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Ed Webb

Who in the GCC wants a union? - 0 views

  • Citing “security problems, economic challenges and other serious issues confronted by the region,” Bahrain’s Prime Minister Prince Khalifa bin Salman Al Khalifa recently announced that the transformation of the Gulf Cooperation Council (GCC) to a union is an “inevitable goal” of this month’s Manama Dialogue (Dec. 9-11).
  • With absolutely no illusions that Oman — historically the most independent member of the GCC — has changed its position, last month Ghanem al-Buainain, Bahrain’s minister of Parliament Affairs, stated that he sensed “great enthusiasm for the union from the other Gulf members.”
  • Many non-Saudis in the GCC view Saudi Arabia as an important ally, yet they also see the oil-rich kingdom as an overbearing neighbor who does not always respect the smaller Arab Gulf states’ sovereignty. Due to a host of domestic issues in the GCC and regional developments, which the Arab Gulf families see through different lenses, Riyadh and Manama officials may see their plan for a union falling on deaf ears.
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  • Kuwait is the GCC state with the most vibrant political life and democratic institutions. Opposition to a union from Kuwait is largely attributable to concerns about “collective security actions” that Saudi Arabia and other Arab Gulf states could pursue to silence dissent and activism in Kuwait. Last month’s snap elections in Kuwait will bring in parliamentarians to the National Assembly from an opposition made up of liberals and Islamists whom other GCC states would not permit to hold any position of power in their own political systems. As many Kuwaitis take pride in their “half-democracy” and relative transparency and openness, the concept of a union has met its share of resistance in the country from voices across its political spectrum.
  • Doha has established ties with Islamist factions throughout the region and hosted many Muslim Brotherhood members — often done so at the expense of healthy relations with other GCC states. If other Arab Gulf countries such as the UAE, which designate the Muslim Brotherhood a “terrorist” group, and Qatar belong to a union, what will be the future of Sheikh Yusuf al-Qaradawi and other prominent Islamist figures who live in Doha?
  • Emiratis view themselves as a rival of Saudi Arabia for a dominant role in the region’s financial landscape, Abu Dhabi would not lend its support to a Riyadh-based Gulf central bank. In the UAE, where the authorities are waging a crackdown on Islamists, there has long been a belief that the Muslim Brotherhood operates in the Emirates on behalf of Saudi Arabia and Qatar for the purpose of undermining the UAE’s national sovereignty and independence.
  • Oman’s interest in deepening ties with Iran in commercial, diplomatic, energy and security spheres is a major factor driving Omani opposition to a union
  • Given the Kuwaiti and Qatari royal families’ cordial relationship with their countries’ Shiites who are loyal to the Al Sabah (Kuwait) and Al Thani (Qatar) rulers, threats of an Iranian-inspired Shiite revolution or rebellion have not provoked substantial sectarian tension in Kuwait since the end of the first Gulf war, nor has it ever done so in Qatar at any point following Ayatollah Ruhollah Khomeini’s rise to power in 1979. This outlook fundamentally contrasts with Saudi Arabia’s and Bahrain’s outlook, which is based on an understanding of Iran being a predatory state committed to toppling the Al Sauds and Al Khalifas through a violent revolution. Manama and Riyadh’s shared view of the Islamic Republic as an existential threat has closely aligned the two kingdoms and led Bahrain to maintain its strong support for a de facto Saudi-led union.
  • the option of perhaps one day importing Iranian gas may receive greater consideration if they remain relatively independent from Saudi Arabia in the framework of a council (not union) and their economic ills increase their interest in importing more natural gas. Yet a union would erase any realistic Kuwaiti or Emirati plans for signing gas contracts with Iran
  • there are grave concerns in the GCC about the US’ long-term commitment as the council’s security guarantor
Ed Webb

The Gulf's Charities - By William McCants | The Middle East Channel - 0 views

  • Pundits in the West are quick to blame the Gulf countries for fueling the sectarian conflict but the governments of Kuwait, Bahrain, United Arab Emirates, Saudi Arabia, and Qatar have shied away from backing the Salafi militias in Syria -- the most sectarian factions in the conflict. Instead, they have either focused on humanitarian relief or backed their own non-Salafi proxies like the more moderate Muslim Brotherhood or more secular factions like those linked to Saad Hariri in Lebanon. Nevertheless, the Gulf monarchies have not been able or willing to stem the tide of private money their citizens are sending to the Salafi charities and popular committees. Kuwait in particular has done little to stop it because it lacks an effective terror financing law and because it cannot afford politically to infuriate its already angry Salafi members of parliament. Qatar and Saudi Arabia have tried to crackdown on fundraising for the Salafi militias but their citizens just send their money to Kuwait.
  • Salafi militias like Ahrar use the money to buy weapons and the humanitarian aid to build popular support.
  • The State Department and responsible religiously-oriented aid organizations have an uphill battle in Syria but it is worth the fight. Failing to do so leaves governance to the militants, especially those who have the best financing like the Salafi groups. Indeed, Salafi militias have set up Islamic courts in captured territory where they dispense their conservative brand of justice as well as public goods. Entrenching themselves in this manner will ensure the country's sectarian divide endures long after the end of hostilities.
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  • organizations also advance a sectarian agenda at home. For Sunni-led countries like Bahrain and Kuwait that have large Shiite populations seeking greater political rights, domestic anti-Shiite activism threatens to spark a conflict that would quickly rage out of control
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    Non-state actors are crucial players in shaping the Syrian conflict.
Ed Webb

