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Regional Summary

The Hedging Powers Middle powers from Asia to the Gulf built alliances this week that work against each other. India, Turkey, Saudi Arabia and the UAE each deepened ties with the West while defying or undercutting Western partners. Their diplomatic positions look less like strategic ambiguity than strategic incoherence. Narendra Modi used Emmanuel Macron’s visit to Mumbai to sign over 20 defence and technology agreements, making France a “Special Global Strategic Partner” — giving New Delhi leverage against Washington’s demands that it stop buying Russian oil. Yet India also courted American goodwill by hosting an AI summit where the Adani Group pledged $100bn in renewable-energy-powered data centres, a commitment meant to appeal to both Silicon Valley and the White House. Mr Modi cannot tell Marco Rubio that Indian energy choices are none of America’s business and ask American capital to bankroll his digital ambitions. The contradiction works until one patron forces a choice. Turkey stretched the logic further. Ankara celebrated 74 years in NATO by showing off its TB3 drones in the alliance’s biggest exercise, then jailed a Deutsche Welle journalist for insulting the president, daring Germany to do something about it. Recep Tayyip Erdoğan offered troops for a Gaza peacekeeping force in Washington as his courts prepared espionage proceedings against Istanbul’s opposition mayor, Ekrem İmamoğlu — the man Western capitals regard as Turkey’s democratic hope. The Kurdish peace process, meanwhile, is hostage to the constitutional arithmetic that could extend presidential rule beyond 2028. Every outward gesture of alliance loyalty serves an inward consolidation of power, and Western partners, needing Turkish drones and Turkish geography, swallow the affront. Saudi Arabia’s hedging crossed into open confrontation with another middle power. Mohammed bin Salman ordered airstrikes against UAE-backed forces in Yemen and sent a formal complaint to Abu Dhabi listing grievances from Sudan to the southern coast — an escalation between two states that once presented a united front. Yet the crown prince simultaneously decorated a retired American general with the King Abdulaziz Medal, reinforcing the security guarantee that underpins his entire modernisation programme. The kingdom is also paring back Vision 2030’s grandiose projects in favour of manufacturing and mining, an implicit admission that spectacle without returns cannot survive a world of tighter capital. Saudi Arabia wants American protection, Chinese investment and regional dominance; the Yemen strikes suggest that juggling all three is growing harder. The UAE denied this week that Mohammed bin Zayed, its president, was unwell, a sign of how much its web of global bets depends on a single decision-maker. His government posted record oil revenues, expanded Bitcoin holdings through BlackRock, committed to an AI supercomputer in India and met American officials on Gaza — all as a senior adviser attacked Wahhabism, Saudi Arabia’s founding creed. Abu Dhabi is betting against its own closest ally even as it bets against the West. This is not balance-of-power diplomacy in any classical sense. It is something messier: middle powers accumulating options faster than they can reconcile them, betting that no partner will call the bluff because each needs something in return. That bet holds until a crisis — a forced choice on Russian oil, a Yemen escalation, a leadership vacuum — reveals that overlapping alliances are not the same as reliable ones. Hedging, pursued to excess, becomes its own vulnerability.

