CAMEL BEAUTY FESTIVAL - Riyadh

Issue 68 March 2018

CELEBRATING CAMEL ANCIENT BEAUTY PEDIGREES

FESTIVAL

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Editorial

The Diplomat Issue 68 March 2018

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A KINGDOM IN CONSTANT DEVELOPMENT

Adel Al-Jubeir Foreign Minister

audi Arabia has some 30 million residents including expats. A majority are young. The country has vast natural resources including metal and oil, as well as huge financial resources. It has first-rate infrastructure and a stable government, a privileged geographical position and friendly relations with states around the world. The Kingdom has been known for taking balanced and realistic positions in both its domestic and foreign policy. If the Kingdom has had one constant throughout its history, it is that it lives in a constant state of change. It is a tribal country that has been transformed into a modern state. In a single generation, it has been able to make a quantum leap in a way few states have managed. Saudi women have become more prominent in the life of the country, making their mark in medicine, engineering, law and pioneering business. They enjoy ever more opportunities and now have rights that they never had before. The evolution of society is in full swing, as in many countries - for example, the United States, one of the world’s pre-eminent democracies, where women nonetheless were unable to secure the vote until more than a century after independence. They could not be elected to congress for a further century. I am not saying that such developments need 100 years to pass, but rather that patience is required in such matters. In the year 1960, women’s education simply did not exist in Saudi Arabia. Today, women make up 55 percent of the university student population. When we look at the big picture, we see that the Kingdom is advancing decisively, developing in every aspect. I have mentioned social and economic changes the country is witnessing. We are also seeing developments on the political level. We have a stable government, but we have worked to develop government institutions and judicial authorities. Women make up a fifth of the membership of the Shoura Council. We have also set up human rights and civil society groups. These achievements are just the beginning: there is nothing standing in the way of progress, and we have no ambitions beyond the borders of our country. We have what we need in terms of land, residents and resources. We are fully focused on domestic development, the advancement and prosperity of our people. We are working to bring security, peace and stability to our region and to the world. This is the central aim of our policies.

Content

THE DIPLOMAT ISSUE 68 March 2018

ISSUED BY Prince Saud Al Faisal Institute for Diplomatic Studies

GENERAL SUPERVISOR Dr. Nizar Bin Obaid Madani Minister of State for Foreign Affairs

DIRECTOR GENERAL Dr. Abdallah Al Salamah Prince Saud Al Faisal Institute

18 SAUDI-IRAQ RENEWED RELATIONSHIP CORRESPONDENCE TO BE SENT TO: The Diplomat Magazine P.O. Box 51988, Riyadh 11553 Saudi Arabia Tel. (01) 2199563 Fax. (01) 2011186 E-mail: [email protected]

DISCLAIMER Opinions expressed in the magazine do not necessarily express the viewpoints of the Ministry of Foreign Affairs nor the Institute of Diplomatic Studies.

ISSN 1658-5879

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TURKISH PM VISITS RIYADH

IRAN TURMOIL IN THE STREETS

While they cooperated on some regional issues, they took different stances on some other regional problems. Considering the increasing regional instability and chaos, the two countries are destined to cooperate with one another.

A few hundred demonstrators gathered in the northeastern city of Mashhad and several other towns on December 28 to protest high living costs.

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INTERVIEW WITH CEO OF THYSSENKRUPP GERMANY

CRYPTOCURRENCY BITCOIN BUBBLE

WORLD CHESS TILT HOSTED IN RIYADH

Dr. Feldhaus is the new Chief Executive Officer of the thyssenkrupp Industrial Solutions (Global), which is currently building the largest cement plant in Saudi Arabia. Dr. Feldhaus has outstanding strategic skills and experience in various sectors.

As Charles Kindelberger showed in his classic historical survey Manias, Panics, and Crashes, speculative bubbles and subsequent crashes sometimes lead to post-crash depressions.

Arabic coffee was continuously served to eager visitors. Female chess players were not required to wear abayas, but opted to wear black or navy suits.

Letters to the Editor Saudi Specialized Publishing Company P.O. Box 65701 Riyadh 11566 Saudi Arabia Tel. 00966 11 2128005 Fax. 0966 11 4401367 [email protected]

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National Affairs

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KING SALMAN VOWS TO BATTLE CORRUPTION IN SHOURA SPEECH Custodian of the Two Holy Mosques King Salman has pledged to tackle graft with “justice and decisiveness” as the Kingdom pushes ahead with its ambitious Vision 2030 reforms.

