MIDDLE EAST
Ending the Gulf crisis: Natural gas frames future Gulf relations
Published 3 years ago on December 9, 2019
By Dr. James M. Dorsey
Natural gas could well emerge as the litmus test of how relations among the Gulf’s energy-rich monarchies evolve if and when a Saudi-United Arab Emirates-led alliance and Qatar bury their hatchet.
It could also position Gulf states as key players in shaping the future of the energy architecture of Eurasia.
This week’s summit in Riyadh of the Gulf Cooperation Council (GCC) that groups Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain is likely to determine how close the kingdom and its allies are to lifting a 2.5-year-old diplomatic and economic boycott of Qatar.
Qatari foreign minister Sheikh Mohammed bin Abdulrahman al-Thani suggested that secret Saudi-Qatari talks in recent weeks had “moved from a deadlock in the Gulf crisis to talks about a future vision regarding ties.” It was not immediately clear whether the UAE was equally willing to find a way out of the Gulf crisis.
The bellwether of how much progress has been made will be the level of Qatari representation at the Riyadh summit. Qatar emir Tamim bin Hamad Al Thani has refrained from attending GCC summits since the boycott was imposed in June 2017 in a bid to force Qatar to fall in line with Saudi and UAE regional policies and effectively accept the two Gulf states’ tutelage.
An end to the boycott potentially could open the door to the creation of a regional gas network at a time that Qatar plans to increase its annual Liquid Natural Gas (LNG) production by a whopping 64 percent to 126 million tons by 2027 and Saudi Arabia is investing up to USD$ 150 billion in becoming a major gas player.
The network would facilitate Saudi crown prince Mohammed bin Salman’s plans to streamline and diversify the kingdom’s economy. It would further enable Saudi Arabia to capitalize on the fact that Iran is hobbled by crippling US sanctions in its efforts to maintain its status as a key swing producer serving Eurasian markets.
Building a regional network may be easier said than done even if the Gulf states succeed in putting their debilitating dispute behind them. Healing the scars of the dispute that impacted people’s lives on both sides of the divide to the point where countries like Saudi Arabia and Qatar would be willing to become dependent on one another is likely to take time.
That kind of trust didn’t exist even before the Gulf crisis. Saudi Arabia initially opposed the construction of the Dolphin gas pipeline, the region’s first cross-border gas project that links Qatar to the UAE and Oman.
Qatar continued to supply the UAE with two billion cubic feet of gas a day despite the boycott, which the Emirates would have found difficult to fully replace.
An end to the boycott would significantly enhance Saudi plans announced in early 2019 to establish a natural gas network with the UAE and Oman that eventually would extend to Kuwait, Bahrain Iraq, Jordan, Egypt and possibly Palestine.
Potential moves to enhance gas cooperation in the Gulf come as the eastern Mediterranean emerges as a potential competitor, particularly in future exports to Europe, Asia and China.
Huge gas finds in Israeli, Cypriot and Egyptian waters have seen industry eyes swivel to the Levant Basin, which, according to a 2010 estimate by the US Geological Survey, could hold as much as 122 trillion cubic feet of natural gas, the equivalent of Iraq’s reserves.
Energy experts argue that Qatari gas could significantly help Prince Mohammed rationalize Saudi Arabia’s energy market at a time that climate change is casting doubts on the sustainability of oil.
The King Abdullah Petroleum Studies and Research Center estimated that Saudi Arabia burned some 900,000 barrels per day of liquid fuels for industrial use and power generation in 2017.
“Replacing this oil with natural gas could generate more than U$10 billion of additional export revenue at current market prices… Qatar is one of the cheapest ways for the kingdom to remove oil entirely from power generation,” said Andy Critchlow, head of Europe, the Middle East and Africa at S&P Global Platts.
While Qatar may be willing to assist Saudi Arabia once the boycott is lifted, its is certain to ensure that it does not become dependent on gas exports to the kingdom.
Diversification of its gas exports is a pillar of Qatar’s soft power strategy that helped shield it from the effects of the boycott.
