Khashoggi crisis may tip Middle East power balance towards Turkey

Agencies
November 3, 2018

Istanbul, Nov 3: The murder of journalist Jamal Khashoggi could alter the power dynamic in the Middle East by strengthening Turkey's influence at Saudi Arabia's expense as they compete for leadership of the Islamic world, analysts say.

This certainly appears to be the goal of Turkish President Recep Tayyip Erdogan, the main regional supporter of the Muslim Brotherhood, which Saudi Arabia and its allies Egypt and the United Arab Emirates consider a terrorist group.

The killing inside the kingdom's consulate in Istanbul by a team sent from Riyadh on October 2 has already severely tarnished Saudi Arabia's global reputation.

But it is the potential involvement of Crown Prince Mohammad bin Salman, the oil-rich Gulf nation's de facto leader known by his initials MBS, that could permanently damage Riyadh's influence in the region.

After initially insisting Khashoggi left the consulate unharmed, then saying he died in a brawl, the Saudi regime finally stated he was killed by a "rogue operation" and arrested 18 suspects, some with links to the crown prince.

Analysts say Erdogan could use the ensuing crisis to weaken the 33-year-old prince, even potentially leading to the royal family removing him from power -- though that seems unlikely.

"The killing of Khashoggi has proven to be a golden opportunity for President Erdogan to pressure Saudi Arabia and work towards presenting Turkey as the new leader of the Muslim world," said Lina Khatib, director of Middle East and North Africa Programme at Chatham House.

"The Khashoggi crisis is a big geo-political gamble for Turkey and so far it looks like it is playing the game masterfully. But Turkey alone will not be able to push for the removal of MBS. The ball lies in the American court," she added.

For Erdogan, promoting the Muslim Brotherhood — which Saudi Arabia has sought to marginalise in the Arab world and which was ousted from power and brutally repressed in Egypt in 2013 by current President Abdel Fattah al-Sisi — is at the heart of this power struggle.

The Turkish leader could also try to extract concessions from Riyadh for its ally Qatar, facing a Saudi blockade backed by the United Arab Emirates, Bahrain, and Egypt since 2017.

"I think that Erdogan sees this as an opportunity to push back against a triple entente in the Middle East that opposes his policies. That triple entente is composed of MBS, MBZ's (Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan) UAE and Sisi's Egypt," said Soner Cagaptay, director of the Turkey Research Program at the Washington Institute.

"These three countries, all Arabs, oppose Erdogan's policies of supporting the Muslim Brotherhood. Now Erdogan sees a golden opportunity because MBS is vulnerable."

But Sinan Ulgen, president of the Centre for Economics and Foreign Policy, said "it remains to be seen whether Ankara can continue to leverage this conjuncture and turn it into a permanent advantage raising Turkey's regional influence to the detriment of Saudi Arabia".

Nicholas Heras, an analyst at the Center for a New American Security, said the Khashoggi case was the "latest chapter in Turkey and Saudi Arabia's ongoing contest over which country is better" to lead the Muslim world.

"Erdogan clearly seems to believe that he can use the Khashoggi crisis as a way to cut Prince Mohammad bin Salman, and by extension, Saudi Arabia, down to size," Heras added.

By not directly pointing the blame at the crown prince over Khashoggi, Erdogan is seeking to keep him under pressure, according to Karim Bitar of the Paris-based French Institute for International and Strategic Affairs think-tank.

"Erdogan knows that he still has ammunition that could weaken MBS in the international arena so basically he is rolling the dice these days trying to figure out how to maximise his profit after this huge Saudi blunder," he told news agency.

While the Muslim Brotherhood is important to Turkey, the West -- especially the United States -- is wary of the group and wants to focus any pressure on the crown prince towards ending the Yemen war and lifting the blockade on Qatar, the experts said.

"I expect the blockade on Doha will likely come to an end in the near future and the Saudis find a way to support the UN's efforts in Yemen," said Steven Cook of the Council on Foreign Relations.

Bitar noted that the US administration relies on Prince Mohammed's support for any possible peace plan for the Israel-Palestinian conflict as well as containing Iran, long a Saudi foe.

Washington could also push the crown prince towards "a rapprochement with Israel and to maintain a hawkish line towards Iran", Bitar added.

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Agencies
June 22,2020

Riyadh, Jun 22: The Ministry of Municipal and Rural Affairs (MMRA) in Saudi Arabia has announced the continuation of the ban on providing Shisha (hubble-bubble), and the closure of children's play areas in restaurants as a precautionary measure for protecting the health of citizens and residents from the novel coronavirus COVID-19 infection.

The new stage, in which the Kingdom is beginning to coexist with the virus, focuses on the concept of "social distancing" that has emerged since the start of the coronavirus crisis throughout the world,

It stipulates leaving at least 2 meters between one person and the other in public places to prevent the transmission of infection, in addition to covering the mouth and nose by wearing a facemask.

It also specifies complying with the preventive protocols in workplaces, stores, shops, mosques and tourist attractions, with human gatherings not to exceed 50 people, as a maximum.

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News Network
May 19,2020

Dubai, May 19: In a heart-warming decision to reunite families that have been split by anti-Covid travel restrictions, the UAE has announced that residents with valid visas stranded outside the country can return from June 1.

The Ministry of Foreign Affairs and International Cooperation and the Federal Authority for Identity and Citizenship said they will begin the process on Monday, June 1, by allowing the return of those residency holders currently stranded outside the country who have relatives in the UAE. Residents who meet this criteria must apply for a Resident Entry Permit on smartservices.ica.gov.ae.

The ministry and the authority said the decision was taken to reunite families that have been affected by the anti-coronavirus measures taken due to the exceptional circumstances.

"The UAE is keen to facilitate the procedures for holders of UAE residency visas who are stuck outside the country and reunite them with their families who were affected by the precautionary measures taken by the country in light of the current exceptional circumstances to combat Covid-19," the federal authorities were quoted by state news agency Wam.

Hundreds of UAE residents are currently stuck abroad and are separated from their families due to the unexpected freeze on air travel imposed by many countries as precautionary measures to curb the spread of coronavirus.

The #BringBackUAEresidents hashtag was trending on Twitter on Monday as several residents and families requested the government to expedite their return to the UAE.

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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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