US foreign policy approach remains adrift

24 May 2024

Commentary
Edmund O'Sullivan
Former editor of MEED

Former US ambassador to Saudi Arabia, Chas Freeman, said in May that the US has no Middle East strategy and is stumbling from one improvisation to the next.

Some say this is because Secretary of State Tony Blinken and National Security Advisor Jake Sullivan both rose to where they are now principally because of their loyalty to the Democratic Party generally and President Joe Biden specifically. Their influence is consequently shaped more by political considerations than a broader understanding of the complexities of international affairs or America’s long-term interests.

There is little chance that this short-term approach will change, regardless of who wins in November’s presidential poll. Donald Trump is focusing on what will work for him this autumn and, if elected, will likely continue to follow a formula of self-interest; what works for the US in the Middle East will always come second.

There is little chance that this short-term approach will change

If there was a golden era for US Middle East policy, it may have begun in 1945 when President Roosevelt met Saudi Arabia’s King Abdul Aziz Al Saud to reach an understanding between the world’s most robust democracy and one of the most conservative kingdoms that served the interests of both.

In 1956, President Eisenhower then intervened to force Britain and France to stop their war on Egypt over the Suez Canal. From then on, the US became the dominant foreign force in much of the region and a welcome alternative to the old imperial powers and the Soviet Union.

That balance was lost in 1967, however, when President Johnson stood behind Israel despite its expansionary war against Egypt, Syria and Jordan.

A brief flicker of hope flared following the 1973 Arab-Israel war, but by then the polarisation in the region was reflected in US policy.

It was not until 1991, after Iraq had been expelled from Kuwait by a coalition that enjoyed almost unanimous Arab support, that a new opportunity arose for the US to at last develop a strategy that was built on solid foundations. 

The Madrid conference in October 1991 put Washington at the heart of a multilateral process that aimed to bridge the gap between Israel and the Arab nations. This was destroyed, however, by President Clinton – another political partisan – who opted for the bilateral approach defined by the Oslo agreements of 1993. It was bound to fail, and did.

Optimists say we will have to wait at least four more years before there is another opportunity for Washington to get it right. Pessimists say it will take longer than that, perhaps a generation or more. But what if they are both wrong and the long-term plan that Ambassador Freeman wants, and we all yearn for, does not actually exist? 


Connect with Edmund O’Sullivan on Twitter

More from Edmund O’Sullivan:

Rainmaking in the world economy
New shock treatment for Egypt’s economy
Syria’s long march in from the cold
Lebanon’s pain captured in a call from Beirut
Troubled end to 2023 bodes ill for stability
The Holy Land and delusions it inspires
Region to mark golden jubilee of 1973 war
Gulf funds help reshape football
When a war crime is denied
Embracing the new Washington consensus


https://image.digitalinsightresearch.in/uploads/NewsArticle/11814753/main.gif
Edmund O’Sullivan
Related Articles
  • Accor expects Dubai hotel recovery by mid-2027

    17 July 2026

     

    Paris-headquartered hotel operator Accor expects Dubai’s hotel market to return to pre-conflict occupancy levels by the end of the first quarter or early second quarter of 2027, with room rates lagging the volume recovery by several months.

    Duncan O’Rourke, chief executive for the Middle East, Africa and Asia Pacific at the hotel operator (pictured right), said the group had maintained profitability across its Dubai portfolio during the conflict period through cost control and revenue management, but acknowledged that rates and occupancy had fallen materially from January and February levels.

    “There is no question that this crisis affected Dubai,” O’Rourke said at a media briefing in Dubai on 26 June. “As for occupancy in Dubai, we managed – through profit protection and cost control – to keep the hotels in a positive position, so we weren’t losing money.”

    He said the arrival of the summer low season provided a degree of relief. “If there is a time to slowly slide out of this crisis, it is the right time, which is now. What I see going forward is that volumes will come back. You will not have the rates immediately that you had in January and February. By the end of Q1 or Q2 next year, I think you will get close to where we were.”

    Luxury first

    O’Rourke said the luxury and upper-upscale segment was likely to lead the recovery, consistent with the pattern observed after previous crises.

