Middle East & Central Asia News
LAST UPDATE: June 2, 2025
UAE orders emissions monitoring in new climate law
The UAE has enacted a new climate law mandating emissions monitoring for companies, aiming to enhance climate resilience and leadership in the region.
Insight
The UAE’s implementation of mandatory emissions monitoring marks a significant step in its climate policy, especially as a major oil exporter. This move demonstrates a commitment to environmental responsibility and positions the UAE as a regional leader in climate action. By institutionalizing emissions tracking, the UAE aims to improve transparency and accountability, aligning with global sustainability goals. The law may also encourage other nations in the Middle East to adopt similar measures, fostering regional cooperation in combating climate change. However, the effectiveness of this policy will depend on its enforcement and the willingness of industries to comply and innovate towards greener practices.
Tunisia’s central bank keeps key interest rate unchanged at 7.5%
Tunisia’s central bank maintained its key interest rate at 7.5%, following a previous cut, amid declining inflation and a widening current account deficit.
Insight
The decision to hold the interest rate steady reflects Tunisia’s cautious approach to balancing economic growth with financial stability. While the decline in inflation provides some relief, the expanding current account deficit and decreasing foreign currency reserves pose significant challenges. Maintaining the current rate aims to support the economy without exacerbating inflationary pressures. However, the country’s economic vulnerabilities highlight the need for structural reforms and diversified economic strategies to ensure long-term stability. The central bank’s actions will be closely watched by investors and international partners concerned about Tunisia’s fiscal health and commitment to economic reforms.
Saudi warned Iran to reach nuclear deal with Trump or risk Israeli strike
In April 2025, Saudi Arabia’s Defense Minister Prince Khalid bin Salman delivered a confidential message to Iran’s leadership, urging them to engage seriously with U.S. President Donald Trump’s nuclear negotiations to avoid the threat of an Israeli military strike.
Insight
Saudi Arabia’s unprecedented diplomatic engagement with Iran underscores the kingdom’s strategic shift towards proactive regional diplomacy. By mediating between the U.S. and Iran, Saudi Arabia aims to prevent further destabilization in the Middle East. This move also reflects Riyadh’s concern over Iran’s nuclear ambitions and the potential for Israeli military action. The situation highlights the complex interplay of regional powers and the importance of diplomatic channels in mitigating conflicts. Saudi Arabia’s involvement could pave the way for a new era of Middle Eastern diplomacy, balancing traditional rivalries with pragmatic engagement.
Iran calls Austria intel on nuclear programme ‘fake’
Iran summoned Austria’s charge d’affaires after dismissing an Austrian intelligence report claiming Tehran is seeking to acquire atomic weapons as “fake,” amid ongoing nuclear negotiations with the U.S.
Insight
Iran’s strong reaction to Austria’s intelligence report indicates Tehran’s sensitivity to international perceptions of its nuclear program. By labeling the report as “fake,” Iran aims to discredit external assessments that could influence ongoing negotiations with the U.S. This incident also reflects the challenges in verifying nuclear activities and the role of intelligence in shaping diplomatic discourse. The confrontation may strain Iran-Austria relations and complicate broader efforts to reach a consensus on Iran’s nuclear intentions. Transparency and trust remain critical components in resolving such high-stakes international issues.
Saudi Aramco could tap debt markets again after $5 billion bond sale
Saudi Aramco has released a new prospectus for issuing Islamic bonds, indicating it may soon return to the debt markets following a recent $5 billion conventional bond sale.
Insight
Saudi Aramco’s move to issue Islamic bonds, or sukuk, reflects the company’s strategy to diversify its funding sources amid fluctuating oil prices. The decision aligns with Saudi Arabia’s broader economic diversification goals under Vision 2030. By tapping into Islamic finance markets, Aramco can attract a wider range of investors and reinforce its financial stability. This approach also demonstrates the company’s adaptability in navigating global financial markets and its commitment to maintaining robust capital structures. The issuance of sukuk could set a precedent for other state-owned enterprises in the region seeking alternative financing avenues.
Morocco’s January-April trade deficit widens 22.8% year/year
Morocco’s trade deficit reached MAD 108.94 billion as of the end of April, a 22.8% increase compared to the same period last year, driven by higher imports.
Insight
The widening of Morocco’s trade deficit highlights the country’s economic vulnerabilities, particularly its reliance on imports. The increase may be attributed to rising energy costs and demand for foreign goods. This trend underscores the need for Morocco to bolster its export sectors and enhance domestic production capabilities. Addressing the trade imbalance is crucial for maintaining economic stability and ensuring sustainable growth. Policymakers may need to implement strategies that promote export diversification and reduce dependency on imported goods.
