Middle East & North Africa

Last May, Chinese solar panel manufacturer LONGi signed an agreement with Saudi trading company El Seif Group to establish large-scale solar manufacturing infrastructure in Saudi Arabia. The deal came several months after the Trump administration's imposition of global tariffs on imports of Chinese solar panels and cells.

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.

On June 24, Turkey will go to early presidential and parliamentary polls. The snap elections come amidst significant macroeconomic turmoil. As fears persist over the strength of Turkey’s economy, what can be said about how the ruling Justice and Development Party (AKP) has managed public resources since its arrival into power in 2002? Do patterns of government spending reflect development or economic needs or do political priorities largely dictate how budgets are allocated?

Throughout the 2000s, Turkey was portrayed as a model of social and economic success for other countries in the MENA region. Ahead of the country’s early presidential and parliamentary polls, this column reports research evidence on how the ruling Justice and Development Party has managed public resources and fostered local economic development since it took power in 2002. The government has played a substantial role in influencing local economic performance on a discretionary basis.

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.

In March, the Justice Department unsealed an indictment against seven Iranians for hacking the U.S. financial sector and a dam in New York. In doing so, it also clarified what information security officials have argued for years: that the vast majority of hacks exploit known vulnerabilities.

The attacks in Brussels last month were a stark reminder of the terrorists’ resolve, and of our continued vulnerabilities, including in an area of paramount concern: nuclear security.

The attackers struck an airport and the subway, but some Belgian investigators believe they seemed to have fallen back on those targets because they felt the authorities closing in on them, and that their original plan may have been to strike a nuclear plant. A few months ago, during a raid in the apartment of a suspect linked to the November attacks in Paris, investigators found surveillance footage of a senior Belgian nuclear official. Belgian police are said to have connected two of the Brussels terrorists to that footage.

"In little more than a generation, the Internet has become the substrate of the global economy and governance worldwide. Several billion more human users will be added in the next decade, as will tens of billions of devices, ranging from thermostats to industrial control systems (the 'Internet of Things'). All of this burgeoning interdependence implies vulnerabilities that governments and non-governmental actors can exploit. At the same time, we are only beginning to come to terms with the national-security implications of this. Strategic studies of the cyber domain resemble nuclear strategy in the 1950s: analysts are still not clear about the meaning of offense, defense, deterrence, escalation, norms, and arms control."

"Cyber war, though only incipient at this stage, is the most dramatic of the potential threats. Major states with elaborate technical and human resources could, in principle, create massive disruption and physical destruction through cyber attacks on military and civilian targets. Responses to cyber war include a form of interstate deterrence through denial and entanglement, offensive capabilities, and designs for rapid network and infrastructure recovery if deterrence fails. At some point, it may be possible to reinforce these steps with certain rudimentary norms and arms control, but the world is at an early stage in this process."