Iranian expansion is considered a threat by both Turkey and Saudi Arabia, says expert

September 29, 2016

Jeddah, Sep 29: A leading Turkish political analyst has described Crown Prince Mohammed bin Naif’s visit to Ankara as “highly significant and extremely timely.”

sinem cengizSpeaking to Arab News from the Turkish capital, Sinem Cengiz, a Kuwaiti-born Turkish national specializing in Turkey’s relations with the Middle East and is currently press adviser at a diplomatic mission in Ankara, said the significance of the visit can be gauged from the fact that it is coming against the backdrop of a failed coup attempt by a small junta embedded in the Turkish Armed Forces against the Turkish government.

“This visit is being seen in Turkey by the government and the Turkish people as Saudi Arabia’s big endorsement of Ankara at a critical time,” she said.

“There is no doubt of the significance of the Saudi delegation’s visit to Turkey under Crown Prince Mohammed bin Naif,” she said. “The visit sends multiple messages. When Turkey experienced a bloody coup attempt on July 15, Saudi Arabia stood by the government and the people of Turkey. This was widely praised,” she said.

According to Cengiz, Saudi-Turkish strategic cooperation in all fields is very crucial to both sides. “Saudi Arabia and Turkey are two important countries in the Middle East. They are two crucial heavyweights. The cooperation between them is not limited to bilateral or economic ties, but includes cooperation in the fight against terrorism, especially in the Syrian context. This has been the case for the last five years.”

She said both countries were acutely aware that Turkey needed Saudi Arabia and that Saudi Arabia needed Turkey “to promote regional stability which is very important to both sides.”

She said the timing of the crown prince’s visit was very important. She pointed out that Moody’s, the credit ratings agency, had downgraded Turkey’s sovereign credit rating, but Gulf businesses had nonetheless continued to invest in Turkey.

“The message that Saudi Arabia is sending with this visit is that it has full faith in the Turkish economy regardless of the negative ratings. I am sure more investment opportunities will be discussed during the visit which could take Saudi-Turkish business ties to a new level,” she said.

Cengiz said there had been reports in the Turkish media about the signing of a Free Trade Agreement between Turkey and the Gulf Cooperation Council (GCC) countries.

“This will also be discussed during the meeting,” she said. “And taking into consideration, the advancing economic ties, I think the signing of such an agreement will be a milestone in the two countries’ relations.”

According to her, Saudi Arabia and Turkey are on the same page on Syria. “There may be some small points of divergence here and there on some aspects of how to deal with Syria without Assad, but both countries have similar views on Syria,” she said. “They have been cooperating on Syria because that is in the interest of both sides. A stable Syria is very important for both countries.”

Also, Cengiz said, Iran’s influence on Syria was a concern for both countries. “Iranian expansion is considered a threat by both sides,” she said. “Therefore, this is another key issue for the two countries to cooperate on.”

She said Turkey still believed that Assad should not play a part in Syria’s future. “So there is no change in Turkish foreign policy,” she said. “But, of course, after the failed coup attempt, Turkey is going through an important transition in many areas, particularly its foreign policy.”

The Turkish operation against terrorists inside Syria that took place a month ago, she said, should be looked at in the context of Turkey’s current rapprochement with Russia.

“The recent military operations in Syria after the rapprochement are a very important step,” she said.

Cengiz said there was little interest in Turkey about the Middle East and Gulf states before Erdogan’s AK Party came to power. “We only started hearing and talking about Saudi Arabia and the Gulf states in the last decade. This has been reflected in our media as well,” she said.

She said there was great attention in the Turkish media to the crown prince’s visit. “In general, Turkish media is keenly following the visit,” she said.

According to her, the recent visit of Foreign Minister Adel Al-Jubeir created a very favorable environment. “He delivered a keynote address at a very important think-tank (SETA) on Sept. 9 on Saudi-Turkish relations. He explained in detail the need for a cooperative approach in a region that is increasingly being transformed.”

She said the Saudi minister delivered a “wonderful speech and took questions from the media. He was very articulate; I attended it and saw huge interest by the media in his speech and in his visit. All that was very positive for the relationship,” she said.

“We don’t see negative news about Saudi Arabia in the Turkish media, precisely because of the excellent relations that exist between the two countries.”

Cengiz said there were reports about a Turkish delegation visiting the Kingdom in October. “These high-level visits are significant; their timings are significant,” she said. “These are indications of the further strengthening of ties between the two countries.”

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News Network
July 5,2020

Riyadh, Jul 5: Custodian of the Two Holy Mosques King Salman has approved the extension of the validity of the expired iqama (residency permit) and exit and reentry visas of expatriates who are outside the Kingdom for a period of three months without any fee.

The iqama of expatriates inside the Kingdom as well as the visa of visitors who are in the Kingdom of which the validity expires during the period of suspension of entry and exit from the Kingdom will also be extended for a period of three months without any charge.

The validity of final exit visas as well as exit and reentry visas issued for expatriates, who are in the Kingdom, but were not used during the lockdown period will be extended for a period of three months without any fee, the Saudi Press Agency reported quoting an official source at the Ministry of Interior.

The ministry source said that these measures were taken as part of the continuous efforts made by the government of King Salman to mitigate the effects of the coronavirus pandemic on individuals as well as on private sector establishments and investors, economic activities in the Kingdom, following the adoption of the preventive measures to stem the spread of the pandemic.

The beneficiaries of the King’s order include all expatriates who are outside the Kingdom on exit and reentry visas, which expired during the lockdown period and after lifting of the lockdown.

These expatriates are not in a position to return to the Kingdom due to the enforcement of suspension of international flight service and temporary ban on entry and exit from the Kingdom.

The beneficiaries also include those expatriates who are still in the Kingdom after issuance of final exit visas or exit and reentry visas but could not travel because of the suspension of entry and exit from the Kingdom.

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coastaldigest.com news network
May 12,2020

Riyadh, May 12: Saudi Arabia will impose a full-day lockdown and curfew across the Kingdom during the upcoming Eid holidays from May 23 until May 27, according to the Kingdom’s Interior Ministry.

Details are awaited

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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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