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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Agencies
June 20,2020

Riyadh, Jun 20: Saudi Arabia will end a nationwide curfew and lift restrictions on businesses from Sunday morning after three months of lockdown to curb the spread of coronavirus, state news agency SPA quoted a source in the interior ministry as saying on Saturday.

The curfew will be lifted as of 6 AM local time on Sunday. Restrictions will remain, however, for religious pilgrimages, international travel and social gatherings of more than 50 people.

The kingdom introduced stringent measures to curb the spread of the novel coronavirus in March, including 24-hour curfews on most towns and cities.

In May, it announced a three-phase plan to ease restrictions on movement and travel, culminating in the curfew completely ending on June 21.

The number of coronavirus infections has risen in recent weeks following a relaxation of movement and travel restrictions on May 28.

The kingdom has recorded 154,223 cases of COVID-19 and a total of 1,230 deaths, the highest in the six-nation Gulf Cooperation Council.

Saudi Arabia plans to limit numbers at the annual haj pilgrimage to prevent a further outbreak of coronavirus cases, sources familiar with the matter told Reuters earlier this month.

Some 2.5 million pilgrims visit the holiest sites of Islam in Mecca and Medina for the week-long haj, a once-in-a-lifetime duty for every able-bodied Muslim who can afford it. Saudi Arabia asked Muslims in March to put haj plans on hold and suspended the umrah pilgrimage until further notice.

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Agencies
May 17,2020

Jerusalem, May 17: The Chinese ambassador to Israel was found dead in his home north of Tel Aviv on Sunday, Israel's Foreign Ministry said.

No cause of death was given and Israeli police said it was investigating.

Du Wei, 58, was appointed envoy in February in the midst of the coronavirus pandemic. He previously served as China's envoy to Ukraine.

He is survived by a wife and son, both of whom were not in Israel.

Israel enjoys good relations with China.

The ambassador's death comes just two days after he condemned comments by visiting U.S. Secretary of State Mike Pompeo, who denounced Chinese investments in Israel and accused China of hiding information about the coronavirus outbreak.

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Agencies
June 18,2020

New Delhi, Jun 18: Reliance Industries Ltd on Thursday said it has sold a 2.32 per cent stake in its digital unit to Saudi Arabia's Public Investment Fund (PIF) for Rs 11,367 crore, taking the cumulative fund raising to about Rs 1.16 lakh crore in two months.

Starting with Facebook Inc on April 22, Reliance has sold almost 25 per cent of equity in Jio Platforms - the maximum reports suggest the company intends to dilute to financial investors.

The investment by Saudi sovereign wealth fund is "at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore", the company said in a statement.

With this investment, Jio Platforms has raised Rs 115,693.95 crore from some of the leading global investment powerhouses at a time when the world is deeply impacted by the coronavirus pandemic, resulting in a recession kind of environment for the global economy.

"With the addition of PIF's investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India," the statement said.

Jio Platforms houses India's biggest telecom firm by subscribers, Reliance Jio. With more than 388 million users, Jio has forced out several rivals and driven consolidation in the sector since entering the market in 2016 with free voice services and cut-price data.

Over the past two months, billionaire Mukesh Ambani's oil-to-telecom conglomerate has announced the sale of about $14 billion of assets, completed a Rs 53,124 crore rights issue and slowed the run rate of new investment by a quarter.

These will help Reliance meet its target of paying off Rs 1.61 lakh crore of net debt by the end of the year.
This is PIF's largest investment into the Indian economy to date.

Ambani, chairman and managing director of Reliance Industries, said, "We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From oil economy, this relationship is now moving to strengthen India's New oil (data-driven) economy, as is evident from PIF's investment into Jio Platforms."

Yasir Al-Rumayyan, governor of PIF, commented: "We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth."

"This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia's economy and our country's citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom," he said.

The transaction is subject to Indian regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Prior to this deal, Reliance had sold 22.38 per cent of Jio Platforms to investors including Facebook Inc, securing Rs 104,326.95 crore in eight weeks.

Facebook kicked off the party, investing Rs 43,573.62 crore for a 9.99 per cent stake on April 22. This was closely followed by a further Rs 60,753.33 crore in investment.

Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore on May 4. It invested another Rs 4,546.80 crore for additional 0.93 per cent stake on June 5, taking its total holding to 2.08 per cent
Private equity KKR and Vista Equity Partners have taken 2.32 per cent stake each for Rs 11,367 crore apiece. KKR invested in Jio Platforms on May 22 while Vista invested on May 8.

Abu Dhabi sovereign wealth fund Mubadala Investment Co picked up 1.85 per cent in Jio Platforms for Rs 9,093.60 crore on June 5. Abu Dhabi Investment Authority on June 7 invested Rs 5,683.50 crore for a 1.16 per cent stake in Jio Platforms.

On May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.

Global investment firm TPG on June 13 picked up 0.93 per cent for Rs 4,546.80 crore while L Catterton bought 0.39 per cent for Rs 1,894.50 crore.

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