Country Summaries


India flag India

India struck back at American pressure this week by deepening ties with France and offering its military new options for weapons, while its foreign minister again rejected Washington’s demands to stop buying Russian oil. Emmanuel Macron’s visit to Mumbai produced more than 20 agreements that elevated India-France ties to ‘Special Global Strategic Partnership’ status. The deals include setting up Hammer missile manufacturing and H125 helicopter assembly lines in India, giving Modi’s government new options as it faces continued American pressure over the February trade deal’s Russian oil commitments. At the Munich Security Conference, Subrahmanyam Jaishankar, India’s external affairs minister, again told Marco Rubio, America’s secretary of state, that India’s energy decisions are based on market forces and national interests, not Washington’s preferences. Even as it pushed back against America, India worked to repair damage elsewhere. Modi sent an invitation through the Lok Sabha speaker for Tarique Rahman, Bangladesh’s new prime minister, to visit New Delhi. The move marks India’s bid to reset ties after losing Sheikh Hasina, a friendly neighbour, to the Bangladesh Nationalist Party’s (BNP) election victory. At home, Amit Shah, India’s home minister, said the government will eliminate left-wing extremism by March 31, sticking to a deadline that would cap security operations launched after the Sindoor incident. He credited the Central Reserve Police Force (CRPF) and Commando Battalion for Resolute Action (CoBRA) forces with cutting Maoist presence from 12 states to scattered pockets. Modi also used an AI summit in New Delhi to cast India as a technology leader for the Global South, promoting a ‘Design and develop in India. Deliver to the world’ plan. The Adani Group announced plans to invest $100 billion in renewable energy-powered AI data centres by 2035, likely to draw another $150 billion across related sectors, though the commitment comes amid legal challenges facing the conglomerate. Bhupen Borah, former Assam Congress chief, defected to the Bharatiya Janata Party (BJP) ahead of state elections, continuing the ruling party’s campaign to weaken opposition parties. Indian Youth Congress workers disrupted the AI summit with a shirtless protest wearing T-shirts showing Modi and Donald Trump, triggering the usual political row but representing routine opposition rather than serious breakdown.

Turkey flag Turkey

Turkish courts ordered the arrest of a German broadcaster’s journalist this week, putting Recep Tayyip Erdoğan’s war on press freedom in direct conflict with European allies as his domestic crackdown expands. Alican Uludağ of Deutsche Welle was detained over 22 social media posts that insulted Mr Erdoğan. Germany’s culture minister called the arrest unacceptable, but Turkish courts ignored the outcry. The case fits the pattern: use any excuse to jail critics, let international allies complain, carry on. Even as Mr Uludağ was being arrested, another court accepted espionage charges against Ekrem İmamoğlu, Istanbul’s opposition mayor, and set his first hearing for May. The court ordered him held in jail. The Kurdish peace talks continue along transactional lines. Parliament approved a commission report on democracy with 47 votes. DEM Party delegates kept visiting Abdullah Öcalan on İmralı island, and the party is considering a name change to include “Democratic Republic” in its new structure. The talks remain tied to constitutional arithmetic — DEM’s 56 parliamentary seats are needed to reach the 360-vote threshold for a referendum on extending presidential rule beyond 2028. Abroad, Mr Erdoğan flew to Ethiopia for his first visit in 11 years, meeting Abiy Ahmed and signing deals. On the flight home, he called for Turkey to be included in European defence systems, saying “Our voice is much stronger now.” Hakan Fidan, the foreign minister, represented Turkey at the first Gaza Peace Council meeting in Washington, announcing that Ankara is ready to contribute troops to an international force for Gaza and help train police and rebuild health and education systems. Turkey marked 74 years in NATO by playing a major role in the alliance’s biggest 2026 exercise. Turkish TB3 drones flying from the TCG Anadolu impressed observers, with NATO describing Turkish forces as “Ready. Capable. Strong.” The display showed Turkey’s continued alliance ties even as it pursues its own regional agenda. But cracks are showing in the economic stabilisation program. Mehmet Şimşek, the finance minister, defended his orthodox policies against growing criticism from within the ruling party. Pro-government media published proposals for economic reform that challenge his approach. Mr Şimşek claimed strong foreign investor interest and ruled out big tax increases, but the internal pressure suggests his tight monetary and fiscal policies may not survive long if they remain politically costly.

