Saudi Arabia affirms the only solution for Syria is a political one

Agencies
May 2, 2018

Jeddah, May 2: Saudi Arabia on Tuesday renewed its support for the Syrian crisis, saying the only solution is through a political route, during a meeting of the Council of Ministers chaired by King Salman.

The Cabinet stressed its support for alleviating the suffering of the Syrian people who are subjected to horrific war crimes.The Kingdom has sought international efforts to find peaceful solutions since the beginning of the conflict to spare the Syrian people the human tragedy they are experiencing today.

At the beginning of the Cabinet meeting, King Salman briefed the Council on the outcomes of a telephone conversation held with the President of Colombia, Juan Manuel Santos, and the results of his meeting with US Secretary of State Mike Pompeo and Director General of the World Health Organization Dr. Tidros Adhanom.

The Council was then briefed on a number of reports on regional and international developments and on the statement made by the Kingdom’s delegation at the High-Level Meeting on Peacebuilding and Sustaining Peace in the United Nations General Assembly. The delegation stressed that the basic pillars are building and maintaining peace and achieving justice. The statement also shed light on the Kingdom’s initiatives as part of its continuous efforts to resolve disputes peacefully, and to emphasized the necessity for the UN to play a more effective role in building and maintaining peace.

The Minister of Culture and Information, Dr. Awad Al-Awad, said that the Council of Ministers also discussed the outcomes of the Supporting the Future of Syria and the Region Conference in Brussels and announced the Kingdom’s donation of $100 million through the King Salman Center for Relief and Humanitarian Action.

The Cabinet expressed the Kingdom’s strong condemnation of the twin suicide bombings in the Afghan capital, Kabul, on Monday, reiterating the Kingdom’s solidarity with Afghanistan in its fight against terrorism and extremism. The ministers also extended condolences to the families of the victims, the government and the people, wishing them a speedy recovery.

Dr. Al-Awad said that the Council of Ministers has agreed to establish diplomatic relations between Saudi Arabia and the Principality of Monaco at the level of a non-resident ambassador and to authorize the Minister of Foreign Affairs or his deputy to sign a protocol.

The government also approved the flour mill production system, the food security strategy and the implementation plan.

Finally, the Cabinet decided to approve the Independent Schools initiative by transferring 25 public schools to the private sector. The supervisory committee for the education sector will implement this initiative in accordance with the provisions of the supervisory committees’ work rules for the target sectors.

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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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News Network
April 29,2020

Dubai, Apr 29: Saudi Arabia reported 1,325 new cases of coronavirus, bringing the total number of infections in the country to 21,402, the Ministry of Health announced on Wednesday (April 28).

Meanwhile, the ministry reported 169 recoveries today, with total recoveries in the kingdom at 2,953. There are 125 cases in intensive care.

The ministry also confirmed 5 deaths, bringing the total number of deaths in the kingdom to 157.

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News Network
April 18,2020

Apr 18: Taking a strong notice of Islamophobia on social media, Princess Hend Al Qassimi, a member of the royal family of United Arab Emirates, called out a series of tweets by a user named Saurabh Upadhyay.

Upadhyay had posted tweets attacking Muslims over the Tablighi Jamaat congregation held in March in Delhi that led to surge of coronavirus cases cases in India. He also gave into rumours of muslims ‘spiting on food’ to spread the virus.

Princess Qassimi shared the screenshots of his tweets and warned that those engaging in racism and Islamophobia will have to pay penalty and will be made to leave UAE. Upadhyay has apparently deactivated his Twitter handle now.

Responding to his earlier posts, she though the ruling family of UAE is “friends with Indians”, his rudeness was “not welcome”.

“All employees are paid to work, no one comes for free. You make your bread and butter from this land which you scorn and your ridicule will not go unnoticed,” she wrote.

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