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People bathe in the sun under parasols on a beach near the city of Larnaca, Cyprus, on August 11, 2024.
HARD NUMBERS: UAE carries Cyprus’ water, China toughens trade stance, Trump admin ignores court order, Americans expect price hikes, Germany’s economy remains stagnant, South Korea’s ex-leader indicted
15,000: The United Arab Emirates is literally helping Cyprus navigate troubled waters by providing portable desalination plants to the Mediterranean island free of charge so it can supply enough water to the deluge of tourists set to visit this summer. The Emirati nation’s plants will reportedly produce 15,000 cubic meters of potable water per day. It’s unclear if the UAE is receiving anything in return – it seems happy to go with the flow.
$582 billion: China informed the United States that it must “completely cancel all unilateral tariff measures” if it hopes to begin talks over trade. Beijing had previously said that it was open to talks, without preconditions. However, on Friday, Reuters reported that Beijing would exempt some critical goods from its 125% and is asking its firms to identify imports they need to continue functioning --- though it stopped short of publicly making the first move in trade war de-escalation. Total trade between the two superpowers was $582 billion in 2024, but the sweeping new tariffs that each has slapped on the other is likely to force this number down.
2: In the latest clash between the Trump administration and the courts on immigration, the White House moved a Venezuelan man from Pennsylvania to Texas — possibly preparing to deport him — right after a judge ruled that the government couldn’t remove him from the commonwealth or the United States. The man, who wasn’t formally named, had been employed as a construction worker in Philadelphia for two months before his arrest in February on suspicion of being part of Venezuela’s Tren de Aragua gang.
77%: The price isn’t right: 77% of Americans expect President Donald Trump’s tariff plan to raise consumer prices, with 47% believing that consumer prices will “increase a lot,” according to an AP-NORC poll. Despite those numbers, 4 in 10 Americans still approve of Trump’s handling of the economy and trade negotiations.
0: In the wake of Trump’s tariffs, Germany announced on Thursday it was downgrading its predicted economic growth rate — the economy depends heavily on manufacturing exports — from 0.3% to 0.0%. If the prediction holds, 2025 will be the third straight year of stagnation for Europe’s largest economy.
217 million: Former South Korean President Moon Jae-in was indicted on Thursday on bribery charges, alleging that he received 217 million won ($151,705) from the founder of a low-cost airline. No, it wasn’t Turkish Airlines but Eastar Jet.U.S. President Donald Trump salutes as he attends the annual White House Easter Egg Roll, in Washington, D.C., U.S., on April 21, 2025.
HARD NUMBERS: Trump rolls real eggs, UAE seeks AI’s help, White House nixes safety jobs, South China Sea gets battle-tested, Gold rush, Senior US official robbed
30,000: Rising egg prices don’t seem to have hit the White House, as nearly 30,000 real eggs adorned the White House lawn Monday morning for the 147th annual Easter egg roll. Donald Trump paid tribute to Pope Francis, defended embattled US Defense Secretary Pete Hegseth, and shared photos with the Easter bunny.
1: Hey ChatGPT, can you propose some new legislation for the United Arab Emirates? Yes, the Emirati nation plans to become the first country to harness the power of artificial intelligence to propose new legislation.
875: Out of the roughly 1,000 National Institute for Occupational Safety and Healthjobs, the Trump administration has cut 875 of them as part of its broader effort to slash the number of federal employees. This move could especially harm former coal miners – who often suffer from lung disease – as NIOSH has helped them find work outside the mines.
14,000: More than 14,000 American and Filipino soldiers – 9,000 from the US, 5,000 from the Philippines – are participating in a “full battle test” this year, amid mounting tensions in the South China Sea. The coordinated drill will also feature soldiers from Australia, Canada, France, Japan, and the United Kingdom. The exercise, which started on Monday, will run for three weeks.
$3,400: An age-gold problem: The price of gold surpassed $3,400 on Monday amid fears over the future of the global economy and concerns for the Federal Reserve’s independence. A year ago today, the price of gold was at $2,384.