    “Generally, when you have a crisis, the first segment to click back quicker is the high-end luxury. People then think: it is not about whether I should go – it is, let’s go. We saw that in Covid. Fairmont is well positioned to do that, and the Sofitel and Maison brands are in the stage of recovery going forward.”

    Jean-Jacques Morin, group deputy chief executive at Accor (pictured right), said the UAE’s underperformance had been contained within Accor’s broader international portfolio that continued to grow.

    “The Middle East is about 10% of the network,” he said. “That also explains why my tone on the capability of the results is so positive – not only do you have the hedging across geographies, but it is also, in the end, only one part of the business.”

    Rate outlook

    Morin dismissed concerns that the conflict had structurally weakened Dubai’s pricing power, drawing a parallel with the period following Covid-19.

    “When we came out of Covid, everybody said those prices would never hold. The question at every analyst call was always the same: your pricing strategy is unsustainable. Guess what? Nothing changed. The prices now, three or four years later, are still the same.”

    He argued that consumers consistently prioritise travel expenditure when reallocating budgets. “What you see when the economy goes sideways is that people reallocate disposable income differently. People are basically redirecting the way they do things and keeping the same amount they want to spend, but spending it differently.”

    Morin also said Dubai has a track record of outpacing expectations after previous disruptions. “The first part of the world, post-Covid, that came back to positive RevPAR was the Middle East – it was Dubai. People forget that. The capacity of this part of the world to rebound, and the capacity of the industry to rebound in general, is always misunderstood.”

    No pullback

    Accor said it had not paused or cancelled any development commitments in the region as a result of the conflict. “We did not change anything from a strategic perspective,” Morin said. “The last thing you want is to pull back, because this is going to rebound.”

    The group has also used the period to accelerate planned refurbishments and redeploy staff across the region rather than reduce headcount.

    “We have 380 hotels here – we are the largest player in the Middle East. Where we accelerated refurbishments, we were able to take key employees and move them to larger hotels elsewhere in the region. What people learned during Covid was the cost of layoffs afterwards – bringing people back and retraining them. There was a massive learning curve. This time, discussions with partners about layoffs were less challenging; it was more about accommodating staffing needs during that period,” O’Rourke said.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17695301/main.gif
    Colin Foreman
  • GCC downstream operators urged to seek used European equipment

    17 July 2026

     

    The operators of downstream oil and gas facilities in the GCC that are rebuilding after attacks during the regional war are being advised by the insurance industry to procure used equipment from Europe, where a large number of petrochemical facilities have closed down over recent years.

    A wide range of refineries and petrochemical plants in the region are currently undertaking repairs and replacing damaged equipment after attacks by Iran.

    The attacks started after the US and Israel launched attacks on sites in Iran on 28 February.

    Nick Holland, the head of engineering for India, the Middle East and Africa at the US-based insurance broker Marsh, says that many downstream facilities carrying out repairs in the GCC could cut costs and reduce the time it takes to rebuild by making deals with companies in Europe.

    “Many plants have shut down in Europe over the past five years,” he says. “These refinery and chemical-plant closures may create an opportunity for Gulf operators to acquire high-quality used equipment.

    “We have some incredible demand in the Middle East to recover as quickly as possible, and I would certainly be encouraging operators to take the opportunity to procure second-hand equipment from facilities that have closed down in Europe.”

    Earlier this month, Jim Ratcliffe, the chairman of the London-headquartered chemicals company Ineos, wrote an open letter to Ursula Von Der Leyen, the president of the European Commission, saying that the chemical industry in Europe is “highly stressed” and in the midst of a “closure phase”.

    He said that nearly 200 European chemical plants had closed down during the past five years.

    Holland says that companies in the GCC looking to minimise business disruption and rebuild as quickly as possible should reach out to companies in Europe to obtain equipment that would normally take a long time to procure from equipment manufacturers.

    “A new large high-pressure reactor could have a lead time of approximately 110 weeks, so adapting an existing reactor could significantly accelerate recovery,” he says.

