centric order in which might means right and China, by then holding the most power (in Beijing’s vision), is at the center. This difference is why Canberra, Tokyo, and Washington approach Beijing in a fundamentally different way than Moscow or Tehran, including by building a coalition that includes non-democracies. Maintaining the rules-based order (and then perhaps reforming it to account for the Global South’s rise) requires autocratic partners who, while not liberal at home, broadly benefit from and thus support a liberal international system.

 

Charles Dunst, Defeating the Dictators: How Democracy Can Prevail in the Age of the Strongman (Hodder & Stoughton Ltd, 2023).

What does Putin want from the UAE and Saudi Arabia?

Russia’s President Vladimir Putin visited the United Arab Emirates and Saudi Arabia last week in a bid to expand relations with the two oil-rich states and show that he isn’t as isolated as he has been portrayed by the West.

The Russian dictator’s visit to the two Gulf states was only the second time he had ventured outside Russia in the eight months since the International Criminal Court issued a warrant for his arrest for the alleged war crime of unlawful deportation and transfer of Ukrainian children.

Like Russia, the UAE and Saudi Arabia are not members of the ICC and Putin therefore found it safe to be in these countries, just as he had when he visited China in October. His venture came against the backdrop of two consequential regional developments.

One is the Arab countries’ growing displeasure with the US for not doing enough to stop the Gaza war and a desire to rebalance relations with Washington under President Joe Biden, whom they have not found to be as receptive to them as his immediate predecessors. Putin has been keen to show that he is still a leader of substance on the world stage, despite all his domestic and foreign policy problems due to his Ukraine war of aggression and attrition and US-led sanctions against Russia.

To help expand ties with the Arab domain vis-à-vis America’s traditional influence in the region, he has expediently echoed the position of the Arab League and the Organisation of Islamic Cooperation, which represents 57 Muslim countries (including Russia’s de facto ally, Iran), by calling for an immediate ceasefire in Gaza and establishment of an independent sovereign Palestinian state.

This is despite his past good relations with Israel and an informal understanding to allow Israel to operate freely in the skies of Syria, where Russia has joined forces with Iran in saving the Bashar al-Assad regime, to target Iranian and Iran-backed Lebanese Hezbollah bases.

The other development is sagging oil prices. Since July, the coalition of Arab oil-producing states and Russia, known as OPEC Plus, has tried hard to boost the price of Brent crude to about US$100 per barrel. Saudi Arabia and Russia have played key roles in this effort, cutting their oil production by 1 million and 600,000 barrels a day, respectively.

Yet the price of Brent crude today hovers around US$75 per barrel, largely because of a slowdown in China’s economic growth and an increased emphasis on sources of renewable energy in most of the developed world.

Saudi Arabia and the UAE can cope with the lower price, given their respective sovereign wealth funds of some US$776 billion and US$853 billion. But Putin is badly in need of more revenue to fund his Ukraine war and stave off serious domestic backlashes resulting from the growing cost of the war and internal economic decline. He was very keen to strike oil and trade deals during his Saudi and UAE visits for revenue-raising purposes.

UAE president Mohammad bin Zaid and Saudi de facto leader Mohammad bin Salman have been as interested as Putin in cooperating within OPEC Plus to maintain a level of oil production that is commensurate with higher prices. They also will have wished to use Putin’s visit to send a strong message of dismay to Washington over its handling of the Gaza crisis.

However, Putin’s efforts are unlikely to bear fruit in terms of enticing the UAE and Saudi Arabia to drift towards Russia. The UAE and Saudi governments, like many of their Arab counterparts in the region, enjoy deeply entrenched financial, technological, economic, trade, investment and, more significantly, security relations with the US. Russia is by no means in a position to act as a credible substitute. Despite their displeasure, Abu Dhabi and Riyadh have not so far given any practical expression to their discontent with Washington. Their objections have been largely at the rhetorical level.

The UAE has done nothing to affect its normalisation of relations with Israel, and Saudi Arabia has simply postponed any further moves towards formal recognition of Israel. Yet this doesn’t mean that they are unwilling to play their Russia or, for that matter, China card from time to time to deflect Washington’s pressure on human rights issues or anti-Israeli sentiments.

 

Getting the balance right in US–Saudi relations

Several recurring debates animate foreign policy. The most basic is how much foreign policy to have, or how to strike the right balance between addressing domestic issues and problems abroad—in extreme form a debate between isolationism and internationalism. Then there are debates over tools (diplomacy versus sanctions or military force) and means (unilateralism versus multilateralism). In some countries, there are also debates over how foreign policy should be made and carried out; in the United States, for example, this debate involves the role and powers of Congress versus those of the president and the executive branch.

