Qatar all set to expand US airbase

Arab News
January 30, 2018

Visiting Washington DC, Qatar's Defence Minister Khalid Bin Mohammad Al Attiyah said his country will expand the American airbase that currently houses about 10,000 US military personnel.

The expansion at the Al Udeid base - home of the US Central Command - will allow for 200 more housing units for officers and their families, Attiyah said.

"It will very soon become family oriented place for our American friends there. We want more of the families to be stable and feel more comfortable in their stay," Attiyah said at an event held by the Heritage Foundation, a US-based think-thank.

Al Udeid serves as one of the most important overseas US military bases with operations throught the Middle East launched from Qatar.

In the aftermath of the Gulf War in 1991, the United States and Qatar signed a military cooperation agreement that deepened defence.

The US military moved to Qatar in 2003 after evacuating the Prince Sultan air force base in Saudi Arabia.

Al Udeid also houses military personnel from the United Kingdom and other allies.

"Qatar is strategically placed. Afghanistan, Iraq, Syria - these are all hotspots in region. I am not exaggerating when I say 80 percent of aerial refuelling in the region is from Udeid," Attiyah said.

"We're the ones that keep your birds flying."

Attiyah added the US presence has been beneficial for Qatar's armed forces. "We're learning a lot on the military side by flying side-by-side. We are learning from the Americans, it's a real operational environment."

In June, Egypt, Bahrain, Saudi Arabia and the UAE cut off diplomatic relations with Qatar and imposed a land, sea and air blockade after accusing it of supporting terrorism and extremism.

Qatar has strongly denied the allegations.

"What's happening in the region in the past seven months isn't good for the secure flow of energy. Keeping the GCC in coherent status is very important for a safe and smooth flow of energy," said Attiyah.

Attiyah reiterated Qatar wants to end the GCC crisis and the United States plays an important role.

"At the moment, I think the only person who can solve the GCC crisis is President Trump. And I think he can solve it in a phone call," he said.

"Nobody is benefiting from what is happening in the GCC except for terror groups," Attiyah added.

"We're open to dialogue. We can discuss anything. The only thing we don't accept is imposing conditions on us or tampering with our sovereignty."

"We're tough people. We don't accept pre-conditions. But at the same time, we're very open to discuss issues that worry them."

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News Network
February 19,2020

Feb 19: Pay increases across India’s organized sector will probably grow at the slowest pace since 2009 this year, according to a survey from Aon Plc.

Companies will increase average pay by 9.1% in 2020, down from 9.3% in 2019 and 9.5% the previous year, Aon said in a report published Tuesday. The small increase reflects a deep slowdown in Asia’s third-largest economy, where growing pessimism about job prospects have led many to cut down on consumption -- the main driver to growth.

India still leads the Asia-Pacific region in pay rises, but that is mainly due to higher inflation and a “war for key talent and niche skills,” Aon said.

“There is a general air of caution about the economy as we enter into 2020,” Tzeitel Fernandes, partner for rewards solutions at Aon, told reporters in New Delhi. “Low GDP projection and weak consumer sentiment are the reasons behind our lowest ever prediction.”

E-commerce companies and start-ups will probably get the biggest salary increases, projected at an above-average 10%, while financial institutions will hand out 8.5%. Unsurprisingly, the auto sector witnessed the biggest drop in growth -- down to 8.3% from 10.1% in 2018, according to Aon. The survey covered more than 1,000 companies across over 20 industries.

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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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News Network
January 1,2020

New Delhi, Jan 1: Newly-appointed Chief of the Defence Staff General Bipin Rawat on Wednesday said the armed forces stay away from politics and work as per the directives of the government of the day, remarks that come amid allegations that the forces were being politicised.

Gen Rawat also said that his focus as CDS will be to integrate the efforts of the three services and to work as a team.

"We keep ourselves away from politics. We act according to the directives of the government of the day," he said.

Gen Rawat said his focus will be to ensure best and optimal use of resources allocated to the three services.

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