Kuwaiti activists targeted under GCC security pact - Al-Monitor: the Pulse of the Middle East - 0 views

  • Kuwaiti civil society is one of the most vibrant in the Gulf, hence its early rejection of the GCC Internal Security Pact, which was interpreted as yet another attempt to silence dissent in their own country. Many Kuwaiti activists resented Saudi hegemony, which the pact is meant to strengthen not only in the small emirate but the other ones, too. It is evident now that criticizing Saudi Arabia is taboo, the violation of which definitely leads to perhaps several years in prison. Kuwaiti apprehensions were not unfounded but they couldn't do much about the treaty that was ratified by their parliament. Several opposition groups boycotted the elections that eventually produced a docile body. On the other side of the border, there was no debate or controversy related to the pact as Saudis are completely disenfranchised. The only consultative council they have is appointed by the king and has no power to discuss security pacts with the GCC or other countries.
  • there is more to the recent detentions at the request of Saudi Arabia than simply freedom of speech. Regardless of their ideological affiliations, all the detainees belong to tribes that have historically lived between Saudi Arabia and Kuwait. Also all the detainees have gone beyond their Bedouin way of life to acquire education, political visions and determination to be part of states established when they were lacking skills. The governments of most GCC countries prefer the tribal Bedouin population to remain as part of folklore. Their ancient tents, camels and coffee pots are a reminder of a pure Arabian heritage, lost under the pressure of globalization, foreign labor populations and the ethnic diversity of the coastal states. So Gulf leaders, including the Kuwaitis and Saudis, prefer the Bedouin to be in the museum and the folklore heritage festivals rather than in public squares, demonstrating against corruption and calling for true citizenship
  • Today, not only Saudi Arabia but also Kuwait have to manage a different citizen, namely the "tribal moderns” who speak the language of human rights, freedom of speech, civil society, accountability, anti-corruption, elections and democracy. Such slogans are written on placards, chanted in demonstrations in Kuwait and virtually circulated in Saudi Arabia, as demonstrations are banned.
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  • The tribal moderns may endorse Islamism, or liberal democracy, but the fact of the matter remains constant. From the perspective of regimes, they are a dangerous bunch, simply because if they invoke tribal solidarities, they may be heeded by their fellow cousins, both imaginary and real.
  • No doubt, activists in Kuwait and other GCC countries will fall under the heavy weight of a pact designed above all to control, monitor and punish dissidents. The GCC itself may not move from cooperation to unification in the near future but it has certainly become yet another mechanism to silence peaceful and legitimate opposition across borders. Read More: http://www.al-monitor.com/pulse/originals/2015/03/saudi-gcc-security-dissident-activism-detention-opposition.html Madawi Al-Rasheed Columnist  Dr. Madawi Al-Rasheed is a columnist for Al-Monitor and a visiting professor at the Middle East Centre at the London School of Economics and Political Science. She has written extensively about the Arabian Peninsula, Arab migration, globalization, religious trans-nationalism and gender. On Twitter: @MadawiDr !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document, 'script', 'twitter-wjs'); function target_popup(a){window.open("","formpopup","width=400,height=400,resizeable,scrollbars");a.target="formpopup"}
Ed Webb

'Apocalypse soon': reluctant Middle East forced to open eyes to climate crisis | Climate crisis | The Guardian - 0 views

  • In Qatar, the country with the highest per capita carbon emissions in the world and the biggest producer of liquid gas, the outdoors is already being air conditioned.
  • 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.
  • The Middle East is warming at twice the rate of the rest of the world. By the end of the century, if the more dire predictions prove true, Mecca may not be habitable, making the summer Haj a pilgrimage of peril, even catastrophe
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  • 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.
  • 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.
  • 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.
  • 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 States are still highly reliant on oil and gas exports, which remain more than 70% of total goods exports in Kuwait, Qatar, Saudi Arabia and Oman, and on oil revenues, which exceed 70% of total government revenues in Kuwait, Qatar, Oman, and Bahrain. In Vision 2030, published in 2016, the Saudi crown prince, Mohammed bin Salman, promised to turn the country into a diversified industrial power house. The reality is very different. The World Bank shows Saudi Arabia is still 75% dependent on oil exports for its budget.
  • 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.
Ed Webb

