Group items tagged

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.

the region's food security is set to remain dependent on global markets, because "domestic production capacity will remain insufficient to meet the region's growing consumption needs"

The Middle East, which is mired in conflict and political unrest, has a "high and growing dependence" on imports for key food products, the report said, leaving the region in a state of increasing food insecurity.Arable land and water are growing more scarce in the region, both because of climate change pushing temperatures up, and as a result of poor agricultural policy from governments."It is difficult to overestimate the importance of the water issue in the Middle East and North Africa region," the report said."Along with conflict, it is the most profound man-made threat to the region's future,"

He also posted at least three times while drunk, by his own admission, and opined on topics unrelated to hacking such as the role of religion in politics and policy toward Iran.

MBS’s repression machine is alive and well thanks in no small part to the Trump administration’s refusal to hold the Saudi strongman and his regime to account. 

Since Khashoggi was murdered last October, the CIA has observed its “duty to warn” on three separate occasions, sharing intelligence to alert dissidents based in the U.S., Canada and Norway to threats originating from Saudi Arabia. 

multiple media outlets have cited sources saying that he is still in MBS’s good graces and continuing to work in a similar capacity as before he was officially ousted from the royal court.

The best open-source indication to date that al-Qahtani is continuing his hacking work comes from the Guardian, which reported in June 2019, that it was targeted by a Saudi hacking team at the order of al-Qahtani. The newspaper was initially warned of the order by a source in Riyadh earlier this year, and the threat was subsequently corroborated by a confidential internal order signed by al-Qahtani, which the Guardian reviewed. The document, dated March 7, 2019, was written in Arabic and instructed “heads of technological and technical departments” run from the cybersecurity directorate within the private office of the MBS to “carry out the penetration of the servers of the Guardian newspaper and those who worked on the report that was published, and deal with the issue with complete secrecy, then send us all the data as soon as possible.”

On June 19, 2019, Agnes Callamard, the United Nations (UN) Special Rapporteur on extrajudicial, summary or arbitrary killings, published a report on Khashoggi’s death, calling it a “premeditated extrajudicial execution” at the hands of the Saudi state. “His killing was the result of elaborate planning involving extensive coordination and significant human and financial resources. It was overseen, planned and endorsed by high-level officials. It was premeditated.”

The report specifically names al-Qahtani and MBS as two high-level officials who have not been criminally charged but for whom there is “credible evidence meriting further investigation.” 

In addition to the 22 domains analyzed above, this investigation identified several other domains that are likely linked to al-Qahtani but require further research and analysis

the prince is as close to a pariah as a senior member of the royal family has ever been in the 75 years of the Saudi-American alliance

broad, bipartisan support in Washington for punitive actions against Riyadh

MBS’s dependence on Trump — and the White House veto — to override this antagonism made him highly vulnerable to presidential strong-arm tactics.

The prince is now in a bind. He desperately needs to rebuild bridges with Congress, but that will be harder now that he has injured U.S. oil interests. Nor can he easily submit to pressure from American lawmakers on other issues without losing face at home and in the Arab world. 

The timing of his humiliation by Trump is especially unpropitious: The twin blows of the oil war and the coronavirus pandemic have greatly damaged the Saudi economy and undermined his ambitious reform agenda at home. His cherished plan to build a futuristic megacity on the Red Sea coast is facing unexpected opposition. Much effort and cost will be required to extricate Saudi Arabia from the Yemeni quagmire with a semblance of dignity.

According to Bloomberg, Saudi officials project the Line will cost around $100-$200 billion of the $500 billion planned to be spent on Neom and will have a population of 1 million with 380,000 jobs by the year 2030. It will have one of the biggest airports in the world for some reason, which seems like a strange addition to a supposedly climate-friendly city.

The site also makes numerous hand wavy and vaguely menacing claims, including that “all businesses and communities” will have “over 90%” of their data processed by AI and robots:

Don’t pay attention to Saudi war crimes in Yemen, the prince’s brutal crackdowns on dissent, the hit squad that tortured journalist Jamal Khashoggi to death, and the other habitual human rights abuses that allow the Saudi monarchy to remain in power. Also, ignore that obstacles facing Neom include budgetary constraints, the forced eviction of tens of thousands of existing residents such as the Huwaitat tribe, coronavirus and oil shock, investor flight over human rights concerns, and the lingering questions of whether the whole project is a distraction from pressing domestic issues and/or a mirage conjured up by consulting firms pandering to the crown prince’s ego and hungry for lucrative fees. Nevermind you that there are numerous ways we could ensure the cities people already live in are prepared for climate change rather than blowing billions of dollars on a vanity project.