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ing Salman has expressed his government’s determination to tackle graft and boost the private sector so it can be an effective partner in the country’s development. Addressing the Shoura Council in a televised speech on December 13, 2017, the King said his government is determined to direct its foreign policies towards serving Arab and Islamic causes. He also referred to the importance of Saudi Arabia's custodianship of Islam's two holiest sites.

“Your state was founded on the Holy Quran and the Sunnah of the Prophet (PBUH) and honored with the service of the Two Holy Mosques and their visitors,” he told the council. On the country’s economic situation, King Salman said “the process of development and growth has continued in a rising pace, despite the international economic fluctuations.” The king’s annual speech is the official start to the proceedings of the Shoura Council, setting the Kingdom’s position

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on current issues and defines goals that the state aspires to achieve over the next year related to industrial, political, economic and social priorities. Here are excerpts from his address: “I am pleased to inaugurate the works of the second year of the seventh session of the Shoura Council today, praying to Allah Almighty to make our works sincere and help us for the interests of the homeland and its citizens, appreciating the Council's efforts and works, wishing you all success. The Kingdom since its foundation by late King Abdulaziz has applied Sharia, adhered to the Islamic religion and justice in all matters, and adopted the principle of Shoura (consultation). We praise Allah for all blessings, and thank Him for honoring us with the service of the Grand Holy Mosque, the Prophet's Holy Mosque, and Allah's guests of pilgrims, Umrah performers and visitors. As the Kingdom's vision 2030 includes developmental plans and programs aiming at preparing the Kingdom for the promising future and for achieving the vision's objectives, some government agencies have been restructured and a number of decisions have been taken to serve the interests of the society, strengthen the homeland's security, combat corruption, and increase the participation of male and female citizens in the national development. We appreciate the role of the private sector as an important partner in development, its support for the national economy, expanding in employing the homeland's male and female youths, and localizing the industry and will continue to empower the private sector and stimulate it to achieve further growth and development. I have directed ministers and officials to facilitate procedures, provide further services of high quality for male and female citizens, expand in a number of programs affecting main needs of citizens, notably the most important one is the housing program.

Corruption, in all its kinds and forms, is a severe lesion that undermines societies and prevents their development and growth, and we are determined to confront it in a fair and firm way so that our country enjoys the renaissance and development hoped for by every citizen. In this context we ordered to form a supreme committee for public corruption issues under the chairmanship of His Royal Highness Crown Prince, and we praise Allah that those corrupted are few. And what they have made does not prejudice the integrity of honorable citizens of this country of princes, ministers, businessmen, employees, and workers at all levels, and in their various positions of responsibility in public and private sectors, as well as residents of workers and investors, whom we are proud and wish them all success. Your country seeks to develop its present, build its future and move forward on the track of growth, modernization, and

continuous development, in a way that does not contradict our principles, adhering to moderation as a way and approach just as Allah commanded us to do so, we are proud of our values and constant fundamentals. Our message to all is that there is no place between us for an extremist who sees moderation as degeneration and exploits our tolerant religion to achieve his goals, and there is no place between us for a degenerated one who sees our war on extremism as a means of disseminating decadence and exploits the facilitations of the religion to achieve his goals. We will hold accountable anyone who exceeds that. We are the protectors of the religion and honored by Allah Almighty with the service Islam and Muslims, praying to Allah Almighty to crown us with all success. The Kingdom plays an effective role at regional and international organizations and enjoys a global and regional respect that enabled the timely convening of

National Affairs

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Corruption, in all its kinds and forms, is a severe lesion that undermines societies and prevents their development and growth, and we are determined to confront it in a fair and firm way so that our country enjoys the renaissance and development hoped for by every citizen.

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historical summits in which many leaders of the brotherly and friendly countries participated and established a joint action aimed at achieving security and stability in the region and the world. The Kingdom has continued its pioneering and effective role in combating phenomenon of terrorism and drying up its sources. The Kingdom called for a political solution for the crises in the region and resolve its issues, topped by the Palestinian Cause and restoration of the Palestinian people's legitimate rights, including the right to establish their independent state which East Jerusalem as its capital. On this occasion, I would like to reiterate the condemnation of the Kingdom and its deep regret of the US decision on Jerusalem which represents a blatant bias against the historic rights of the Palestinian people in Jerusalem, which have been guaranteed by the relevant international resolutions and