(Re)introducing Conscription in the Gulf: From Soft Power to Nation-Building - Arab Reform Initiative - 0 views

  • In the Middle East, the US invasion of Iraq, the Arab Spring of 2011, and the subsequent foreign interventions in Yemen, Syria, and Libya, brought military preparedness and competence to the surface again. This led to a return of compulsory military service not only in countries that are at war and/or under the threat of military intervention but also in other countries. This was the case of certain Gulf countries including Kuwait, Qatar, and the United Arab Emirates (UAE) which historically seldom resorted to conscription.
  • Qatar introduced conscription in 2013, followed by the UAE in 2014. Kuwait, on the other hand, reintroduced it in 2014, having practiced conscription between 1961 and 2001. Until recently, these countries’ militaries were formed by a national officer corps, foreign - mostly Western- expert non-commissioned officers (NCOs), and foreign contract soldiers coming from different countries (Jordan, Yemen, Pakistan, Bangladesh, and Oman)
  • In 2018, not long after Saudi Arabia, the UAE, Bahrain, and Egypt imposed a blockade on Qatar, the Qatari government amended the National Service Law, introducing national service for women and extending its duration for men. While the national service remains voluntary for women over the age of 18, men are now expected to serve a year instead of three or four months. The new law gives eligible men only 60 days after they come of age to apply to the military and stipulates harsher punishment (up to three years in jail plus a fine) for those who fail to do so.
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  • Since the beginning of the 2020s, several articles5Jean-Loup Samaan, “The Rise of the Emirati Defense Industry,” Carnegie Endowment for International Peace, 14 May 2019 https://carnegieendowment.org/sada/79121;  Elenora Ardemagni, “The UAE’s Military Training-Focused Foreign Policy,” Carnegie Endowment for International Peace, 22 October 2020, https://carnegieendowment.org/sada/83033; Melissa Dalton and Hijab Shah, “Evolving UAE Military and Foreign Security Cooperation: Path Toward Military Professionalism,” Carnegie Endowment for International Peace, 12 January 2021,  https://carnegie-mec.org/2021/01/12/evolving-uae-military-and-foreign-security-cooperation-path-toward-military-professionalism-pub-83549; Elenora Ardemagni, “ Building New Gulf States Through Conscription,” Carnegie Endowment for International Peace, 25 April 2018, https://carnegieendowment.org/sada/76178; Elenora Ardemagni, “Gulf Monarchies’ Militarized Nationalism,” Carnegie Endowment for International Peace, 28 February 2019,https://carnegieendowment.org/sada/78472; Zoltan Barany, “Big News! Conscription in the Gulf,” Middle East Institute, 25 January 2017, https://www.mei.edu/publications/big-news-conscription-gulf; Dr. Eman Ahmed Abdel Halim, “Implementation of Military Conscription in the Gulf,” Future for Advanced Research Studies, 12 December 2016, https://futureuae.com/m/Mainpage/Item/2250/pressing-threats-implementation-of-military-conscription-in-the-gulf were written on the economic, social, and geopolitical reasons behind Gulf countries’ shift in military recruitment strategy. The security problems originating from Iran and Yemen, the willingness to exercise soft power in the region along with the volatile energy sector, and the ruptures within the rentier state model are put forward as the main justifications behind the Gulf countries’ developing defense industries and growing their armies. In this context, compulsory military service does play an important role, be it to increase the size of the army, cause deterrence in the region or create new job opportunities and a qualified workforce out of young citizens.
  • can also create intangible moral advantages, and thus have significant effects on these countries’ civil-military relations. The biggest reason for this is the symbiotic relationship that has formed over time between compulsory military service and national sentiment.  In this sense, introducing conscription shows an effort to turn these societies into nations where individuals would be bound to one another by national sentiment and not the rentier state model they have so far known.
  • To raise obedient and productive citizens who wore the same uniform, spoke the same language, and sang the same anthems, education became an important tool in the nation-building process.11Ayşe Gül Altınay and Tanıl Bora, “Ordu, Militarizm ve Milliyetçilik,” Iletişim Yayınları, (2002): 140. In Prussia, this “new form of nationalist socialization” was provided through military establishments with the hope that, after their discharge from military service, men would remain loyal to the state and transfer their sentiment and what they “learned” to the rest of the population.12
  • mandatory military service in these countries should not be seen as a way to efficiently raise strong and competent armies. First, like their Gulf neighbors, neither Qatar, Kuwait, nor the UAE is populated enough to sustain a competent standing army. Most of their populations are made of ex-pats who are not subject to conscription laws. Second, their current system of outsourcing military needs has proven to be efficient in the long run, with all three countries continuing to invest in contracting foreign soldiers to efficiently populate their armies. Therefore, the new conscription laws should be seen as a symbolic move to strengthen nationalistic bonds and ambitions.
  • paradoxically, the exact nationalistic sentiment and loyalty that the Gulf countries try to channel among their citizens can backfire if the people (including the conscripts) were to ever resent the rulers and their policies. This is rather contrary to the long-established coup-proofing strategies25After gaining their independence, most countries in the region (or rather individual leaders) have engaged in various coup-proofing measures to keep their militaries in check. There were different types of coup-measuring strategies. For example, until 2011, Hosni Mubarak, a military man himself, tried to keep the Egyptian military at bay by giving officers and the military institution economic benefits and providing an unfair competition. In Tunisia, Zine El Abidine Ben Ali took a different approach and choose to ouster the military as an institution completely and empowered the police force. In Sudan and Libya, former presidents Bashar and Gaddafi took a more social approach and tried to counterbalance different groups of society, especially the tribal establishments, as a buffer against the military. In the Gulf, the ruling monarchs resorted to using foreign soldiers to keep the military away from social and political affairs as much as possible. that Arab countries followed over the years. However, given the low numbers of citizens that will be drafted each year, the risk of such revolts taking place remains low.
  • In Kuwait, UAE, and Qatar, there are legal sanctions in place against anyone who fails to enlist when they become eligible and conscientious objection is not recognized. This could cause or further the feeling of oppression and resentment and trigger protests and turmoil in these countries. However, at this stage, this risk is low but still a possibility as seen in Thailand, Israel, and Armenia
Ed Webb