For democracies, though, there’s an additional debate over goals. To what extent should foreign policy seek to shape other countries’ internal characteristics, namely by promoting the spread of democracy and human rights, rather than focusing on influencing other countries’ external behaviour in an effort to promote hard interests such as security and trade. Call this the debate between idealism and realism.

This is an eternal debate for US leaders and policymakers. Take the case of Saudi Arabia. Relations between the two countries had for three-quarters of a century been mostly cooperative, above all on oil-related matters: in exchange for the Saudis pumping copious amounts (thereby reducing price pressures), the US provided the advanced arms and intelligence the Saudis required for their security.

The two countries also collaborated against the Soviet Union during the Cold War, most notably in Afghanistan. Such common interests more often than not offset persistent differences over the Saudi government’s poor human rights record and the kingdom’s hostility towards Israel.

President Joe Biden’s administration came into office a year and a half ago determined to alter this pattern and treat Saudi Arabia as a ‘pariah’. The US had concluded that Crown Prince Mohammed bin Salman (widely known as MBS), the country’s de facto ruler and heir apparent to the throne, ordered the 2018 murder in Istanbul of Jamal Khashoggi, a prominent journalist and Saudi dissident who was a US permanent resident.

The Biden administration was also deeply opposed to Saudi participation in Yemen’s civil war, a conflict responsible for enormous human suffering. With oil prices low and supplies plentiful (in no small part because of much-expanded US output), and Biden determined to reduce the US footprint in the Middle East and focus on Asia, values appeared to take precedence over economic and security interests for the first time since US–Saudi relations developed in the 1940s.

Now, however, the Biden administration is reportedly considering a change of course, with Biden planning to visit the kingdom and meet with MBS this summer. It’s not difficult to figure out why. Energy prices have skyrocketed, owing to high demand associated with the post-pandemic economic recovery and the sanctions now in place against Russia, Iran and Venezuela, all of which limit supply.

Higher energy prices are fuelling inflation, which has emerged as the greatest economic and political challenge facing the Biden administration. Suddenly, Saudi Arabia, the rare oil producer with the ability to increase output relatively quickly, is a much-needed partner again.

Other factors are at work as well. Several Arab countries in recent years, including the United Arab Emirates and Bahrain, have made peace with Israel. Bringing Saudi Arabia, host to the holiest sites in the Muslim world, into the peace camp would have great symbolic and political value. Also paving the way to a presidential visit is Saudi Arabia’s embrace of a ceasefire in Yemen.

What could ultimately prove to be the most important reason, though, is Iran. The US and Saudi Arabia find themselves sharing mounting concern over Iran’s nuclear and missile programs, as well as its support for violent groups in Yemen, Syria and Lebanon. It’s a classic case of the enemy of my enemy is my friend. Close cooperation between the kingdom and the US will be essential if, as seems increasingly likely, diplomatic efforts to restore the 2015 nuclear pact with Iran fail—or fail to prevent Iran from achieving nuclear breakout with little or no notice.

Despite these new considerations, the Biden administration is treading carefully, as it’s sure to be attacked for changing its stance. The good news is that there’s no reason for the US to abandon its commitment to human rights. The Saudis need US support to stand up to Iran, and as a result can be pushed to improve their treatment of government critics, women and religious minorities. The result won’t be perfect, but the emergence of a more open society is achievable.

There is a larger lesson here. A successful foreign policy for a global power such as the US cannot choose values over interests. A pure, values-centred approach to Saudi Arabia—or towards China, Russia, Iran or North Korea, for that matter—is unsustainable. The principal measure of a foreign policy is that it prioritises the country’s security over its preferences. Realism must prevail over idealism. History suggests that the ability of a country, even one as powerful as the US, to bring about political reform in other countries is limited.

But that doesn’t mean the US should ignore democracy and human rights. Foreign policy must reflect the country’s values if it is to enjoy public support and lead over time towards a more democratic world, which is more likely to be peaceful and prosperous and open to cooperation. It is always a matter of degree and of balance. What the Biden administration is contemplating in Saudi Arabia appears to be righting the balance.

Saudi Arabia and Russia are gambling with oil supplies

Poker games get no bigger than this. Saudi Arabia’s Prince Mohammed bin Salman has gambled that a threatened cut of almost US$1 trillion to global oil revenue will force Russia’s President Vladimir Putin back into the embrace of OPEC.

The Russians figure they can outlast the Saudis in a price war and are prepared to sit tight, calculating that the greatest damage will be inflicted on Saudi Arabia’s long-time ally, the United States.

‘Good for the consumer, gasoline prices coming down!’ was US President Donald Trump’s tweeted response to the Saudi decision to remove constraints to its oil production. But it is the threat to the US shale oil industry, which is carrying debts of US$86 billion, that has Wall Street investors worried.

As the world’s biggest oil producer with relatively high operating costs, the US is the supplier most exposed to a price war sparked by the rivalry of the second and third largest oil producers.