have been recognized and supported by the international community. Meanwhile, the Kingdom is working with its allies to confront the tendency of interference in the countries’ internal affairs to fuel sectarian strife and undermine regional security and stability. The Kingdom seeks to consolidate the values of tolerance and coexistence along with its effort for lifting the suffering of peoples.” Positive Reactions Before the king's speech, the Speaker of the Shoura Council Dr. Abdullah AlSheikh addressed the council. “In terms of foreign policy of the Kingdom, the Palestinian cause still occupies an important focus in the Kingdom's policy while the Kingdom's efforts continued to support Syrian and Yemeni peoples and getting them rid of their crises,” he said. Dr. Hanan Al-Ahmadi, a Shoura Council member, said the speech reflected the Kingdom’s strong stance on Jerusalem. Dr. Ferdous Al-Saleh, another council member, remarked: “The king focused on the benefits and interests of Saudi citizens through housing and he also made it very clear that the government supports the private sector.” “He touched on the issues that we really care about, one of which is obviously women’s empowerment. I think that the understanding of the effectiveness of women within society was very clear in his speech,” said another Shoura Council member Dr. Hoda Al-Helaissi. Al-Helaissi said: “The king is, and always will be a father figure and that is why, whenever he comes to the Shoura (Council), and whenever we see him at social events, it strikes a chord with everybody. Whenever we see him it is like seeing your father; you’re seeing the hope he has for his people. That feeling of pride and nationalism is epitomized within him.”

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© Project Syndicate 2017


Report

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CYPRIOT PRESIDENT VISITS TO STRENGTHEN TIES WITH GULF COUNTRIES President Nicos Anastasiades of the Republic of Cyprus visited Saudi Arabia in January to push for stronger political and economic ties with Gulf countries

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audi and Cypriot leaders met in Riyadh in January for wide-ranging talks that added a new dimension to ties between the Mediterranean island and the Gulf. Custodian of the Two Holy Mosques King Salman hosted Cypriot President Nicos Anastasiades at the al-Yamamah palace in the first official visit of a Cypriot president since the establishment of the Republic in 1960. “The talks focused on a range of key regional issues that have been hampering peace and security in the Middle East,” said Cypriot ambassador Nikos Panayi. President Anastasiades was officially welcomed by King Salman at a special ceremony with military honours and national

anthems. The two leaders attended an official lunch banquet hosted by King Salman in honor of President Anastasiades. Panayi said the leaders signed three agreements including one that will see them hold periodic political consultations. The MoU will make provision for regular consultations between the foreign ministries of the Kingdom and Cyprus, boosting political cooperation and enhance coordination, he added. They also signed a deal on double taxation avoidance and preventing tax evasion between Cyprus and Saudi Arabia. The agreement applies to income tax and on income from the transfer of movable or

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immovable property and is based on the OECD Model tax convention. The treaty covers different areas in the financial sector of each of the two countries. In the case of Cyprus, it applies to corporate and personal income tax, defense tax and capital gains tax. In regards to Saudi Arabia, the treaty covers the Zakat and the income tax, including the natural gas investment tax. With regard to dividends, the treaty provides that the withholding tax is 5%, but no withholding tax will be applied to cases where there is at least a 25% participation by a company that is tax resident in the receiving jurisdiction. Upgrading and expanding the network of Double Taxation Conventions is of high economic importance and aims to further strengthen Cyprus as an international business centre. Boosting transport links The Cyprus ambassador added that “an executive program for cooperation was inked by the state-owned General Authority of Civil Aviation and the Cypriot Ministry of Transport.” This will eventually help to boost transport links between the two countries. During his stay in Riyadh, President Anastasiades also met with Abdullatif Al-Zayani, Secretary-General of the Gulf Cooperation Council (GCC), and discussed important regional and international subjects of common concerns. Nicos Christodoulides, a spokesman for the Cypriot president, said that the talks with GCC chief focused on “the need to strengthen the EU's relations with the countries of the region, for which the Republic of Cyprus can and has the will to play a major role.” Christodoulides said King Salman and Anastasiades “also discussed security issues, fighting terrorism, regional relations, how the developments in our region are evolving, and of course the relations between Saudi Arabia and the Gulf countries in general.” He said that “the historic visit of the President Anastasiades to Saudi Arabia fulfills one of the main objectives of Cyprus's

foreign policy to strengthen its relations with the Gulf countries.” The spokesman described as important the agreements signed between the two countries, noting that “the agreement on political consultations between the Foreign Ministries provides for consultations twice a year to discuss issues of common interest.” He added that "there is an interest in Saudi Arabia on energy issues and this visit is the beginning of a new period in our relations.” At a special ceremony, the Cyprus president was awarded “Exceptional Offer Medal” to Honorary Consul of the Republic of Cyprus to Mohamed Abdulkader AlFadl for his services and for promoting relations between the two countries. Christodoulides said that following the opening of the Cypriot diplomatic mission in Riyadh, and the accreditation of the ambassador of Saudi Arabia to Cyprus, “now our relations have reached a new level and addresses one of the main pillars of our foreign policy, to strengthen our relations with the Gulf countries.”