The Saudis have used their financial clout to ground down enemies in ways big and small, from Iranian American wrestlers facing scripted humiliation in WWE shows to American golf executives being forced to swallow previous bitter condemnations of the kingdom. Saudi Arabia’s golf takeover this year, in which the kingdom coerced the PGA Tour into a planned alliance after effectively winning a game of high-stakes chicken over the fate of one of the world’s most popular sports, struck some analysts as the final dam to break in the sports world’s resistance to Saudi involvement.

Sheikh celebrated by buying a $4.8 million Bugatti before landing on a larger vanity purchase. After a stint as honorary president of an Egyptian soccer club ended with him warring with management, Sheikh poured millions into buying a rival team and moving it to Cairo. Months later, he abandoned Egyptian soccer while lamenting the “headache.”

Sheikh’s management style has embodied Saudi Arabia’s foray into global sports: free-spending, rancorous and hyper-political. He commandeered the lectern at an international chess tournament in Riyadh to rail against “ministate” Qatar, and he ranted that the Saudi soccer team had put in “less than 5 percent effort” during a World Cup loss to Russia. With his penchant for showmanship, it was perhaps inevitable that one of the PIF’s first massive investments would be bringing WWE to Saudi Arabia — and, with it, hired wrestlers acting out the humiliation of what was then a Saudi enemy nation.AdvertisementStory continues below advertisementAt the Greatest Royal Rumble in Riyadh in April 2018, two Iranian American wrestlers, waving the Iranian flag, confronted four young Saudi wrestlers. The scripted comeuppance was swift: The Saudis pummeled the Iranians, brothers Ariya and Shawn Daivari, threw them out of the ring and sent them limping away as the crowd jeered.

Many Westerners ascribe a singular motive to Saudi Arabia, if not the entire Middle East, for its interest in sports: sportswashing. And Saudi Arabia has used sports to market its supposed makeover to the outside world — and to guard its image.

Another key currency in sports (and adjacent Spandex-clad theater) was embedded in that brief anti-Iranian WWE storyline, a forgettable footnote for American viewers. Saudi leaders have attempted to move the country away from religious fundamentalism, or Islamism, to replace it with something more palatable to global commerce: nationalism, partly ginned up by crushing Middle Eastern rivals at a game it came late to.AdvertisementStory continues below advertisementSaudi Arabia, with its geriatric leadership until six years ago, had inadvertently given the United Arab Emirates and Qatar a decades-long head start at investing in sports — but the much larger country has been a bully ever since.

by dissuading potential religious extremism, “The idea is to get the country to look quote-unquote ‘normal.’ ”

“one of those key moments of reputation laundering and propaganda that Mohammed bin Salman needed at that time: an American organization with a billionaire as famous as Vince McMahon appearing in Saudi Arabia and things going on as normal.”

In the years since Khashoggi’s murder, financial leaders returned to doing business with Saudi Arabia, partly revealed when the kingdom released a list of partners in venture capital, including some of the highest-profile firms in the world. (That includes Amazon, founded by Jeff Bezos, who owns The Washington Post. In 2022, the PIF invested roughly $430 million in Amazon.) In sports, reticent executives became increasingly easy marks for a kingdom practiced at bending opponents to its will.

The PIF’s effort to purchase Newcastle United was stalled by Saudi Arabia’s alleged role in one of the world’s largest piracy operations, which for years brazenly stole Qatari content, including that of Premier League games, and beamed it to set-top boxes in Saudi homes.Saudi Arabia denied having a role in the piracy. Investigations by several organizations, from the World Trade Organization to FIFA, found otherwise. The piracy halted just before the PIF was set to complete its purchase of Newcastle.

“The majority of fans don’t care.”

The Saudis — with a diversified portfolio full of other sports — were willing to blow up golf. Pro golf executives, it turns out, were not.

Endeavor, helmed by Ari Emanuel, announced in April a $21 billion deal to merge UFC, its mixed martial arts company, with WWE. Less than five years earlier, Emanuel had returned $400 million to the Saudis so as not to have to partner with them in the wake of Khashoggi’s murder. But Endeavor and its related companies had recently done business with the kingdom again — including Endeavor’s IMG negotiating media rights for the Saudi Pro League. Under TKO, the company created in the merger with Emanuel as CEO, WWE plans to continue its Saudi shows. And UFC recently announced it would hold its first event in Saudi Arabia next year.