Some Qatari officials have long believed that gaining control of Qatari gas reserves was a main objective of the Saudi-UAE boycott.
As a result, Qatar is likely to be weary of plans by Saudi Arabia to become a global gas player. The kingdom holds the world’s fourth largest gas reserves that it so far has been unable to develop.
Amin H. Nasser, CEO of Aramco, the Saudi national oil company, said earlier this year that he expected the kingdom to massively invest in the Saudi gas sector over the next ten years. Mr. Nasser envisioned gas production increasing from 14 billion standard cubic feet to 23 billion by 2030.
“We are looking to shift from only satisfying our utility industry in the kingdom, which will happen especially with the increase in renewable and nuclear to be an exporter of gas and gas products,” Mr. Nasser said.
Qatar laid down its marker a year ago when it decided to leave OPEC, the cartel of oil exporting countries, to focus on its gas exports.
Speaking at the time, Qatari energy minister Saad Sherida al-Kaabi, articulated what is likely to shape the Gulf state’s policy even if the boycott is lifted.
“We are not saying we are going to get out of the oil business, but it is controlled by an organization managed by a country,” Mr. Al-Kaabi said.
Qatar, he said, was unwilling “to put efforts and resources and time in an organization that we are a very small player in, and I don’t have a say in what happens.”
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Dr. James M. Dorsey
Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.
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MIDDLE EAST
Saudi religious soft power diplomacy eyes Washington and Jerusalem first and foremost
Published 3 days ago on June 26, 2022
By Dr. James M. Dorsey
Geopolitics is written all over Saudi religious soft power efforts. Nowhere more so than when it comes to Israel and Jews because of the growing importance of security cooperation with the Jewish state and the influence of the Israeli lobby in the United States, the kingdom’s most important yet problematic security partner.
In the latest move, Saudi Arabia ensured that it would be the first stop on the first overseas trip by Deborah Lipstadt as US special envoy to combat anti-Semitism.
“Lipstadt intends to build on the profoundly important Abraham Accords to advance religious tolerance, improve relations in the region, and counter misunderstanding and distrust,” the State Department said in a statement. The department was referring to the accords by which the United Arab Emirates, Bahrain, Morocco, and Sudan established diplomatic relations with Israel in the waning days of US President Donald J. Trump’s administration.
Ms. Lipstadt said that Saudi religious soft power diplomacy had created an atmosphere in which she could discuss with government officials and civil society leaders, who in the kingdom inevitably are likely to be linked to the government, “normalising the vision of the Jews and understanding of Jewish history for their population, particularly their younger population.”
Saudi Arabia has had a particularly troubled attitude towards Jews even though an older generation of Saudis in regions close to Yemen recall a Jewish presence in the first half of the 20th century.
Moreover, in the days when Israelis were barred from travelling to most Arab countries, Saudi Arabia also tailored its visa requirements to bar Jews.
European foreign ministers planning at the time to pay official visits to the kingdom would at times confront demands that Jewish journalists be dropped from the group accompanying the official.
Some American Jews who had filled out Jewish as their religion on Saudi immigration forms would have them returned with the word Jewish replaced by the term Christian.
That began to change long before the rise of Saudi Crown Prince Mohammed bin Salman. Mr. Bin Salman has accelerated the policy change. Earlier this month, Saudi Arabia announced that Israeli business people would be granted entry into the kingdom.
Saudi Arabia has also allowed Jacob Yisrael Herzog, a US-born rabbi resident in Israel, to visit the kingdom several times to attempt to build Jewish life publicly. Some Jewish critics have charged that his bombastic approach could backfire.
Moreover, in a slow two-decade-long, tedious process, Saudi Arabia has made significant progress in scrubbing its school textbooks of anti-Semitic and other discriminatory and supremacist content.
To project Saudi Arabia as a moderate forward-looking nation and improve the kingdom’s tarnished image, particularly in the United States, Mr. Bin Salman has met with American Jewish leaders. Many of those leaders are willing to give Saudi Arabia a pass on its abuse of human rights and still weak track record on religious tolerance to advance the cause of the establishment of diplomatic relations between Saudi Arabia and Israel.