There will be no winners if the combined impact of an oil price collapse and the coronavirus is a global recession, but to the extent that anyone gains from plummeting oil prices, it is the big importing economies of China and Europe.

There had been talk of a bromance between Putin and bin Salman. They greeted each other with high fives at the Buenos Aires G20 summit in 2018, where the prince was otherwise cold-shouldered over the assassination of journalist Jamal Khashoggi inside Saudi Arabia’s Istanbul consulate a few weeks earlier.

The relationship between the two was struck in 2015 when, as deputy crown prince and Saudi defence minister, the then 29-year-old bin Salman led a delegation to Moscow, bringing promises of multibillion-dollar Saudi investments in the Russian oil industry.

In late 2016, Russia entered a formal agreement with the OPEC nations to contribute to a cut in oil production to support oil prices which had sunk below US$30 a barrel.

Bin Salman visited Moscow again in 2018, ostensibly to support the Saudi soccer team against Russia in the opening round of the World Cup (the Saudis lost 5–0) but more substantively to discuss the need for continued restraint in their oil production in the face of surging US production.

Putin became the first Russian leader to visit Saudi Arabia in more than a decade last October, but there were murmurings of discontent, sparked by Russia’s dissatisfaction that promised Saudi investments had not materialised.

Putin has never played a simple strategy in the region; he has also fostered Russian relations with arch-Saudi rival Iran and become the decisive supporter of Syria’s Bashar al-Assad in his prosecution of the civil war there.

Sitting alongside Iran’s President Hassan Rouhani and Turkey’s President Recep Tayyip Erdogan at a news conference about Syria last September, held just a few days after the attack by Iranian-backed rebels on Saudi oilfields, Putin suggested the Saudis could better protect their population if they followed the Turkish and Iranian precedents of investing in Russian missile systems. The remarks were pointed, as the Saudis had cemented a deal to buy US Patriot missiles.

The Russians went along with the OPEC grouping when it decided last December to increase the cut to their combined production by 900,000 barrels a day, of which Russia contributed about a third, lifting the total production cuts to 2.1 million barrels a day, or roughly 2% of global demand.

The Saudis were concerned that the world economy was slowing while the volume of oil coming onto the market from the US was rising. They also wanted to support the oil price while they were floating 5% of their state-owned oil company Aramco.

With the coronavirus bringing sharp reductions in global air travel and shipping volumes, which between them account for 15% of global oil consumption, Saudi Arabia was seeking further production cuts of as much as another 1.5 million barrels a day.

However, Moscow declared it had had enough. While Russia had kept its oil wells idle, the US shale industry had added more than 1 million barrels a day to world supplies. Further cuts would simply hand further gains to the Americans. Moscow has also been angered by the US’s imposition of sanctions on contractors working on Russia’s Nord Stream 2 gas pipeline to Germany and also on its oil company Rosneft over its assistance to Venezuela.

The Saudi retaliation of a threated boost, rather than cut, to its own production has sent prices into a tailspin. At US$35 a barrel, the oil price is down 45% from last year’s average of US$64 a barrel. If prices remained at the current level, it would translate to a loss of around $US900 billion in revenue for producers.

The Financial Times cited a social media post from the director of the main Russian state news agency, Dmitry Kiselev, declaring that ‘now we have the chance not just to sell as much as we need to, but to throw American shale overboard. Our budget is more stable than Saudi Arabia’s and is ready for low oil prices, unlike the kingdom’s.’

The Saudis have tried a tactical flooding of the market before. In 2014, as US shale oil started changing the global market, Saudi Arabia abandoned production cuts in the hope of driving shale producers out of business. The strategy did not succeed and the shift two years later to restraint in an alliance with Russia was the response.

The director of the US Atlantic Council’s energy centre, Randolph Bell, argues that the Saudi–Russia relationship was one of the few negatives to emerge from the growth of US shale oil production, and that it is now ‘in tatters’. On the other hand, energy independence has given the US the strength to impose economic sanctions on Russian oil producers.

‘US companies will feel pain, but shale has proven to be remarkably resilient. It seems very likely that this decision will backfire for Russia and further advance US goals’, he says.

Others are not so certain. The world economy is weaker now than in 2014, when the Saudis last flooded the market. The average break-even price for US oil producers is in the US$48 to US$54 range, and US producers are now much more heavily indebted than they were six years ago.

The cost for insuring against default on US oil company debt has risen to its highest level since the collapse of Lehmann Brothers in 2008, while the bonds of some oil companies are trading for as little as 30 cents in the dollar. It is not just the minor operators that are suffering; Occidental Petroleum’s market value collapsed from US$40 billion last year to US$15 billion now.

An oil-price-induced debt crisis at the same time as consumption is being threatened by the coronavirus is a dangerous combination for the US economy and for its election-bound president.