President Anastasiades met with Abdullatif Al-Zayani, Secretary-General of the Gulf Cooperation Council (GCC), and discussed important regional and international subjects of common concerns. Officials stressed the importance of the agreements signed between the two countries, particularly the one on political consultations between the foreign ministries of the two countries, which would provide for the existence of consultations twice a year to discuss issues of common interest. Energy issues were also discussed. Other topics that came up for discussion were security and the fight against terrorism, regional relations, and the need to strengthen the EU’s relations with countries in the Gulf “something for which the Republic of Cyprus can and is willing to play an important role”, Christodoulides said. “This visit is the beginning of a new era in our relations with Saudi Arabia.”

Saudi - Turkey Relations

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TURKISH PM’S RIYADH VISIT REFLECTS WARMING TIES Turkey and Saudi Arabia, regional heavyweights long at odds over regional issues, have built closer ties in recent years, with both sides reaping significant rewards. Turkish Prime Minister Binali Yildirim’s visit to Riyadh marked a new stage in ties.

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audi Arabia and Turkey are key countries for lasting peace and stability in the region.” That was the message of Turkish Prime Minister Binali Yildirim during a visit to Riyadh in December. Cooperation between the two countries is "essential for regional and global peace," he said after talks with Saudi King Salman and Crown Prince and Defense Minister Prince Mohammed bin Salman in Riyadh. The leaders reviewed bilateral relations, means to enhance them and the latest regional developments during their talks

at Al-Yamamah Palace in Riyadh. The talks were attended by Riyadh’s governor, various Saudi ministers and the chief of general intelligence. “Prime Minister Yildirim’s meeting with King Salman was very successful,” Erdogan Kok, Turkish ambassador in Riyadh, said after the closed-door meeting. “They reviewed bilateral relations, exchanged views on further enhancing cooperation and confirmed that the Saudi-Turkish relationship is going well in all fields with close ties, and the relationship is developing rapidly.”

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The two agreed to increase trade relations and mutual investment, he said, adding that Turkish businessmen are very interested in the Saudi market and work on new projects in line with Vision 2030. The two leaders also discussed political issues and the latest regional and international developments of mutual concern. They agreed that the two sides share common views on many issues in the Middle East, Kok said. Agence France Presse (AFP) quoted Yildirim’s office in Ankara as saying that the officials discussed the status of Jerusalem, following US President Donald Trump’s controversial recognition of the city as capital of Israel in violation of international law and decades of diplomatic precedent. “The importance of the status of Jerusalem was emphasised and that the whole Islamic world should act with unity to protect the rights of our Palestinian brothers,” his office said. King Salman and the Turkish premier, after their talks, agreed on the necessity of taking a common stance to protect the Palestinians' rights, according to prime ministerial sources. The two discussed the Palestinian struggle and its perception in Muslim countries. Riyadh, a close U.S. ally, and NATO member Ankara have both slammed U.S. President Donald Trump's decision to upend decades of careful Washington policy. They also agreed that the Muslim countries should take a common stance on the protection of the rights of the Palestinians. The state-owned Saudi Press Agency (SPA) said King Salman received Prime Minister Yildirim in Riyadh and discussed "means of boosting bilateral ties and developments in the region," without providing details. "The importance of the status of Jerusalem was emphasized and that the whole Islamic world should act in unity to protect the rights of our Palestinian brothers," Yildirim said. On Dec. 6, U.S. President Donald Trump announced his decision, despite worldwide opposition, to recognize Jerusalem as Israel's capital and relocate Washington's embassy from Tel Aviv to Jerusalem. After the decision, the U.N.'s 193-member General Assembly

While they cooperated on some regional issues, they took different stances on some other regional problems. Considering the increasing regional instability and chaos, the two countries are destined to cooperate with one another.

adopted a resolution on Jerusalem by an overwhelming majority, calling on the U.S. to withdraw its recognition of the city as Israel's capital. Historical, religious partnership The officials also discussed bilateral relations as well as the deep-rooted historical and religious ties between Turkey and Saudi Arabia. Turkey and Saudi Arabia are two significant regional players in the Middle East. Although they share many commonalities, bilateral relations between the two countries were traditionally cool. The first visit to Turkey by a Saudi king was in 2005. After the end of the Cold War and dramatic changes in the global and regional order, the two countries initiated a new phase in relations. This shift in policies ended up with rewarding results for both Turkey and Saudi Arabia, both shaken since the Arab uprisings of 2011. While they cooperated on some regional issues, they took different stances on some other regional problems. Considering the increasing regional instability and chaos, the two countries are destined to cooperate with one another. They share common grounds regarding many regional and global issues. Turkey and Saudi Arabia can easily cooperate on many regional issues. They can and should work together to lead Muslim countries toward a solution for Jerusalem. They share common interests in saving Iraq from Iranian influence, since both countries want less, and if possible no, Iranian influence in Iraq. They both want the end of Iranian-backed Bashar Assad in Syria, as they have been, at least rhetorically, supporting the Syrian opposition in the Syrian civil war.