Saudi Arabia flag Saudi Arabia

Saudi Arabia bombed UAE-backed forces in Yemen this week and sent formal complaints to Abu Dhabi, escalating their rivalry from business disputes to military confrontation. Mohammed bin Salman ordered airstrikes against Southern Transitional Council positions after UAE-backed forces moved into eastern Yemen in December. The crown prince sent a complaint letter to Tahnoon bin Zayed, the UAE’s national security adviser, listing Saudi grievances over UAE activities in Sudan and Yemen. Saudi forces bombed a UAE weapons shipment in Mukalla port and provided air support to evict STC forces. Mr bin Salman called UAE military aid to the STC without Saudi approval a “red line.” Yet even as it clashed with its Gulf neighbour, Saudi Arabia reinforced ties with Washington. Prince Khalid bin Salman, the defence minister, awarded the King Abdulaziz Medal to retired General Michael Kurilla on King Salman’s orders. The ceremony reflected Saudi-US military cooperation despite the kingdom’s broader strategy of hedging between rival powers. The kingdom also continued scaling back its grandiose economic plans. The Public Investment Fund transferred its $3 billion stake in Take-Two Interactive to its gaming subsidiary, Savvy Games Group, as part of a broader shift toward established sectors. Saudi Arabia is cutting back grand projects to focus on manufacturing, mining and artificial intelligence — areas with clearer returns than the original Vision 2030 fantasies. At home, the crown prince maintained his grip through routine governance. King Salman ordered more than 3 billion riyals in Ramadan aid on Mr bin Salman’s recommendation, providing 1,000 riyals for household heads and 500 riyals for dependents. Fahad Al-Saif replaced Khalid Al-Falih as investment minister, bringing banking expertise to attract foreign investment toward the $100 billion target by 2030.
  • King Salman orders SAR 3 billion Ramadan aid disbursement
  • Saudi Arabia celebrates Founding Day 2026 marking 300 years of statehood
  • Aramco expands partnerships with Microsoft on AI and global energy deals
  • NEOM scales back megaprojects amid funding realities
  • Saudi Foreign Minister conducts diplomatic meetings at Munich Security Conference
  • PIF continues major funding of LIV Golf reaching $5.3 billion investment
  • King Salman Park first phase opening scheduled for late 2026

United Arab Emirates flag United Arab Emirates

Mohammed bin Zayed Al Nahyan had to appear in public with an American senator this week to deny rumours that he was ill. Speculation about the UAE president appeared in 28 news sources after the Turkish president and Greek prime minister cancelled visits. Lindsey Graham’s response — the senator called the rumours “false narratives” and said the UAE president was “alive, well and as sharp as I’ve ever seen him” — revealed how sensitive Abu Dhabi has become to questions about leadership continuity. Even as it managed this crisis, the UAE deployed the oil wealth that fuels its global strategy. The Abu Dhabi National Oil Company’s six listed companies posted record results: $51.8bn in revenue, $16.7bn in earnings, and $9.7bn in profit. That performance bankrolled expansion across technology and finance. Abu Dhabi’s Mubadala increased its Bitcoin holdings by 46%, adding $630m through BlackRock’s Bitcoin exchange-traded fund. Combined with other UAE funds, total exposure exceeded $1bn. The country also committed to an 8-exaflop AI supercomputer in India — a project by G42, the UAE technology firm, that will serve India’s national AI mission under Indian governance, addressing sovereignty concerns while expanding UAE technological influence. Regional tensions sharpened. A senior adviser to Mr Mohammed bin Zayed criticised Wahhabism, the Saudi religious doctrine — an escalation from proxy competition in Yemen and Sudan to ideological confrontation. But the UAE kept its American partnership intact. Abdullah bin Zayed, the foreign minister, met Marco Rubio, the secretary of state, and Scott Bessent, the treasury secretary, on Board of Peace initiatives and crisis management in Gaza and Sudan. The week also brought new security challenges. Officials said they had thwarted AI-enhanced cyber-attacks on vital infrastructure, warning of a “qualitative shift” in terrorist methods.
MBZ health rumors spark international concern before public appearance with US senator
February 16–20, 2026
UAE reports foiling AI-backed cyberattacks on vital sectors
February 21–22, 2026