Yemen: money over morality

Weapons and expertise provided by Western countries have enabled some of the world’s richest nations to bring high-level mechanised warfare to Yemen, one of the poorest places on the planet.

In the process, air strikes and artillery bombardments have slaughtered more than 12,000 civilians and exacerbated famine and outbreaks of disease that have killed hundreds of thousands more. It’s time for governments that are approving the flow of arms and ammunition to the Saudi Arabian–led coalition fighting in Yemen to accept their share of responsibility for the carnage and to turn off the tap.

The coalition currently comprises Saudi Arabia, the United Arab Emirates, Sudan, Bahrain, Kuwait, Egypt and Jordan. Qatar was involved until 2017 and Morocco until 2019. The UAE has partially withdrawn from Yemen, though it’s still backing separatist movements there.

Beginning in 2015 with a failed political transition after an Arab Spring uprising, the conflict has left Yemen a fractured country with little prospect of stable government. In September 2014, the Houthi Shia Muslim group, loyal to former President Ali Abdullah Saleh, took advantage of political disarray to take control of the capital and install its own government. President Adbradduh Mansour Hadi fled to Saudi Arabia.

The Saudi-led coalition, backed by the US, France and Britain, entered the conflict in March 2015 in response to fears that Iran, the Houthis’ biggest supporter and regional rival of Saudi Arabia, would gain a foothold in Yemen. Since then, Yemen has been wracked by civil war, food insecurity, and rising poverty levels.

The United Nations has warned that the death toll could reach 233,000 by the end of 2019 as a direct result of conflict and second-order consequences. Almost 80% of Yemen’s 28.7 million people need humanitarian assistance and the country is suffering through the worst cholera outbreak in modern history. Yet, the US, France, Britain and Australia, among other nations, continue to sell arms to the Saudi-led coalition.

The governments of Australia (see pages 39–47), France and the US emphasise that the processes involved in assessing foreign military sales are compliant with international obligations. However, a leaked document from the French Directorate of Military Intelligence shows that Western munitions have been regularly used in strikes targeting civilians. The coalition has launched more than 19,000 air raids over Yemen since 2015, one-third of which are estimated to have struck civilian, non-military or unknown targets.

Between 2016 and 2018, the US signed arms deals worth over US$27 billion with Saudi Arabia, comprising small arms, missile systems, combat vehicles and training. The UAE imports nearly two-thirds of its military weapons from the US.

In February 2019, Mwatana, a Yemeni human rights group, documented 25 unlawful coalition air strikes that killed nearly 1,000 civilians using American-made weapons delivered by US-built aircraft. Saudi Arabia has bought more than 420 M1 Abrams tanks, 400 M2 Bradley fighting vehicles and an estimated 600 M109 Howitzers from the US, many of which are being used in the Yemen conflict. A CNN investigation found that Saudi Arabia and the UAE have been transferring US-made weapons to local militias, some with links to al-Qaeda .

France, too, capitalised on the conflict—it was the UAE’s second-largest and Saudi Arabia’s third-largest arms supplier between 2014 and 2018. French arms sales to Saudi Arabia have included high-end laser-guided missile systems and tanks. These weapons are supplied to the roughly 6,500 UAE soldiers deployed in Yemen and neighbouring countries.

Australia has granted 57 export permits for military-related equipment to be sent to Saudi Arabia and the UAE since 2016. This includes the sale of 500 remote weapons systems made by Australian manufacturer EOS to Saudi Arabia. While the company’s CEO has stated categorically that ‘no EOS product has ever been deployed to or used in Yemen’, the question needs to be asked: how can Australia continue selling weapons to nations accused of horrendous human rights abuses?

France, Australia, the UK and 100 other nations—although notably not the US—are signatories of the 2014 Arms Trade Treaty, which obliges members to ‘monitor arms exports and ensure that weapons don’t … end up being used for human-rights abuses’. The leaked French intelligence report and research by investigative journalists and NGOs make it clear that arms and munitions supplied by Western nations are being used in Yemen and have been deployed in operations targeting civilians, transferred to third parties, and employed in other instances of broader human rights abuses.

Some nations have begun ending arms sales to the Saudi coalition. A non-binding resolution was passed in the European Parliament in late 2018 calling for member nations to halt arms exports to Saudi Arabia. It has been adopted or partially adopted by several states. In June, Britain’s court of appeal found the continued sale of military equipment to Saudi Arabia to be unlawful because it would be used in violation of international humanitarian law. Also in June, the US Congress passed a resolution to end arms exports to Saudi Arabia but it didn’t muster the necessary votes in the Senate to override President Donald Trump’s veto.

A UN-led arms embargo could help end the coalition’s involvement in Yemen. Analyst Nelson Alusala has written that arms embargos ‘remain one of the most effective measures for maintaining or restoring peace and security’. It’s unlikely that the US, France and the UK would agree in the Security Council to such an embargo; however, mounting pressure from EU nations and the public might force their hands.

