Gulf and Red Sea Regions

The past five years have marked a growing Gulf economic presence in the South Caucasus. Saudi Arabia and the United Arab Emirates have expanded their regional footprint through equity investments in Azerbaijan and Georgia’s transport and renewable energy sectors. Armenia has been a weak link in interregional chains due to conflict with Azerbaijan and its isolation from regional connectivity frameworks. Yet recently, Yerevan managed to establish profitable trade links to the Gulf, largely thanks to Western sanctions on Russia. The South Caucasus trio sees financial flows from the Gulf as necessary for successful economic diversification. For the Gulf countries, the South Caucasus provides an alternative market for strategic investments, which aligns with their long-term goals of projecting geo-economic influence and boosting trade.

On Sunday December 8th the long-ruling Syrian president Bashar al-Assad fled the country, ultimately giving up power to the Syrian rebel group Hayat Tahrir al-Sham (HTS). The day marked the end of the 61 years long authoritarian regime, started by Bashar’s father, Hafez al-Assad. The regime scared the Syrian population with regular instances of torture, mysterious disappearances and unlawful killings in cases of resistance against the ruler. Since the 2011 ‘Arab Spring’ protests that resulted in the rise of repression and a civil war, Syria’s economic and political landscape was completely ruined. Even though the long-awaited Assad’s fall is a time of celebration for many around the world, it is only the beginning of a long, demanding journey to rebuild the country from scratch.