Saudi Arabia vows retaliation if punished over ‘missing’ journalist

Agencies
October 14, 2018

Dubai, Oct 14:  Saudi Arabia warned on Sunday it would retaliate against any sanctions imposed on the oil-rich kingdom over the disappearance of journalist Jamal Khashoggi, as the Riyadh stock market suffered its worst plunge in years.

From tech tycoons to media giants, a host of Western companies are now distancing themselves from the Gulf state, imperilling Crown Prince Mohammed bin Salman's much-hyped economic reform drive.

US President Donald Trump threatened ally Saudi Arabia on Saturday with "severe punishment" if Khashoggi, who has been critical of Prince Mohammed, was killed inside its Istanbul mission.

But Riyadh vowed to hit back against any action against it.

"The kingdom affirms its total rejection of any threats or attempts to undermine it whether through threats to impose economic sanctions or the use of political pressure," an official source said, quoted by state news agency SPA.

He said Riyadh would "respond to any action with a bigger one", pointing out that the oil superpower "plays an effective and vital role in the world economy".

As investors took fright, Saudi stocks tumbled by around seven percent at one point on Sunday, wiping out their gains for 2018.

Business barons including British billionaire Richard Branson and Uber CEO Dara Khosrowshahi, as well as media powerhouses like Bloomberg and CNN, have pulled out of next week's Future Investment Initiative (FII) in Riyadh, dubbed "Davos in the desert".

Khashoggi, a Washington Post contributor, vanished after entering the consulate on October 2 to obtain official documents for his upcoming marriage.

Turkey on Saturday stepped up pressure on Saudi Arabia by accusing the kingdom of failing to cooperate with a probe into the journalist's disappearance.

Turkish officials have said they believe Khashoggi was killed inside the mission and claims have been leaked to media that he was tortured and even dismembered.

Saudi Arabia insists Khashoggi left the building safely and dismissed accusations that authorities had ordered his murder by a hit squad as "lies and baseless allegations".

The kingdom's Tadawul All-Shares Index (TASI) lost more than 500 points in the first two hours after trading resumed after the weekend, in panic selling similar reminiscent of the days after the global financial crisis in 2008.

It clawed back some losses by mid-session but was still down by 5.0 percent, the worst single-day drop in about three years, trading at a 10-month low of 7,167 points.

The index had already dropped 3.0 percent on Thursday, following a rout on world stock markets fuelled by worries about higher interest rates and US President Donald Trump's attacks on the Federal Reserve.

Mohammed Zidan, market strategist at Thinkmarket in Dubai, said the drop in Saudi stocks was the result of panic selling because of several political and economic factors.

"There has been a kind of uncertainty surrounding the situation of the disappearance of Khashoggi which has caused the market to fall," Zidan told AFP.

"The withdrawal of top participants from the Riyadh investment conference has also negatively impacted traders' sentiment," he said.

The pullouts have cast a pall on the annual summit at which Prince Mohammed wowed investors last year with talking robots and blueprints for a futuristic mega city.

The withdrawal of Uber's Khosrowshahi from the event is particularly symbolic as the kingdom's vast Public Investment Fund (PIF) has invested $3.5 billion in the ride-hailing app.

Branson, who dropped two directorships linked to Saudi tourism projects around the Red Sea, said claims about Khashoggi's disappearance would "change the ability of any of us in the West to do business with the Saudi government".

Global multinational corporations "see potential in a developing market like Saudi Arabia, but for many the reputational risk of being associated with FII outweighs the potential gains from the Saudi economy," said Michael Stephens, a Middle East expert at the Royal United Services Institute.

Washington lobbying firm Harbour group which represented the Saudi government, has also terminated its $80,000 per month contract.

"We (have) ended the relationship," Richard Mintz, managing director of the firm, told AFP.

The Saudi leadership faces "an acute public relations crisis" over Khashoggi's disappearance, said consultancy group Eurasia.

"The leadership will now have to manage a more serious threat to its economic liberalisation strategy," Eurasia said.

"At this point, Saudi Arabia will find it incredibly challenging to contain the emerging crisis."

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News Network
March 16,2020

Mar 16: A fourth batch of 53 Indians returned to India from Iran on Monday, taking the total number of people evacuated from the coronavirus-hit country to 389.

This comes a day after over 230 Indians were brought back from Iran to New Delhi and quarantined at the Indian Army Wellness Centre in Jaisalmer, the third batch to be evacuated from that country.

