Middle East & Central Asia News
LAST UPDATE: June 5, 2025
UAE seeks U.S. trade deal to roll back Trump’s steel and aluminium tariffs
The UAE and the US are initiating negotiations for a bilateral trade agreement aimed at reducing or eliminating tariffs on UAE steel and aluminium exports imposed during Trump’s administration.
Insight
The potential trade agreement reflects the UAE’s strategic efforts to strengthen economic ties with the US and mitigate the impact of tariffs on its key export sectors. The UAE’s proactive approach, leveraging its history of swiftly concluded trade deals, positions it favorably in negotiations. The outcome could enhance bilateral trade relations and set a precedent for other nations seeking similar agreements. However, the success of the negotiations will depend on addressing underlying trade imbalances and aligning mutual interests.
Trump says Iran ‘slowwalking’ as Khamenei opposes nuclear proposal
President Trump accused Iran of delaying decisions on a nuclear deal after Supreme Leader Khamenei rejected a US proposal, insisting on Iran’s right to uranium enrichment.
Insight
The standoff highlights the persistent challenges in US-Iran nuclear negotiations. Khamenei’s firm stance on uranium enrichment underscores Iran’s commitment to its nuclear program, complicating diplomatic efforts. Trump’s accusation of Iran “slowwalking” the deal reflects frustration over the lack of progress. The involvement of other international actors, like Russia, adds complexity to the negotiations. The situation remains precarious, with potential implications for regional stability and global non-proliferation efforts.
Saudi Banks Are on Risky Debt Spree to Keep Funding Gigaprojects
Saudi banks are increasingly issuing risky debt to finance the kingdom’s ambitious megaprojects, such as NEOM, amid low oil prices and high spending demands.
Insight
The aggressive debt issuance by Saudi banks reflects the kingdom’s commitment to its Vision 2030 initiatives, aiming to diversify the economy. However, the reliance on risky debt instruments raises concerns about financial stability and potential defaults. The strategy indicates a shift in funding approaches, with banks playing a central role in supporting state-led projects. The success of these megaprojects is crucial for economic transformation, but the associated financial risks necessitate careful management and oversight.
Algeria Plans to Allow Foreign Firms to Mine for Critical Metals
Algeria is preparing legislation to allow foreign companies to own up to 80% of mining projects, a significant increase from the current 49% cap, aiming to attract international investment in critical minerals.
Insight
Algeria’s move to liberalize its mining sector marks a strategic shift to diversify its economy and tap into global demand for critical minerals essential for green technologies. By increasing foreign ownership limits and streamlining licensing processes, Algeria positions itself as a competitive player in the global mining industry. This policy change could lead to increased foreign direct investment, technology transfer, and job creation. However, the success of this initiative will depend on the government’s ability to implement reforms transparently and maintain political stability to reassure potential investors.
Egypt’s net foreign reserves rise to $48.526 billion in May, central bank says
Egypt’s net foreign reserves increased to $48.526 billion in May from $48.144 billion in April, reflecting improved external liquidity and investor confidence.
Insight
The rise in Egypt’s foreign reserves signals a positive trend in the country’s economic recovery efforts. Factors contributing to this increase include higher remittance inflows, a recovering tourism sector, and successful negotiations with international financial institutions. This improvement enhances Egypt’s ability to meet external obligations and stabilize its currency. Nonetheless, the country must continue implementing structural reforms to sustain this momentum and address underlying economic challenges such as inflation and unemployment.
Georgia to shutter EU and NATO information centre as ties with West fray
The Georgian government plans to close its NATO and EU Information Centre, indicating a shift away from Western alliances amid deteriorating relations.
Insight
Georgia’s decision to close the EU and NATO Information Centre reflects a significant pivot in its foreign policy, moving closer to Russia and away from Western integration. This action may undermine public support for Euro-Atlantic aspirations and raises concerns about democratic backsliding. The move could also affect Georgia’s prospects for EU and NATO membership, potentially isolating the country from key economic and security partnerships. International observers and domestic opposition may view this as a step away from democratic values and transparency.
