Iran is set to become a formidable cyber actor

Subject Iran's cyber capabilities. Significance Tehran has invested in its technology sector in recent years to become one of the world’s most cyber-capable nations. Though perhaps not on the same level as China and Russia, it is not far behind. Iranian hackers have carried out successful attacks in a number of countries, including Saudi Arabia and the United States. Impacts Saudi Arabia is Iran’s primary target for cyber operations, followed by Saudi supporters such as the United Arab Emirates and Bahrain. Iran will augment its own cyber warfare capabilities through proxies such as the 'Syrian Electronic Army'. US reversals over the nuclear deal may lead Iran to unleash a new wave of cyberattacks against US interests.

Significance Egypt has started to take delivery of an array of weapons systems, including advanced fighter aircraft and naval vessels, from Russia and France. These orders supplement equipment from the United States, which has been Egypt’s main source of weapons since the 1978 Camp David Accords. Amid an acute economic crisis, Cairo’s military procurement spree raises questions about regime motives. Impacts The rapidity of the military build-up may mean that the army will be unable to man the advanced weapons systems with qualified operators. Egypt is purchasing much of the military hardware on credit, which could further the decline of the struggling Egyptian economy. Egypt could use its newly acquired hardware to vie for regional power and influence with Saudi Arabia, Iran and the United Arab Emirates.


Subject Oman-Iran relations Significance Oman is the only Gulf Cooperation Council (GCC) member that maintains formal relations with all states in the region, including Iran, which has fallen out with the two most powerful GCC states, Saudi Arabia and the United Arab Emirates (UAE). Oman’s diplomatic channel to Tehran enables it to play the role of mediator between the United States and its Arab allies on the one side and Iran on the other. Indeed, US Secretary of State Mike Pompeo called Sultan Qaboos on May 16 to discuss alleged Iranian threats. Impacts An outbreak of hostilities between the United States and Iran would leave Oman isolated from other GCC states. Oman would reap economic benefits as a transshipment centre for Gulf states if Saudi Arabia and the UAE fight with Iran. A worsening Gulf crisis would increase smuggling between Iran and Oman, with Tehran eager to keep supplying Huthi rebels in Yemen.


Significance He did not name a new prime minister. Over July 25-26, Saied dismissed Prime Minister Hicham Mechichi, dissolved his government, suspended parliament for 30 days, lifted parliamentary immunity and declared himself chief prosecutor, triggering Tunisia’s worst political crisis in a decade. Impacts The Ennahda party could be persecuted once again, this time on corruption charges, as the reconciliation offered excludes its members. Tunisia may become a new ideological battleground, pitting Turkey and Qatar against the United Arab Emirates (UAE), Saudi Arabia and Egypt. The EU, the United States and Algeria have some influence on Tunisia and could perhaps play a moderating role.


Significance The UAE military is deeply concerned about both direct and indirect threats from Iran and from Sunni political Islam. It has therefore focused on building alliances with global and regional partner militaries, seen as more useful than developing unilateral capabilities. Impacts The UAE military will not engage in the current Qatar crisis which is political and economic. Abu Dhabi will prioritise alliances with the United States, Europe and Israel to deter Iran. Lobbying for the transfer of the US airbase from Qatar to the UAE is unlikely to succeed. The UAE will build its defence industry to function as an arsenal for regional allies.


Significance Israel sees rising risks from developments in Syria, especially the implementation of four ‘de-escalation zones’ agreed on May 6 by Russia, Iran and Turkey after talks in Astana. Netanyahu is concerned that these -- especially the southern zone, implemented in cooperation with the United States and Jordan -- will entrench an Iranian military presence in post-war Syria, including in areas close to the Israeli border. Impacts Rising Iranian spending on its ballistic missile programme will exacerbate Israeli concerns. The eighth round of UN-mandated Syrian peace talks in Geneva this month will assume implementation of the de-escalation zones. Shared concerns over Iran will boost Israel’s ties with some Sunni Arab governments, especially Saudi Arabia. Turkey’s enhanced coordination with Iran will not undermine growing economic and energy ties with Israel.


Subject Qatari legal disputes with Gulf rivals. Significance More than two years after a bloc of regional rivals began an economic and political boycott of Qatar, there are no signs of rapprochement on the horizon. In the meantime, Doha has launched a series of legal challenges against the boycotting countries at the WTO and elsewhere. The United Arab Emirates (UAE) has responded with counterclaims against Qatar. Impacts The Gulf diplomatic crisis will likely only be resolved when the blockading countries find it expedient to bring it to a close. Saudi and UAE use of the national security exemption will offer further test cases for WTO dispute resolution. The United States may seek to intervene to encourage bilateral deals to prevent an unwelcome ruling on the national security exemption.


Subject The implications of China-US relations for the technology sector. Significance China and the United States have recently made efforts to wean themselves off mutual dependence where technology is concerned. More are likely to follow, with substantial ramifications for technology businesses. Impacts Economic 'decoupling' will erode the interdependence that stabilises China-US relations. On both sides, the influence of tech businesses will wane in favour of hawkish voices advocating a harder stance. Businesses can expect increasing regulatory and tariff barriers, and potentially local-content requirements.


Subject The Trump administration's policy on the Libya conflict. Significance In recent weeks, the United States has pursued a more active foreign policy towards Libya. This is a departure from its position of the past eight years of ‘leading from the back’ on Libya and comes as US President Donald Trump faces an impeachment investigation and elections in November 2020. With the vote approaching, Trump's opponents have increasingly criticised his position on Moscow, drawing attention to the presence of Russian mercenaries in Libya. Impacts Ties with Egypt, the UAE and Saudi Arabia, and the relative influence Russia has with them, will weigh on the administration’s thinking. The State Department may push more actively for a ceasefire when a conference of external actors in Libya takes place in Berlin. A ceasefire could fragment the forces fighting Haftar without robust external guarantees that his forces would not violate it.


Subject Kurdish-Arab tensions in north-east Syria Significance Significant protests between April and June by Arab tribes in north-eastern Syria against Kurdish governance have subsided in north-eastern Syria after Saudi Arabia intervened to encourage de-escalation. However, the underlying causes, including grievances over economic distribution, heavy-handed security methods and a lack of Arab representation in decision-making, have not been resolved. Impacts A deterioration in cooperation between Arab tribes and the SDF may facilitate the operations of IS sleeper cells. The United States and partners will look for further ways to alleviate the concerns of Arab tribes in the area. Ankara and Damascus, which both have designs on the north-east, will play up protests to justify intervention. A mooted Turkish invasion of the border area could radically shift the power dynamic in the region.


Significance The grouping has been widely described as a new ‘quad’. This label is inspired by the Quad, a long-standing group comprising India, the United States, Australia and Japan. Impacts The United States will increasingly encourage Saudi Arabia to pursue normalisation of relations with Israel. China, Pakistan, Iran and Turkey will step up economic and defence collaboration with each other. Delhi-Ankara relations will become more strained.


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