The problem is that the Egyptian political class, and the protestors in Tahrir, was split on the question of elections and could never form a united boycott front to push SCAF to take the elections seriously (or push for a better transition plan). There was never a credible alternative presented to SCAF's transition plan, and Islamists in particular, by endorsing the flawed referendum process, made it impossible to call SCAF's incompetence. Over the summer it was because secular-Islamist arguments squandered the attention and energy of the political class. More recently it was was in part because of the MB (although the argument that liberals wanted to postpone elections because they were afraid of the MB does not hold: the MB will do well now or in three months' time), which saw in the elections a chance to consolidate their newfound political legitimacy as well as a better source of legitimacy then Tahrir with which, should it choose to, it can confront the SCAF (assuming it does well in the elections.)

Remember that in the last 20 years most Egyptian parliaments were seen as invalid, with the state preferring to gloss over the results of lawsuits contesting results (even by the Supreme Constitutional Court) rather than accept the invalidity of successive parliaments (and hence the laws they passed.) The next parliament may be on shaky legal ground, although this will probably (as under Mubarak) be ignored for convenience's sake. Except this parliament will produce the next constitution. 

The year ahead may be full of decisions regarding the elections, and the government and parties will probably want to ignore them, subverting the rule of law for stability's sake. All because they did not spend enough time thinking their decisions through.

the degradation of the state's institution, its ability to implement (or defend) the rule of law, and the very little legitimacy the state enjoys. In global surveys, I remember seeing Egypt ranked alongside Congo in terms of "legitimacy of the state".

Egyptians deserved better than the process they got today, and they should work to get the people who put them in this position out of power as soon as possible.

These reforms are not targeting the root causes of restrictions on women, but are selected to portray certain types of reforms that can be promoted in international media

selected reforms aimed at certain purposes, but not necessarily towards developing human capital or investing in people, or women, at large

He doesn’t want any competition, any counter-opinions, any criticism. So he’s almost shut down everybody, and he’s moving ahead with his reform. When he arrested intellectuals last September, it was meant to silence everybody. The purge on corruption was planned to make everyone dependent on his mercy. If he succeeds, he will succeed alone. If not, maybe he will include the Saudi people in his reforms. I wish he could do that today, but right now he has all the power and the international community is not pressuring him on human rights.

He’s raising expectations to riskily high levels. If in two, three, five years nothing significant has really changed for the prospects of individual people looking to get ahead, they may begin to question whether Mohammad bin Salman is really the revolutionary he claims to be. We’ve seen a lot of his supporters here in Washington buying into that revolutionary, Arab Spring-like figure-of-change image, embracing his top-down approach without pausing to think about the extent to which there is a bottom-up counterpart

meeting with President Donald Trump on Tuesday was punctuated by a particularly uncomfortable exchange in which Trump went into detail about the $12.5 billion in new U.S. weapons the prince agreed to buy and then said to the prince, “that’s peanuts for you.” Ulrichsen suggested that the scene would not play well in Saudi Arabia: I think if I were watching yesterday’s press conference with Donald Trump, I would have been quite dismayed to have seen a U.S. president treat his Saudi counterpart as if he were just a source of opportunities for the U.S. Some of the president’s tenor and demeanor was quite remarkable. Khashoggi agreed that Trump’s performance was not helpful for the crown prince: President Trump is wrong when he says that money is “peanuts” to us. Saudi Arabia has a serious poverty problem—money is not “peanuts” to us. To spend billions of dollars on military equipment is a serious thing. Today the Saudi Shura Council is talking about 35 or 40 percent unemployment—the official figure is 12 percent. So as much as Donald Trump is concerned about providing jobs for Americans, Mohammad bin Salman should be concerned about providing jobs for Saudis.

despite extensive relationships with the US intelligence community as bin Nayef’s aide, two sources informed on the matter said he did not feel safe in the US with Donald Trump in power. Instead, he went to Canada where officials secured his refuge in November 2017 and, a month later, several members of his family.

Jabri preferred Canada over the US not necessarily because of any specific security concerns, but because it may have been easier to bring his family to join him

Revelations of the Canadian government’s assistance to Jabri and his family will raise questions about the diplomatic row that broke out between Ottawa and Riyadh in August 2018. Until now, the spat appeared to the wider public to have started after Canada’s embassy in Riyadh tweeted in Arabic, calling for the release of rights activists, although experts say there were frustrations already brewing in Riyadh.

Within 48 hours of the tweets, Saudi Arabia withdrew its envoy, expelled the Canadian ambassador to the kingdom and froze all new business and investment transactions, leaving seasoned observers dumbfounded.

Sources informed about Jabri’s refuge in Canada say they believe the harbouring of the former official better explains why the row escalated so quickly.