The crown prince has also turned the Muslim World League, once a prime vehicle for the Saudi government funding of Sunni Muslim ultra-conservatism globally, into a public relations tool for propagating Saudi religious tolerance.
The league’s head, Mohammed al-Issa, a former Saudi justice minister, led a delegation of Muslim religious leaders on a ground-breaking visit in January 2020 to Auschwitz, one of Nazi Germany’s foremost extermination camps for Jews.
Earlier this month, he organized a Forum on Common Values among Religious Followers in Riyadh. Participants included 47 Muslim scholars, 24 Christian leaders, 12 rabbis, and 7 Hindu and Buddhist figures.
The timing of Ms. Lipstadt’s visit is significant. It comes weeks before an expected pilgrimage to Riyadh by President Joe Biden to tackle strains in the strategic relationship between the two countries.
Tensions have emerged over the degree and reliability of the US commitment to Gulf security, Saudi oil production policy in the wake of US and European sanctions against Russia for invading Ukraine, Saudi technological cooperation with China, and Mr. Biden’s belief that Mr. Bin Salman was responsible for the 2018 killing of journalist Jamal Khashoggi.
Moreover, the visits of Mr. Biden and Ms. Lipstadt come as hopes are fading that talks in Vienna between world powers and Iran will succeed in reviving the 2015 international agreement that curbed Iran’s nuclear programme. A failure is likely to increase regional tension.
The spectre of a failure has driven increased regional cooperation between Gulf states, including Saudi Arabia and Israel.
At the sharp end of confronting Iran, Israel unveiled its newly adopted Octopus Doctrine this month. The doctrine expands Israel’s aiming at Iran’s nuclear, missile and drone programmes by increasingly attacking targets in Iran rather than primarily on battlefields like Syria.
Barbara Leaf, the US Assistant Secretary of State for Near Eastern Affairs, put Ms. Lipstadt’s visit in perspective when she told Congress last week that Mr. Biden hoped to achieve agreement on a roadmap for the establishment of diplomatic relations between Saudi Arabia and Israel during his visit to the Middle East this month. US officials admit that it will be a lengthy process rather than a head-on lovey-dovey affair, as was the case between Israel and the UAE.
Saudi Arabia has signaled for some time that it would like to formalize its expanding informal relations with Israel but needs a cover to do so. The kingdom has emphasized this in recent weeks as it sought Israeli acquiescence in the transfer by Egypt to Saudi Arabia of sovereignty over two islands at the top of the Red Sea and prepared for a possible visit by US President Joe Biden.
Saudis want to meet us, talk, and rub shoulders with us. They want to learn. I kept getting inquiries. There is incredible potential for cooperation between the Saudi people and Saudi companies and Israel,” said Israeli businessman Eyal Waldheim who visited the kingdom in May travelling on a non-Israeli passport.
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MIDDLE EAST
China and the Middle East: Heading into Choppy Waters
Published 2 weeks ago on June 18, 2022
By Dr. James M. Dorsey
China could be entering choppy Middle Eastern waters. Multiple crises and conflicts will likely shape its relations with the region’s major powers, including Saudi Arabia, Iran, and Turkey.
The laundry list of pitfalls for China includes the fallout of the Ukraine war, strained US relations with Saudi Arabia and the United Arab Emirates, Turkish opposition to Finnish and Swedish NATO membership, the threat of a renewed Turkish anti-Kurdish incursion into northern Syria, and the fate of the Joint Comprehensive Plan of Action (JCPOA), the 2015 international agreement that curbed Iran’s nuclear program.
Drowning out the noise, one thing that becomes evident is that neither the Gulf states nor Turkey have any intention of fundamentally altering their security relationships with the United States, even if the dynamics in the cases of Saudi Arabia, the UAE, and Turkey are very different.
Saudi Arabia recognizes that there is no alternative to the US security umbrella, whatever doubts the kingdom may have about the United States’ commitment to its security. With next month’s visit to Saudi Arabia by President Joe Biden, the question is not how US-Saudi differences will be papered over but at what price and who will pay the bill.
