Mob riots at Indonesian Consulate in Saudi Arabia

June 10, 2013

Mob_riotJeddah, Jun 10: Rioting Indonesian expatriates set fire to a part of their consulate in Jeddah's Rehab district on Sunday in an attempt to force their way in, officials said.

Eyewitnesses said the rioters, who were among thousands of Indonesian expatriates seeking to correct their status as illegal foreign workers, were apparently frustrated by the long wait to get their cases resolved.

Several people were reported injured as the mob set fire to wood, furniture and other combustible material at the entrance of the consulate, sending flames several meters high and dark smoke billowing well into the late evening sky.

As the fire burned, the mob surged close to the consulate walls while several individuals attempted to fan the flames in an effort to burn down the building.

Several injuries were reported, but details were still unavailable.

An Agence France Presse report, quoting an unnamed consulate staff, said one woman died as a result of the fire.

“Some of them lit a fire near the walls of the consulate seeking to enter by force, but leading to the death of a woman,” the source said.

Police confirmed only that a fire had left some people injured, without mentioning any fatality.

Indonesian Ambassador Gatot Abdullah Mansyur told Arab News that all the consulate's staff were safe. “We are still checking if there’s any casualty or how many workers were injured,” he said.

Civil Defense crews, police, special forces and Red Crescent ambulances descended on the scene in an attempt to restore order as men and women chanted angry slogans against consulate officials cowering inside.

Police officers, with arms folded, stood guard outside the consulate entrance. Roads leading to the consulate were sealed off.

At about 9 p.m. the fire was still raging. But firefighters of the Saudi Civil Defense Department later managed to bring the fire under control before it could spread to the consulate building.

The action was “limited to the walls of the compound and did not touch the offices,” said the consular source.

Before the fire, frustrated workers threw stones at the consulate, witnesses said.

The incident followed a stampede on Saturday when Indonesian women stormed the consulate. At least three women were seriously injured and scores received minor bumps and bruises. Several women had fainted.

The Indonesian diplomatic missions in the Kingdom are among those swamped with undocumented nationals trying to meet the July 3 deadline set by the host government for “illegals” to rectify their visa status.

The confrontation between expatriates, police and consulate officials stemmed from Indonesian workers’ frustration over long delays and alleged lack of organization at the consulate.

“We have been having problems with the consulate ever since we arrived two days ago,” said one Indonesian housemaid, who did not want to have her name published. “Yesterday I fell down and got hurt because the consulate didn’t know what they were doing and couldn’t control the crowd.”

Another Indonesian, who said he works in construction, complained that he could never get inside the consulate to legalize his status, while his co-worker wanted to finalize his travel documents.

“Believe me, now I just want to go home,” the construction worker said.

Workers without proper papers are becoming increasingly concerned as violators of the immigration rules in the Kngdom will face penalties when the amnesty period ends on July 3, with punishment including imprisonment up to two years, and fines up to 100,000 riyals ($27,000).

According to official statistics, eight million expatriates work in the kingdom. Economists say there are another two million unregistered foreign workers.

Saudi Arabia is aiming to create job opportunities for its own unemployed by cutting the number of foreign workers, although many of those are in low-paid jobs that Saudis would not accept.

The world’s largest oil exporter is a goldmine for millions of people from poor Asian and Arab countries that are reeling under high levels of unemployment.

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News Network
March 26,2020

Riyadh, Mar 26: The video summit of the G20 leaders slated for Thursday will unite the global response to the coronavirus pandemic, Saudi Arabia's King Salman said.
"As the world confronts the COVID-19 pandemic and the challenges to healthcare systems and the global economy, we convene this extraordinary G20 summit to unite efforts towards a global response. May God spare humanity from all harm," tweeted King Salman, who will chair the summit.
The summit will be held today via video conference with an aim to advance a coordinated global response to the COVID-19 pandemic and its human and economic implications, the Kingdom had said yesterday in a statement.
India is a member nation of the G20 group. Prime Minister Narendra Modi, who will take part in the summit, said that the Group of 20 (G20) has an important role to play in the fight against coronavirus.
He said: "The G20 has an important global role to play in addressing the #COVID19 pandemic. I look forward to productive discussions tomorrow at the G20 Virtual Summit, being coordinated by the Saudi G20 Presidency."
The other members of the group include Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, the Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, the UK, the US, and the European Union.
Several international organisations -- including the United Nations, World Bank, the World Health Organization and the World Trade Organization will take part.

Leaders from the Food and Agriculture Organization, the Financial Stability Board, the International Labour Organization, International Monetary Fund, the Organization for Economic Cooperation and Development -- will also be the part of the conference.

Regional organisations will be represented by: Vietnam, the Chair of the Association of Southeast Asian Nations (ASEAN); South Africa, the Chair of the African Union (AU); the United Arab Emirates, the Chair of the Gulf Cooperation Council (GCC); and Rwanda, the Chair of the New Partnership for Africa's Development.

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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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News Network
March 11,2020

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

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