Aside from his blog post, Jabri has been off the public radar since he left the kingdom although several Saudi and Gulf sources told MEE that they had heard that he was in Canada. “He’s kept out of the public eye,” said a Saudi dissident, who spoke on condition of anonymity. “A few people spotted him by chance, but not because he approached opposition people.”

Trump has come under fire for downplaying the role of Mohammed bin Salman in the killing of Saudi journalist Jamal Khashoggi in November 2018 even though the CIA concluded that the crown prince ordered the operation.

Saudi dissidents, both in the US and in other countries, have told MEE that Trump’s response to the killing, paired with the administration’s close ties to the kingdom, has left them anxious about their security in the US.

earlier this year, Abdulrahman al-Mutairi, a young Saudi living in California who has spoken out against the crown prince, told the Daily Beast and the LA Times that the FBI had thwarted an attempt by the Saudi government to kidnap him on US soil.

"That Saudis wouldn't feel safe abroad, 100 percent I agree. Where I would be very sceptical is that it's because of the Trump administration. I think it's because of MBS that Saudis shouldn’t feel safe abroad."  

Saud al-Qahtani, the crown prince’s chef de cabinet and head of the sinister rapid intervention group, is portrayed as the mastermind of a campaign of digital surveillance. Hubbard himself was sent a link to a nonexistent website on his phone. The operation to kill Khashoggi was launched “based on a standing order from Saudi intelligence to bring dissidents home”, an official told him. The murder was a disturbing wake-up call to those who had been impressed by Prince Mohammed’s dynamic vision for the future.

Hubbard’s account acknowledges significant social changes, including the introduction of western-type entertainment, sports events and tourism, and tackling the conservative religious establishment. But he questions their overall impact. The crown prince may be socially liberal but he operates on an autocratic basis. Women can indeed now drive, but activists of either gender are still subject to arbitrary arrest and torture.

The ruling elites are all dependent on oil rents for the survival of their regimes. They need the oil business to stay alive for them to stay in power. Their system is based on continued oil rent, but ultimately, the citizens’ long-term interests are with a liveable climate

The precise point oil demand will peak has been contested, and depends on a myriad of assumptions about regulation, technology and consumer behaviour. But many people say demand will peak in about 2040, and then decline.

the International Energy Association’s report Net Zero by 2050, by contrast, proposed oil demand fall from 88m barrels a day (mb/d) in 2020, to 72 mb/d in 2030 and to 24 mb/d in 2050, a fall of almost 75% between 2020 and 2050. It argued that the Gulf has all three elements needed to switch to renewables: capital, sun and large tracts of vacant land.

Opec’s own projections suggest oil demand will rise in absolute terms through to 2045, and oil’s share of world wide energy demand will fall only from 30% to 28%. Hardly a green revolution.

In the United Arab Emirates it is estimated that the climate crisis costs £6bn a year in higher health costs. The salinity of the Gulf, caused by proliferating desalination plants, has increased by 20%, with all the likely impact on marine life and biodiversity.

Aramco, the Saudi company with the largest carbon footprint in the world, is not trying to diversify at the rate of Shell or BP. Indeed, it has just announced an investment to increase crude capacity from 12m barrels a day to 13m barrels by 2027

If you see the lifestyle in the UAE, Saudi Arabia and Qatar, it is based on endless consumption

The region is responsible for only 4.7 % of worldwide carbon emissions, dwarfed by the pollution from Europe, America and China. The oil that the Middle East exports is logged against the carbon emissions of the users, not the producers.

The Gulf’s self-proclaimed first mover, the UAE, was the first country in the region to ratify the Paris agreement and is now the least dependent on oil for government revenues. Last week it announced a “net zero initiative by 2050” to be begun with $163bn (£118bn) of investments and a new minister for climate change and the environment, Mariam Almheiri. The announcement came after the UAE ordered an 80-day brainstorming session in every government department from June. It was the first petro-state to embrace net zero in domestic consumption.

Gulf states are deeply competitive, so a flurry of news is emerging. Qatar has appointed a climate minister; Bahrain is targeting net zero by 2050; Kuwait has a new emissions plan.

Fossil fuels shipped abroad are not on the Saudi’s carbon ledger, owing to UN accounting rules, and the promised internal reduction in emissions is dependent on a heavy bet that unproven blue hydrogen and carbon capture technology will work.

Almadi was charged with harboring a terrorist ideology, trying to destabilize the kingdom, as well as supporting and funding terrorism.

