Iran, Saudi Arabia lock horns over Yemen

April 11, 2015

Apr 11: Tensions between Iran and Saudi Arabia deepened on Thursday as Iranian leaders lashed out with rare vehemence against the continuing Saudi air campaign in Yemen, even hurling personal insults at the young Saudi prince who is leading the fight.

Ayatollah Ali Khamenei, the supreme leader of Iran, denounced the Saudi airstrikes in Yemen as “a crime” and “a genocide” while all but taunting Saudi Arabia that its war in Yemen was doomed to fail.

Iran Saudi

A regional coalition led by Saudi Arabia extended its bombing campaign for a 16th night in its effort to stop the Houthi movement and its allies from dominating Yemen. The Houthis nonetheless continued their advance, and aid groups warned of a compounding humanitarian catastrophe, particularly in the port city of Aden.

US Secretary of State John Kerry sharply warned Iran over its backing for the other side of the conflict in Yemen, in the first explicit US accusation that Iran has been providing military aid to the Houthis. Washington was “not going to stand by while the region is destabilised,” Kerry said in an interview with “PBS NewsHour” on Wednesday night.

“There are obviously supplies that have been coming from Iran,” he added. “There are a number of flights every single week that have been flying in. We trace those flights, and we know this. We are well aware of the support that Iran has been giving to Yemen.”

The US has recently increased the provision of logistical support, intelligence and weapons to the Saudi campaign, just days after the announcement of a framework for a nuclear deal with Iran. Kerry said he was seeking to reassure allies, including Saudi Arabia, that the US could “do two things at the same time.”

The US could help push back against Iranian attempts to project its influence around the region, he argued, while at the same time negotiating a deal that would reward Tehran for providing guarantees that it was not building nuclear weapons.

Saudi Arabia has said it is bombing the Houthis because it sees them as an instrument of Iranian power, but Western diplomats and independent experts have said that while Iran has supported the Houthis financially, it has no direct control over the group.

The back-and-forth insults and threats raised fears that the Yemeni conflict could further inflame the rivalry between the two regional heavyweights, Iran and Saudi Arabia, already fighting each other through sectarian proxies in Syria and in less overt struggles across Iraq, Lebanon and Bahrain.

Some analysts suggested that the battle for Yemen may further complicate the delicate politics of a deal with the Western powers to restrain Iran’s nuclear programme. But others argued that the deal had instead emboldened Iran to flex its muscles against Saudi Arabia.

“Deep down, the Iranians know that they are winning,” said Michael Stephens, the head of the Royal United Services Institute in Doha, Qatar. Kerry appeared forced into a difficult balance, reassuring Saudi Arabia of US support against Iran without antagonising Iranian hard-liners severely enough to fuel opposition to the nuclear deal.

The ayatollah’s diatribe only added to the challenge. In rare direct criticism of Iran’s rival by name, Khamenei said that Saudi Arabia was departing from a history of acting with dignity in foreign affairs. “Now few inexperienced youth have taken over the affairs of the state and are replacing dignity with barbarity.”

His comments were a jab at the Saudi defence minister, Prince Mohamed bin Salman, who Saudi diplomats say is about 30. He is also a son of King Salman, who ascended to the throne this year and promptly named him to the powerful dual roles of demesne minister and chief of the royal court.

The Saudi news media has been cheering Mohamed as the architect and overseer of the Yemeni campaign despite a light résumé, raising eyebrows among rivals in the royal family and setting him up for embarrassment if it is deemed to have failed.

In a statement, Khamenei warned the Saudis “they must cease their crimes in Yemen,” and that failure there was all but inevitable. “They will be harmed and incur losses in this issue in which they will under no circumstances triumph. The Saudis’ face will be rubbed in the ground in Yemen,” he said, comparing the Saudi actions to Israel’s campaigns against Palestinian militants in the Gaza Strip.

Stephens, of the Royal Unity Services Institute, said the extraordinary barbed comments appeared designed to provoke and inflame. “It is almost like the Iranians are baiting the Saudis, trying to find every pressure point, to make the Saudis feel emasculated, and then stand back and watch as the Saudis get in deeper and deeper,” he said.

But at the same time, he argued, the Iranians were sending a message of support to their Yemeni allies, the Houthis. “They have decided to show that they are willing to stand behind the Houthis,” Stephens said. “The Iranians are making a sort of a guarantee to their allies that, whatever happens, they are going to make sure that the Houthis are at the table for the talks.”

Saudi Arabia’s warning

Saudi Arabia, which is leading a regional coalition against the Houthis, issued its own warning to Iran, saying that two Iranian warships that recently arrived in the waters off Yemen should steer clear of Yemeni waters. “If the ships seek to aid the Houthis, the coalition has the right to choose the proper answer,” said a spokesman, Brig Gen Ahmad Asseri.

In another provocation, Saudi Arabia denied permission for an Iranian plane filled with pilgrims to land in Mecca. The Houthis, a group based in northern Yemen that follows a strain of Shiite Islam, have fought a half-dozen conflicts with the Yemeni government since 2004, including a fight in 2009 that drew Saudi Arabia into border skirmishes. Only since that time, scholars say, has the movement received support from Iran, the region’s main Shiite Muslim power as well as Saudi Arabia’s rival.

Since the fall, however, the Houthis have teamed with major units of the Yemeni security forces still loyal to the former strongman, Ali Abdullah Saleh. Those units have helped the Houthi-allied forces capture the capital, Sanaa, and much of Yemen.

At the United Nations, Secretary-General Ban Ki-moon, whose efforts to restart a political dialogue in Yemen have collapsed, implored the Houthis to halt their expansion. But he also has been critical of the Saudi-led military campaign. “The coalition air raids – and the continuing attempts by the Houthis and their allied armed groups to expand their power, have turned an internal political crisis into a violent conflict that risks deep and long-lasting regional repercussions,” Ban said.

“The last thing the region and our world need is more of the chaos and crimes we have seen in Libya and Syria,” he said.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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Agencies
June 5,2020

Dubai, Jun 5: A new set of coronavirus guidelines for UAE hotels has been published by the National Emergency Crisis and Disasters Management Authority.

The guidelines, released late Thursday, require all employees to be tested for Covid-19 before reopening, and to be re-tested every 15 days.

Hotels are expected to provide an infrared thermometer and thermal camera, with employee temperatures to be tested several times per working day.

Any guest or employee showing coronavirus symptoms will not be permitted to enter hotel facilities, the guidelines stress.

Hotels must also leave a 24-hour gap between guests leaving a room, and the next guests arriving.

Facilities such as restaurants, cafes, gyms, swimming pools and beaches in hotels will resume operation under a minimum capacity.

Customers must have their temperatures taken before they enter.

The working hours of restaurants and cafes will be from 6am until 9pm, allowing four people to sit at the same table with 2.5 metres left between tables. Menus must be sterilised after each use.

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News Network
March 24,2020

Mar 24: Saudi Arabia has recorded its first death from the coronavirus in a 51-year-old Afghani resident, Health Ministry spokesman Mohammed Abdelali told a televised news conference on Tuesday.

The man's health deteriorated quickly after reporting to a hospital emergency room in the city of Medina and he died on Monday night, Abdelali said.

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