Meanwhile, China has made clear that it is not willing and not yet able to replace the United States. It has also made clear that for China to engage in regional security, Middle Eastern states would first have to get a grip on their disputes so that conflicts don’t spin out of control. Moves to lower the tensions between Turkey, Saudi Arabia, the UAE, and Egypt by focusing on economics are a step in that direction. Still, they remain fragile, with no issue that sparked the differences being resolved.
A potential failure of negotiations in Vienna to revive the Iran nuclear deal could upset the apple cart. It would likely push Israel, the UAE, Bahrain, and Saudi Arabia to tighten their security cooperation but could threaten rapprochement with Turkey. It could also heighten tensions in Syria, Lebanon, Yemen, and Iraq, where Iran supports a variety of political actors and militias. None of this is good news for China, which like other major players in the Middle East, prefers to remain focused on economics.
The dynamics with Turkey and Iran are of a different order. China may gleefully watch Turkish obstruction in NATO, but as much as Turkey seeks to forge an independent path, it does not want to break its umbilical cord with the West anchored in its membership in NATO.
NATO needs Turkey even if its center of gravity, for now, has moved to Eastern Europe. By the same token, Turkey needs NATO, even if it is in a better position to defend itself than the Gulf states are. Ultimately, horse-trading will resolve NATO’s most immediate problems because of Turkish objections to Swedish and Finnish NATO membership.
Turkey’s threatened anti-Kurdish incursion into northern Syria would constitute an escalation that no party, including China, wants. Not because it underwrites Turkish opposition to Swedish and Finnish NATO membership but because with Syrian Kurds seeking support from the regime of President Bashar al-Assad, Turkish and Iranian-backed forces could find themselves on opposite sides.
Finally, Iran. Despite the hot air over Iran’s 25-year US$400 million deal with China, relations between Tehran and Beijing are unlikely to fully blossom as long as Iran is subject to US sanctions. A failure to revive the nuclear agreement guarantees that sanctions will remain. China has made clear that it is willing to push the envelope in violating or circumventing sanctions but not to the degree that would make Iran one more major friction point in the already fraught US-China relationship.
In a world in which bifurcation has been accelerated by the Ukraine war and the Middle East threatened by potentially heightened tensions in the absence of a nuclear agreement, Gulf states may find that increasingly the principle of ‘you are with us or against us’ becomes the norm. The Gulf states hedged their bets in the initial months of the Ukraine war, but their ability to do so may be coming to an end.
Already Saudi Arabia and the UAE are starting to concede on the issue of oil production, while Qatar is engaging with Europe on gas. Bifurcation would not rupture relations with China but would likely restrain technological cooperation and contain Gulf hedging strategies, including notions of granting China military facilities.
Over and beyond the immediate geopolitical and security issues, there are multiple other potentially problematic issues and powder kegs.
A prominent Saudi-owned newspaper, Asharq Al-Awsat, recently took issue with an increasingly aggressive tone in Chinese diplomacy. “China isn’t doing itself any favours … Chinese officials seem determined to undermine their own case for global leadership … Somehow Chinese officials don’t seem to recognize that their belligerence is just as off-putting…as Western paternalism is,” the newspaper said in an editorial.
China’s balancing act, particularly between Saud Arabia and Iran, could become more fraught. A failure to revive the nuclear agreement will complicate already difficult Saudi Iranian talks aimed at dialling down tensions. It could also fuel a nuclear, missiles, and drone arms race accelerated by a more aggressive US-backed Israeli strategy in confronting Iran by striking at targets in the Islamic republic rather than with US backing in, for example, Syria.
While Chinese willingness to sell arms may get a boost, China could find that both Saudi Arabia and Iran become more demanding in their expectations from Beijing, particularly if tensions escalate.
A joker in the pack is China’s repression of Turkic Muslims in its north-western province of Xinjiang. A majority of the Muslim world has looked the other way, with a few, like Saudi Arabia, openly endorsing the crackdown.