Kuwait expresses dismay to U.N. over Iraqis' border protest | Reuters - 0 views

  • Iraq formally accepted a U.N.-demarcated border line in 1994 after the first Gulf War - when Iraqi strongman Saddam sent his troops into Kuwait in 1990 and was forced out by a U.S.-led coalition.But many Iraqis in the area remain opposed to it, saying the line robbed them of property and territory.Iraqi police sources said the protesting crowd hurled stones at Iraqi security forces in the border town of Um Qasr on Monday, prompting the security forces to fire in the air to disperse them. The unrest was triggered by border signs maintenance work nearby, they said.Kuwaiti border guards, hearing the gunshots and believing they were being targeted, opened fire at Iraqi security forces in response, Kuwaiti media reported. There were no reports of casualties on either side.
  • Leaders of both oil-producing countries have been working to improve ties in the past year, despite public wariness. The nations came to an agreement over Gulf War-era debts last year.
Ed Webb

Kuwait's PM says welfare state is unsustainable, calls for cuts | Reuters - 0 views

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    Kuwait has lagged peers like the United Arab Emirates and Qatar in competitiveness and foreign investment. It has the most open political system in the Gulf Arab region but infighting and bureaucracy have slowed an economic development plan, announced in 2010, aimed at diversifying the oil-reliant economy.
Amitabha Joshi

Kuwait: For Abused Domestic Workers, Nowhere to Turn | Human Rights Watch - 1 views

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    The 97-page report, "Walls at Every Turn: Exploitation of Migrant Domestic Workers Through Kuwait's Sponsorship System," describes how workers become trapped in exploitative or abusive employment then face criminal penalties for leaving a job without the employer's permission. Government authorities arrest workers reported as "absconding" and in most cases deport them from Kuwait - even if they have been abused and seek redress.
Ed Webb

Coronavirus spurs regional humanitarian outreach to Iran - 0 views

  • The United Arab Emirates, Kuwait and Qatar have reached out to Iran to provide humanitarian assistance to help it combat one of the world’s biggest outbreaks of coronavirus, as some experts and former policymakers urged the United States and Iran to pursue “virus diplomacy” to save Iranian lives.
  • The head of the World Health Organization (WHO) praised the UAE and its de facto ruler, Abu Dhabi Crown Prince Mohammed bin Zayed, for a second humanitarian airlift to Iran this week of medical equipment, gloves and surgical masks to combat the respiratory disease.
  • Kuwait’s foreign minister, in a phone conversation with Iranian Foreign Minister Mohammad Javad Zarif on Tuesday, offered Iran $10 million to fight COVID-19. Qatar said Sunday that it was sending medical aid to Iran, including 6 tons of medical equipment and supplies, Gulf News reported .
Ed Webb

