The US is to blame for its foreign policy paralysis over the past decade
End of the decade: Broken politics has left successive governments in Washington rudderless, increasingly distracted and lacking in purpose on the global stage
Conventional wisdom increasingly holds that the US is struggling through a long goodbye from a traditional role of Middle East leadership. But if so, why?
American officials invariably insist Washington remains the driving force. Almost 10 years ago, then secretary of state Hillary Clinton declared a “new American moment” of global leadership. A year earlier, then president Barack Obama told a Cairo audience that he sought "a new beginning between the United States and Muslims around the world". For all its "America first" rhetoric, the Donald Trump administration has similarly trumpeted US engagement in the region and the world.
On paper and in all spheres, the US remains by far the biggest international player in the Middle East. Yet a combination of policy failures and misjudgements has weakened its credibility and soured the American public on deep engagement in the region.
After the end of the Cold War, underscored by the liberation of Kuwait from Iraqi occupation in 1991, many in Washington imagined a unipolar world with the US acting as unchallenged superpower into the foreseeable future. If that was ever real at all, it was certainly temporary.
The failure of the Clinton administration to secure a Palestinian-Israeli peace agreement at Camp David in the summer of 2000 now seems the start of a long decline. The 2003 invasion of Iraq was undoubtedly a major turning point, particularly for the American public's striking Middle East fatigue. The Obama administration, building on that legacy of failure, added an aura of unreliability
Nowhere was this more evident than in the Middle East.
The failure of the Bill Clinton administration to secure a Palestinian-Israeli peace agreement at Camp David in the summer of 2000 and prevent the Second Intifada – from which the peace process has never recovered – now seems the start of a long decline.
The 2003 invasion of Iraq was undoubtedly a major turning point, particularly for the American public's striking Middle East fatigue. The George W Bush administration charged into Iraq on the flimsiest of pretexts, with no clear sense of what it wanted or how any of those things could be accomplished. The result was a predictable debacle.
The Obama administration, building on that legacy of failure, added an aura of unreliability.
Traditional allies, including the Gulf countries, Israel and others, watched with dismay as Washington abandoned then Egyptian president Hosni Mubarak to his fate in 2011 when he was forced to step down, suggesting that in this case at least loyalty proved a one-way street. The signing of the 2015 nuclear deal with Iran appeared to confirm many of these fears. Mr Obama also highlighted a "pivot to Asia", chided Gulf countries as "free riders" and emphasised "burden sharing". He allowed the Syrian regime to cross an announced "red line" on the use of chemical weapons without any negative consequences.
Mr Trump has continued all these trends and added wild unpredictability to the mix. Obviously, there is no guarantee he will not suddenly reverse his foreign policies if he feels that will play well to his domestic political base. But behind this sorry tale of largely avoidable strategic deterioration in what remains an evidently vital region lie a number of voluntary and involuntary reactions.
In Middle East terms, the question can be easily framed thus: how is it that what is regarded as a relatively feeble Russian Federation is the emerging powerbroker and friend to all in the region while the relatively mighty US routinely sidelines itself? The answer is that Russia knows what it wants, defines its goals narrowly and acts resolutely to secure its specific interests. The US does none of those things.
It is not just that, as a democracy, the US is trapped in inevitable conflicts between Democratic and Republican parties, or liberals and conservatives, or even internationalists and isolationists. All of that is true and the rise of the neo-isolationists of the Trump-era is a major challenge to US global engagement. But the greater problem is far deeper. Even within a given administration or faction, there is rarely a clear, coherent and broadly shared understanding of the political goal of many given diplomatic or military interventions. In the absence of a broadly-accepted and bipartisan framing narrative such as the Cold War and a clearly dangerous defining foe like the Soviet Union, the American system has a hard time achieving unity of purpose.
This harkens back to the disastrous period of incoherence between the two world wars, which the “America first” slogan also invokes.
Even within specific administrations in Washington, this is a perennial problem. After a long internal struggle, the Bush administration determined to invade Iraq. At the time, I counted 13 distinctly different stated reasons for doing that yet almost none of its main proponents agreed on what the priorities should be. So, of course the US failed in Iraq. It never agreed on what it was doing. There was no broadly-accepted metric for measuring success or failure because there was no agreed-upon benchmark for such a judgment. Therefore, failure was guaranteed.
This problem has continued to the present day. Mr Trump seeks one set of policies in Syria, Iraq, Iran and Ukraine while many of his senior officials, and the military, view things very differently – as the impeachment inquiry has demonstrated. And, in Mr Trump’s case at least, it is not possible for him to stamp his mark on the administration because even he is not sure what he is going to want tomorrow and how he could defend it. And even when he thinks he does, what about everyone else?
Contrast this to Vladimir Putin's Russia or Xi Jinping’s China. The cliche is, you can't get what you want until you know what you want. For US foreign policy, this is becoming a crippling conundrum. The US cannot achieve or recognise foreign policy success because it does not have anything close to a shared definition of it.
Hussein Ibish is a senior resident scholar at the Arab Gulf States Institute in Washington
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.
We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice.
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Rating: Four stars
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