Middle East & North Africa

What the Iron Man-like character is claiming for his futuristic automotive company is not unheard of. On a systemic basis, mammoth institutional investment—especially from sovereign wealth funds (SWFs)—is flowing into start-ups and technology-oriented publicly traded companies. In this case, Saudi billions would help Mr Musk escape the pressures of being publicly listed. SWFs have invested large sums into high-growth start-ups promising innovation and financial returns. In fact, just this month, Saudi’s Public Investment Fund (PIF) announced a US$1bn investment in Tesla’s rival, Lucid, and a US$2bn stake in Tesla. The rise in SWF balance sheets and activity is having ramifications on global efforts to be more Silicon Valley-like, and on Silicon Valley itself.

This paper is a background review representing part of the initial phase of the Financing the Urban Transition work program. The review builds on a growing body of research that highlights both the importance of national sustainable infrastructure and the need to develop more effective and efficient financing mechanisms for delivering compact, connected cities that meet the UN’s Sustainable Development Goals. While progress has been made in both these areas over the last five years, there remains a policy gap between the international/national level and the municipal level.

The tensions unsettling the Saudi royal family became clear in September, when Joseph Westphal, the U.S. ambassador to Riyadh, flew to Jiddah to meet Crown Prince Mohammed bin Nayef, nominally the heir to the throne. But when he arrived, he was told that the deputy crown prince, a brash 30-year-old named Mohammed bin Salman, wanted to see him urgently. Senior Fellow, David Ignatius, discusses Mohammed bin Salman opportunity to transform Saudi Arabia.

"Whatever military victories were won by international forces during their time in Iraq and Afghanistan, the only true test of success in these wars is the long-term durability of their pro-Western regimes. But in both countries, these regimes are withering under the insurgent challenge and morphing into something quite unlike what their patrons intended."

...[I]n Afghanistan, the American vision is that of a "bottom up" approach in a negotiation with the overwhelmingly Pashtun Taliban, not a "top down" one. In other words, coaxing away low-level Taliban fighters and their commanders ("reintegration"), rather than changing the government setup at Kabul by letting Taliban leaders become members of the government ("reconciliation"). Though reintegration may have some initial success, spurred on by money and jobs, it is unlikely to be permanent, given the Afghans' long history of changing sides. But also because those fighting against the US-backed government appeal to much more than money. They have successfully mobilized nationalist and islamist sentiment among the Pashtuns, which is hard for a perceived-corrupt government to combat through financial incentives.