Susan Hutchinson recently argued that there are significant flaws in Australia’s multiagency system for defence exports and called for a parliamentary inquiry to assess our obligations under the Arms Trade Treaty. Other measures can and should be taken.

The government, the opposition and the parliament have been inexcusably quiet in the face of mounting evidence of war crimes in Yemen. We need to see greater transparency from government and the defence organisation to ensure that Australian weapons will not be used in Yemen.

While the UN-established Arms Trade Treaty requires individual states to monitor and record their foreign arms sales, this obligation is clearly overlooked by many arms suppliers to the Saudi-led coalition. Australia, as a key player in treaty’s establishment, could champion a multinational end-use monitoring body to hold nations accountable for the impact foreign arms sales are having when weapons are used illegally.

As nations that profess to defend the rules-based global order and human rights, Australia, France, Britain and the US should cease arms exports to the Saudi-led coalition and starve the warring countries of the arms and munitions that are being used to prolong the devastating conflict in Yemen.

Action needed to stop Australian defence exports being used in the war in Yemen

Defence Minister Christopher Pyne has released the report of the independent review of the Defence Trade Controls Act 2012. The report comes at a time when the government is under increasing pressure for authorising the transfer of defence goods to Saudi Arabia and the United Arab Emirates, both of which continue to fight a legally contentious war in Yemen.

As Australia’s geostrategic environment becomes increasingly unstable and threats to our air and sea lanes increase, we need to become more self-reliant. That may mean increasing our defence exports to ensure Australia has the research and development and manufacturing capacity needed into the future. But any such expansion must still be in accord with the international legal framework that Australia helped to develop.

Australia was a key negotiator and advocate of the United Nations Arms Trade Treaty, which came into force in 2014. It was decided no new legislation was needed to implement the treaty in Australia because the existing policy framework met all the treaty’s needs. Transparency and human rights are at the core of the treaty. It requires transfer applications to be assessed for the likelihood that weapons will be used to undermine international peace and security or facilitate serious breaches of international humanitarian law or human rights, including serious acts of violence against women and children.

The war in Yemen has been led by Saudi Arabia, with significant input from regional allies such as the United Arab Emirates. The war is a serious international peace and security concern, in part due to breaches of international humanitarian law and human rights law. Saudi-led blockades have prevented the transfer of food and medicine needed by the majority of the Yemeni population. Last year, the world was aghast at footage of a school bus hit by Saudi bombs. In February, UNICEF’s Middle East and North Africa chief, Geert Cappelaere, explained: ‘In Yemen today, nearly 1.2 million children continue to live in 31 active conflict zones … in areas witnessing heavy, war-related violence.’ He went on to say the ‘impact of the conflict in Yemen runs deep and has not spared a single child’.

The United States, the United Kingdom and Germany are strengthening their resolve to end military support for Saudi Arabia. The US House of Representatives has voted to end military assistance to Saudi Arabia. The House of Lords has said the UK government is breaking international humanitarian law by issuing export licences and selling munitions to Saudi Arabia that ‘are highly likely to be the cause of significant civilian casualties in Yemen’. Germany halted defence exports in November, even though its arms industry is in the midst of a downturn. Italy, Finland and Denmark have all halted exports to Saudi Arabia.

The review into the Defence Trade Controls Act 2012 was undertaken by Vivienne Thom and completed in October 2018. The purpose was to assess ‘whether the Act is fit for purpose, particularly whether it adequately safeguards national defence capability’. It wasn’t until February that Pyne tabled the report, making it publicly available. The report considers the administration of the act, whether there are any gaps in its controls, and whether there is any regulatory overreach. But it entirely fails to consider the role of the Arms Trade Treaty in the international arrangements for defence trade controls.

There’s widespread concern about a lack of multiagency cooperation for defence trade controls. Defence is responsible for granting export permits and maintaining the data on authorised exports. Foreign Affairs is supposed to provide advice regarding human rights and arms embargoes and prepare annual reports for the Arms Trade Treaty. Home Affairs is supposed to track actual exports and maintain data on them.

Although Defence officials have repeatedly told Senate estimates that human rights obligations are a consideration in decisions to authorise exports, Australia has been providing defence goods to Saudi Arabia that are likely to be used in the war in Yemen. This is surely evidence of flaws in the multiagency system for defence exports.

There’s a significant need for a vastly improved multiagency platform to manage applications and to process and report on defence exports. Reporting on Australia’s international obligations wouldn’t be a burden if we had a suitably designed platform that could provide a single window for industry, and a skeleton that met the information needs of all three departments and their relevant reporting obligations.

