‘Gulf security is our security,’ British PM tells GCC summit

December 8, 2016

Manama, Dec 8: British Prime Minister Theresa May was the star of the show at the 37th Gulf Cooperation Council (GCC) Summit on Wednesday.

GCCThe first woman and first British leader to address a GCC summit, May told the assembled leaders: “Gulf security is our security. I want to assure you that I am clear-eyed about the threat that Iran poses to the Gulf and to the wider Middle East.

“We in the UK are determined to continue to be your partner of choice as you embed international norms and see through the reforms which are so essential for all of your people.”

May acknowledged that the nuclear deal with world powers that limited Iran’s ability to enrich uranium “was vitally important for regional security.”

But she also said parties must “work together to push back against Iran’s aggressive regional actions, whether in Lebanon, Iraq, Yemen, Syria or in the Gulf itself.”

May said she sought a “bold new chapter” in cooperation with Gulf states, which she described as “a strategic relationship … based on true partnership and an enduring commitment between our countries and our peoples.”

She said: “The risks to our shared security are growing and evolving, as terrorists operate across national borders to plot attacks against our people; as new threats emerge from the malevolent use of the Internet, and as certain states continue to act in ways that undermine stability in your region — undermining, in turn, our own security in the West and further reinforcing the need for all of us to work together.”

May said she was “encouraged by recent economic and social reforms” in the Gulf, and “by the bold vision set out by all of the Gulf states for more fundamental and lasting change, most recently with Saudi Arabia’s vision for 2030.”

May praised the “rich history” between the UK and the Gulf, dating back to the mid-17th century, through the Cold War to the present day.

She said her country “has been proudly at the forefront of a relationship between the Gulf and the West that has been the bedrock of our shared prosperity and security.”

May said the UK’s vote to leave the European Union presented an opportunity to “go even further in working with old friends, like our allies here in the Gulf, who have stood alongside us for centuries. There has never been a more important, or more challenging time to do so.”

The premier said “no country is a more committed partner” for the Gulf states than the UK in “confronting the terrorism of Al-Qaeda or the murderous barbarity of Daesh.”

She cited intelligence from Saudi Arabia that “has saved potentially hundreds of lives in the UK.”

May hailed the “close cooperation on counter-terrorism” between the UK and Gulf states, which has succeeded “in foiling terrorist plots and a range of threats against citizens in all our countries.”

Saying the UK “will make a more permanent and more enduring commitment to the long-term security of the Gulf,” May said Britain wanted to invest more than £3 billion in defense spending in the region over the next decade.

May said the construction of HMS Jufair naval base in Bahrain would enable more British warships, aircraft and personnel to be deployed on operations in the Gulf than in any other part of the world.

She also cited “a regional land training hub in Oman” that “is establishing a permanent British army presence in the region.”

The prime minister announced that Saif Sareea 3, the largest UK-Omani military exercise in 15 years, would take place in Oman in 2018.

“We will establish a new British Defense Staff in Dubai to coordinate our regional activities and, here in Bahrain, we will embed a dedicated military officer with the Ministry of Interior bomb disposal unit to provide bomb scene management support and training,” said May.

“We will establish a new Joint Working Group on Counter-Terrorism and Border Security and a new National Security Dialogue at GCC level to protect critical national infrastructure, facilitate faster intelligence sharing on suspected foreign terrorist fighters and implement traveler screening systems to detect terrorists attempting to pass through any GCC airport.”

May also offered British help with cyber-security, in the form of advice from appointed experts and a new Cyber Industry Representative based in the region, “who will build links between cyber sectors in the UK and the Gulf.”

Simon Collis, British ambassador to Saudi Arabia, agreed that the UK and the Kingdom had a long history of diplomatic ties.

“This year we are celebrating 100 years of diplomatic relations with Saudi Arabia and looking forward to the next century, supporting the Kingdom in achieving the goals of Vision 2030 by fostering innovation and entrepreneurship in the next generation,” he said in a statement to Arab News. Chris Doyle, director of the London-based Council for the Advancement of Arab-British Understanding, pointed out the significance of May’s visit to the Gulf, given that she only took office in July.

“(May) and her government are determined to reach out to non-EU markets in order to demonstrate that Britain is not going to be turning in on itself and has an outward looking approach to the world; she is attempting to make this a very concrete demonstration of that fact,” he said.

Doyle added that the British government is “extremely wary” of any additional conflict in the Middle East.

“Exactly how the British government and its allies will go about containing Iran is another matter because obviously Iran has played a largely negative role within the Syrian context and of course there are concerns about the role it may have in Yemen and other theaters,” he said.