Almadi has been tortured in prison, forced to live in squalor and confined with actual terrorists — all while his family was threatened by the Saudi government that they would lose everything if they didn’t keep quiet

Nobody from the U.S. Embassy in Riyadh visited Almadi until May, six months after his arrest. At that meeting, Almadi declined to ask the U.S. government to intervene. Ibrahim said that Saudi jailers threaten to torture prisoners who involve foreign governments in their cases. In a second consular meeting in August, Almadi did ask for the State Department’s assistance in his case. He was then tortured, Ibrahim said.

Although I was the target of this latest assault — no doubt because I regularly present critical reporting about Saudi Arabia and the UAE — the message to journalists across the Middle East is very clear: Don’t criticize the crown princes.

There has been a disturbing rise in gender-related harassment and threats against female public figures. The movement for women’s rights in Saudi Arabia has terrified the government, which has insisted on doling out reforms on its own terms while detaining the female activists behind the movement. Loujain al-Hathloul, the most prominent of the Saudi women campaigners, and several others remain behind bars.

Last Friday, a Turkish court began hearings on Post contributing columnist Jamal Khashoggi’s murder — a stark reminder that justice has still not been served two years on. Jamal himself once warned me to ignore and block these Twitter accounts. Even though the man widely believed to be responsible for Jamal’s murder may never be held to account, we must not let him and those who work for him imperil one of the fundamental pillars of a free society — a free press.

Twitter and other social media sites must take action to protect journalists such as myself and ensure that its platform is no longer misused by authoritarian regimes.

Allegations of disloyalty and noncompliance spread quickly. Such allegations especially affected Shia citizens who had failed to come forward about recent travel to Iran and who made up the kingdom’s first cases. But state policies to restrain sectarianism, such as pardons for citizens who disclose their visits to Iran and controls on information from the quarantined Shia city of Qatif, have tamped down some of the accusations.

an official statement accused Iran of “direct responsibility” for the spread of the virus, while commentators in the media and online also accused Saudi Arabia’s foes, Qatar and Turkey, of deliberately mismanaging the crisis

exceptional actions taken to mitigate the pandemic’s impact on Saudi citizens—from facilitating repatriation of those stuck abroad to providing free healthcare, covering 60 percent of private-sector salaries, and expanding digital services—have mobilized public support. These policies are a reminder to citizens that being Saudi means having a state that looks after its sons and daughters

The paternalistic and humane framing of the current king’s decisions treats the millions of foreigners living in the country as part of Saudi society and pushes back against a growing hostility toward expatriates and naturalized citizens living in the kingdom. While the crisis is furthering the Saudi labor market’s naturalization, the kingdom needs the compliance of its more than 10 million foreigners—especially the foreign majority of its doctors—to control the pandemic.

The religious establishment’s systematic support for these restrictions was essential not only to encourage obedience, but also to counter arguments that the crisis is God’s response to the excesses of social liberalization led by the crown prince. Even the largely tamed religious police reemerged with its own campaign to support state decisions. However, a prominent pro-MBS imam who called for the release of prisoners amid a COVID-10 outbreak was suspended, providing a reality check for the establishment.

Building on its unique expertise in managing the annual pilgrimage, Saudi Arabia’s COVID-19 strategy has reassured the Saudi public and the World Health Organization (WHO). Riyadh has jumped at this chance to repair its international image. It is showing off the growth of its public health expertise since its mismanagement of the MERS coronavirus outbreak in 2012. It donated $10 million to the WHO, delivered humanitarian aid to China, and is preparing potential aid to Palestinians. As current president of the G20, Saudi Arabia organized a virtual summit on March 20 to coordinate on the pandemic.

The economic impact of the pandemic is compounding a self-inflicted drop in oil revenues, lost revenue from suspended pilgrimages, and uncertainty within the royal family. Managing heightened public expectations of the leadership will be crucial in maintaining public support for MBS when the pandemic subsides. The crisis is also a test for the progress made on Saudi Vision 2030, especially its programs to transform public services, reduce unemployment, and diversify the economy away from oil.

the Houthis in Yemen have intensified military operations over the last month, targeting the Saudi capital of Riyadh on March 28. Furthermore, Iranian-backed militias in Iraq are escalating regional tensions with the United States

Saudi Arabia is not popular with most Jordanians, and MBS is especially vilified for his role in the Yemen war and his flirtation with Israeli Prime Minister Benjamin Netanyahu. A coup plot with MBS involved would face massive opposition from the military and the general populace.

Jordan faces serious structural problems. The country lacks natural resources, water is scarce, and the population has grown to more than 10 million. Unemployment is high, especially for women. Waves of refugees have arrived from Iraq and Syria. The pandemic has added to the underlying difficulties. Tourism, key to the economy, has been largely closed. Corruption is endemic.