Nick Donaldson/ Getty
Nick Donaldson/ Getty
Nick Donaldson/ Getty
Nick Donaldson/ Getty


Iran-Saudi Arabia reconciliation can help the Middle East's climate change fight


Ellie Geranmayeh
Ellie Geranmayeh
  • English
  • Arabic

April 28, 2023

The detente under way between Riyadh and Tehran has left many observers wondering if this thaw could pave the way for regional integration between the GCC states and Iran. After almost four decades of constant conflict in the Middle East, regional players are at least signalling they are in the mood for de-escalation. Whether this translates to active co-operation remains to be seen.

The rapprochement between the region’s long-term foes is certainly on fast-track mode. After their initial agreement in March that was surprisingly penned in Beijing, the kingdom and Iran are set to re-open embassies — shut down since 2016 — in the coming weeks. The pace at which this political normalisation is taking place is very rapid when compared to the two years of back-channel talks, during which Tehran and Riyadh were deadlocked and unable to move forward.

Riyadh’s opening to Tehran follows the decision by the UAE to re-engage Iran since 2019 and to recently reappoint ambassadors. Oman has retained relations with Iran, Kuwait has rekindled its ties, and Bahrain is seemingly edging closer towards normalisation. Iraq — a country caught between neighbouring Iran and Saudi Arabia — has long called for its neighbours to restore stability and co-operation.

Saudi Foreign Minister Prince Faisal bin Farhan, right, with counterparts Hossein Amirabdollahian of Iran, left, and China's Qin Gang, in Beijing in April, after China mediated a rapprochement between Riyadh and Tehran the previous month. AP
Saudi Foreign Minister Prince Faisal bin Farhan, right, with counterparts Hossein Amirabdollahian of Iran, left, and China's Qin Gang, in Beijing in April, after China mediated a rapprochement between Riyadh and Tehran the previous month. AP

The determination with which Iran, the UAE and Saudi Arabia have now marched forward suggests they are serious about reducing tensions. The test case will be in Yemen — where the players will need to prove at a minimum that the regional dimension of the civil conflict can end. In parallel, it will be important for regional powers to engage in softer confidence-building measures that can strengthen their political commitment and lessen the risks that can derail the positive diplomatic momentum.

Confidence-building measures are also going to be thorny. A number of areas of possible soft co-operation remain highly securitised. For example, there have been suggestions that the regional opening with Iran provides opportunities for economic co-operation. Saudi Finance Minister Mohammed Al Jadaan noted recently that the kingdom could invest in Iran “very quickly”. However, such economic linkages to Tehran will remain highly vulnerable to geopolitical tensions, and notably US secondary sanctions that will continue to create major hurdles for Iran’s economic integration into the region.

One area where confidence building is more feasible, and less likely to face external pressure, is in the remit of climate co-operation. For decades, Iran, Iraq and the GCC states have been alert to worsening and deadly enemies: dust storms, rising temperatures and water scarcity. Dust storms have become a regular burden that affects health, jobs and transport routes across the region. Temperatures in the Middle East are rising twice as fast as the global average. The droughts and poor water management across the region are altering ecosystems and agricultural landscape that is undermining food security.

A sandstorm in Karbala, central Iraq, in 2022. These have become a regular occurrence across the region, affecting health, jobs and transport. Reuters
A sandstorm in Karbala, central Iraq, in 2022. These have become a regular occurrence across the region, affecting health, jobs and transport. Reuters

The Middle East is home to a hugely youthful population, that is acutely aware of the grave challenges facing them — this is especially so for the region’s women whose health and livelihood are particularly vulnerable to climate change. Each year, sand storms, heatwaves and droughts cost the region billions, undermine health conditions and force displacement of people. Without imminent intervention, these problems are set to become more endemic and could trigger new rounds of violence across the region.

The silver lining is that there is already some recognition and appetite in the region, both at the leadership level and bottom up to tackle climate challenges. In July, Tehran hosted a climate conference that was attended by Mariam Al Mheiri, the UAE’s Minister of Climate Change and Environment. Although this meeting was politically significant, much more effort is required to agree on concrete and practical steps to reduce environmental challenges.

Iran should be encouraged to finally ratify the 2015 Paris Agreement

As a first step, senior leaders need to commit to such a mission. Importantly, Iran should be encouraged to finally ratify the 2015 Paris Agreement (remaining as one of few countries that has not yet done so). This would be a symbolic but significant signal from Tehran that it is serious about fighting climate change.

