War 'stopped' between Qatar, blockading Arab nations

Agencies
September 8, 2017

Kuwait City, Sept 8: The emir of Kuwait says the threat of war between Qatar and Arab nations blockading it for the past three months has been neutralised.

Sheikh Sabah al-Ahmad Al Sabah, the main mediator in the Gulf dispute, spoke in Washington, DC on Thursday at a joint press conference with US President Donald Trump.

While both sides in the dispute have ruled out the use of armed force, some ordinary Qataris say they worry about the possibility of military action, given the ferocity of the criticism their country has received from media in the four Arab states.

"What is important is that we have stopped any military action," Sheikh Sabah said.

In a joint statement, the blockading nations expressed regret about the Kuwaiti emir's comment about stopping military intervention.

"The military option was not and will not be [used] in any circumstance," it said.

Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and trade links with Qatar on June 5, suspending air and shipping routes with the world's biggest exporter of liquefied natural gas. Qatar is also home to the region's biggest US military base.

The four nations say Doha supports regional foe Iran and "funds terrorism" - charges Qatar's leaders vehemently deny.

The countries reiterated on Thursday the accusation that Qatar continued to finance terrorism and interfere in the internal affairs of other countries.

Trump said there is still funding of radical groups by some nations, but added multiple countries are responsible. "There is massive funding of terrorism by certain countries," he said.

Al Jazeera's Kimberly Halkett, reporting from Washington, DC, said Trump's tone had changed after previously sending mixed signals.

"What is significant is the US president is now no longer singling out Qatar. He made a phone call to the emir of Qatar immediately following his press conference to provide further assurances," she said.

The joint statement by the blockading nations praised what they called Trump's firm assertion that the only way to resolve the crisis was by stopping the support and financing of terrorism, "and his unwillingness to resolve the crisis unless this is achieved".

Sheikh Sabah said he had received a letter from Qatar that expressed willingness to discuss a list of 13 demands from its neighbours.

"We know that not all of these 13 demands are acceptable," Kuwait's leader said, referring specifically to issues that affected Qatari sovereignty. "A great part of them will be resolved."

Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani told Al Jazeera any mediation had to come "without conditions", reiterating Doha would not negotiate while transport links with neighbours remained cut.

The Arab powers responded in the statement by accusing Qatar of putting preconditions on negotiations, which they said showed a lack of seriousness in resolving the dispute.

Qatari officials have repeatedly said the demands are so draconian they suspect the four countries never seriously intended to negotiate them, and were instead seeking to hobble Doha's sovereignty.

At the same time, they have said Qatar is interested in negotiating a fair solution to "any legitimate issues" of concern to fellow Gulf Cooperation Council member states.

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News Network
May 21,2020

Dubai, May 21: Around 10,000 Iranian health workers have been infected with the new coronavirus, the semi-official ILNA news agency quoted a deputy health minister as saying on Thursday.

Health services are stretched thin in Iran, the Middle East country hardest hit by the respiratory pandemic, with 7,249 deaths and a total of 129,341 infections. The Health Ministry said in April that over 100 health workers had died of COVID-19.

No more details on infections among health workers were immediately available.

Earlier on Thursday, Health Minister Saeed Namaki appealed to Iranians to avoid travelling during the Eid al-Fitr religious holiday later this month to avoid the risk of a new surge of coronavirus infections, state TV reported.

Iranians often travel to different cities around the country to mark the end of the Muslim holy fasting month of Ramadan, something Namaki said could lead to a disregard of social distancing rules and a fresh outbreak of COVID-19.

"I am urging you not to travel during the Eid. Definitely, such trips mean new cases of infection...People should not travel to and from those high-risk red areas," Namaki was quoted by state television as saying.

"Some 90% of the population in many areas has not yet contracted the disease. In the case of a new outbreak, it will be very difficult for me and my colleagues to control it."

A report by parliament's research centre suggested that the actual tally of infections and deaths in Iran might be almost twice that announced by the health ministry.

However, worried that measures to limit public activities could wreck an economy which has already been battered by U.S. sanctions, the government has been easing most restrictions on normal life in late April.

Infected cases have been on a rising trajectory for the past two weeks. However, President Hassan Rouhani said on Wednesday that Iran was close to curbing the outbreak.

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News Network
April 25,2020

Riyadh, Apr 25: Saudi Arabia announced nine deaths and 1,197 new cases of the COVID-19 virus on Saturday.

Of these cases, 120 were recorded in Madinah, 364 in Makkah, 271 in Jeddah, 170 in Riyadh and 43 in Dammam.

The number of people who had recovered from the coronavirus in the Kingdom increased to 2,214 after 165 patients were reported to have recovered.

A total of 136 people have died of the disease in the Kingdom so far.

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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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