A parliamentary inquiry is required to investigate if Australia’s defence export regime meets our obligations under the Arms Trade Treaty. South Australian Labor Senator Alex Gallacher is just one voice calling for good governance in Australia’s defence exports. It’s possible that any updates to the Defence Trade Controls Act will be sent through the Joint Standing Committee on Treaties. But the Joint Standing Committee on Foreign Affairs, Defence and Trade is the most suitable place for such an inquiry to ensure that Australian defence exports only occur in the context of the rules-based global order, and that a suitable platform is developed to facilitate that.

Counterterrorism Yearbook 2018: the Middle East

The Islamic State’s (IS) caliphate project had mostly collapsed by the end of 2017. Even so, terrorism and counterterrorism (CT) in the Middle East were still driven by the fight against IS, a resurgent al-Qaeda and the conflict in Syria. Syria has not only driven jihadist conflict and dynamics, but has become a battleground in which all sorts of regional and international ambitions and conflicts are being played out.

The spectre of jihad is far from over. Islamic terrorism in the Middle East has an ourboros quality to it—a beast continually feeding upon itself. The threat remains because there are many structural factors driving jihadism in the Middle East that have no easy solutions—poor governance and the lack of legitimacy for many states and governments in the region, ultra conservative and militant ideologies that resonate, youth unemployment, civil conflict, and virulent and growing sectarianism, to name only a few. In 2017 a number of developments both pushed back against and fed into those dynamics.

For example, Saudi Arabia, the region’s most proactive player in 2017, had begun to push back against its Wahhabi legacy, a religious strain that influenced modern jihadist ideology. Saudi’s de facto ruler, Crown Prince Mohammed bin Salman (MBS), has taken a clearer and stronger stand against radical ideologies. In effect, MBS challenged the alliance between the Wahhabi clerical establishment and the house of Saud, an alliance that has defined the kingdom since its founding.

It was a significant political, cultural and CT development that the kingdom has at long last recognised the ideological elements that drive violent radicalism in the region. However, Saudi Arabia’s continuing military operations in Yemen, its role in fomenting the Qatar crisis and the disintegration of the Gulf Cooperation Council (GCC) and its stoking of sectarianism through regional proxy conflicts with Iran continue to feed the jihadist threat.

Lebanon, Syria’s closest neighbour, remained strongly affected by both the civil conflict in Syria and the overlaying regional dynamics. In 2017 it was caught up in the interventionist manoeuvres of Saudi Arabia, which most obviously manifested themselves in the Lebanese prime minister’s bizarre but short-lived detention and resignation on Saudi orders in a desperate attempt to curb Hezbollah–Iranian influence in Lebanon.

Lebanon made significant CT contributions in the fight against many jihadist groups operating in the region. Many Lebanese security institutions had notable successes in 2017 despite the fact that Lebanon lacks a fully functioning government and must contend with Hezbollah’s authority and influence.

But the Lebanese government still doesn’t have a monopoly on the use of force and Hezbollah remains a strong parallel government and paramilitary that controls parts of the country. So while the Lebanese government and security services had successes in 2017, Hezbollah and its Iranian backers came out of 2017 in a stronger strategic position, with more battle experience and with access to better weaponry.

Terrorism financing was another CT focus in 2017, but one that was also politically manipulated to drive a wedge in the GCC and consolidate Saudi Arabia’s regional dominance. In June 2017, Bahrain, the UAE, Jordan, Egypt, Yemen and Saudi Arabia cut diplomatic ties with Qatar and placed an embargo on the country, precipitating the ‘Qatar crisis’. Ostensibly the countries imposed the embargo due to Qatar’s terrorism financing and support of the Muslim Brotherhood. In reality it was due to long-simmering tensions over Qatar’s foreign policy double dealing, its embrace of the Muslim Brotherhood and its engagement with Iran. However, by isolating Qatar the others have promoted growing sectarianism and put the fate of the GCC in jeopardy. Both of those broader trends feed into the terrorist threat.

The rise and fall of IS has largely defined terrorism and insurgency in the Middle East for the past half-decade and this past year was no different. It’s hard to believe that it has been that long since IS formally declared itself in Iraq in April 2013. Though it no longer officially governed much territory, IS remained a powerful insurgent/terrorist force in 2017, and will continue to be so for the foreseeable future.

Yemen remained a strong base of operations for AQAP, which was, according to a 2017 Crisis Group report, ‘thriving in an environment of state collapse, growing sectarianism, shifting alliances, security vacuums and a burgeoning war economy’. The conflict in Yemen and other countries in the Middle East and North Africa have led to this resurgence.

Al-Qaeda (AQ) also remains a persistent presence in the region, and is resurgent. In 2017 AQ could boast some 40,000 fighters around the world. Current estimates are that roughly 3,000 IS fighters remain in Syria and Iraq, about three times as many were operating in 2009 when al-Qaeda in Iraq re-emerged to form what became IS.

