Khashoggi crisis may tip Middle East power balance towards Turkey

Agencies
November 3, 2018

Istanbul, Nov 3: The murder of journalist Jamal Khashoggi could alter the power dynamic in the Middle East by strengthening Turkey's influence at Saudi Arabia's expense as they compete for leadership of the Islamic world, analysts say.

This certainly appears to be the goal of Turkish President Recep Tayyip Erdogan, the main regional supporter of the Muslim Brotherhood, which Saudi Arabia and its allies Egypt and the United Arab Emirates consider a terrorist group.

The killing inside the kingdom's consulate in Istanbul by a team sent from Riyadh on October 2 has already severely tarnished Saudi Arabia's global reputation.

But it is the potential involvement of Crown Prince Mohammad bin Salman, the oil-rich Gulf nation's de facto leader known by his initials MBS, that could permanently damage Riyadh's influence in the region.

After initially insisting Khashoggi left the consulate unharmed, then saying he died in a brawl, the Saudi regime finally stated he was killed by a "rogue operation" and arrested 18 suspects, some with links to the crown prince.

Analysts say Erdogan could use the ensuing crisis to weaken the 33-year-old prince, even potentially leading to the royal family removing him from power -- though that seems unlikely.

"The killing of Khashoggi has proven to be a golden opportunity for President Erdogan to pressure Saudi Arabia and work towards presenting Turkey as the new leader of the Muslim world," said Lina Khatib, director of Middle East and North Africa Programme at Chatham House.

"The Khashoggi crisis is a big geo-political gamble for Turkey and so far it looks like it is playing the game masterfully. But Turkey alone will not be able to push for the removal of MBS. The ball lies in the American court," she added.

For Erdogan, promoting the Muslim Brotherhood — which Saudi Arabia has sought to marginalise in the Arab world and which was ousted from power and brutally repressed in Egypt in 2013 by current President Abdel Fattah al-Sisi — is at the heart of this power struggle.

The Turkish leader could also try to extract concessions from Riyadh for its ally Qatar, facing a Saudi blockade backed by the United Arab Emirates, Bahrain, and Egypt since 2017.

"I think that Erdogan sees this as an opportunity to push back against a triple entente in the Middle East that opposes his policies. That triple entente is composed of MBS, MBZ's (Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan) UAE and Sisi's Egypt," said Soner Cagaptay, director of the Turkey Research Program at the Washington Institute.

"These three countries, all Arabs, oppose Erdogan's policies of supporting the Muslim Brotherhood. Now Erdogan sees a golden opportunity because MBS is vulnerable."

But Sinan Ulgen, president of the Centre for Economics and Foreign Policy, said "it remains to be seen whether Ankara can continue to leverage this conjuncture and turn it into a permanent advantage raising Turkey's regional influence to the detriment of Saudi Arabia".

Nicholas Heras, an analyst at the Center for a New American Security, said the Khashoggi case was the "latest chapter in Turkey and Saudi Arabia's ongoing contest over which country is better" to lead the Muslim world.

"Erdogan clearly seems to believe that he can use the Khashoggi crisis as a way to cut Prince Mohammad bin Salman, and by extension, Saudi Arabia, down to size," Heras added.

By not directly pointing the blame at the crown prince over Khashoggi, Erdogan is seeking to keep him under pressure, according to Karim Bitar of the Paris-based French Institute for International and Strategic Affairs think-tank.

"Erdogan knows that he still has ammunition that could weaken MBS in the international arena so basically he is rolling the dice these days trying to figure out how to maximise his profit after this huge Saudi blunder," he told news agency.

While the Muslim Brotherhood is important to Turkey, the West -- especially the United States -- is wary of the group and wants to focus any pressure on the crown prince towards ending the Yemen war and lifting the blockade on Qatar, the experts said.

"I expect the blockade on Doha will likely come to an end in the near future and the Saudis find a way to support the UN's efforts in Yemen," said Steven Cook of the Council on Foreign Relations.

Bitar noted that the US administration relies on Prince Mohammed's support for any possible peace plan for the Israel-Palestinian conflict as well as containing Iran, long a Saudi foe.

Washington could also push the crown prince towards "a rapprochement with Israel and to maintain a hawkish line towards Iran", Bitar added.

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Agencies
March 15,2020

Riyadh, Mar 15: Saudi Aramco on Sunday reported a 20.6 percent drop in its net profit for 2019 due to low oil prices and production levels, the company said in a statement.

These are the first annual results to be announced by the energy giant after its historical $29.4 billion initial public offering and listing on the Saudi Tadawul market last December.

Aramco posted net profits of $88.2 billion last year compared to $111.1 billion in 2018, Monday's statement said.

"The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins," it said.

The company also made $1.6 billion of impairment provisions for losses associated with Sadara Chemical Company, an Aramco subsidiary.

