Sheikh Tamim: Any talks must respect Qatar sovereignty

Agencies
July 22, 2017

Doha, Jul 22: The Emir of Qatar Sheikh Tamim bin Hamad Al Thani has said that his country is ready for dialogue to resolve a diplomatic crisis with a Saudi-led group, but stressed that any solution to the crisis must respect his country's sovereignty.

"We are open to dialogue to resolve the outstanding problems [so long as Qatar's] sovereignty is respected," Sheikh Tamim said in a televised address on Friday, his first since Saudi Arabia, Bahrain, the United Arab Emirates and Egypt cut ties with the peninsula.

Qatar has been targeted by unprecedented campaign, Sheikh Tamim said, adding that he valued Kuwait's mediation and the support of the United States, Turkey and Germany for their efforts to resolve the crisis.

The Emir thanked Turkey for "putting into force quickly a cooperation agreement signed between us and meeting our basic needs".

Qatar's Emir Sheikh Tamim on the Gulf crisis

Qatar's Emir Sheikh Tamim: "People are amazed to see Qatari people maintaining high level of morale despite the unprecedented smearing campaign." http://aje.io/wwhlw

Posted by Al Jazeera English on Friday, July 21, 2017

"It is clear that the campaign against us was pre-planned. We took a test and passed it," Sheikh Tamim said.

The Emir hailed the solidarity and resolve that Qataris have shown in the face of the crisis, and said it would make his country, which will host football's World Cup in 2022, even more resilient.

'Smear campaign'

"People are amazed to see Qatari people maintaining high level of morale despite the unprecedented smearing campaign," Sheikh Tamim said.

"It was a true ethical trial. Our people have passed the test with colours, and we have held steadfast to our principles and traditions even in the time of trials, simple for the reason that we respect ourselves.

"I call on all of you to continue to hold on to that."

Saudi Arabia, Bahrain, UAE and Egypt have imposed sanctions on Qatar, accusing it of financing extremist groups and allying with their arch-foe Iran, allegations that Doha denies.

In his address, the Emir stressed that Qatar was fighting terrorism not to please others, but because it believes in that mission.

"Qatar is fighting terrorism, relentlessly and without compromises, and there is international recognition of Qatar's role in this regard," he said.

The US and other Western countries have dispatched senior envoys to the region to press both sides to resolve the dispute.

'Undermined our sovereignty'

The crisis was precipitated after Qatar's News Agency, the country's state media, was hacked to post a false statement of the Emir purportedly critical of the US foeign policy.

Sheikh Tamim said the four countries tried to undermine Qatar's foreign policy, and muzzle freedom of expression.

"The perpetrators have undermined our sovereignty and independence by fabricating false statements to mislead international public opinion," the Emir said.

Qatar's ministry of interior on July 20 said the cyberattacks originated in the UAE.

The Saudi-led sanctions include closing Qatar's only land border, refusing Qatar access to their airspace and ordering their citizens back from Qatar. The measures have disrupted the import of food and other items, and caused foreign banks to scale back business with Qatar.

Initially, the Saudi-led bloc issued a tough 13-point list of demands needed to resolve the crisis, including shutting down news outlets including Al Jazeera, cutting ties with Islamist groups such as the Muslim Brotherhood, limiting ties with Iran and expelling Turkish troops stationed in the country.

Qatar refused to bow to the demands within a 10-day deadline, and the anti-Qatar bloc has begun to shift its focus toward six principles on combatting extremism and terrorism.

The speech comes a day after Qatar's ruler issued a decree setting new rules for defining terrorism, freezing funding and terrorism financing, and established national terrorism lists.

Earlier in the day, US Secretary of State Rex said the US was satisfied with Qatar's efforts to address concerns about terror financing and counterterrorism.

He urged Qatar's neighbours to lift a land blockade as a "sign of good faith".

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 2,2020

Dubai, May 2: Saudi Arabia has confirmed 1,362 new coronavirus cases, bringing the total number of COVID-19 patients in the country to 25,459, the Ministry of Health reported Saturday.

In the daily media briefing, the ministry announced 7 more deaths and 210 new recoveries, raising the total number of fatalities and recoveries to 176 and 3,765, respectively.

Out of the 1,362 new cases reported today, 249 were confirmed in Medina, 245 in Jeddah, 244 in Mecca, 161 in Riyadh, in addition to 126 infections in Dammam, 81 in Khobar and 80 in Jubail.

Dr. Mohammed Al Abd Al Aly, spokesman for Saudi Arabia’s Ministry of Health reiterated that so far there was no evidence that hot weather will curtail the spread of coronavirus.

Authorities continue to urge people to stay at home unless necessary despite having relaxed some restrictions and curfews at the start of Ramadan.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 5,2020

Dubai, May 5: A Saudi ministerial decision issued on Monday allows companies in the private sector to reduce salaries by 40 per cent and allows termination of contracts owing to the economic hardships resulting from the COVID-19 pandemic, according to daily newspaper Al Sharq Awsat.

The new decision was still not published by the cabinet according to the newspaper.

The decision which the newspaper saw a copy of was signed by Saudi Ministry of Human Resources and Social Development to regulate the labour contract in the current period, allows employers to reduce the employees salaries by 40 percent of the actual effective wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contract after 6 months of the COVID-19 circumstances.

The new decision has also included a provision in which the employer would be allowed to cut wages even he or she benefits from the subsidy provided by the goverment, such as those for helping pay workers wages or exemption from government fees.

The decision also stressed that employers are not allowed to terminate any employee, unless three conditions are met.

1.            First the passing of six months since the measures of salary cut has been taken

2.            Reducing pay, annual leave and exceptional leave were all used

3.            Company proves that its facing financial troubles due to the circumstances.

The memo, which goes into affect as soon as its published in the government’s official newspaper, ensures that the employee will receive his/her salary if on annual leave within the period of 6 months.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.