According to the US spokesman for the military coalition fighting IS, IS fighters have already begun to claw back some territory in Syria and are conducting attacks at a rapid clip in Iraq and elsewhere. IS, AQ and other jihadist groups aren’t going anywhere anytime soon. Counterterrorism, wrapped up as it is in the region’s broader structural problems, will remain a challenge for years—if not decades—to come.

Yemen: Saudi Arabia’s mess, the West’s complicity

Yemen is a humanitarian disaster. It was a failed state even before its most recent civil war began nearly three years ago. But Saudi Arabian meddling is exacerbating the crisis and there’s no resolution in sight. Yemen is now a case study in how ends and means can diverge at the strategic level.

That the Yemeni war is, in fact, an internal, tribal war complicated by a complex amalgam of Arab Spring (Muslim Brotherhood) influence mixed with Sunni–Shia sectarian rancor and Saudi–Iranian competition is seldom conveyed in the Western press. The vast majority of media outlets routinely comment on the Iranian-backed Houthi rebels, reinforcing the idea that it’s mainly a proxy war between Saudi Arabia and Iran. But that view is simplistic, misleading and dangerous. While Iran does provide support to the Houthis, it is by no means the main instigator of the Yemen tragedy.

However, the Saudi government sees only Iran’s influence. Prince Mohamed bin Salman, the man behind Saudi Arabia’s intervention in Yemen and now the crown prince, has imbued Saudi Arabia’s foreign policy with renewed activism, especially against anything perceived to benefit Iran. Saudi Arabia originally intervened in Yemen in March 2015 after Houthi rebels drove President Abdrabbuh Mansur Hadi’s government from power and took control of Sana’a, the capital. Ostensibly, the Saudis are seeking to restore the government of Hadi, currently exiled in Riyadh. However, Hadi seems to be more prisoner than guest. At the apparent behest of the UAE, he has been under virtual house arrest.

Saudi Arabia also wants to minimise Muslim Brotherhood influence and ensure superior sway for the GCC in Yemen. But because it takes no account of Yemen’s internal realities, its objectives are unachievable.

The extended and, sadly, indiscriminate Saudi air campaign has yielded little success on the ground. On the other hand, it has raised the diplomatic stakes for Saudi Arabia. Reports have consistently blamed the Saudi-led coalition and its air strikes for more child deaths and injuries than are attributed to Houthi rebels.

And it’s only getting worse. On 6 November, Saudi Arabia closed all of Yemen’s ports, airports and border crossings after a missile attack on Riyadh’s international airport, only to announce a week later that it would reopen some to allow in humanitarian aid after an international outcry. Meanwhile, humanitarian groups continue their warnings that the blockade will worsen the famine and deepen the cholera epidemic in Yemen.

The West has hitched itself to this policy. Unfortunately, by siding with the Saudis for strategic, financial and business (especially defence and arms trade) reasons, Western countries have undermined their ability to enforce humanitarian law. As an example, for over three years the UN has been constrained from doing anything other than providing crucial humanitarian assistance.

The problem for the West is that Saudi Arabia is highly unlikely to compromise on its objectives of its own accord, even as Yemen moves towards disintegration. Because the war was bin Salman’s brainchild, he is personally invested in winning. And because he’s driving the future of Saudi Arabia, he can’t afford to lose domestic credibility by failing.

The West must stop being complicit in this humanitarian disaster and start to pressure  Saudi Arabia to create an environment for negotiations, and then push the Houthis to reach a negotiated settlement. That will require the Saudis to acknowledge that the Houthis have legitimate grievances.

As difficult as that will be for the Saudi government, even more difficult will be allowing Iran a ‘win’. Any representation of Houthis in power in Yemen will be a victory for Iran. But Iran has already won in other ways. It knows, for example, that it can pressure the Saudis to tread more lightly in Lebanon and Syria or risk being undermined on their southern border. And it will happily use any opportunities to cause further disquiet. Recent issues between the UAE and the Muslim Brotherhood–aligned Yemeni Islah Party in Aden are symptomatic of this.

Yet the alternative is too horrible to contemplate. With the many thousands killed, millions displaced, and over 10 million in need of immediate humanitarian assistance, Yemen is an unfolding catastrophe. Even before the current conflict began, Yemen’s oil reserves, and therefore its revenue, were virtually exhausted. Its 27 million people were experiencing severe water and food stress and its arable areas were producing little. The situation has only worsened. If Saudi Arabia is not reined in and the situation deteriorates further, the West will bear considerable responsibility.

Letter from Washington: America’s Saudi dilemma

Washington has a serious long-term relationship dilemma with the Kingdom of Saudi Arabia. And President Obama’s April visit to Saudi Arabia—the fourth one as president—was all about trying to shore up that relationship. Notwithstanding the usual official statements, I seriously doubt it did the job.

