5 Top Points
- Kuwait’s sovereign wealth fund joined BlackRock and Microsoft in a $30 billion AI infrastructure partnership.
- Chinese company will build Oman’s first lithium battery plant worth around $1.1 billion.
- European Commission removed the UAE from its high-risk terror and money laundering list.
- Sweden and UAE strengthened defence ties with focus on air systems and regional security.
- In a letter to Saudi and French leaders, Mahmoud Abbas urged Hamas disarmament and a UN-backed force.
‘Round and About the Gulf
Kingdom of Bahrain
Wednesday, 4 June—Bahrain and the United Kingdom agreed to establish a new parliamentary cooperation framework following a meeting in London between Ahmed bin Salman Al-Musallam, Speaker of Bahrain’s Council of Representatives, and Lindsay Hoyle, Speaker of the UK House of Commons. The agreement includes forming a parliamentary friendship committee and signing a memorandum of understanding to enhance legislative collaboration.
State of Kuwait
Wednesday, 4 June—The Kuwait Investment Authority (KIA), one of the largest government-owned investment funds in the world, joined a major $30 billion partnership with BlackRock and Microsoft to help build infrastructure for artificial intelligence (AI), such as data centres and energy projects. The AI Infrastructure Partnership (AIP) was founded in September 2024 by BlackRock, with participation from Microsoft and Abu Dhabi-backed investment company MGX. It is KIA’s first step into AI under its new head, Saoud Salem Al-Sabah. Other partners include Nvidia, xAI, NextEra Energy, and GE Vernova.
Sultanate of Oman
Friday, 6 June—Chinese company, Hunan Zhongke Electric, will invest approximately $1.1 billion to establish Oman’s first lithium battery anode materials plant at Sohar Port and Freezone, one of Oman’s key industrial and logistics centres. The project supports Oman’s Vision 2040, aiming to diversify the economy and strengthen its role in the global electric vehicle supply chain. The facility will target production of 100,000 tonnes of lithium battery anode materials annually and will be developed in two phases over six years.
State of Qatar
Thursday, 5 June—Qatar reportedly submitted a draft peace proposal to the Democratic Republic of Congo and the Rwanda-backed M23 rebel group, following months of mediation efforts in Doha. Both parties are expected to consult their respective leaderships before resuming negotiations. The initiative comes amid escalating conflict in eastern Congo, where M23 has recently captured the region’s two largest cities, heightening concerns over a potential broader regional conflict.
Kingdom of Saudi Arabia
Sunday, 9 June—Saudi Arabia’s economy grew by 3.4% year-on-year in Q1 2025, exceeding earlier estimates of 2.7%, according to revised data from the General Authority for Statistics. The revision reflects a smaller-than-expected oil sector contraction of 0.5% and stronger non-oil growth of 4.9%. Despite lower oil prices, increased output helped cushion the impact. The kingdom faces a projected fiscal deficit of SAR 101 billion ($27 billion) and may reduce spending amid declining oil revenue. However, Vision 2030 projects and international event preparations are expected to sustain growth through 2026.
EU Corner
Thursday, 5 June—The EU unveiled its new International Digital Strategy, outlining a vision for global digital cooperation. Aiming to reinforce the EU as a reliable partner in a shifting geopolitical landscape, the strategy focuses on expanding international digital partnerships, supporting global digital transitions, and promoting a rules-based digital order aligned with EU values. Key priorities include secure infrastructure, emerging technologies, digital governance, cybersecurity, and digital identities.
Tuesday, 10 June—The European Commission removed the UAE from the EU’s list of high-risk third countries for money laundering and terrorist financing. The decision aligns with the Financial Action Task Force’s (FATF) earlier move to delist the UAE, recognising the country’s progress in strengthening its anti-money laundering and counter-terrorism financing framework. The change reduces regulatory burdens for EU entities engaging with the UAE and reflects growing confidence in its financial system.