Both Turkey and Saudi Arabia have been supporting the Islah Party and the government of President Abdurrabuh Mansur Hadi in Yemen against the Houthi militias supported by Iran. Additionally, Turkey and Saudi Arabia share common interests to improve their bilateral relations considering that both countries will benefit from further cooperation in economic, cultural, political and security areas. Their complementary economic structures allow them to improve relations, especially in trade, direct investments and defense industries. Furthermore, Turks are the second-largest group visiting the holy cities of Makkah and Medinah at times other than the hajj. Work still to be done What can be done to improve bilateral relations further? First of all, Turkey needs to persuade the Saudis that Ankara is not too close to Iran. Furthermore, as a neutral country, Turkey does not want the acceleration of the conflict between Tehran and Riyadh. The more they postpone the normalization, the less are the chances for Turkey and Saudi Arabia to contribute to regional stability. Third, Turkey and Saudi Arabia should pursue a regional policy to contribute to regional stability, not to regional chaos. For instance, both should contribute to the normalization of the Libyan state. They should seek regional solutions for regional problems. While maintaining regional stability should be the first priority of all states, they should also be responsive to the needs of their people. Last but not the least, Turkey and Saudi Arabia must rescue and consolidate their bilateral relations. Turkey is still wed to the principle of gaining friends and minimising its conflicts in its neighbourhood. Its warming ties with Riyadh are a sign that this policy can work for the good of the region.

Janadriyah Festival

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INDIA HONOURED AT PRESTIGIOUS JANADRIYAH CULTURAL FESTIVAL By Ghazanfar Ali Khan

India's foreign minister was the guest of honour at this year’s Janadriyah Festival, the Kingdom’s most prestigious annual cultural event, which aims to showcase Saudi culture and build bridges with other nations.

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ndia’s External Affairs Minister Sushma Swaraj and King Salman inaugurated this year’s Janadriyah Festival in February, meeting at India’s pavilion to mark the first time the country has been guest of honour at the Saudi Arabia’s top cultural event. The honour at the National Heritage and Cultural Festival was in recognition of the strategic partnership, close ties and historical linkages between the two countries. Swaraj thanked Saudi Arabia for according the honor and recalled the landmark visit of Prime Minister Narendra Modi to Saudi Arabia in April 2016, which gave strong impetus to the bilateral partnership. She added that “this festival provides an opportunity to showcase and further build upon this relationship.”

The annual gathering is a cultural and heritage festival held in the village of Janadriyah near Riyadh, lasting for two weeks. It is organised by the National Guard. The first was held in 1985. Activities include a camel race, performance of local music and dancing of the Ardah and Mizmar folkloric dances. The festival draws more than one million visitors every year and today includes pavilions from other countries. The Indian Pavilion showcased the core values and traditions of India and presents a kaleidoscope of India’s vibrant culture through a colourful dance and music extravaganza. The section on “tradition” displays Yoga, Ayurveda, textiles and tourism, while a modern section shows off “Opportunities in India” such as the digital

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revolution, achievements in space and defense technologies as well as flagship programs like “Digital India” and “Make in India”. King Salman himself oversaw the opening ceremony of this year’s festival, the 32nd such event, which is part of a major initiative to generate awareness of Saudi history and heritage. Upon arrival at the venue, King Salman was received by the Minister of National Guard Prince Khaled bin Ayyaf, who is also chairman of the festival’s supreme committee; and Abdulmohsin bin Abdul Aziz Al-Twaijri, deputy minister of National Guard and deputy chairman of the committee. King Salman received senior officials from Kuwait, Oman, Bahrain and the UAE. Then the Saudi national anthem was played, and there was a grand camel race with prizes awarded by King Salman. Enhancing exchange The Janadriyah Festival “seeks to encourage our people to uphold values and heritage as well as enhance cultural exchange,” said bin Ayyaf. Started in 1985, it features a variety of activities including a horse race, sports, dance, arts, history, falconry, and traditional arts and crafts.

