meed-logo

line1 line2 line3
SIGN IN / REGISTER

Embracing the new Washington consensus

21 June 2023

Commentary
Edmund O'Sullivan
Former editor of MEED

Speaking at a Brookings Institute conference in Washington DC in May, US national security adviser Jake Sullivan set out America’s international economic priorities under President Joe Biden.

Deep trade liberalisation had failed, as had prioritising growth over its form. The merits of global economic integration had been overstated. Regressive tax cuts, lower public investment, corporate concentration and weaker unions had failed America’s middle class — and the world.

Sullivan declared that Biden had restored “an economic mentality that champions building …and a foreign policy for the middle class”. 

His new industrial policy will mobilise public and private investment worth $3.5tn over the next decade.

The consequences will be significant. The Congressional Budget Office forecast in February that the US budget deficit in the 10 years starting this July will total $20tn.That is an average of more than 6 per cent of GDP for the period as a whole, and twice the level once deemed to be the sustainable maximum.

The Washington Consensus – neoliberal ideas that for 40 years prioritised fiscal discipline, privatisation and international trade liberalisation – is officially dead. And Biden’s new one rejects everything that the old one championed.

The IMF now offers a toolkit for Middle East nations to manage fiscal risk

For most Middle East nations, this has not come a moment too soon. A report by the Washington-based IMF published in June painted a grim picture of the economic prospects that low-income Middle East nations face. 

They experience large macroeconomic shocks that cause debt to increase by an average of 12 per cent of GDP every eight years. The region is more vulnerable than other parts of the world to commodity price, exchange rate and interest rate fluctuations. Governments are exposed to risks incurred by state-owned enterprises, troubled banks, public-private partnerships and power purchasing agreements that underpin electricity sector privatisations.

These problems are compounded by natural and climate disasters and health crises such as the Covid-19 pandemic.

Risk management

Echoing the new Washington Consensus, the IMF no longer issues calls for tough fiscal action and threats of financial punishment if it is not forthcoming. Instead, it now offers a toolkit for Middle East nations to measure and manage fiscal risk.

The majority of the countries in the region – and at least half its population, who live in or near poverty – will be relieved that economic shock doctrines are a thing of the past. 

Sullivan said the new approach was needed to counter China’s growing influence, particularly in the global south. He is right, but it will take more than words to make that happen.

Connect with Edmund O’Sullivan on Twitter

More from Edmund O’Sullivan:

> Trump, Turkiye and the trouble ahead
> A century of errors for the Middle East
> The pros and cons of the biometrics boom
> Learn from history or be doomed to repeat it
> In memory of Abdullah Jonathan Wallace
> Energy challenges cloud 2023 outlook
> Wobbling technology teaches digital caution
> Gulf stands to benefit from global turmoil
> Europe’s plans will change world energy
> Geopolitics takes over oil agenda

https://image.digitalinsightresearch.in/uploads/NewsArticle/10956067/main.gif
Edmund O’Sullivan

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Firms submit Saudi customs warehouses PPP bids

    7 November 2025

     

    Three Saudi-based firms submitted bids on 29 September for a contract to build new customs warehouses in Saudi Arabia.

    The project is being tendered as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 15 years, including the construction period.

    The bidders include:

    • Al-Drees Petroleum & Transport Services Company
    • Lamar Holding
    • Mada International Holding

    The contract scope covers the development of 13 warehouses – including the design and construction of 12 new facilities and the renovation of one – across 13 different points of entry in the kingdom, along with the maintenance of all sites.

    The contract also includes the supply of equipment, as well as logistical support and cleaning services, for all new and existing warehouses at 38 points of entry across the kingdom.

    In January, the Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), prequalified five companies to bid, MEED reported.

    The client issued the expressions of interest (EOI) and request for qualifications (RFQ) notices for the project in October last year.

    PPP plans

    In April 2023, Saudi Arabia announced a privatisation and public-private partnership (P&PPP) pipeline comprising 200 projects across 16 sectors.