$3,000: A thief swiped US Homeland Security Secretary Kristi Noem’s bag while she was having dinner in Washington, DC, on Sunday night, taking her passport, makeup bag, checkbook, and $3,000 in cash. Police officers have not yet caught the thief, believed to be a white male.FILE PHOTO: Turkish President Tayyip Erdogan attends the G20 summit in Rio de Janeiro, Brazil, November 19, 2024.
Turkey offers to mediate in Sudanese civil war
Turkish President Recep Tayyip Erdoğan called Sudanese Armed Forces Gen. Abdel-Fattah al-Burhan on Friday offering to help resolve the country’s civil war by mediating negotiations with the rebels and their alleged backers, the United Arab Emirates. The offer comes just days after Erdoğan negotiated an agreement to avoid conflict between Ethiopia and Somalia over port access, as Turkey looms ever larger in the politics of the Horn of Africa.
An end to the fighting is desperately needed. Nearly 15 million Sudanese have fled their homes, according to the International Organization for Migration, one of the worst refugee crises in modern history. Aid organizations struggle to reach major population centers due to intense fighting, leading to widespread hunger and disease. And in the western region of Darfur, Rapid Support Forces are accused of carrying out genocidal violence and mass rape against Black ethnic groups like the Masalit and Fur.
US and Saudi-led negotiations produced a ceasefire in May of 2023, only for it to collapse within 24 hours. Since then, the violence has raged unchecked. SAF airstrikes have devastated the capital Khartoum, but they are unable to dislodge RSF infantry, allegedly supplied via UAE airlifts to neighboring Chad. Abu Dhabi denies any involvement.
Why is Turkey getting involved? For a shot at swaying the post-war order in its favor. Ankara and Abu Dhabi’s relations have been severely strained in the aftermath of the 2011 Arab Spring, when they have found themselves backing opposing sides of crises in Egypt, Syria, Yemen, and Qatar, as well as diplomatic normalization with Israel. Finding a mediated end to the war reduces the risk that the allegedly Emirati-backed RSF comes out on top.
Avoiding that outcome plays into Turkey’s broader strategy in northeast Africa, which it sees as a key source of future economic growth and political clout. Turkey spent the last decade actively encouraging investment and trade with Sudan and Ethiopia, and the military has provided major backing to Somalia in an effort to stabilize the strategically-placed country. A stable, Turkish-aligned Red Sea coast could present both a tempting market and a key check on regional rivals in the Middle East.Skykline of Dubai, United Arab Emirates, on November 21, 2022 .
Will rabbi’s murder in the UAE amplify Iran-Israel tensions?
Israeli authorities condemned the murder of Rabbi Zvi Kogan, an Israeli-Moldovan 28-year-old whose body was discovered Sunday in the United Arab Emirates, as an“antisemitic terrorist attack.” They are investigating potential Iranian involvement, including Uzbek nationals with suspected links to Iran. In response, the Iranian embassy in the UAE said it “categorically rejects the allegations of Iran’s involvement in the murder of this individual.”
The UAE has arrested three suspects but has provided no further details. Should a link to Iran be established, it would likely renew calls for retaliation by Israel, and possibly set off a new cycle of escalation.
Meanwhile, Israeli military operations continue in both Gaza and Lebanon. The Israeli army ordered the evacuation of a suburb of Gaza City on Sunday after Hamas militants fired rockets at Israel,prompting a new wave of displacements in the enclave. Hamasclaimed late Sunday that a female Israeli hostage had been killed in Israeli operations in northern Gaza, but Israel said it was unable to verify the information.
In Lebanon, an Israeli airstrike targeted an army center, resulting in the death of one soldier and injuries to 18 others. Hezbollah retaliated on Sunday by launching 340 drones and rockets into Israel andclaimed to have also destroyed a total of 11 Israeli tanks in a series of ground battles. Talks over a potential cease-fire with Hezbollah have thus far been fruitless, but the Israeli ambassador to the US said a deal could be reached “within days” on Monday.
