Strong US-Saudi ties will weather JASTA impact: Fahad Nazer

September 30, 2016

Jeddah, Sep 30: A leading Washington-based analyst feels that firmly rooted Saudi-US ties will weather all possible consequences of Wednesday’s passage of the controversial 9/11 bill, known as the Justice Against Sponsors of Terrorism Act (JASTA).

fahad nazerFahad Nazer, a non-resident fellow with the Arab Gulf States Institute in Washington (AGSIW), told Arab News that the current state of Saudi-US relations is strong and solid.

“Their close cooperation on counterterrorism, the continued Saudi preference for American weapons, the important role that Saudi Arabia plays in stabilizing international energy markets and the $70 billion worth of annual trade between the two countries will sustain the relationship for the foreseeable future,” he said.

In addition, he said, one should certainly not underestimate the massive soft power of “the thousands of Saudis who have studied in the US and the thousands of Americans who have made a living in Saudi Arabia over the years — they have all played an important role in building a level of trust and familiarity between Saudis and Americans.”

Having said all that, he admitted that it would be difficult to argue that the relationship has not experienced strain.

“JASTA’s becoming the law of the land is clearly troubling to Saudi officials,” said Nazer. “Crown Prince Mohammed bin Naif reiterated Saudi Arabia’s concern for the implications of the legislation and the principle of sovereign immunity. This concern was made clear in his address to the UN General Assembly last week.”

The Saudis have repeatedly said that the legislation could have an adverse impact on the way that international relations are conducted and that the US could leave itself open to similar measures by other countries which would make American diplomatic and military personnel vulnerable to prosecution.

“This is the same argument that senior US administration officials, including President Barack Obama himself and Secretary of Defense Ash Carter, have made on multiple occasions,” said Nazer. “The legislation goes beyond straining US-Saudi relations.”

According to Nazer, although Saudi officials are clearly frustrated by the continuing accusations that they are to blame for the Sept. 11, 2001, attacks, US government investigations have concluded that there is no evidence to support these allegations.

“It appears that Saudi officials take some solace in the fact that many US security and counterterrorism officials give Saudi Arabia high marks for the measures it has taken to counter Daesh and other terrorist groups,” he said.

“Yes, JASTA is now a serious concern, but Saudi officials are well aware that the US administration shares some of the same concerns,” said Nazer. “I think they understand that the American government and public are not monolithic.”

That can also be said of the US Congress, he said, pointing out that there is a stark contrast between the views of Senators John McCain and Rand Paul as far as relations with Saudi Arabia are concerned.

“The defeat of Sen. Paul’s measure that would have blocked $1.5 billion worth of weapons to Saudi Arabia last week suggests that some of the pillars of this relationship, including military purchases and training, remain strong,” he said.

“If one takes into account the administration’s position and various Congressional leaders’ public pronouncements, it appears that a majority of American officials in both parties still appreciate and support strong US-Saudi relations,” added Nazer.

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Agencies
August 8,2020

Beirut, Aug 7: A devastating explosion that destroyed much of Beirut might have been the result of a missile attack or bomb, Lebanese President Michel Aoun said, as the death toll from the blast rose to 154.

More than 2,700 tons of ammonium nitrate had been sitting in a port warehouse for six years, but there have been conflicting accounts about why Lebanese authorities decided to empty the shipment of explosive material. The vessel carrying the flammable cargo was heading from Georgia to Mozambique when it stopped in the Lebanese port to load up on iron, according to the ship’s captain.

By Friday, 19 suspects had been arrested and Lebanon’s former director general of customs Chafic Merhy had been questioned by military police.

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Agencies
July 14,2020

Dubai, Jul 14: The UAE-based parents of children under 12 stranded in India are in a tight spot with multiple airlines refusing to accept unaccompanied minors.

Starting July 12, Indians wanting to return to the UAE have been given a 15-day window to travel back on the condition that they have valid residency permits. They also have to produce a negative Covid-19 test result.

But parents of minors said they are feeling helpless as children are unable to avail of the travel opportunity despite having return permits.

"It has been more than three months since my daughter has been stuck in India. We have GDRFA approval for her but the airlines are not accepting her booking, saying she is under 12," Poonam Sapre, a Dubai-based mother, told Khaleej Times.

Her daughter Eva Sapre, 10, is in Hyderabad and is awaiting a reunion with her parents.

"She is just 10 and it has already taken an emotional toll on her. She is eager to come back and is asking me every day about her return. This is so frustrating."

Barring Emirates and Etihad, other airlines including flydubai, Air Arabia and Air India Express are not accepting unaccompanied minors. With India extending the travel freeze till July 31, normal flights are yet to resume and only special flights are allowed between India and UAE under a bilateral agreement.

Sapre said only flydubai is flying the Hyderabad-Dubai route, and the carrier has restrictions on minors travelling alone. "My daughter is too young to fly through indirect routes," claims the mother.

When Khaleej Times reached out to the airlines for comment, they confirmed that such rules on unaccompanied minors were already in place even before Covid-19 travel restrictions came into effect.

Another Dubai-based distressed parent, who did not want to be named, said her eight-year-old son is in Kerala and is unable to fly due to airline policies on unaccompanied minors.

"I called up Air India Express and they said this has been their rule even before the Covid-19 outbreak. I am appealing to them to re-consider and make an exception during these trying times so that our children can come home safely," she said.

Faced with this eventuality, some parents are forced to fly out of the UAE so they can accompany their children on the flight back home.

An Indian mother, who is currently in Mumbai, said she flew out of Dubai on Monday morning solely for the purpose of bringing back her twin daughters, aged 10.

"I had no choice. Ideally, they could have travelled together, but under these circumstances I thought it best to get them with me personally," said the mother.

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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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