The Qatar Blockade Is Over, but the Gulf Crisis Lives On - 0 views

  • Officials from Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar sought to end their rancorous three-and-a-half-year dispute over Qatar’s drift toward Iran and restore much-needed cohesion to the GCC, which also includes Kuwait and Oman. The GCC summit was a resounding success. Saudi Arabia, the UAE, Bahrain, and Egypt lifted their blockade on Qatar and restored diplomatic relations with the country. Qatar also suspended its World Trade Organization case against the UAE’s economic isolation efforts.
  • the Gulf crisis is far from over. The reconciliation at the GCC summit was triggered by fatigue from the blockade and by Saudi Crown Prince Mohammed bin Salman’s desire to rebrand his tarnished image with the new U.S. administration
  • focus on symbolism over substance at the GCC summit bodes poorly for the organization’s long-term cohesion
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  • Mistrust between Qatar and the blockading states, an ongoing rivalry between the UAE and Qatar, sharp divergences in policy toward Iran and Turkey, and geostrategic contestation in Africa could reheat the Gulf crisis in the near future
  • the recent blockade’s impacts were felt at both the elite and popular level. Hardships, such as the separation of mixed-citizenship Saudi-Qatari couples, created lasting societal rifts. Saudi and Emirati state-aligned media outlets relentlessly promoted the narrative that Qatar was a state sponsor of terrorism, while Qatari media outlets equated the UAE’s religious tolerance policies with support for idolatry. In turn, Saudi, Emirati, and Qatari publics have increasingly come to view each other as adversaries rather than as neighbors or friends
  • The ongoing rivalry between the UAE and Qatar could derail any normalization in the Gulf. Since the 2011 Arab Spring protests, the UAE and Qatar have advanced competing visions for the region’s future. The UAE has condemned Islamist civil society movements, such as the Muslim Brotherhood, and, with few exceptions, has supported the forces of counterrevolution against those of political pluralism. Saudi Arabia, Egypt, and Bahrain align with the UAE. Qatar enthusiastically supported the post-Arab Spring Muslim Brotherhood governments in Tunisia and Egypt and continues to encourage popular unrest in the Middle East. Turkey is the principal backer of Qatar’s vision
  • The GCC remains divided especially on Iran and Turkey, which will impede intra-bloc cooperation on security issues
  • the GCC will remain bifurcated on Iran policy between a pro-engagement bloc consisting of Qatar, Oman, and Kuwait and a pro-isolation coalition comprising Saudi Arabia, the UAE, and Bahrain
  • Due to Turkey’s operation of a military base in Qatar and Doha’s standing as the second largest foreign investor in the Turkish economy, the Turkey-Qatar strategic partnership will only tighten in the post-crisis period. Qatar’s alignment with Turkey is a source of friction with the UAE.
  • the GCC could respond incoherently to Turkish President Recep Tayyip Erdogan’s escalations in the Eastern Mediterranean
  • Although countries that balance positive relations between Qatar and Saudi Arabia, such as Pakistan and Malaysia, benefit from the GCC’s reconciliation, the UAE-Qatar rivalry in Africa remains an unresolved source of friction. The UAE wishes to counter Qatar’s influence in Tunisia, which has grown due to large-scale Qatari investment in the Tunisian economy and Qatar-Tunisia diplomatic cooperation in Libya. Qatar has similarly capitalized on UAE-Algeria frictions, which were triggered by Abu Dhabi’s concerns about strengthening Turkey-Algeria relations and Algeria’s opposition to the UAE’s normalization with Israel.
  • The UAE and Qatar also vie for influence in Somalia. The UAE has close relations with the self-declared state of Somaliland, and Qatar aligns with Somali President Mohamed Abdullahi Mohamed’s government
  • The United States should not view the GCC as a united security bloc. Regional strategies that depend on Gulf unity, such as the Middle East Strategic Alliance, should be shelved. U.S. officials should also carefully vet large-scale arms transfers to GCC countries, such as former President Donald Trump’s $23 billion arms deal with the UAE. These contracts could trigger reciprocal arms buildups that revive the Gulf crisis
  • the new state of cold peace on the Arabian Peninsula can benefit U.S. interests
  • As Qatar has returned to the GCC fold, it could act as a moderating influence on Saudi Arabia and the UAE’s opposition to the 2015 Iran nuclear deal, which Biden seeks to revive
Ed Webb