The UAE’s hidden hand in Sudan’s humanitarian crisis
The war in Sudan between the paramilitary Rapid Support Forces and Sudanese Armed Forces has created one of the worst humanitarian crises in the world, and it is becoming increasingly apparent that the United Arab Emirates is playing a role in prolonging it.
Passports recovered from battlefields in Sudan suggest the United Arab Emirates is covertly putting boots on the ground to support the RSF — a charge the UAE denies. The allegations come after a UN report surfaced evidence the UAE has provided weapons to the RSF to the degree many analysts believe that “without the UAE’s alleged involvement, the conflict driving the world’s worst ongoing humanitarian crisis would already be over.”
Why would the UAE support the war? Sudan is key, militarily and economically, to the UAE’s strategy in Africa and the Middle East. Militarily, it has sourced fighters from both factions to join its conflict in Yemen. Economically, it is the primary importer of Sudan’s gold, and it plans to develop ports along its Red Sea coast. Meanwhile, Iran is supplying weapons to SAF, and Russia is supporting both sides in exchange for access to a strategic Red Sea port.
The United States plans to revive peace talks next month in Switzerland, where the UAE is invited to attend as an observer. US Ambassador to the UN Linda Thomas-Greenfield says Washington has “engaged” with the UAE on the issue. But Washington faces accusations of hypocrisy, as it calls for an end to weapons supplies in Sudan while continuing to provide billions’ worth to Israel during its offensive on Gaza.
Biden, Microsoft, and the United Arab Emirates
Microsoft has quickly become the most important investor in artificial intelligence technology, holding a $13 billion stake in ChatGPT-maker OpenAI. It’s a peculiar deal with a revenue-sharing agreement that’s raised eyebrows from global regulators. But its latest billion-dollar investment is perhaps even more of an eyebrow-raiser.
The US tech giant announced last week that it would invest $1.5 billion in G42, a leading artificial intelligence holding company based in Abu Dhabi. The deal was “largely orchestrated” by the Biden administration, according to the New York Times, an effort to beat back China and gain influence in the Persian Gulf.
“There’s no question the investment was made to try and box out Chinese investment” in artificial intelligence in the Middle East, said Alexis Serfaty, a director in Eurasia Group’s geo-technology practice.
Under the terms of the new deal, Microsoft will let G42 sell its generative AI services and, in exchange, G42 will use Microsoft’s Azure cloud services. It also agreed to stricter assurances with the US government to further cut off China and remove their products and technology from use.
It’s not every day that the White House plays corporate dealmaker, but the administration hasn’t been shy about making AI — and the chips needed to power it — an economic and national security priority. Serfaty said the closest parallel he could think of was the proposed Trump administration deal to hand a stake of TikTok to the US software and cloud giant Oracle. (TikTok’s Chinese parent company ByteDance never sold a stake of its social media app to Oracle, but it did strike a deal to host its US user data on Oracle servers). Plus, the US has recently given massive grants and favorable loans to global chip manufacturers—like TSMC and Samsung—for moving production to the US.
The Biden administration has imposed strict export controls on US-made chips going to China, especially powerful ones used to run artificial intelligence models. The goal: cut off China and hamper their ability to build powerful AI. Tech investments in the Persian Gulf have been something of a casualty of this Cold War over AI. G42 announced in December 2023 that it would cut ties with China in order to keep working with US industry.
“For better or worse, as a commercial company, we are in a position where we have to make a choice,” G42 CEO Peng Xiao told the Financial Times. “We cannot work with both sides. We can’t.”
Serfaty said that the deal signals that the US government is going to increasingly treat artificial intelligence like defense technology, and play a more hands-on role in its commercial affairs and investment.
“When it comes to emerging technology, you cannot be both in China’s camp and our camp,” Commerce Secretary Gina Raimondo told the Times.