The interest in doing so goes beyond Muslim-majority states not wanting to risk their relations with a China that responds harshly and aggressively to public criticism. Moreover, the crackdown in Xinjiang and Muslim acquiescence legitimises a shared opposition to any political expression of Islam.
The problem for Muslim-majority states, particularly those in the Middle East, is that the era in which the United States and others could get away with the application of double standards and apparent hypocrisy in adhering to values may be drawing to a close.
China and, for that matter, Russia is happy to benefit from the global South’s reluctance to join condemnation of the invasion of Ukraine and sanctions against Russia because the West refuses to apply the principle universally, for example, in the case of Israel or multiple infractions of international and human rights law elsewhere.
However, China and Middle Eastern states sit in similar glasshouses. Irrespective of how one judges recent controversial statements made by spokespeople of India’s ruling BJP party regarding the Prophet Mohammed and Muslim worship, criticism by Muslim states rings hollow as long as they do not also stand up to the repression of Muslims in Xinjiang.
For some in the Middle East, a reckoning could come sooner and later.
Turkey is one state where the issue of the Uighurs in China is not simply a far-from-my-bed show. Uighurs play into domestic politics in a country home to the largest Uighur exile community that has long supported the rights of its Turkic brethren in China and still boasts strong strands of pan-Turkism.
These are all elements that could come to the fore when Turkey goes to the polls next year as it celebrates the 100th anniversary of the birth of the Turkish republic.
The question is not whether China will encounter choppy waters in the Middle East but when and where.
Author’s note: This article is based on the author’s remarks at the 4th Roundtable on China in West Asia – Stepping into a Vacuum? organised by the Ananta Aspen Center on 14 June 2022 and was first published by the Middle East Institute in Washington DC.
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MIDDLE EAST
Recognising Israel: Any Asian volunteers?
Published 2 weeks ago on June 13, 2022
By Dr. James M. Dorsey
The question for Saudi Arabia and Pakistan is not whether either country will recognise Israel but when and who will go first.
For the past two years, Saudi Arabia was believed to want a Muslim state in Asia, home to the world’s three most populous Muslim majority countries, to recognise Israel first. Asian recognition would give the kingdom, home to Islam’s two holiest cities, Mecca and Medina, a welcome fig leaf.
Numbers, as expressed by population size, were one reason. Compared to Saudi Arabia’s 35 million people, Pakistan has a population of 221 million, Indonesia 274 million, and Bangladesh 165 million.
That was one reason Saudi Arabia preferred an Asian state to take the lead in following the United Arab Emirates, Bahrain, Morocco, and Sudan, who recognised Israel in the least two years.
Likely more important was the expectation that potential mass protest against a move toward Israel was more likely to erupt in Asia, where the margin for expressing dissent is greater than in much of the Middle East. Such protests, it was thought, would distract attention from the Custodian of the Holy Cities taking similar steps.
Saudi Arabia has signaled for some time that it would like to formalize its expanding informal relations with Israel but needs a cover to do so. The kingdom has emphasized this in recent weeks as it sought Israeli acquiescence in the transfer by Egypt to Saudi Arabia of sovereignty over two islands at the top of the Red Sea and prepared for a possible visit by US President Joe Biden.
The visit is designed to improve relations strained since Mr. Biden came to office over Saudi doubts about US security commitments, US demands that the kingdom increase oil production in a bid to reduce prices and limit Russian energy exports, Saudi acquisition of Chinese missiles, and the 2018 killing of journalist Jamal Khashoggi.
In advance of a visit, Saudi Arabia has not rejected a US proposal for a regional Middle Eastern air defence system that would include the kingdom and Israel.
Mujtahid, an anonymous tweeter who has repeatedly provided insights into the secretive workings of the House of Saud in recent years, reported that Saudi Arabia and Israel had created a “situation room” on the 14th floor of an Istanbul office building to advance the establishment of diplomatic relations. He said Saudi Crown Prince Mohammed bin Salman’s close aide, Saud al-Qahtani, headed the Saudi side.