OPEC Is in its Death Throes | Foreign Policy - 0 views

  • In February, OPEC called for an oil production “freeze” to raise crude prices in conjunction with Russia. But this effort collapsed at a meeting in Doha, Qatar, in April when Iran refused to join any freeze in order to regain the pre-2012 production levels of close to 4 mbpd it enjoyed before U.S. and European Union nuclear sanctions were imposed, following the removal of certain sanctions after the 2015 nuclear deal. A similar proposal failed at the OPEC meeting in June, again following Iran’s refusal, despite outreach by the Qataris.
  • OPEC again called for a form of output cut on Sept. 28 at an extraordinary meeting in Algiers. Markets bit on the news, with Brent prices rising sharply by about 15 percent in the following week, from $46 to $52 per barrel.
  • Can action by the cartel sustain higher crude prices over the long term? Probably not. Like a desert mirage, the image of an OPEC resurrection vanishes when approached.
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  • The massive fall in oil prices from over $100 per barrel in early 2014 to under $30 by January 2016 was caused primarily by then-Saudi Minister of Petroleum Ali al-Naimi’s strategy to gain market share for the kingdom and hurt the U.S. tight oil (or “shale”) industry by allowing the market, not OPEC interventions, to set prices.
  • While Riyadh has cranked up its production from mid-2014 to today by over a million barrels a day (to a peak of 10.7 mbpd in August this year), its fiscal position has taken a serious blow, with the budget deficit rising from 3 percent of GDP to 16 percent in 2015
  • The resilience of U.S. shale makes the argument that OPEC has experienced a resurrection a fragile claim. The cartel can probably raise prices in the short term through an output cut, but it will only be so long, perhaps already by mid-2017, before the U.S. shale industry revives and grabs any market share conceded by OPEC in a higher price environment. This will ultimately bring prices lower again, all else being equal.
  • Within OPEC, while other Gulf Co-Operation states, namely Kuwait and the United Arab Emirates, may be prepared to make a small cut to their production, key producers like Iraq and Venezuela are in too difficult a fiscal position to agree to any major cut.
  • Outside OPEC, Russia reached a production record of 11.1 mbpd in August, eclipsing Soviet levels. Being so close to the maximum anyway, Russia has little to lose by supporting the OPEC output cut and agreeing not to raise production further. Yet the Kremlin is unlikely to impose actual cuts on the range of oil companies that operate in the country.
  • In the short term, it seems Riyadh’s fiscal position was under such pressure from low oil prices that something had to give. While the kingdom has eased the fiscal pressure by starting to issue sovereign debt, the burn rate through its foreign reserves has been relentless (from about $740 billion in mid-2014 to $550 billion today) as it has attempted to defend the currency in the face of substantial capital flight from the country since the oil price crash in 2014.
  • Climate change will plainly be a major problem of the 21st century, and the world is moving away from fossil fuels: game over for an unreformed Saudi Arabia.
  • Saudi Arabia will face hard years ahead as the oil market increasingly looks to U.S. shale, not OPEC, as a handrail to oil prices on the supply side. However, this might well be the jolt that Salman needs to push through painful but necessary reforms
Ed Webb

Saudi Arabia May Become Oil Importer by 2030, Citigroup Says - Bloomberg - 0 views

  • Saudi Arabia, which depends on oil for 86 percent of its annual revenue, is accelerating exploration for gas and is planning to develop solar and nuclear power to preserve more of its valuable crude for export. The kingdom has refused to import gas, unlike neighboring producers such as Kuwait, and the United Arab Emirates that also lack fuel for power generation
  • Saudi Arabian power providers pay $5 to $15 a barrel for its fuel from state-owned Saudi Arabian Oil Co., according to the report. Brent crude, the benchmark for more than half the world’s oil, traded at $116 a barrel today on the London-based ICE Futures Europe Exchange.
Ed Webb

GCC to form unified military command - Al Arabiya News - 0 views

  • The Gulf Cooperation Council has approved the formation a unified military command structure, announcing the move in a closing statement of a two-day annual Gulf summit held in Kuwait City on Wednesday. The bloc also agreed on the formation of a unified police force, to protect the six-member council from security threats posed to the region.
  • On Iran, the Gulf states hailed the Islamic Republic's "new orientation" in recent nuclear talks. The monarchies said they "welcome the new orientation by the Iranian leadership towards the Gulf Cooperation Council and hope it will be followed by concrete measures that would positively impact regional peace."
  • summit follows a rare public spat between bloc leader Saudi Arabia and Oman over Riyadh's proposal to upgrade the GCC into a union -- 32 years after its establishment
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  • Omani Foreign Minister Yusuf bin Alawi said Oman “will simply withdraw” from the body if the five other GCC members - Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates and Qatar - decide to form a union.
Ed Webb

Dismal failure of Saudi defences may entangle US just where Iran wants it | openDemocracy - 0 views

