UAE behind hacking of Qatari media, claims report

Aljazeera
July 17, 2017

Qatar, Jul 17: The United Arab Emirates arranged for Qatari government social media and news sites to be hacked in late May in order to post false quotes linked to Qatar's emir, prompting the Qatar-Gulf diplomatic crisis, the Washington Post reported on Sunday, citing US intelligence officials.qatarmedia

The Qatari emir, Sheikh Tamim bin Hamad Al Thani, had been falsely quoted in May as praising Hamas and saying that Iran was an "Islamic power," the Post reported. In response, Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and transport ties with Qatar on June 5, accusing it of supporting "terrorism". Qatar strongly denies the allegations.

Qatar said in late May that hackers had posted fake remarks by the emir, an explanation rejected by Gulf states.

The Post reported that US intelligence officials learned last week of newly analysed information that showed that senior UAE government officials discussed the planned hacks on May 23, the day before they occurred.

The officials said it was unclear if the UAE hacked the websites or paid for them to be carried out, the newspaper reported. The Post did not identify the intelligence officials it spoke to for the report.

UAE Ambassador to the US Yousef al-Otaiba denied the report in a statement, saying it was "false," the Post said.

"What is true is Qatar’s behaviour. Funding, supporting, and enabling extremists from the Taliban to Hamas and Qadafi. Inciting violence, encouraging radicalisation, and undermining the stability of its neighbours," the statement said.

The Federal Bureau of Investigation was previously known to be working with Qatar to probe the hacking.

Al Jazeera's Heidi Zhou-Castro, reporting from Washington DC, said this is new information and the US State Department has yet to officially respond.

"These are certainly developments that will be analysed and will have a major role to play in negotiations coming up," she said.

"Perhaps this will finally result in some movement."

US Secretary of State Rex Tillerson on Thursday returned to the US from his shuttle diplomacy in the Gulf region to try to resolve the dispute. His visit had yielded little except for a bilateral agreement between the US and Qatar to fight "terrorism".

"Tillerson's spokesperson has said that [Qatar-Gulf crisis negotiations] may be a long process to find any sort of common ground in resolving this conflict," said Zhou-Castro.

"But with this new information - that certainly throws a wrench in these negotiations - it remains to be seen exactly where things will go."

Qatar said in June it had proof that the recent hacking of its state-run news agency and government social media accounts was linked to countriesthat have recently cut ties with it.

"Qatar has evidence that certain iPhones originating from countries laying siege to Qatar were used in the hack," Ali Bin Fetais al-Marri, Qatar's attorney general, told reporters in the capital, Doha, on 21 June.

Khalil Jahshan, executive director at the Arab Center Washington DC, told Al Jazeera the revelations are the most important development so far since the beginning of the crisis and undermined the Emirati position.

"It illustrates that Qatar, from the very beginning of this crisis, by inviting both US and British intelligence services to help investigate this was a step in the right direction," he said

"And now the results are out in public and they confirm that hacking has taken place and the quotes that precipitated this crisis by the emir of Qatar were fabricated and resulting from this hacking."

Jahshan said the revelations should have an impact on the mediation efforts, although the signs during the crisis so far have not been encouraging.

"It's denial after denial after denial. They [the UAE] claim that basically their demands from Qatar are legitimate and they insist that they should be fulfilled almost as a diktat instead of sitting at a table and negotiating some legitimate differences that they might have with Doha, and somehow unfortunately Saudi Arabia has followed suit," said Jahshan.

"So the failure, if you will, or at least temporary failure of Tillerson is not going to change unless there is a change of attitude on the part of the Emirates in particular."

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News Network
March 11,2020

Mar 11: Energy giant Saudi Aramco on Wednesday said it plans to raise its crude production capacity by one million barrels per day to 13 million bpd as a price war with Russia intensifies.

"Saudi Aramco announces that it received a directive from the ministry of energy to increase its maximum sustainable capacity from 12 million bpd to 13 million bpd," the company said in a statement to the Saudi Stock Exchange.

The decision comes a day after the world's top exporter, Saudi Arabia, decided to hike production by at least 2.5 million bpd to a record 12.3 million from April.

The Saudi moves come after the collapse of an oil production reduction agreement between OPEC and non-OPEC producers, including Russia.

The deal proposed by Saudi Arabia called for additional output cuts of 1.5 million bpd to cope with the severe economic impact of the coronavirus which has sharply reduced world demand for crude.

Boosting production capacity normally takes a long time and requires billions of dollars of investment.

Several years ago, the kingdom had shelved plans to boost its crude production capacity beyond 12 million bpd after demand for OPEC oil declined in the face of stiff competition from North American shale oil and other sources.

Russia on Tuesday said it was open to renewing cooperation with the OPEC cartel even as its kingpin Saudi Arabia escalated a price war with Moscow by announcing it would flood markets with new supplies.

The oil price war broke out after OPEC and a group of non-member countries dominated by Russia -- the world's second largest producer -- on Friday failed to agree on production cuts.

Saudi Arabia responded by announcing unilateral price cuts. This prompted the oil price to plummet and fuelled huge falls on stock markets around the world on Monday.

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Agencies
June 18,2020

Riyadh, Jun 18: Minister of Tourism Ahmed Al-Khateeb said that Saudi Arabia will resume tourist activities at the end of Shawwal (June 21) after a hiatus of more than three months due to lockdown measures imposed following the outbreak of coronavirus pandemic.

The minister made the remarks during a television interview after chairing the emergency meeting of the Arab Ministerial Council for Tourism on Wednesday. He said that the current indications are positive and that the Kingdom is ready to launch the summer program, which will be a boost for domestic tourism.

“It was revealed in a research study carried out by the Tourism Authority that 80 percent of Saudi citizens want to take advantage of domestic tourism. We will launch the domestic tourism program for the public after having made necessary coordination with the Ministry of Health and the concerned higher authorities,” he said.

Several Arab tourism ministers and officials of the relevant organizations attended the meeting, which discussed the challenges that the region’s tourism sector is facing due to the pandemic. Al-Khateeb pointed out that the Arab Ministerial Council for Tourism, headed by Saudi Arabia, held the virtual session in exceptional circumstances to discuss ways to get out of this pandemic and revitalize the tourism sector.

“Saudi Arabia has initiated a package of financial stimulus activities with a total value of more than $61 billion to protect jobs and businesses and reduce the economic burden of the crisis. The domestic tourism sector has benefited from it as one of the important economic sectors, as it covered 60 percent of salaries of Saudi employees in the private sector for a period of three months,” he added.

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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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