Organizers say they expect millions of visitors from Saudi Arabia and abroad. On the sidelines of the festival, King Salman received India’s Minister of Foreign Affairs Swaraj, who also thanked the King for ensuring welfare and well-being of large Indian community in Saudi Arabia. Saudi Ambassador to India Dr. Saud Mohammed Al-Sati, said: “India’s participation in Janadriyah as a guest country reflects the excellent cordial ties between the two nations. India and Saudi Arabia have historic and friendly relations… and the Kingdom, today, is home for about 3.2 million Indian nationals.” Speaking to ‘The Diplomat’, Al-Sati said that Saudi Arabia is India’s fourth largest trading partner — bilateral trade exceeded $25 billion in 2016-17. He described the festival as “a melange of living experiences,” including a camel race, equestrian shows, Saudi folklore, folk costumes, falconry, an art exhibition, as well as traditional arts and crafts such as pottery, weaving, woodwork, metalwork and leatherwork. Swaraj also held bilateral discussions with Saudi Foreign Minister Adel Al-Jubeir, during which the two sides took up a wide range of bilateral, regional and global issues of mutual interest.

The Indian Pavilion showcased the core values and traditions of India and presents a kaleidoscope of India’s vibrant culture through a colourful dance and music extravaganza. Swaraj reaffirmed India’s support for peace in the region and called for collective efforts in fighting the menace of terrorism. She called for taking the strategic partnership to a higher level and in a variety of sectors. She said that India’s flagship programs including ‘Make in India’, ‘Digital India’ complement well with ‘Vision 2030’ launched by Saudi Arabia and invited Saudi investments in India. She also addressed a large gathering of Indian community on February 6 at the Riyadh-based International Indian School (IISR). A strong and vibrant Indian community of about 3.2 million forms the largest expatriate group in Saudi Arabia. Their positive contribution to the development of their host country has been an important element of bilateral ties. Saudi Arabia is also the fourth largest trading partner for India with bilateral trade exceeding $25 billion in 2016-17.

Interview

SAUDI ARABIA AND INDIA REAFFIRM STRONG STRATEGIC TIES

Over the past decade, the relationship between India and Saudi Arabia has grown stronger, attaining the level of a strategic partnership and incorporating more political, security and cultural contents. In fact, Prime Minister Narendra Modi’s visit to Riyadh in April 2016 further bolstered the bilateral relationship, laying the basis for strengthening ties and broadening the parameters of cooperation. In an interview with Ghazafar Ali Khan, Indian Ambassador Ahmad Mr Javed explains the progressive development of the Indo-Saudi relationship with special reference to the growing cooperation in the fields of trade and investment, energy, defense, security and cultural interaction.

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he Diplomat: Saudi Arabia shares an excellent history of relations with India; and both sides have seen many high-level visits during the last few years. How do you personally evaluate relations between the Kingdom and India in political, economic and cultural fields? Amb. Ahmad Javed: -India and Saudi Arabia enjoy cordial and friendly relations reflecting the centuries old economic and socio-cultural ties. Our modern day diplomatic ties were established after India’s independence from colonial rule in 1947. This was followed by high-level visits from both sides. The historic visit by King Saud to India in 1955, and prior to that Crown Prince Faisal’s preparatory visit; and the reciprocal visit by the first Prime Minister of Independent India Jawaharlal Nehru to the Kingdom in 1956, laid the strong foundation for our formal interactions. The visit of Prime Minister Indira Gandhi to Saudi Arabia in 1982 further boosted the bilateral relations. In the recent times, the historic visit of King Abdullah to India in 2006

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resulted in signing of 'Delhi Declaration' imparting a fresh momentum to the bilateral relationship. The visit provided the framework for cooperation in all fields of mutual Interest. The reciprocal visit by Prime Minister Dr. Manmohan Singh to Saudi Arabia in 2010 raised the level of bilateral engagement to 'Strategic Partnership' and the 'Riyadh Declaration’ signed during the visit captured the spirit of enhanced cooperation in political, economic, security and defense realms. Then, the visit of Custodian of the Two Holy Mosques King Salman Bin Abdulaziz, as the Crown Prince, to India in 2014 further' deepened the relations between our two countries. But, the recent visit of Prime Minister Narendra Modi to Riyadh from April 2-3, 2016 could be seen as a turning point in our growing engagement with Saudi Arabia. A joint statement highlighting the various

aspects of our relationship was also issued during the visit. The bilateral relationship anchored on the oil sellerbuyer interaction, and the presence of huge Indian diaspora in the Kingdom have further deepened and consolidated. Our strategic partnership, which is well reflected from the convergence of ideas and interests in bilateral and multilateral fora, opened newer avenues of cooperation in various sectors such as defense, counter-terrorism, investments, science & technology etc. On commercial front, Saudi Arabia is the 4th largest trading partner and a major pillar of India's energy security. India and Saudi Arabia guided by their steadfast leadership have embarked on an ambitious economic agenda. Both have lots of potential and opportunities. We look to tap the complementarities and assure development to both the sides. On the cultural front, the