    The P&PPP pipeline aims to attract both local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative supports the kingdom’s efforts to enhance the attractiveness of its economy and increase the private sector’s contribution to GDP.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040496/main.gif
    Yasir Iqbal
  • Turkish contractor wins Aldar Verdes by Haven project

    7 November 2025

     

    Abu Dhabi-based real estate developer Aldar Properties has appointed Turkish firm Nurol Construction as the main contractor to build its Verdes by Haven residential complex in the Wadi Al-Safa 5 area of Dubai. 

    Aldar is developing the project in partnership with Dubai Holding.

    Verdes by Haven is a multi-building complex featuring 1,050 one-, two- and three-bedroom apartments.

    The broader Haven development will include 2,428 residential units and cover 1 square kilometre. The first phase comprises 462 residential units, including three- and four-bedroom townhouses and three- to six-bedroom villas. 

    Construction of the first phase began last year, and the project is slated for completion in the third quarter of 2027.

    The project is located opposite the Al-Habtoor Polo Resort on the Dubai-Al-Ain road.

    Dubai-based architectural firm Dewan Architects & Engineers is the lead design consultant for the project, working alongside US-based OBM International, the architectural design consultant.

    UK-based data analytics firm GlobalData predicts that the UAE construction sector will grow by 4.2% in real terms in 2025, driven by infrastructure, energy, utilities and residential construction projects. It is also estimated that projects worth more than $323bn are in the execution or planning stages in the UAE.

    The construction industry is expected to register an annual average growth of 3.8% in 2025-28, supported by investments in transport, housing and renewable energy projects. 

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15037432/main.png
    Yasir Iqbal
  • Procurement begins for Abu Dhabi light rail transit

    7 November 2025

     

    Abu Dhabi Transport Company (ADTC) has asked contractors to express interest in a design-and-build contract covering the construction of the first phase of the light rail transit network.

    The project's first phase will span 19 kilometres (km) and include 23 stations, connecting Zayed International airport (AUH) with nearby areas, including Yas Island, Al‑Raha Beach and Khalifa City.

    The key sections of the tram are:

    AUH to Yas Island: The tram will start from Terminal A at AUH and run through the Yas tunnel to Yas Gateway Park. It will serve areas including Yas Bay, Media Zone, Yas Plaza, Yas Drive, Yas Mall, Sea World and Water Edge.

    This section covers 13km and includes 13 at-grade stations and one underground station.

    Al-Raha: This section will stretch for 4.3km and run along Al-Raha Street. It will serve areas including Al-Zeina, Al-Muneera and Al-Bandar, towards the Aldar head office. The section will include seven at-grade stations.

    Etihad Plaza: This section will pass the Etihad Aviation Training Centre and span about 1.7km. It will feature a main depot near the Etihad Airways headquarters, along with two at-grade stations.

    The tender also covers the procurement of 25 trams, each with a capacity of 270 people, along with associated systems.

    The project was officially launched at the GlobalRail exhibition in Abu Dhabi in early October.

    Referred to as Abu Dhabi Tram Line 4, the project will be delivered in three phases.

    Construction of the first phase is expected to start next year. The tram is slated to begin operations by 2030.

    Future phases will extend towards Khalifa City and serve additional destinations across Yas Island.

    The project forms a key part of the recently announced AED170bn ($46bn) package of national transport and road projects to be implemented by 2030.

    The announcement was made by the UAE’s Minister of Energy and Infrastructure, Suhail Al-Mazrouei, while speaking at the UAE Government Annual Meetings in Abu Dhabi on 5 November.

    Al-Mazrouei said the projects are part of a comprehensive national strategy aimed at easing traffic congestion and enhancing mobility across the country.

    The initiatives include expanding major roads, upgrading public transport, and implementing high-speed and light rail projects.

    ADTC was established in 2023 to implement, operate and develop transport systems in rural and urban areas across the emirate.

    The company is responsible for developing rail systems and related services and operations, and providing integrated transport services, including vehicle and bus rental.

    ADTC was established by UAE President Sheikh Mohamed Bin Zayed Al-Nahyan in his capacity as Ruler of Abu Dhabi.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15037199/main.jpg
    Yasir Iqbal
  • UAE unveils $46bn road and rail spending plan

    6 November 2025

    Register for MEED’s 14-day trial access 

    The UAE’s Minister of Energy and Infrastructure, Suhail Al-Mazrouei, has announced a AED170bn ($46bn) package of national transport and road projects to be implemented by 2030.