  • drone attack on Saudi Arabia’s Abqaiq oil processing plant was a surprise – and that was itself surprising in view of all the Western defensive hardware, let alone the major US and British naval presence, very close by. The Saudis were initially reluctant to give many details, save blaming the Iranians rather than the Yemenis. Quite a lot more information has now seeped out, however: it suggests that the political consequences of the Abqaiq attack may last long after the oil plant is repaired.
  • It appears that Saudi air defences failed to intercept any missile or drone: the intruders may not even have been tracked en route to their targets, according to Jane’s Defence Weekly.
  • US officials say that all the drones and missiles were launched from south-western Iran on a flight path that would have taken them across the tip of Kuwait. In response the Kuwaiti authorities have launched an inquiry into the possible violation of airspace – which suggests that they did not detect the missiles either.
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  • none of this should have happened, given the extensive and hugely expensive air defences that the Saudis have installed to safeguard Abqaiq and other facilities from Iranian and Houthi missiles
  • US troops left the kingdom in 2004 after the start of the 2003 Iraq war, even if many Americans stayed on in civilian guise. With that withdrawal, one of the biggest US bases, a large part of the Royal Saudi Air Force’s Prince Sultan Air Force Base, was closed down, leaving the Saudis as the sole occupants. That was until July this year when, according to Military.com: Air Force Col. David Jackson, commander of the 621st Contingency Response Wing, told Military.com last week that teams from his wing were sent to Prince Sultan, about 50 miles southeast of the capital of Riyadh, to prepare the airfield for renewed operations.
  • Iranian cruise missiles have a range of about 700 km, armed drones of 1,200 km, and the nearest Iranian territory to Abqaiq is far less than that
  • an apparently minor decision taken three months ago that scarcely registered with Western politicians: the return of uniformed US troops to the kingdom
  • The Iranian success was a disaster for Saudi Arabia and an embarrassment for US, French, German and Swiss arms suppliers. Given that Saudi Arabia has many oil and gas fields and processing plants, not to mention a series of huge desalination plants on which the kingdom depends for half of its drinking water, it is easy to see the extreme concern behind the scenes in Riyadh.
  • Prince Sultan base now looks highly likely to be the main staging post for around 500 uniformed US military to be deployed to the kingdom to boost its own inadequate air defences. Given the state of tension with Iran it is safe to assume that this initial deployment will be the start of something substantially bigger.
  • a perfect gift for extreme Islamist movements who can point once again to the weakness of the House of Saud: in their view the Guardian of the Two Holy Cities is anything but
  • wise to assume that, all along, one of Iran’s aims has been to draw Saudi Arabia and the Pentagon closer and closer together, causing dissent in the kingdom and continuing embarrassment for the royal house
Ed Webb

Hacking Group Claims N.S.A. Infiltrated Mideast Banking System - The New York Times - 0 views

  • evidence that the N.S.A. had infiltrated the backbone of the Middle East’s banking infrastructure.
  • Among the leaks on Friday was an extensive list of PowerPoint and Excel documents that, if authentic, indicate that the N.S.A. has successfully infiltrated EastNets, a company based in Dubai that helps to manage transactions in the international bank messaging system called Swift.
  • The latest leaks suggest that, by hacking EastNets, the N.S.A. may have successfully hacked, or at minimum targeted, computers inside some of the biggest banks in the Middle East, including ones in Abu Dhabi and Dubai in the United Arab Emirates; Kuwait; Qatar; Syria; Yemen; and the Palestinian territories.
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  • On Friday, EastNets denied that it had been hacked. In a statement, the company said its Swift service bureau runs on a separate secure network that cannot be reached over the public internet. The company said the leaked documents that claimed its computers had been compromised referred to an old server that the bureau had retired in 2013.“While we cannot ascertain the information that has been published, we can confirm that no EastNets customer data has been compromised in any way,” Hazem Mulhim, EastNets’ chief executive, said in the statement.
  • Among those listed as having been successfully “implanted,” or infected with spyware, are Noor Bank, Tadhamon International Islamic Bank, Al Quds Bank for Development and Investment, Arcapita Bank and the Kuwait Fund for Arab Economic Development.
Ed Webb

Jordan, Facing Royal Crisis, Is a Banana Monarchy Falling Apart on America's Watch - 0 views