recent notification of 'Yoga' under "Sports & Activities" by the Saudi authorities is expected to further enhance the cultural exchanges. Also, for the first time over the years, a 10-member Saudi music troupe participated in the 8th edition of International Music & Dance Festival in New Delhi in January this year. Overall, l can say, the future of Saudi-India relations look optimistic and bright, which is all set for a 'new strategic partnership’ in this new era. TD: India is the guest country at Janadariyah festival early next year? How do you see this gesture on the part of the Saudi government, which has invited India to be the guest country? Please provide your comments with special reference to the Indian participation in the festival. AAJ: India has been accorded the privilege of the "Guest of Honor' in the Janadriyah Festival 2018. On behalf

Interview

Saudi Arabia had been and continues to be a reliable source and pillar of India’s energy security. The recent production cuts by Saudi Arabia have led to Iraq becoming the top Supplier of crude to India in the recent months.

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of the government of India, and on my personal behalf, I extend our sincere thanks and gratitude to the Custodian of the Two Holy Mosques King Salman and Crown Prince Mohammad bin Salman for this gesture. We value this. This gesture is a vivid indication of the prominence assigned to India by the Saudi leadership, following the 'landmark visit’ of our prime minister to Riyadh in April, 2016. As we all know, Janadriyah is a prestigious festival of the Kingdom. I am really happy that Indian Minister of External Affairs Madam Sushma Swaraj participated in the inaugural ceremony of the festival. Swaraj also met with King Salman and had bilateral talks with Adel Al-Jubeir, foreign minister; on the sidelines of the Janadriyah festival. Indian embassy in cooperation with different Indian agencies put the best show possible representing our culture, tradition as well as our economic and industrial prowess. You can have the pleasure of visiting and viewing it during the festival.

Besides the Bollywood, various cultural performances, art and calligraphy displays at the Indian Pavilion in Janadriyah have been entertaining and enthralling our Saudi friends. TD: What is the prospect for further cooperation in the energy sector between the two countries? Saudi Arabia has been a reliable source for India’s energy requirements. Do you plan to take this relationship to higher levels as Iraq overtakes the Kingdom in terms of oil supplies to India? AAJ: Saudi Arabia had been and continues to be a reliable source and pillar of India’s energy security. The recent production cuts by Saudi Arabia have led to Iraq becoming the top Supplier of crude to India in the recent months. As you know, to keep up with the economic surge, the energy demand of India is on rise. The Indian government has been focusing on renewable energy. However, the crude oil forms the major chunk of our energy basket. The increasing crude demand is to

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be met by a stronger partnership between India and its oil and gas suppliers (and potential investors), most preferably Saudi Arabia; which has the most robust energy sector with potential to deliver. Net imports of crude oil have increased from 111.50 MTs during 2006-07 to 202.85 MTs during 2015-16. Saudi Arabia is the second largest supplier of crude to India after Iraq and it accounts for about 19% of our crude oil imports and also 29% of LPG. Imports respective/y. During 201617, India imported about 39.5 MMT of crude from Saudi Arabia. Saudi Aramco has recently opened its office 'Aramco Asia India Ltd' in India, which is expected to further strengthen the buyer-supplier relationship between the two sides to a strategic partnership in the hydrocarbon sector. Aramco can now formally engage in crude oil and LPG marketing, engineering & technical services, and other business development activities. President & CEO of Aramco H.E Amin H. Nasser has stressed that Aramco is determined at expanding and diversifying the business portfolio by creating a fully integrated business in India, involving entire value chain, covering everything from oil supply, refining, and marketing to manufacturing petrochemicals and lubes. To reiterate, India and Saudi Arabia are committed to elevate the existing buyer- seller relationship into a strategic partnership level in the near future. This partnership is backed by political will on the part of the two governments. In fact, several MoUs were signed during the visit of Prime Minister Modi to Saudi Arabia. Besides the joint statement issued during the 'landmark visit' Modi in April 2016, the highlights of the visit were the conclusion of six cooperation agreements and MoUs in diverse fields of common interest. That concerned authorities from either side are in constant touch with each other, and they are working on the modalities and implementation of the agreements.