    “Other possible items include pumps, compressors, rotating equipment and boilers.

    “Reusing equipment is unusual but not unprecedented. Used equipment would require inspection, remaining-life assessment, re-engineering and confirmation that it is fit for the new operating conditions.”

    Over recent months, there have been reports of downstream oil facilities being hit by Iranian attacks in Saudi Arabia, Kuwait, the UAE and Bahrain.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17692930/main.jpg
    Wil Crisp
  • Medina tenders Quba Mosque expansion

    17 July 2026

    Madinah Region Development Authority (MRDA) has tendered a contract to expand Quba Mosque in the Medina region of Saudi Arabia.

    The tender was issued earlier this month, with a bid submission deadline of 31 August.

    MRDA has appointed local consulting firm Jasara as the project management consultant.

    Jasara, in turn, has appointed London-based firm HKA to provide specialist procurement and delivery-model advice and to support the selection of a suitable contracting partner for the project.

    Dar Al-Omran has prepared the design for the expansion.

    Quba Mosque is located about five kilometres south of the Prophet’s Mosque in Medina.

    Project background

    Quba Mosque is considered the first mosque established in Islam, in 622 AD. The proposed expansion will increase the mosque’s area from 5,035 square metres (sq m) to 53,000 sq m and raise capacity to 66,000 worshippers, from 12,000.

    The expansion will also include the restoration of 57 historical sites and the creation of three pathways to enhance Medina’s spiritual and cultural landscape.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17691327/main.jpg
    Yasir Iqbal
  • Qatar seeks to establish new industrial area in Mesaieed

    16 July 2026

    Qatar’s Ministry of Commerce & Industry and state enterprise QatarEnergy have signed an agreement to cooperate on evaluating and allocating hydrocarbon-derived resources to support the establishment of a new medium industries area in Mesaieed Industrial City.

    Under the terms of reference signed between the parties, QatarEnergy will implement a governance mechanism for the allocation of hydrocarbon-derived feedstock to qualifying industrial investment opportunities for the proposed new medium industries area in Mesaieed Industrial City.

    “The agreed terms of reference stipulate the evaluation and allocation of hydrocarbon-derived resources, natural gas, power and related natural resources to downstream derivative industrial investment opportunities,” QatarEnergy said in a statement.

    “It will also ensure the optimal use of national resources and enhance the added value of the industrial sector by establishing a joint governance framework to evaluate and allocate resources required by qualified industrial investment opportunities,” it added.

    QatarEnergy currently operates crude oil refining facilities, including natural gas liquids units, as well as petrochemical production complexes and other units in the hydrocarbon value chain, in Mesaieed Industrial City, situated around 45 kilometres south of Doha.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17688383/main.jpg
    Indrajit Sen
  • Bahri signs deal for two offshore vessels with Dubai shipyard

    16 July 2026

    Bahri Logistics, a division of Saudi Arabia’s national shipping company Bahri, has placed an order for the construction of two advanced offshore support vessels with Dubai-based Grandweld Shipyard.

    Grandweld will custom-build the two vessels to meet Bahri’s operational requirements for offshore activities at Ras Tanura port in Saudi Arabia, one of the world’s busiest oil and gas bunkering and export hubs.

    The vessels will be built at Grandweld’s shipyard in Dubai Maritime City and are expected to be delivered in August, following a 12-month building period.

    The vessels will feature the latest navigation and safety technologies. They are designed to perform multiple offshore support functions, including vessel clearance, crew changes and emergency response, while adhering to international maritime standards.

    The newbuild agreement with Grandweld aligns with Bahri’s broader strategy “to modernise its fleet, enhance technical capabilities, and adopt more energy-efficient and environmentally responsible designs”.

    “Through continued investments in technology, infrastructure and fleet diversification, Bahri Logistics aims to deliver smarter, more sustainable logistics solutions that contribute to the Saudi Green Initiative and the kingdom’s long-term economic diversification goals,” the Saudi Stock Exchange-listed (Tadawul) company said in a statement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17687877/main.jpg
    Indrajit Sen