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News Network
July 1,2020

Riyadh, Jul 1: Saudis braced Wednesday for a tripling in value added tax, another unpopular austerity measure after the twin shocks of coronavirus and an oil price slump triggered the kingdom's worst economic decline in decades.

Retailers in the country reported a sharp uptick in sales this week of everything from gold and electronics to cars and building materials, as shoppers sought to stock up before VAT is raised to 15 percent.

The hike could stir public resentment as it weighs on household incomes, pushing up inflation and depressing consumer spending as the kingdom emerges from a three-month coronavirus lockdown.

"Cuts, cuts, cuts everywhere," a Saudi teacher in Riyadh told AFP, bemoaning vanishing subsidies as salaries remain stagnant.

"Air conditioner, television, electronic items," he said, rattling off a list of items he bought last week ahead of the VAT hike.

"I can't afford these things from Wednesday."

With its vast oil wealth funding the Arab world's biggest economy, the kingdom had for decades been able to fund massive spending with no taxes at all.

It only introduced VAT in 2018, as part of a push to reduce its dependence on crude revenues.

Then, seeking to shore up state finances battered by sliding oil prices and the coronavirus crisis, it announced in May that it would triple VAT and halt a cost-of-living monthly allowance to citizens.

The austerity push underscores how Saudi Arabia's once-lavish spending is becoming a thing of the past, with the erosion of the welfare system leaving a mostly young population to cope with reduced incomes and a lifestyle downgrade.

That could pile strain on a decades-old social contract whereby citizens were given generous subsidies and handouts in exchange for loyalty to the absolute monarchy.

The rising cost of living may prompt many to ask why state funds are being lavished on multi-billion-dollar projects and overseas assets, including the proposed purchase of English football club Newcastle United.

Shopping malls in the kingdom have drawn large crowds in recent days as retailers offered "pre-VAT sales" and discounts before the hike kicks in.

A gold shop in Riyadh told AFP it saw a 70 percent jump in sales in recent weeks, while a car dealership saw them tick up by 15 percent.

Once the new rate is in place, businesses are predicting depressed sales of everything from cars to cosmetics and home appliances.

Capital Economics forecast inflation will jump up to six percent year-on-year in July, from 1.1 percent in May, as a result.

"The government ended the country's lockdown (in June) and there are signs that economic activity has started to recover," Capital Economics said in a report.

"Nonetheless, we expect the recovery to be slow-going as fiscal austerity measures bite."

The kingdom also risks losing its edge against other Gulf states, including its principal ally the United Arab Emirates, which introduced VAT at the same time but has so far refrained from raising it beyond five percent.

"Saudi Arabia is taking massive risks with contractionary fiscal policies," said Tarek Fadlallah, chief executive officer of the Middle East unit of Nomura Asset Management.

But the kingdom has few choices as oil revenue declines.

Its finances have taken another blow as authorities massively scaled back this year's hajj pilgrimage, from 2.5 million pilgrims last year to around a thousand already inside the country, and suspended the lesser umrah because of coronavirus.

Together the rites rake in some $12 billion annually.

The International Monetary Fund warned the kingdom's GDP will shrink by 6.8 percent this year -- its worst performance since the 1980s oil glut.

The austerity drive would boost state coffers by 100 billion riyals ($26.6 billion), according to state media.

But the measures are unlikely to plug the kingdom's huge budget deficit.

The Saudi Jadwa Investment group forecasts the shortfall will rise to a record $112 billion this year.

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Agencies
May 26,2020

Riyadh, May 26: The authorities in Saudi Arabia have decided to ease some restrictions put in place over coronavirus fears, allowing movement and resumption of some economic and commercial activities, Saudi Press Agency reported early Tuesday citing an official source at the Interior Ministry.

The move also allows restarting of domestic flights, opening of mosques, restaurants and cafes and work attendance, however, the temporary suspension of Umrah pilgrimage remains in force.

The easing of restrictions will be carried out in a phased manner, with the first phase beginning on Thursday (May 28) and ending on May 30.

In the first phase, the movement within and between all regions of the Kingdom in private cars will be allowed from 6 a.m. to 3 p.m. except in Makkah. Economic and commercial activities will resume in retail and wholesale shops and malls but beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will continue to remain shut due to social distancing concerns.

In the second phase, which begins on May 31 and ends on June 20, the movement is allowed from 6 a.m. and 8 p.m. in all areas of the Kingdom, except in Makkah. All congregational prayers, including Friday prayers, will resume in all mosques across the Kingdom except in Makkah.

