Saudi-Qatar crisis puts Syria rebels in tricky position: Report

Agencies
June 17, 2017

Beirut, Jun 17: The diplomatic crisis pitting Saudi Arabia against Qatar has put Syrian rebels in a difficult position, analysts say, after rivalries between Gulf backers had already weakened the opposition.

rebels

Both Sunni-ruled monarchies sided with the protesters in March 2011, when the war started with the brutal repression of anti-government demonstrations.

They continued supporting the mostly Sunni rebels when unrest spiralled into conflict between the armed opposition and troops loyal to President Bashar al-Assad, who hails from the country’s Alawite Shia minority and is backed by Saudi Arabia’s arch-rival Iran.

But six years later, the rebellion has been plagued by rivalries between Riyadh and Doha, as well as weakened by Russia’s military intervention in support of Assad’s forces.

Moscow’s support for regime forces led to a series of setbacks for the rebels, including their landmark loss in December of second city Aleppo.

Last week, Saudi Arabia and allies, including the United Arab Emirates, severed or reduced diplomatic ties with Qatar over accusations the emirate supports extremism, claims Doha has denied.

“The current rupture puts the Syrian opposition in a very awkward position politically, as nobody wants to have to take sides publicly nor can afford to alienate either side,” said Yezid Sayigh, a senior fellow at the Carnegie Middle East Centre.

A rebel official in the opposition stronghold of Eastern Ghouta outside Damascus said he hoped the crisis between Doha and Riyadh was just “a temporary storm”.

‘Sensitive’ issue

“Qatar, Saudi Arabia, Turkey, Jordan and the United Arab Emirates have supported the revolution of the Syrian people and shown solidarity throughout years of tragedy,” the rebel official said.

In a sign of the embarrassment the crisis is causing, several rebel groups approached by AFP refused to comment, saying it was a “sensitive” issue.

But Sayigh said the latest flare-up in relations between Qatar and Saudi Arabia will have a limited impact on the Syrian conflict.

“It probably won’t have a major financial impact, nor a military one since the US and Turkey have stepped up their support for factions that previously were close to Qatar or to Saudi Arabia,” Sayigh said.

Riyadh “reduced its funding sharply starting” from the summer of 2015 “after it launched its intervention in Yemen” earlier in the year, he said.

Six years into the war, Syria’s fractured rebellion controls just around 10% of the war-torn country, with backing from Saudi Arabia, Qatar, Turkey, Jordan and the United States.

Pro-Doha rebels including the powerful Ahrar al-Sham group are present in the north of the country.

In Eastern Ghouta, pro-Doha opposition groups exist alongside the pro-Riyadh Jaish al-Islam rebel alliance.

Rebels in the south, meanwhile, are trained by Amman and Washington.

Another influential player is Syria’s former Al-Qaeda affiliate, which now leads the Tahrir al-Sham group and which some analysts and Syrian factions say has links with Qatar, although Doha has denied this.

Tensions in Eastern Ghouta?

Qatar led most mediation efforts to obtain the release of hostages held by the group formerly known as Al-Nusra Front.

In Eastern Ghouta, even before the Gulf crisis, factions supported by Qatar on one side and Saudi Arabia on the other had already clashed, killing hundreds of fighters.

Raphael Lefevre, a researcher at the University of Oxford, said the latest Saudi-Qatari crisis could well spark further tensions between rival groups in the rebel enclave.

In 2013 and 2014, “Qatar and Saudi Arabia competed for influence within exiled opposition bodies, each by supporting different factions and leaders, something which largely contributed to paralysing and fragmenting the Syrian opposition,” he said.

But the consequences of the latest spat “could be much bloodier, especially as the two countries support rival rebel factions in areas already marked by a great degree of opposition infighting and regime violence such as the Eastern Ghouta”, Lefevre said.

Syria expert Thomas Pierret however said “local dynamics rather than external patrons determine alliances” in Eastern Ghouta.

He said Ahrar al-Sham risked “suffering financially from a reorientation of Qatari politics”, even if it continues to enjoy support from Turkey, which has intervened as a mediator in the Gulf dispute.

Syria’s exiled political opposition is also fractured. The High Negotiations Committee is based in Riyadh, while the National Coalition work out of Istanbul.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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Agencies
February 16,2020

Al-Jawf, Feb 16: At least 31 people were killed and 12 others were injured here in the al-Maslub district in airstrikes by the Saudi-UAE-led military coalition on Saturday.

"Preliminary field reports indicate that as many as 31 civilians were killed and 12 others injured in strikes that hit al-Hayjah area of the al-Maslub district in al-Jawf governorate," said a statement from the office of the UN resident coordinator and humanitarian coordinator for Yemen.

According to Al Jazeera, the airstrike was conducted hours after the Yemeni Houthis said that they downed a Saudi fighter jet in the same region.

Commenting on the air raids, Lise Grande, the UN's humanitarian coordinator for Yemen, said: "We share our deep condolences with the families of those killed and we pray for the speedy recovery of everyone who has been injured in these terrible strikes."

"So many people are being killed in Yemen - it's a tragedy and it's unjustified. Under international humanitarian law, parties that resort to force is obligated to protect civilians," Grande was quoted as saying.

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News Network
April 28,2020

Riyadh, Apr 28: The number of confirmed coronavirus cases in Saudi Arabia crossed the critical 20,000-mark on Tuesday with the discovery of 1,266 new cases. Eight new deaths were also recorded during the last 24 hours, bringing the virus-related death toll to 152.

Twenty-three percent of the new cases are of Saudi nationals, while 77 percent are of non-Saudi residents, Saudi Press Agency (SPA) quoted the ministry spokesman Dr. Muhammad Al-Abdel Ali as saying.

Out of the total 20,077 cases till Tuesday, 17,141 cases are active, he added. A total of 118 cases are currently critical, the spokesman said.

Out of the 1,266 new cases, 327 were reported in Makkah, 273 in Madinah, 262 in Jeddah, and 171 in Riyadh. There were 58 cases in Jubail, 35 in Dammam, 32 in Taif, 29 in Tabuk and 18 in Al-Zulfi. Additionally, nine cases were recorded in Khulais; eight in Buraidah; seven in Al-Khobar; five in Hufof; four each in Qatif and Ras Tanura; three in Adhum; two each in Al-Jafr, Al-Majaridah, Yanbu, Bisha and Diriyah; and one each in Abha, Khamis Mushayt, Baqeeq, Dhahran, Dhalum, Sabiya, Hafr Al Batin, Hail, Sakaka, Wadi Al-Dawasir and Sajr, the spokesman said.

The Kingdom saw a spike in cases when the health ministry began its field-testing efforts nearly two weeks ago, targeting suspected infection cluster areas. Since then, there has been a steady increase in daily cases.

Till Monday, around 1 million people were screened in various neighborhoods throughout the Kingdom.

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