  • While some allege a real conspiracy tied to Saudi meddling, most analysts believe that the entire affair was a manufactured crisis designed to distract a public enraged about the ruling monarchy’s worsening mismanagement over the past decade. The pandemic made the already-stagnant economy worse, spiking unemployment from 15 to 25 percent and raising the poverty rate from 16 to a staggering 37 percent. Fruitless promises of democratic reform from Abdullah have led nowhere. With tribal activists regularly criticizing the king—the ultimate act of transgression—the monarchy is responding not with better policies and more transparency, but by doubling down with heightened repression.
  • Like all autocracies, Jordan has little tolerance for popular opposition. Moreover, most of the Arab monarchies suffer from dynastic infighting. Saudi Arabia, Morocco, and Bahrain have all seen powerful hard-liners muffle dissident princes over the last decade. Kuwait’s Sabah monarchy has been rocked by coup conspiracies and succession disputes
  • It has surrendered much of its sovereignty with a new defense treaty—inked in January without the Jordanian public’s knowledge—giving the U.S. military such untrammeled operational rights that the entire kingdom is now cleared to become a giant U.S. base.
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  • History shows that when sponsoring a client dictatorship becomes a sacred pillar of Washington’s foreign policy, client rulers become extremely dependent upon U.S. support, prioritizing their relationship with Washington over their own people. In Jordan’s case, the government has preserved U.S. dominance in the Middle East and protected Israel while neglecting Jordanians’ own woes.
  • Policymakers fear that reducing any part of their support will destabilize their client state, which could not survive without it. The only option is to perpetuate the current system, even though that regime’s own policies are clearly destabilizing it.
  • Jordan’s transformation into a U.S. dependency began during the Cold War. Washington replaced the fading British in the late 1950s as its great protector, a logical move given the need to back anti-Soviet regimes everywhere. Jordan had no oil. However, so long as Jordan endured, it could be a geopolitical firebreak insulating Israel and the oil-rich Arabian Peninsula from the radical forces of communism and Arab nationalism.
  • Washington helped build the Jordanian state. Foreign aid was one mechanism. In many years, U.S. economic aid exceeded all domestic tax revenues, the only thing keeping “Fortress Jordan” from collapsing into insolvency. While Jordan today receives support from many donors, including the International Monetary Fund, U.S. economic support remains uniquely fungible: It comes mostly in cash, it is guaranteed, and it now exceeds $1 billion annually.
  • the U.S. Agency for International Development began designing and operating much of Jordan’s physical infrastructure in the 1960s, doing the basic task of governance—providing public goods to society—for the monarchy. When Jordanians get water from the tap, no small feat in the bone-dry country, it is because of USAID. Even the Aqaba Special Economic Zone, a mega-project aimed at turning the Red Sea port city of Aqaba into a regional commercial hub, was funded and designed by U.S. technocrats.
  • The General Intelligence Directorate, glorified by Western journalists as an Arab version of Mossad, spends as much time smothering Jordanian dissent as battling terrorism. It owes much of its skills and resources to the CIA.
  • Of course, being a U.S. protectorate brings occasional costs. Dependency upon Washington’s goodwill, for instance, gave Abdullah little room to halt the Trump administration’s “deal of the century.” That provocative plan to resolve the Israeli-Palestinian dilemma incensed Abdullah, as it favored Israel’s land claims while sidelining Jordan’s traditional front-line role as mediator to the conflict.
  • Washington cannot imagine any other kind of Jordan, because it never had to. It may yet learn the hard way.
  • The Middle East remains a revolutionary place, as six of its autocratic rulers have lost power to mass uprisings in the last decade. Whether Jordan is next depends upon if the monarchy can fundamentally rethink its approach, rather than fall back upon the United States for affirmation.
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    I hate the "banana monarchy" label, but otherwise Sean makes some good points here.
Ed Webb

Lebanon news - NOW Lebanon -Blasphemy: an indispensable human right - 0 views

  • the Organization of Islamic Conference has seized on the controversies regarding an anti-Islam video clip on YouTube and satirical cartoons about Mohammed in a French magazine to renew its call for a global ban on "blasphemy." The OIC is, in effect, not only announcing that Muslim states in general have no intention of allowing real freedom of conscience and speech, but they want to bully the West into eliminating those freedoms as well.
  • Who, after all, will be authorized to define "blasphemy"? Does anything that offends any religious sensibilities qualify as "blasphemy"? Will a critical mass of objections be seen as legitimate grounds for silencing critics of religious doctrine, scholarly inquiry into their origins, skeptical analysis of superstition and faith, iconoclasm, or mockery of religious claims, symbols, assertions, and shibboleths?
  • Several Arab states, including Egypt and Kuwait, have recently been toying with new criminal definitions of "blasphemy" that specifically ban insulting the wives and companions of the Prophet Mohammed, which is barely concealed code for the suppression of Shiite doctrinal criticism of Sunni Islam. The OIC is based in Saudi Arabia, a country that does not allow freedom of worship for any non-Muslims. The examples of the hypocrisy behind these calls are simply endless.
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  • These calls reflect a paranoid worldview that is widespread among Muslims that their religion is under some kind of global assault. If so—because Islam is spreading faster than almost any other religion, with the possible exception of Mormonism—it's an odd kind of siege. In reality, Islam is thriving in its countries of origin and spreading quickly into the West.
  • Embracing modernity requires tolerating such fears without demanding the enforcement of religious orthodoxy, even of an ecumenical variety, through the power of the state.
  • Reason and skepticism, for good or ill, are not poised to overthrow faith
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