Key Official Visits & Contacts
Wednesday, 4 June—Qatar and Canada co-hosted the G7 Middle East and North Africa Directors and Arab-International Quintet Committee meetings focused on regional challenges in Doha, ahead of the G7 Summit in Canada. Senior officials from Saudi Arabia, the UAE, Jordan, Egypt, the US, UK, France, Italy, Germany, Japan, and the EU, among others, attended.
Wednesday, 4 June—Maxime Prévot, Deputy Prime Minister and Minister of Foreign Affairs, met with UAE Minister of Foreign Affairs, Abdullah bin Zayed Al-Nahyan, and Anwar Gargash, Diplomatic Advisor to the UAE President, to reinforce Belgium-UAE cooperation. Talks focused on shared security, humanitarian challenges, and the complex regional geopolitical landscape. Both sides explored deeper economic cooperation in renewable energy, green hydrogen, and digital technologies, and addressed the EU-UAE Free Trade Agreement.
Wednesday, 4 June—Swedish Defence Minister, Pal Jónsson, concluded a visit to the UAE aimed at strengthening bilateral defence cooperation and discussing regional and European security developments. He held talks with UAE Minister of State for Defence Affairs, Mohammed bin Mubarak Al-Mazrouei, and Commander of the UAE Air Force and Air Defence, Major General Rashid Mohammed Al-Shamsi. Discussions focused on shared strategic interests, potential collaboration in air defence systems, and operational insights from the UAE’s use of the SAAB GlobalEye surveillance aircraft.
Friday, 6 June—Saudi Minister of Foreign Affairs, Prince Faisal bin Farhan bin Abdullah, held a telephone conversation on Thursday with United Nations Secretary-General António Guterres to review preparations for the upcoming High-level International Conference for the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution, to be held this month at the UN headquarters in New York. Additionally, Prince Faisal discussed regional and international developments with both Guterres and German Federal Minister for Foreign Affairs, Johann Wadephul, in a separate call which also addressed bilateral relations between Saudi Arabia and Germany.
Friday, 6 June—UAE President, Mohamed bin Zayed Al-Nahyan, and Egyptian President, Abdel Fattah El-Sisi, during a meeting in Abu Dhabi, emphasised the urgency of achieving a ceasefire in Gaza and advancing a political process towards a just and comprehensive peace based on the two-state solution. The leaders also reviewed developments in Lebanon, Syria, Sudan, Libya, Yemen, and Somalia.
Monday, 9 June—Mohammed bin Abdulaziz Al-Khulaifi, Qatar’s Minister of State at the Ministry of Foreign Affairs, met with Johan Forssell, Sweden’s Minister for Migration, in Stockholm. The discussions focused on enhancing bilateral cooperation and exploring opportunities to strengthen ties between the two countries. The meeting also addressed several issues of mutual interest, reflecting a shared commitment to advancing diplomatic engagement and collaboration on regional and international matters.
Tuesday, 10 June—French President, Emmanuel Macron, and Saudi Crown Prince and Prime Minister, Mohammed bin Salman Al-Saud, received a letter from the Palestinian Authority (PA) President, Mahmoud Abbas, calling for Hamas to disarm and expressing readiness for the deployment of Arab and international forces in the Palestinian territories under a UN Security Council mandate. The letter, sent ahead of a Franco-Saudi conference on a two-state solution, outlined Abbas’s vision for peace, including Hamas’ immediate release of all hostages, holding elections within a year, and PA reforms.
Tuesday, 10 June—Saudi Foreign Minister, Faisal bin Farhan Al-Saud, arrived in Norway to participate in the Oslo Forum, co-organised by the Norwegian Ministry of Foreign Affairs and the Center for Humanitarian Dialogue in Switzerland. The event will also include Foreign Ministers of Iran, Syria, and Oman. Discussions will address ceasefires, diplomacy, and global conflict resolution amid heightened geopolitical tensions. Separate Iran-US nuclear talks are also anticipated in Muscat on 15 June.