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Strategic Advice On Managing GCC Market Complexity

Published Aug 21, 26
4 min read


Israel reacted with alarm to both the U.S. decision to raise sanctions on Syria and President Trump's conference with Ahmed al-Sharaa. Prime Minister Netanyahu reportedly asked President Trump not to raise Syria sanctions in advance of Trump's journey to the area. Considering that the fall of the Assad regime in December 2024, Israel has been cautious of the former jihadist now in control in Damascus.

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It has also deployed soldiers in southern Syria, occupying an increasing location beyond the demilitarized zone separating the 2 countries. Moving forward, Israel will stay cautious of the Sharaa government and will likely continue to apply military pressure on Syria, including an expanded profession of southern Syria and occasional air campaign.

Israel's openness to the Trump administration's efforts to broker a nonaggression pact in between Israel and Syria remains an open question. Rather, Syria could end up being a locus of local power competition between Israel and Turkey as both look for to apply their influence over Syria's trajectory. Since the fall of Assad in December 2024, Saudi Arabia has actually lobbied hard for the United States to raise Syria sanctions, mentioning them as a crucial obstacle to the country's reconstruction.

For MBS, the U.S. decision stood as an important victory emerging from Trump's journey. Going forward, Saudi Arabia will likely encourage the United States to continue along its path toward normalization with Syria.

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Regardless of widening domestic and global criticism of Israel's technique, the prime minister has not wavered in his broadening occupation of Gaza in the absence of any U.S. pressure. Undoubtedly, the prime minister appears to indulge in U.S. assistance, without any tip of a shift in policy. Moving forward, Netanyahu can be expected to continue along the same trajectory in Gaza, specifically given that a dramatic shift in U.S.

On the contrary, as the international outcry versus Israel's actions in Gaza grows and with an increasing number of U.S. allies moving to state a Palestinian state, Israel is most likely to entrench its position even more, boosted by the prospect of ongoing U.S. assistance. Undoubtedly, the Trump administration revealed its decision to deny visas to the Palestinian Authority management ahead of the UN General Assembly, seemingly in reaction to mounting require declaring a Palestinian state.

Riyadh right away declined Trump's proposition and restated its refusal to stabilize relations with Israel in the lack of significant development toward the creation of a Palestinian state. The kingdom has likewise highly slammed Israel for the lack of sufficient help streaming into Gaza. Following the August 22 scarcity declaration, Saudi Arabia, while not calling out the United States, faulted the Israeli occupation as the cause of the "humanitarian disaster" in Gaza.

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Its leading function in promoting a two-state option at the 80th UN General Assembly stands as its most prominent effort in this regard. The kingdom will likely continue its behind-the-scenes lobbying of the United States to pressure Israel to relent on these demands, holding out on any progress towards normalization with Israel in the absence of movement on these problems.

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Its engagement in the Middle East is forming the contours of the emerging local orderwhether by default or design. Specifically, its decisions on Iran, Syria, and Gaza all touch on core difficulties in the region and hold the potential to move each in a favorable direction. Yet, hazard and deepening dispute stand on the flip side of each chance.

As international trade patterns straighten, a new financial investment passage is taking shape, linking capital from the Gulf to Latin America. Sovereign wealth funds, conglomerates, and household workplaces from the Gulf Cooperation Council ("") are investing billions across Latin America's energy, farming, fintech, and facilities sectors. Trade in between Mexico and GCC states increased more than 33% between 2021 and 2022, while non-oil trade with the UAE has actually almost folded the past years.

3 Company sentiment reflects this momentum64% of Latin American executives plan to broaden engagement with the Gulf, particularly in agriculture, sustainable energy, and digital services. 4 Underscoring this momentum, Saudi Arabia just recently opened its very first Chamber of Commerce workplace in Miami, additional signifying the growing links in between Gulf capital and the Americas.

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