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Two decades after the US invasion of Iraq, the civil war of the years that followed and the ravages of the Islamic State have faded into the background. Yet the country remains shaken by internal cleavages, torn apart by corruption, and vulnerable to influence operations by external actors. Overcoming economic crisis and infrastructural shortcomings could contribute to greater political stability. Oil production has doubled over the past two decades. The historical underdevelopment of the Iraqi oil sector has been reversed, yet the federal oil law has been contested between Baghdad and Erbil. Natural gas production has grown in recent years as well, but still falls short of providing enough energy to the power grid. The country is a net importer of natural gas, relying on supplies from Iran. Oil remains paramount for the Iraqi state, its budget, exports, and its economy. Heavy industries like fertilisers and petrochemicals could enhance the value chain of Iraq's primary resources that include the second-largest phosphate reserves worldwide. Population growth in Iraq is still high. Beyond hydrocarbons, economic diversification in other areas is urgently needed. This could include alternative energies, light industries, education, services, water management, and a reorientation of agriculture. Iraq ranks 157 out of 180 in the Corruption Perception Index of Transparency International. Its consociational muhasasa system, which allocates power along sectarian lines, is abetting such corruption and thus requires reform. Iraq can be a vital partner for European energy cooperation and not only in hydrocarbons, but competition from China is stiff. Europe is already eyeing collaboration with Middle East and North Africa countries on the production of green hydrogen. Interconnectors of electricity grids within and beyond the region as well as storage solutions are needed to increase the share of renewables involved in power generation.

Past approaches to food security in the countries of the Gulf Cooperation Council (GCC) were informed by concerns about food availability. They aimed at domestic self-sufficiency and self-sufficiency by proxy (via farmland investments abroad). These strategies have failed. Water scarcity at home increasingly compromises agricultural production. Farmland investments abroad have not matched ambitious related announcements due to a complex mixture of commercial, socio-economic and political factors. They do not contribute meaningful quantities to the Gulf countries’ food imports. The failure of such strategies has prompted a shift of focus instead towards value chain management as a means to secure food availability. Rather than trying to fight food import dependence, the Gulf countries now accept and manage it. However, malnutrition that leads to high levels of obesity and diabetes constitutes a risk factor in the face of COVID-19. Food accessibility for vulnerable population segments such as migrant labour is another issue that requires yet further policy measures, such as safety nets – whose expansion would be politically controversial if not impossible, however.

There have been three different kinds of reactions to the coronavirus crisis: those from early movers, with extensive measures taken (Israel, Jordan, Gulf countries, Morocco); those from states that initially struggled to acknowledge the magnitude of the crisis out of concern about its economic impact (Iran, Turkey, Egypt); and, those from countries whose ability to react to the crisis is in doubt because of civil war and internal disarray (Yemen, Libya, Syria). The capacities of regional health systems are lagging in comparison to international peers. The median age of the population is relatively low. However the number of vulnerable elderly is still substantial, as the region has been undergoing a demographic transition for several decades now. Other at-risk groups are the poor, labour migrants, the prison population, refugees, and internally displaced persons. The economic impact of COVID-19 will affect domestic spending and threatens to undermine the social contract and political stability. The pandemic also has the potential to shake up geopolitical dynamics, as it will reduce the ability of key actors to intervene regionally (e.g. Iran, Saudi Arabia, Russia). The coronavirus crisis requires government intervention on a large scale. Such intervention will be used to further the political goals of authoritarian regimes, too. It will be integrated into their repression strategies - including cyber surveillance - and will likely outlast the health crisis itself. The pandemic is thus reinforcing trends towards populism and authoritarian restoration in the Middle East and North Africa. The European Union is currently preoccupied with its own coronavirus crisis, and struggling to find coordinated approaches to the tackling of it. Yet it should not overlook the unfolding socio-economic crisis in its southern neighbourhood. If Europe wants to be a serious geopolitical actor, it needs to find the wherewithal to provide assistance - and advertise that fact - to match similar efforts undertaken by China as part of its "mask diplomacy" in the region.