Despite rampant speculation, Mr. Bin Salman is unlikely to see Mr. Biden’s visit as a capstone for recognition of Israel. More likely, he will continue to insist on a fig leaf in the form of progress in resolving the Israeli-Palestinian conflict or a major Asian Muslim-majority state going next.
Much of the attention focused in the almost two years since the UAE-led quartet forged relations with Israel focused on Indonesia. Not only because Indonesia is the world’s most populous Muslim majority state and its foremost Muslim democracy but also because it is home to the world’s most moderate mass Muslim civil society movement, Nahdlatul Ulama.
Heads of Nahdlatul Ulama have visited Israel and met Israeli leaders multiple times in the past two decades, even though Indonesia and Israel have no diplomatic relations. The movement also has close ties to various American Jewish groups.
Similarly, the absence of formal relations between Israel and Indonesia has not prevented Israeli diplomats, scholars, and journalists from maintaining contact with Indonesian counterparts and travelling to the archipelago nation or Indonesian pilgrims from touring the Jewish state. Nevertheless, Indonesia has rebuffed both the Trump and the Biden administration’s requests to move towards recognition.
Indonesia’s refusal may not come as a surprise. However, suggestions that Pakistan, despite its close ties to Saudi Arabia, may strike a deal with Israel come out of left field. Religious ultra-conservatism is woven into the fabric of society and at least some state institutions. Moreover, anti-Semitism is rampant in Pakistan.
Nonetheless, a recent visit to Israel by a delegation of Pakistani activists seeking to promote people-to-people contacts has sparked anger and debate in Pakistan. The group, which met with Israeli President Isaac Herzog, included American and British Pakistanis, prominent Pakistani journalist Ahmed Qureshi, and Fischel BenKhald, a Pakistani Jew.
Without at least an overt nudge from powerful quarters, no Pakistani journalist could make this public trip to Israel and return safely, reflecting how attitudes pertaining to Israel have evolved in the world’s only Muslim nuclear power,” said London-based Pakistani journalist Hamza Azhar Salam.
That did not stop Pakistani state television from firing Mr. Qureishi.
“The good news is, we today have the first, robust and rich nationwide debate in Pakistan on establishing diplomatic ties with Israel. This is hug,” Mr. Qureishi said.
Many Pakistanis, led by ousted prime minister Imran Khan, saw the visit to Israel as part of an effort by Pakistan’s powerful military to forge closer ties to the Jewish state – a move Mr. Khan appears to have considered when he was in office.
His aide, Zulfi Bukhari, reportedly visited Israel for a meeting with then head of the Mossad, Yossi Cohen. Mr. Bukhari has denied travelling to Israel.
The visit by the Pakistani activists came two years after two Pakistani academics called in an op-ed in Israel’s Haaretz newspaper for Pakistani-Israeli cooperation in resolving the South Asian state’s water stress and upgrading its agriculture sector.
Similarly, Pakistani political analyst Saad Hafiz recently argued that Pakistan’s recognition of Israel would earn it the support of the Biden administration and the Israeli lobby in Washington for continued International Monetary Fund (IMF) aid for his country’s battered economy. Mr. Hafiz also reiterated that Pakistan could benefit from Israeli water conservation technology.
“The US leadership, Congress, and the powerful pro-Israel lobby could support the resumption of financial assistance to Pakistan as an incentive if it agrees to normalize ties with Israel, “ Mr. Saad said.
Pakistanis and Israeli have links in other ways. For example, many Pakistanis offer their services on Fiverr, an Israeli marketplace for freelance professionals.
Degrees of Saudi cooperation with Israel and Pakistani feelers contrasted starkly with legislation passed in the last two weeks by the Iraqi parliament criminalizing contact with Israel and by the Houthi government in Yemen that outlawed contact not only with Israel but also with Jews.
Pakistan is unlikely to follow Iraq or the Houthis. Even so, “it is unlikely that Pakistan’s fragile coalition government has the credibility and time to take the politically risky decision to open dialogue with Israel, especially with (Imran) Khan snipping at its heels,” Mr. Saad said. “Yet, bold decisions are needed for Pakistan to compete in a changing world.”
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