The suspension of workplace attendance will end, allowing all employees in ministries, government entities and private sector companies to return to working from their offices provided that they follow strict precautionary guidelines.

The suspension on travel between regions in the Kingdom using various transport methods will no longer be in place. Airlines will be allowed to operate domestic flights if they adhere to precautionary measures set by the civil aviation authority and the Ministry of Health. The suspension of international flights, will, however, continue until further notice.

Restaurants and cafes serving food and beverages can reopen, however, beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will be barred from reopening in the second phase. The ban on social gatherings of more than fifty people, such as weddings and funerals will also continue to remain in force.

In the third phase commencing on June 21, the Kingdom will return to "normal" conditions as it was before the coronavirus lockdown measures were implemented.

Meanwhile in Makkah, the first phase measures will be implemented between May 31 to June 20 and the second phase will begin on May 21. Friday prayers and all congregational prayers will continue to be held in the Grand Mosque, only to be attended by Imams and the employees.

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Mohammed Sarfraz
 - 
Tuesday, 26 May 2020

I think second phase is May 31 to June 20. Must be a typo. 

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News Network
January 6,2020

Riyadh, Jan 6: Saudi Arabia was not consulted by its ally Washington over a US drone strike that killed a top Iranian general, an official said Sunday, as the kingdom sought to defuse soaring regional tensions.

Saudi Arabia is vulnerable to possible Iranian reprisals after Tehran vowed "revenge" following the strike on Friday that killed powerful commander Qasem Soleimani in Baghdad.

"The kingdom of Saudi Arabia was not consulted regarding the US strike," a Saudi official told AFP, requesting anonymity.

"In light of the rapid developments, the kingdom stresses the importance of exercising restraint to guard against all acts that may lead to escalation, with severe consequences," the official added.

Saudi Arabia's foreign ministry made a similar call for restraint at the weekend and King Salman emphasised the need for measures to defuse tensions in a phone call on Saturday with Iraqi President Barham Saleh.

In a separate phone call with Iraq's Prime Minister Adel Abdel Mahdi, Saudi Crown Prince Mohammed bin Salman stressed "the need to make efforts to calm the situation and de-escalate tensions", the official Saudi Press Agency reported.

The crown prince has instructed Prince Khalid bin Salman, his younger brother and deputy defence minister, to travel to Washington and London in the next few days to urge restraint, the pan-Arab Asharq al-Awsat newspaper reported.

Prince Khalid will meet White House and US defence officials, the paper said, citing unnamed sources.

The killing of Soleimani, seen as the second most powerful man in Iran, is the most dramatic escalation yet in spiralling tensions between Washington and Tehran and has prompted fears of a major conflagration in the Middle East.

US President Donald Trump, who ordered the drone strike, has warned that Washington will hit Iran "very fast and very hard" if the Islamic republic attacks American personnel or assets.

The American embassy in Riyadh on Sunday warned its citizens living close to military bases and oil and gas installations in the kingdom of a "heightened risk of missile and drone attacks".

A string of attacks blamed on Iran has caused anxiety in recent months, as Riyadh and Washington deliberated over how to react.

In particular, devastating strikes against Saudi oil installations last September led Riyadh and Abu Dhabi to adopt a more conciliatory approach aimed at avoiding confrontation with Tehran.

Analysts warn that pro-Iran groups have the capacity to carry out attacks on US bases in Gulf states as well as against shipping in the Strait of Hormuz -- the strategic waterway that Tehran could close at will.

"Expect Iranian reprisals (directly or through partner groups in Iraq, Lebanon or elsewhere) to target US partners in the region including Saudi Arabia," said Thomas Juneau, an assistant professor at the University of Ottawa.

"Given the climate in the US, where support for Saudi in the media and Congress is at an all time low, it will be difficult for Trump to commit significant resources to come to its aid."

Yemen's pro-Iran Huthi rebels, locked in a five-year conflict with a Saudi-led military coalition, have also called for swift reprisals for Soleimani's killing.

"The aggression... will not go without a response," said Huthi political council member Mohammed Al-Bukhaiti.

"How the response is going to be, when and where will be determined by Iraq and Iran, and we will stand with them as a hub for the resistance."

It was unclear if the Huthi warning was directed in part at Saudi Arabia, which has stepped up efforts to end Yemen's conflict amid a lull in Huthi attacks on the kingdom.

Saudi Arabian military commanders recently met with counterparts from "friendly countries" to formulate a new strategy to tackle the Yemeni rebels, particularly those "opposing" a political solution, according to Asharq al-Awsat.

Riyadh has said it will host a separate meeting of foreign ministers of Arab and African coastal states on Monday.

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