As President Obama recently told Prime Minister Turnbull referring to the relationship, ‘It’s complicated’. Indeed, it is. And it’s a difficult one at two levels: strategic and domestic.

At the strategic level, the relationship is—at its most basic—an unwritten agreement whereby the Saudis would provide a ready supply of oil in return for American guarantee of its security.

The relationship first came under severe strain in the wake of the Arab Spring when Washington decided—against Saudi wishes—to support the popular Egyptian uprising and dump long-standing US ally and friend of the Saudi royal family, President Hosni Mubarak. Another crack in the relationship has been the Saudi feeling that the US hasn’t done enough to oust Russian and Iran-backed Bashar al-Assad from power in Syria, focusing too much on defeating the Islamic State in Syria and Iraq. Cracks have also appeared over the Saudis’ year-long intervention in Yemen’s civil war which has killed thousands and isn’t any nearer to a resolution.

But what has really riled the Saudis is last year’s nuclear deal with Iran, Riyadh’s regional arch-rival. With the lifting of the sanctions and the gradual return of Iran into the international fold, Riyadh feels that it’s only a matter of time before Washington begins to distance itself from the Saudi kingdom in favour of Iran. This isn’t paranoia thinking on the part of the Saudis—President Obama quite bluntly revealed his thinking on this issue recently when, in a long interview for The Atlantic last month (probably his most important on foreign policy), Obama not only indicated the Saudis aren’t doing enough for their own security, but to add insult to injury suggested that they should ‘share’ the Middle East with the Iranians. That confirmed what they always thought: Obama never liked them.

Adding fuel to this increasingly fractured relationship is a current move in the US Congress to pass a bipartisan bill which would expose Saudi Arabia to legal liability for any role in the 9/11 attacks. Interestingly, Hillary Clinton supports such a bill. Although Obama has made clear he would veto such a move, the Saudis are worried it could still go through. Accordingly, they have threatened to sell some $750 billion worth of US treasury securities and other assets before these could be in danger of being frozen by US courts. Ironically, that would hurt them more than the US. Those in  Congress, however, may shelve such a bill if Obama agrees to release highly-classified 28 pages from a Congressional report which many in Congress believe would point to Saudi government ties with the terrorists. Most experts agree that the president should veto such a bill otherwise the US itself could become a target of law suits from other nations.

So it’s no wonder that upon Obama’s arrival in Riyadh on his recent trip he wasn’t welcomed by King Salman himself but instead by the governor of Riyadh. And to make the point, the King personally welcomed all the other Gulf Cooperation Council heads’ of state who arrived on the same day. Let’s not beat around the bush: this was a serious snub.

Turning to the domestic front, the Obama administration is fully aware that it’s dealing with a state which is not only feeling increasingly insecure externally, but is utterly anachronistic in its mode of governance. And while this style of rule—effectively a family-run business—may have been acceptable (at a pinch) in a previous century, its increasingly becoming less so in this globalised, social media-rich environment. It’s unlikely that such a political system can continue in the long-term, particularly in the wake of the Arab Spring. And the Saudi royals know it—sort of.

Deputy Crown Prince Mohammed bin Salman, the King’s 31-year-old son and the effective ruler of the kingdom, launched a grand plan, Vision 2030, on 25 April which aims to modernise and diversify the country’s economy and end its ‘addiction to oil’. This highly ambitious—and probably unachievable—plan aims to end the country’s dependence on oil by 2030 by selling 5% of Aramco, the country’s giant oil company, and creating the world’s largest sovereign wealth fund, designed to eventually hold $2 trillion in assets. This is a commendable economic plan, given the high level of youth unemployment, the halving of the price of oil in less than two years, the increasing budget deficits (15% of GDP) and the very inefficient and wasteful government spending in Saudi Arabia over the years.

However, it’s a missed opportunity to open up the political system to greater participation. And although Prince Mohammed supports socio-cultural changes, such as ending the ban on women driving and doing away with polygamy, he also knows he can only go so far in pushing for reform before offending the deeply conservative and powerful religious establishment. And although the Obama administration would like to see greater domestic reforms, particularly on women’s rights, it’s unlikely to push very hard on that front for the moment. It has seen in other parts of the Middle East how difficult it is to control events once suppressed domestic forces are mobilised. And given the already fragile nature of the Saudi polity, the last thing this administration would want to see is a faltering Saudi kingdom in a region beset with instability and conflict.

And although Saudi Arabia isn’t about to break with the US and embrace China, for example, this difficult but critical bilateral relationship will be one that the next American president will have to manage very deftly and diplomatically in the hope of guiding it in the right direction. That would be particularly challenging under a possible Clinton Administration—not only does Hillary Clinton have a keen interest in promoting women’s rights around the world but the Clinton Foundation has been the recipient of many millions of dollars from Saudi donors.