Oil money meets AI
Discussion of the global race for AI dominance and influence often centers on the United States and China, with Europe forcing itself into the discussion with groundbreaking regulation and the occasional influential startup. But in the Persian Gulf, wealthy states are just as serious about getting in on this powerful — and lucrative — technology.
The New York Times reported last week that the Kingdom of Saudi Arabia plans to create a $40 billion fund solely to invest in artificial intelligence. If this comes to fruition, it will make the Saudi government the world’s largest investor in AI. Next door, the United Arab Emirates has similar ambitions. Through Abu Dhabi’s Advanced Technology Research Council, the government poured millions into a powerful large language model called Falcon, only to release it open-source in September. Meanwhile, OpenAI chief Sam Altman has reportedly sought upwards of $7 trillion from funders including the UAE for a global chip startup.
Alexa Parks, an associate at the Eurasia Group, says both countries have been “relatively ahead of the curve” on AI with the UAE appointing the world’s first AI minister in 2017 and Saudi Arabia declaring in 2020 that it sought a domestic AI market worth $135 billion by 2030.
For Saudi Arabia, in particular, technology is “one of the few non-oil sectors that has successfully and consistently attracted significant foreign direct investment pledges,” Parks says. Both countries have pledged massive amounts to building data centers necessary for running powerful AI, plans that may put them in competition for regional dominance. The two countries seek global influence in the increasingly important AI market, but also financial returns on their investments.
Saudi Arabia and the UAE are in some ways caught in the middle of a broader economic and technological war between the US and China over AI. The US has enacted strict export controls on AI and semiconductor technology with the aim of kneecapping China, especially their military ambitions with AI. G42, one of the UAE’s largest tech firms recently cut ties with China, which should position them to better engage with US-based AI companies in the future. “We haven't seen any Saudi firms be forced to make this choice yet, but it seems likely that it will happen eventually,” Parks says. “Until then, Riyadh will be content to pursue Chinese and Western tech ties and investments to build up its local tech sector as much as possible.”
On Friday, we saw some signals that some US-based AI companies won’t be so quick to take on the potential regulatory risks related to taking Gulf money: Anthropic is reportedly lining up new investors, but already ruled out Saudi Arabia’s sovereign wealth fund, citing national security risks.
These countries’ deep-pockets and investments will make them unavoidable players in the artificial intelligence race, but in order to succeed they may need to choose sides in a broader conflict—though some major players will just flatly reject their money.
FILE PHOTO: Somali supporters of Turkish President Tayyip Erdogan hold Turkey's flag during celebrations after the second round of the presidential election, in Mogadishu, Somalia May 29, 2023.
Somalia signs defense pact with Turkey amid tensions with Ethiopia
Turkey confirmed Thursday that it has signed a defense agreement with Somalia. The deal commits Ankara to defending Somali waters and to helping Mogadishu build up its navy against “foreign interference” – a veiled reference to rising tensions with Ethiopia.
Last month, Addis Ababa signed a memorandum of understanding with the breakaway state of Somaliland allowing Ethiopia to utilize the port of Berbera in exchange for recognizing Somaliland’s independence. Ethiopia is the world’s most populous landlocked country, so securing sea access is vital, but Mogadishu says the deal is an unacceptable violation of its sovereignty.
Could it come to war? The United States is certainly concerned, with Washington’s top Africa diplomat, Assistant Secretary of State Molly Phee, shuttling between meetings with Ethiopian Prime Minister Abiy Ahmed and Somali President Hassan Sheikh Mohamud and telling reporters “the region can ill-afford more conflict.” The European and African Unions, the Arab League, and Egypt are all echoing US and Turkish calls for Somali sovereignty to be respected.
But we’ve got our eye on the United Arab Emirates, which previously facilitated ties between Ethiopia and Somaliland and could lean on its growing military influence in the Horn of Africa to sway the course of events – particularly with African Union troops set to pull out of Somalia this year.