In exchange, Saudi Arabia could invite Iran to become an endorsing country of the Middle East Green Initiative (MGI), which describes itself as a “regional effort led by Saudi Arabia to mitigate the impact of climate change on the region and to collaborate to meet global climate targets”. Riyadh has allocated $2.5 billion to support MGI projects, and some of this could be invested in Iraq through joint initiatives that involve Iran.

Saudi Arabia is also reportedly collaborating with Unesco on a regional climate change hub, promoting studies on the implications of climate change and setting up regional early warning centres for extreme climate events. Iran could be invited to more actively engage with this process. Further down the line, Iran’s integration with the GCC states also offers huge opportunities for job creation in the climate and energy sphere by tapping into Iran’s significant tech-savvy youth.

This year provides a convenient hook to press for regional co-operation on shared climate challenges. Cop28, hosted by the UAE, is a suitable platform to invite regional stakeholders for meaningful discussions to set climate goals for the Middle East. These stakeholders must not only include senior leadership, but also technocrats, civil society, scientists and relevant businesses from Iran, Iraq and the GCC states. Political sign off must be given by the region’s leaders for non-governmental actors to begin and intensify knowledge sharing and co-ordination in the field of climate change. Specific targets must be agreed among the region, and governments will need to be held to account for meeting them.

Climate change has well and truly hit the Middle East. To overcome the gravest risks posed, an active cross-border approach is required. The geopolitical tensions and wars that have long plagued the region, however, have blocked co-operation on these critical issues. Regional leaders must now use the recent breakthrough between Iran and Saudi Araba to address the serious and existential climate threats facing the Middle East. Co-operation and confidence building in this field, could start a process of regional integration that serves the prosperity of ordinary citizens across the Middle East.

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

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.”

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

BRAZIL SQUAD

Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).

BIO

Favourite holiday destination: Turkey - because the government look after animals so well there.

Favourite film: I love scary movies. I have so many favourites but The Ring stands out.

Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.

Favourite colour: Black.

Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.

HIJRA

Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy

Director: Shahad Ameen

Rating: 3/5

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Company%20profile
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Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

PAKISTAN SQUAD

Abid Ali, Fakhar Zaman, Imam-ul-Haq, Shan Masood, Azhar Ali (test captain), Babar Azam (T20 captain), Asad Shafiq, Fawad Alam, Haider Ali, Iftikhar Ahmad, Khushdil Shah, Mohammad Hafeez, Shoaib Malik, Mohammad Rizwan (wicketkeeper), Sarfaraz Ahmed (wicketkeeper), Faheem Ashraf, Haris Rauf, Imran Khan, Mohammad Abbas, Mohammad Hasnain, Naseem Shah, Shaheen Afridi, Sohail Khan, Usman Shinwari, Wahab Riaz, Imad Wasim, Kashif Bhatti, Shadab Khan and Yasir Shah. 

Pros%20and%20cons%20of%20BNPL
%3Cp%3E%3Cstrong%3EPros%3C%2Fstrong%3E%0D%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EEasy%20to%20use%20and%20require%20less%20rigorous%20credit%20checks%20than%20traditional%20credit%20options%0D%3C%2Fli%3E%0A%3Cli%3EOffers%20the%20ability%20to%20spread%20the%20cost%20of%20purchases%20over%20time%2C%20often%20interest-free%0D%3C%2Fli%3E%0A%3Cli%3EConvenient%20and%20can%20be%20integrated%20directly%20into%20the%20checkout%20process%2C%20useful%20for%20online%20shopping%0D%3C%2Fli%3E%0A%3Cli%3EHelps%20facilitate%20cash%20flow%20planning%20when%20used%20wisely%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3ECons%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EThe%20ease%20of%20making%20purchases%20can%20lead%20to%20overspending%20and%20accumulation%20of%20debt%0D%3C%2Fli%3E%0A%3Cli%3EMissing%20payments%20can%20result%20in%20hefty%20fees%20and%2C%20in%20some%20cases%2C%20high%20interest%20rates%20after%20an%20initial%20interest-free%20period%0D%3C%2Fli%3E%0A%3Cli%3EFailure%20to%20make%20payments%20can%20impact%20credit%20score%20negatively%0D%3C%2Fli%3E%0A%3Cli%3ERefunds%20can%20be%20complicated%20and%20delayed%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ECourtesy%3A%20Carol%20Glynn%3C%2Fem%3E%3C%2Fp%3E%0A
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres  

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor 

Updated: April 30, 2023, 9:34 AM