    Speaking at the UAE Government Annual Meetings in Abu Dhabi on 5 November, Al-Mazrouei said the projects form part of a comprehensive national strategy aimed at easing traffic congestion and enhancing mobility across the country.

    The initiatives include expanding major roads, upgrading public transport, and implementing high-speed and light rail projects.

    Road expansion projects

    Road projects include adding six lanes to Etihad Road – three in each direction – increasing its capacity by 60% to a total of 12 lanes.

    Emirates Road will be expanded to 10 lanes along its full length, raising capacity by 65% and reducing travel time by 45%.

    Sheikh Mohammed Bin Zayed Road will also be widened to 10 lanes, enhancing capacity by 45%.

    The plan further includes a study for a fourth federal highway, extending 120 kilometres with 12 lanes and a capacity of up to 360,000 trips per day.

    Work has already started on the AED750m Emirates Road upgrade, which is scheduled for completion within two years.

    In July, Kuwaiti contractor Combined Group Contracting Company (CGCC) announced that its local subsidiary had secured a AED685m contract to upgrade Emirates Road from the Al-Badea intersection in Sharjah to the E55 intersection in Dubai.

    Rail services

    For rail, Etihad Rail remains on track to launch its passenger transport services by 2026 and has received bids from contractors for the design-and-build contract covering civil works and station packages for the high-speed railway (HSR) line connecting Abu Dhabi and Dubai.

    The HSR trains will have a design speed of 350km/h and an operating speed of 320km/h.

    The proposed HSR programme will be developed in four phases, gradually extending connectivity across the UAE:

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030. The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi. The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain. The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    Light rail projects include the Abu Dhabi tram scheme, which was announced by Abu Dhabi Transport Company (ADTC) in October. It will connect Zayed International airport (AUH) with nearby areas, including Yas Island, Al‑Raha Beach and Khalifa City.

    Referred to as Abu Dhabi Tram Line 4, the project will be delivered in three phases. The first phase will connect AUH with Yas Island and the residential areas of Al‑Raha Beach. Future phases will extend towards Khalifa City and serve additional destinations across Yas Island.

    Construction of the first phase is expected to start next year. The tram is slated to begin operations by 2030.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15032097/main.jpg
    Colin Foreman
  • Egypt awards contracts for 1,200MW solar plants

    6 November 2025

    Register for MEED’s 14-day trial access 

    A consortium of Egypt’s Hassan Allam Utilities Energy and Infinity Power has won contracts to develop two major solar projects with a combined capacity of 1,200MW and 720 megawatt-hours (MWh) of battery storage.

    The agreements were signed with Egypt’s Ministry of Electricity & Renewable Energy and Egyptian Electricity Transmission Company (EETC).

    The consortium will develop a 200MW solar plant in Benban, including 120MWh of connected battery storage, which is scheduled to reach commercial operation by the third quarter of 2026.

    A second, larger 1,000MW solar plant will be built in Minya, incorporating 600MWh of storage and targeting completion by the third quarter of 2027.

    The projects will be developed under the Hassan Allam Utilities Energy Platform, a renewable energy investment vehicle co-owned by Hassan Allam Utilities, the European Bank for Reconstruction & Development (EBRD) and France-based investment firm Meridiam.

    The platform currently has 2.3GW of projects under development, with a total investment of about $2bn and commercial operation expected between 2026 and 2027.

    Its wider pipeline includes 1.65GW of additional projects, comprising 350MW of solar and 1.3GW of wind capacity valued at $1.5bn.

    Infinity Power, a joint venture of Egypt’s Infinity and Abu Dhabi Future Energy Company (Masdar), said the new projects form part of its strategy to reach 10GW of renewable capacity across Africa by 2030.

    The company operates solar, wind and storage projects in Egypt, South Africa and Senegal.

    US/India-based Synergy Consulting is providing financial advisory services to the consortium for the project.

    The signing took place in the presence of Egypt’s Electricity Minister Mahmoud Esmat. The developments support Egypt’s goal of generating 42% of its total electricity from renewable sources by 2035.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15031708/main.JPG
    Mark Dowdall