Middle East & Central Asia News
LAST UPDATE: September 18, 2025
Gulf central banks cut key interest rates following Fed move
Gulf central banks reduced their key rates after the U.S. Federal Reserve cut its benchmark rate, to maintain currency pegs and stimulate non-oil economic sectors.
Insight
The coordinated cuts show the dependence of Gulf monetary policy on the Fed and the desire to encourage diversification. However, exposure to energy market volatility remains a key risk.
Saudi Arabia signs ‘strategic mutual defence’ pact with Pakistan
Saudi Arabia and Pakistan signed a strategic mutual defence pact, agreeing that an attack on one would be treated as an attack on both.
Insight
This reflects Riyadh’s bid to diversify security partnerships beyond the U.S. and signals a deepening of regional defence ties in response to geopolitical uncertainty.
Saudi Arabia expects inclusion in JPMorgan bond index to boost debt market inflows
Saudi Arabia will join JPMorgan’s Government Bond Index for Emerging Markets, expected to attract around USD 5 billion in inflows.
Insight
Index inclusion strengthens investor confidence, lowers borrowing costs, and supports Saudi Arabia’s Vision 2030 diversification agenda.
Iran and European ministers make little progress as renewed UN sanctions loom, diplomats say
Talks between Iran and European ministers yielded little progress in avoiding renewed UN sanctions, as Europe pushed for restored inspector access and clarity on enriched uranium.
Insight
The deadlock raises the likelihood of sanctions being reimposed, intensifying geopolitical tensions and undermining prospects for nuclear diplomacy.
