KSA rejects foreign interference in Iraq

June 17, 2014

Interference in IraqJeddah, Jun 17: Saudi Arabia rejected Monday the idea of any foreign interference in Iraq and blamed Baghdad’s “sectarian and exclusionary” policies for the worsening security situation in the country.

Fighters from the Islamic State of Iraq and the Levant (ISIL) have seized several Iraqi cities, threatening to split the country down sectarian lines, a deeply worrying prospect for the region and beyond.

The crisis “would not have happened if it wasn’t for the sectarian and exclusionary policies that were practiced in Iraq in past years and which threatened its security, stability and sovereignty,” the Council of Ministers said.

The Cabinet, chaired by Deputy Custodian of the Two Holy Mosques Prince Salman, said it was necessary to “preserve Iraq’s sovereignty” and rejected any outside interference in Baghdad’s internal affairs. It also urged the “quick formation of a national consensus government.”

Militants, spearheaded by ISIL and joined by supporters of former President Saddam Hussein, have in the past week overrun a large chunk of northern and north-central Iraq, although their advance has since been slowed.

Saudi analyst Abdel Aziz Al-Sagr said Riyadh was concerned its US ally might give Tehran its tacit blessing for intervention in Iraq. “We need regional coordination over Iraq, not a US-Iranian dialogue,” said Al-Sagr.

Qatar’s Foreign Minister Khaled Al-Attiyah said the trigger for the unrest was the marginalization of Iraq’s Sunni Arabs. He cited as examples the crackdown by security forces on peaceful protests by the minority community in April 2013 and January this year. “This has deepened the divide between the components of the brotherly Iraqi people,” Al-Attiyah said in comments reported by the official Qatari news agency late on Sunday.

“Nouri Al-Maliki is worse, and more dangerous, than ISIL and Al-Qaeda,” said columnist Abdul Rahman Al-Rashed. “He is a bad person who is ready to commit massacres to stay in power.”

Culture and Information Minister Abdul Aziz Khoja said the Cabinet also emphasized the importance of protecting and alleviating the suffering of civilians.

The Cabinet welcomed the final statement of the International Summit to Combat Violence in Conflict Zones held in London. It reiterated the Kingdom’s appeal to the international community to take measures, including passing legislation, to uphold the rights of women, and protect civilians in conflict zones. Such actions should be treated as crimes against humanity and perpetrators punished, the Cabinet said.

The Cabinet called for concerted international efforts to counter terrorism, which it described as the most serious challenge facing the world.

It stressed that the establishment of the rule of law, development, education, and dialogue were the most effective ways to eradicate the root of the problem, Khoja said.

The council reviewed the meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna, including its discussions on the state of the international oil market and decisions to maintain the current production ceiling until the end of the year.

Spelling out other Cabinet decisions, Khoja said it exempted the Makkah Trains Company from having to issue tenders for the work in the city. Competition would be limited to the companies that were initially invited and qualified. The contracts would be based on those adopted by the International Federation of Consulting Engineers, it said.

The Makkah Trains Company would manage the implementation of the project and submit its annual budget to the supervisory committee. The executive committee would oversee the budget.

The Cabinet authorized the head of the Youth Welfare Presidency to discuss with Korea a draft memorandum of understanding for sports cooperation. It also inducted four new members onto the board of directors of the Saudi Exports Development Authority (SEDA) for three years.

The Cabinet approved another bill to regulate the activities of female beauty parlors. Those running the parlors should obtain licenses from the municipality, which would be issued with the Commission for the Promotion of Virtue and Prevention of Vice, and Civil Defense.

The activities would be limited to activities related to the beauty industry. There would be strict control in terms of Islamic law. Females applying for licenses should be Saudi, and not younger than 25, except for those who have obtained a diploma in the field from a technical college. The licensed woman should commit to manage the shop by herself or appoint a full-time Saudi manager.

The Cabinet appointed Mohammad bin Saleh Almonas director general of the Department of Technical Affairs; Salman bin Abdulaziz Shuwaiheen director general of the department of expatriates at the Ministry of Interior; and Ali bin Abdullah Alhamda sector chief at the Ministry of Finance.

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Agencies
May 25,2020

Abu Dhabi, May 25: Dusty weather to persist in the UAE on Monday as well with a chance of rainfall in parts of the country, the national Met department reported.

According to the NCM, the weather today will be fair to partly cloudy, with a chance of some convective clouds formation by afternoon - eastward and northward - extending to some internal areas that may be associated with some rainfall.

The weather will get humid by night and Tuesday morning over some coastal areas.

NCM predicts a wet Eid break.

Sharjah Police issued a weather warning as heavy rain flooded roads in Sharjah's Kalba among other areas.

Moderate to fresh winds will gain strength during the day causing blowing dust and sand.

The sea will be slight to moderate in the Arabian Gulf and in Oman Sea.

Earlier on Sunday, a weather alert was issued by authorities as moderate to heavy rain - accompanied with hail - lashed parts of the UAE. A rainbow in Dubai skies cheered up residents, celebrating a unique Eid this year amid the coronavirus Covid-19 pandemic - by mostly staying home.

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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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Agencies
July 20,2020

Riyadh, Jul 20: Saudi Arabia's King Salman has been admitted to a hospital in the capital, Riyadh, for medical tests due to inflammation of the gallbladder, the kingdom's Royal Court said Monday in a statement carried by the official Saudi Press Agency.

The statement said the 84-year-old monarch is being tested at the King Faisal Specialist Hospital. The brief statement did not provide further details.

King Salman has been in power since January 2015. He is considered the last Saudi monarch of his generation of brothers who have held power since the death of their father and founder of Saudi Arabia, King Abdulaziz.

King Salman has empowered his 34-year-old son, Crown Prince Mohammed bin Salman, as his successor. The crown prince's assertive and bold style of leadership, as well as his consolidation of power and sidelining of potential rivals, has been controversial.

With the support of his father, Prince Mohammed has transformed the kingdom in recent years, opening it up to tourists and eroding decades of ultraconservative restrictions on entertainment and women's rights as he tries to diversify the Saudi economy away from reliance on oil exports.

The prince has also detained dozens of activists and critics, overseen a devastating war in Yemen, and rounded up top members of the royal family in his quest for power.

The Saudi king has not been seen in public in recent months due to social distancing guidelines and concerns over the spread of the coronavirus inside the kingdom, which has one of the largest outbreaks in the Middle East.

He has been shown, however, in state-run media images attending virtual meetings with his Cabinet and held calls with world leaders.

King Salman, who oversees Islam's holiest sites in Makkah and Medinah, was a crown prince under King Abdullah and served as defense minister. For more than 50 years prior to that, he was governor of Riyadh, overseeing its evolution from a barren city to a teeming capital.

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