US ups its engagement in Qatar crisis; Trump calls Riyadh and Doha

June 8, 2017

Jun 8: Two days following the standoff between Qatar and its Gulf neighbors, US President Donald Trump dialed up Washington's engagement in a phone call to the Qatari Emir Sheikh Tamim bin Hamad Al-Thani.

US

Former US ambassador to UAE and career diplomat Marcelle Wahba told Arab News that the Trump calls are “relieving” after “lack of coordination and incoherent message” from the administration early on the crisis.

The White House announced on Wednesday that Trump's call to Tamim “emphasized the importance of all countries in the region working together to prevent the financing of terrorist organizations and stop the promotion of extremist ideology.”

The statement said Trump “reiterated that a united Gulf Cooperation Council (GCC) and a strong US-Gulf Cooperation Council partnership are critical to defeating terrorism and promoting regional stability.”

The US also “offered to help the parties resolve their differences, including through a meeting at the White House if necessary.”

Wahba, who now serves as president of the Arab Gulf States Institute in Washington, told Arab News it is “relieving to see President Trump call Saudi King Salman and the emir of Qatar.”

The former ambassador stressed the importance of “a unified position from the US administration” instead of the “confusing number of voices” that came out of the Pentagon, the White House, the State Department and Trump's Twitter account in the last few days.

Yet Wahba said “there's still no evidence of an active US diplomatic initiative to get serious dialogue between the parties.”

The former ambassador contended that “given the long relation and history we have in the region, we can be more engaged, have more leverage and play a more active role.”

While ultimately “Qatar has to change some of its policies,” the US should be more engaged, said Wahba.

The standoff in her opinion is a product of “very serious differences that have been brewing for a very long time, parallel to increased vulnerabilities in the region such as the war in Yemen, decline in oil revenues and efforts at restructuring economic reforms.” This “increases the frustration and makes these differences more acute.”

Wahba read the absence of early engagement from the Trump team as a result of “lack of experience, lack of coordination and lack of clarity, and lack of engagement.”

“The US needs to be engaged more, needs to be more public, whether it's the White House, the State Department or the Pentagon.”

Such engagement should show “support for the mission of Kuwait's Emir Sheikh Sabah Al-Ahmad Al-Sabah, encourage dialogue and be more actively engaged” Wahba said.

She added that the US could make clear to Qatar that, “we value our relationship but we have concern” and to the other parties that “we would like to see more dialogue, and preserve a unified GCC.”

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News Network
April 9,2020

Apr 9: The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, adopted a resolution to grant paid leave to select categories of employees at the federal government.

This move is part of a series of precautionary measures and procedures taken by the UAE government to bring the Covid-19 pandemic under control.

The resolution stipulates that married employees of the federal government may take fully paid leave to take care of their children below the age of 16. The age condition shall not apply to people of determination, as well as in cases where a spouse is subject to self-isolation or quarantine that requires no contact with family members, upon a decision from the Ministry of Health and Prevention.

The resolution also applies to employees whose spouses work in vital health-related occupations, such as doctors, nurses, paramedics and other medical jobs that require exposure to infected people, as well as employees of quarantine centres, throughout the emergency period witnessed by the country.

Pursuant to the resolution, the relevant ministry or federal authority may ask employees holding essential technical occupations to work remotely instead of taking leave.

The resolution was issued in line with the UAE government's keenness to support employees and provide them with a safe and healthy working environment, as well as to protect the health and safety of government employees and their families, during the current crisis that requires greater efforts, additional working hours, and in some cases, exposure to infected people.

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Agencies
January 11,2020

Muscat, Jan 11: Oman's Sultan Qaboos bin Said has died, Aljazeera reported citing state television on Friday.

Qaboos was 79-year-old and was ill for a long time. He has served as the ruler of Oman since 1970 when he ousted his father in a bloodless coup.

Qaboos had no children and has not publicly named his successor.

Sultan Qaboos travelled to Belgium for a week in December for what was described then as "medical checks." He returned to Oman but speculations of his deteriorating health were rife.

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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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