"Fourth batch of 53 Indians - 52 students and a teacher - has arrived from Tehran and Shiraz, Iran. With this, a total of 389 Indians have returned to India from Iran. Thank the efforts of the team @India_in_Iran and Iranian authorities," Jaishankar tweeted.

The Indians came in a Mahan Air flight that landed at the Delhi airport at around 3 am, officials said, adding that they were later taken to Jaisalmer in an Air India flight for being quarantined.

The first batch of 58 Indian pilgrims were brought back from Iran last Tuesday and the second group of 44 Indian pilgrim arrived from there on Friday.

Iran is one of the worst-affected countries by the coronavirus outbreak and the government has been working to bring back Indians stranded there. Over 700 people have died from the disease in Iran and nearly 14,000 cases have been detected.

Jaishankar had told Rajya Sabha last week that the government was focusing on evacuating Indians stranded in Iran and Italy as these countries are facing an "extreme situation".

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News Network
May 20,2020

Cairo, May 20: A senior Kuwaiti lawmaker has called for imposing a tax on expatriates’ remittances to shore up the country’s finances.

MP Khalil Al Saleh, the head of the parliament’s Human Resources Committee, has presented a draft law on the proposed tax to the legislature.

“Imposing fees on expatriates’ transfers will have a role in improving the state's revenues and diversify sources of income,” he told Al Rai newspaper.

Migrant workers transfer about 4.2 billion dinars annually from Kuwait, he added, citing figures from Kuwait’s Central Bank.

“This system is in effect in most countries of the world and in more than one Gulf country. Expats there have not objected to it. Allowing this money to exit the country is very dangerous and has a direct effect on economy,” MP Al Saleh said.

“We do not target brotherly expats because imposing symbolic fees on financial transfers will not affect their money, but will have a positive effect on the state’s sources,” he said. “This has become a necessity after the money transferred outside Kuwait has reached 4.2 billion dinars annually without the state [Kuwait] making any benefit from this.”

Foreign workers make up 3.3 million of Kuwait’s 4.6 million population.

Several Kuwaiti public figures have recently pushed for redrawing the demographic imbalance in the country, accusing expatriates of straining health facilities and increasing the Covid-19 threat.

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News Network
January 22,2020

Jan 22: India's ranking in the latest global Democracy Index has dropped 10 places to the 51st spot out of 167 owing to violent protests and threats to civil liberties challenging freedoms across the country.

Prime Minister Narendra Modi's government has been criticized by rights groups and western governments after shutting off the internet and mobile phone networks and detaining opposition politicians in Kashmir.

Modi’s government has also responded harshly to ongoing protests against a controversial, religion-based citizenship law. Muslims have said their neighborhoods have been targeted, while the central government has attempted to ban protests and urged TV news channels not to broadcast “anti-national” content. Some leaders in Modi’s ruling party called for “revenge” against protesters. India’s score in 2019 was its worst ranking since the EIU’s records began in 2006, and has fallen gradually since Modi was elected in 2014.

The Economist Intelligence Unit’s 2019 Democracy Index, which provides an annual comparative analysis of political systems across 165 countries and two territories, said the past year was the bleakest for democracies since the research firm began compiling the list in 2006.

“The 2019 result is even worse than that recorded in 2010, in the wake of the global economic and financial crisis,” the research group said in releasing the report on Wednesday.

The average global score slipped to 5.44 out of a possible 10 -- from 5.48 in 2018 -- driven mainly by “sharp regressions” in Latin America, Sub-Saharan Africa, the Middle East and North Africa. Apart from coup-prone Thailand, which improved its score after holding an election last year, there were also notable declines in Asia after a tumultuous period of protests and new measures restricting freedom across the region’s democracies.

Asia Declines

Hong Kong, meanwhile, fell three places to rank 75th out of 167 as more than seven months of violent and disruptive protests rocked the Asian financial hub. An aggressive police response early in the unrest, when protests were mostly peaceful, led to a “marked decline in confidence in government -- the main factor behind the decline in the territory’s score in our 2019 index,” the group said.

In Singapore, which ranked alongside Hong Kong at 75th, a new “fake news” law led to a deteriorating score on civil liberties.

“The government claims that the law was enacted simply to prevent the dissemination of false news, but it threatens freedom of expression in Singapore, as it can be used to curtail political debate and silence critics of the government,” EIU analysts said.

China’s score fell to just 2.26 in the EIU’s ranking, placing it near the bottom of the list at 153, as discrimination against minorities, repression and surveillance of the population intensified. Still, in China “the majority of the population is unconvinced that democracy would benefit the economy, and support for democratic ideals is absent,” the EIU said.

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