Qatar demands 'blockade' lifted before Gulf crisis talks

Agencies
June 20, 2017

Doha, Jun 20: Qatar's foreign minister today called on neighbouring states to lift their "blockade" of his country before Doha takes part in any negotiations on ending the Gulf diplomatic crisis.Qatar

Sheikh Mohammed bin Abdulrahman Al-Thani called measures to isolate Qatar imposed by Saudi Arabia, the United Arab Emirates, Bahrain and others "an act of aggression", adding that lifting them was a "pre-condition" for talks.

"We have to make it very clear for everyone, negotiations must be done in a civilised way and should have a solid basis and not under pressure or under blockade," the foreign minister told reporters in Doha.

"Qatar under blockade -- there is no negotiation. They have to lift the blockade."

On June 5, Saudi Arabia and allied states cut all ties with Qatar, pulling their ambassadors from the emirate and ordering its citizens to repatriate by June 19.

The measures also included closing Qatar's only land border, banning its planes from using their airspace and barring Qatari nationals from transiting through their airports.

Saudi Arabia, the UAE, Egypt, Bahrain and other states accuse Qatar of supporting and funding "terrorism" and of working with regional rival Iran, charges Doha firmly denies.

Sheikh Mohammed's demand came as a UAE minister warned that Qatar's diplomatic isolation could "last years".

"We do not want to escalate, we want to isolate," state minister for foreign affairs Anwar Gargash told journalists during a visit to Paris. "This isolation can take years."

The minister said that while Qatar's rivals were "betting on time", a solution could not be brokered until it abandoned its support for "extremist Islamists".

Sheikh Mohammed said that Qatar had not received any demands from the Gulf states or from countries seeking a diplomatic solution, including Kuwait, the United States, France and Britain.

"Why they didn't submit their demands yet? For us, there is no clear answer for this," he said.

"But what we have seen until now, there is no solid ground for these demands, that's why they didn't submit their demands yet."

The foreign minister added that the economic impact on Qatar had so far proved minimal but added: "We are not claiming we are living in a perfect condition."

The Gulf political crisis has also affected countries outside the region.

"France, UK or the United States -- they are strong allies of Qatar and we have a great deal of cooperation together in terms of military, defence, security, economically," said Sheikh Mohammed.

"So a blockade on Qatar and measures being taken against Qatar in this way is affecting the interests of those countries as well, directly."

Comments

Truth teller
 - 
Tuesday, 20 Jun 2017

you say "you can't negotiate until blockade is lifted, Really! but other gulf sates say there is no negotiation with Terrorists or their supporters until you stop it.

The reality is you have been given earlier warning years back when they cut only diplomatic ties with you by calling the ambassador back.you did not know why was it for?

secondly, you have broken the covenant you made with other states. and acting as if you know nothing. first stop funding and supporting terrorist groups and stop meddling with other nations internal affair. and stop your double face attitude with iran and gulf. be straight forward be brave! not coward.

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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
April 2,2020

Ankara, Apr 2: Saudi Arabia on Thursday declared a 24-hour lockdown in all parts of Makkah and Medina cities as part of measures to stem the spread of the coronavirus.

"The 24-hour curfew will be imposed in all parts of the cities of Makkah and Medina, with a ban on entry and exit from both cities," the Saudi Interior Ministry said on Twitter.

The lockdown starts from Thursday “until further notice.”

All commercial activities inside the residential neighborhoods of the two cities were also prohibited, except for pharmacies, food products stores, gas stations and banking services, the ministry said.

After first appearing in Wuhan, China last December, the virus has spread to at least 180 countries and regions, according to U.S.-based Johns Hopkins University.

Its data shows the number of confirmed cases worldwide have surpassed 962,900, with the death toll over 49,100 and more than 202,700 recoveries.

Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.
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News Network
April 16,2020

Dubai, Apr 16: Saudi Arabia reported 518 new cases of coronavirus, bringing the total number of infections in the country to 6380, the Ministry of Health announced on Thursday.

According to the ministry of health, the number of recoveries today were 59, making total of recoveries in the kingdom 990, with 71 critical cases in intensive care.

The ministry also confirmed 4 deaths, bringing the total number of deaths in the kingdom to 83.

Saudi Arabia imposed a 24-hour curfew and lockdown on the cities of Riyadh, Tabuk, Dammam, Dhahran and Hofuf and throughout the governorates of Jeddah, Taif, Qatif and Khobar. This week the curfew was extended until further notice by king Salman

Overall, Saudi Arabia has reported one of the lowest rates of infections in the region, with around 6000 cases in a population of over 30 million.

Private sector support

Saudi Arabia has allocated SR50 billion (Dhs49 billion)to support the private sector as part of its package of initiatives approved by King Salman on Wednesday aimed at mitigating economic repercussions from the coronavirus disease (COVID-19).

The package targets small and medium-sized enterprises (SMEs) and economic activities that have been most affected by the pandemic.

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