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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News Network
January 8,2020

Dubai, Jan 8: Iranian state television said on Wednesday that at least 80 "American terrorists" were killed in attacks involving 15 missiles Tehran launched on US targets in Iraq, adding that none of the missiles were intercepted.

State TV, citing a senior Revolutionary Guards source, also said Iran had 100 other targets in the region in its sights if Washington took any retaliatory measures. It also said US helicopters and military equipment were "severely damaged".

Iran launched missile attacks on US-led forces in Iraq in the early hours of Wednesday in retaliation for the US drone strike on an Iranian commander whose killing has raised fears of a wider war in the Middle East.

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News Network
May 7,2020

Dubai, May 7: Saudi Arabia will emerge as the victor of the oil price war that sent global crude markets into a spin last month, according to two experts in the energy industry.

Jason Bordoff, professor and founding director of the Center for Global Energy policy at New York’s Columbia University, said: “While 2020 will be remembered as a year of carnage for oil nations, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.”

Writing in the American publication Foreign Policy, Bordoff said that the Kingdom’s finances can weather the storm from lower oil prices as a result of the drastically reduced demand for oil in economies under pandemic lockdowns, and that it will end up with higher oil revenues and a bigger share of the global market once it stabilizes.

Bordoff’s view was reinforced by Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and one of the longest-standing directors of Saudi Aramco. In an interview with the Gulf Intelligence energy consultancy, he said that low-cost oil producers such as Saudi Arabia would emerge from the pandemic with increased market share.

“Oil is the only commodity where the lowest-cost producers have contained their production and allowed high-cost producers to benefit. When demand recovers this year or next, we will emerge from it with the lowest-cost producers having increased their market share,” Moody-Stuart said.

Bordfoff said that it would take years for the high-cost American shale industry to recover to pre-pandemic levels of output. “Depending on how long oil demand remains depressed, US oil production is projected to decline from its pre-coronavirus peak of around 13 million barrels per day.

“Shale's heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets. Many US companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One quarter of US shale oil production may have been uneconomic even before prices crashed,” he said.

Moody-Stuart said that recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were “an important step to wean the population of the Kingdom off an entitlement feeling. It means that everybody is joining in it.”

The former Shell boss said that other big oil companies would follow Shell’s recent decision to cut its dividend for the first time in more than 70 years. But he added that Aramco would stick by its commitment to pay $75 billion of dividends this year.

“When a company looks at its forecasts it looks ahead for one year, so for this year it (the dividend) is fine,” he said.

Bordoff added that Saudi Arabia’s action in cutting oil production in response to the pandemic would improve its global position.

“Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, the Kingdom’s willingness to oblige by cutting production will reverse some of the damage done when it was blamed for the oil crash after it surged production in March,” he said.

“Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the Kingdom in anything other than a strengthened position,” Bordoff said.

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Agencies
July 5,2020

Iraq’s deputy parliament speaker Hassan Karim al-Kaabi on Saturday described the move as provocative and in violation of international law.

Kaabi also called on the Iraqi government to take swift measures to halt such actions.

The Embassy’s move to fire in a residential area in the heart of Baghdad is an unacceptable act and another challenge for the Arab country, adding to the mass of its provocations and illegal actions in Iraq, he noted.

According to Iraqi media, the US tested a patriot missile system inside Baghdad’s heavily fortified Green Zone.

Anti-US sentiments have been running high in Iraq since Washington assassinated top Iranian commander Qassem Soleimani and the second-in-command of the Iraqi popular mobilization units, Abu Mahdi al-Muhandis, in January.

Following the attack, Iraqi lawmakers unanimously approved a bill on January 5, demanding the withdrawal of all foreign troops.

Baghdad and Washington are currently in talks over the withdrawal of American troops. Iraqi resistance groups have vowed to take up arms against US forces if Washington fails to comply with the parliamentary order.

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