"2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances -- some planned and some not -- the world was offered unprecedented insight into Saudi Aramco's agility and resilience," CEO Amin Nasser said.

"Our unique scale, low costs, and resilience came together to deliver both growth and world-leading returns, while also maintaining our position as one of the world's most reliable energy companies," Nasser said.

The earnings for last year are not affected by the coronavirus outbreak or the ongoing price war between Saudi Arabia and Russia that has sent oil prices crashing.

Aramco said it will distribute dividends worth $73.2 billion for 2019 but based on its commitments under the IPO, its dividends for the next five years starting this year will be at least $75 billion.

It said its capital spending last year dropped to $32.8 billion from $35.1 billion in 2018.

The company expects capital spending, which is expenditure on projects, to be between $25 billion and $30 billion this year "in light of current market conditions and recent commodity price volatility."

But it said that capital expenditure for 2021 and beyond is currently under review.

The results were announced amid a price war between Saudi Arabia and Russia after they failed to agree on additional output cuts to support prices dented by the outbreak of the coronavirus pandemic.

"The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape," Nasser said.

The kingdom said last week Aramco will pump 12.3 million barrels of oil per day, boosting output by at least 2.5 million bpd.

It also announced plans to raise production capacity from 12 million bpd to 13 million bpd.

Forecasts for future crude prices and demand are also bleak.

In its latest monthly report, the Organization of Petroleum Exporting Countries lowered its forecast for global average daily demand by 0.92 million barrels to 99.73 million barrels.

Saudi Arabia is also in the midst of a royal purge that saw King Salman's brother and nephew detained after sources said they were accused of plotting a palace coup to unseat the crown prince, heir to the Saudi throne.

Aramco shares rallied immediately after the listing on December 11, rising by 19 percent to 38 riyals ($10.1) and temporarily lifting the company's valuation above the $2 trillion mark, which was sought by Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler.

But as oil prices tumble, Aramco shares have lost 29 percent from its highest point, slipping below the listing price.

On Thursday, Aramco's market value dropped to around $1.55 trillion, but it still remains the world's largest publicly listed company.

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January 15,2020

Asia, Jan 15: Iranian Foreign Minister Javad Zarif on Wednesday said that killing of Iranian general Qassem Soleimani showed the ignorance and arrogance of the United States and asserted that Washington looks at things from their perspective and not keeping the interests of the region in mind."The US looks at things from their perspective, not from the perspective of this region. The killing of Qassem Soleimani shows ignorance and arrogance. 430 Indian cities saw protests against killing of Soleimani," Zarif said at an event.

Hitting out at US President Donald Trump and Secretary of State Michael Pompeo, Zarif said that they were the only ones, along with the Islamic State (ISIS) who celebrated the death of Soleimani.

"Who is celebrating Soleimani's killing? President Trump, Pompeo and Daesh (Arabic name of ISIS). You wonder about strange bedfellows?" he said.

Tensions between the US and Iran soared dramatically earlier this month after Washington launched airstrikes at Baghdad International Airport, which killed Soleimani. Tehran retaliated by firing a volley of ballistic missiles at two military bases of US-led coalition forces in Iraq, leading to a strife in the region.

However, Zarif regretted the shooting down of the Ukrainian airline and said it happened because of "tension".

"Nine million people were out in the streets of Iran commemorating Soleimani. You cannot bring out so many people to protest. The shooting down of a plane was a mistake. 180 families are mourning the loss of their dear ones. It happened because of tension," he said.

Asked whether there a chance of a diplomatic solution to the ongoing crisis, Zarif ruled out negotiating with the US.

"Iran is interested in diplomacy. We are not interested in negotiating with the US. US did not keep its commitments under nuclear deal. We had a US deal and the US broke it. If we have a Trump deal, how long will it last?" he said.

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News Network
April 18,2020

Dubai, Apr 18: Saudi Arabia has reported 1,132 new coronavirus cases, taking the total number of confirmed COVID-19 patients to 8,274, the Ministry of Health revealed on Saturday.

The ministry has also announced five more deaths from the virus, taking to 92 the Kingdom’s death toll.

Recoveries
As for recoveries, 280 new recoveries were reported, pushing the total number of patients recovered to 1,329.

The ministry revealed that 79 per cent of today’s cases are expatriates and that 65 per cent of the cases were detected through intensified and active COVID-19 screening in densely-populated areas.

A total of 201 patients of Saturday’s cases have contracted the disease due to being in contact with existing cases, the ministry added.

The new infected cases have been placed under complete isolation and they are receiving necessary medical care, an official from the ministry said.

He affirmed that medical teams are intensifying efforts and screening tests in workers' neighbourhoods and accommodations in order to limit the spread of the disease.

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