TD: India and Saudi Arabia agreed to set up a $750 million joint fund to facilitate investments. What is the status of this fund as of now? AAJ: Bilateral discussions on setting up the Saudi-India investment fund to the tune of $750 million are underway. Few technical & practical issues exist and both the sides are working on to resolve those at the earliest. TD: India’s vibrant business sector have always been an attraction for MNCs. Are there some MNCs or giant Saudi companies looking forward to set up their base in India or some MoUs are likely to be signed in near future? AAJ: Indian economy remains the oasis of growth and stability in the global scenario. To put it in the World Bank's term, the 'global hotspot' is growing steadily at 7% with minor hiccups. The steady growth is further reinforced by a slew of internal economic reforms such as GST-single unified tax for the entire country, demonetization, investment conducive scenario etc. Underpinned by the economic credentials, several major MNCs see India as a land of potential opportunities and are keen ln investing in India. Saudi MNCs are no exception to it. Saudi Aramco has opened its office named 'Aramco Asia India Ltd' in Gurugram recently. As we all know that SABIC has also a huge presence in India. Besides, Saudi businessmen are aware of positive business sentiment in India and are exploring the range of options to invest in India. On the whole, India welcomes the world to explore economic opportunities our nation has to offer and we expect Saudi Arabia to be the foremost country to reap the benefits. TD: How many pilgrims will perform Haj during 2018? Has the quota been increased by the Kingdom for Indian pilgrims? How many Indian Muslims performed Haj in 2017?

AAJ: The Indian Government is yet to sign an agreement on the number of pilgrims performing Haj in 2018. The Haj quota for the Indian pilgrims has been increased in 2017 to 1,72,000 from 130,000. A total of 1,69,940 pilgrims performed Haj in 2017. We are grateful to the Saudi leadership for the increase in Haj quota, and also for the excellent arrangements made by the Saudi authorities and the assistance extended to ensure the comfort and security of the Hajis. TD: Saudi Arabia and India have been working closely in curbing the menace of terrorism regionally and globally. What kind of new measures taken by the two countries to boost counter-terrorism efforts? AAJ: Terrorism continues to be one of the most serious threats to the international peace and security; and it undermines the social and economic development of the nation. India condemns terrorism in all forms and manifestations. No cause or grievance can justify taking recourse to terrorism. India strongly condemns state sponsored cross-border terrorism and there could be no tolerance for states sheltering, training, arming or financing terrorists. The joint statement issued during the state visit of our Prime Minister Mr Modi to Riyadh in April 2016 reiterates the commitment of two leaders to strengthen cooperation in combatting terrorism both at the bilateral level and within the multilateral system of UN including working towards adoption of India's proposed comprehensive Convention on International Terrorism in the UN. It is satisfying that our two countries have growing cooperation in the fight against terrorism including exchange of information relating to terrorist activities.

Traveling Exhibit Saudi-Iraqi Ties

SPA

SAUDI ARABIA PLEDGES $1 BILLION FOR IRAQ RECONSTRUCTION On the directives of Custodian of the Two Holy Mosques King Salman and Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, Foreign Minister Adel Al-Jubeir announced the Kingdom’s allocation of $1 billion for Iraq reconstruction projects in addition to $500 million for financing Saudi exports to Iraq. Jubeir was participating in the Kuwait International Conference for the Reconstruction of Iraq under the patronage of Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah recently.

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everal governments, international agencies, donors and investors gathered in Kuwait recently to mull ways to rebuild Iraq’s economy and infrastructure as it emerges from a ruinous conflict with Islamic State militants who seized almost a third of the country before being beaten back. The Kingdom, as usual, was on the forefront of giving aid and

assistance to Iraq together with several of its allies. On behalf of Saudi government, the conference of donors in Kuwait was attended by Foreign Minister Adel AlJubeir. Speaking on this occasion, Al-Jubeir said: "We are required to exert efforts to support financing of projects for Iraq’s reconstruction…we would like to refer to

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the efforts culminating in the reopening of the new Arar crossing and resuming Saudi Arabian Airlines’ flights to Baghdad and Erbil, serving passengers and commercial traffic between the two countries.” “Establishment of the Saudi-Iraqi Coordinating Council is part of the two leaderships' efforts to consolidate bilateral relations to the desired level, in addition to opening new horizons of cooperation in the political, security, economic, development, trade, investment, tourism and cultural fields," he said. Al-Jubeir affirmed that cooperation in the fields of energy, industry and mining is one of the most important areas of cooperation between the two countries. In his speech, Kuwait Deputy Prime Minister and Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah said that the countries participating in Kuwait International Conference on Reconstruction of Iraq (KICRI) have pledged $30 billion altogether. Sheikh Sabah Al-Khaled said, in his speech at the closing session of the ministerial meeting, that this amount came as result of the participation of 76 countries, along with 51 international development funds, 107 local and international NGOs, in addition to 1,850 representatives from the private sector. In fact, Iraq received pledges of $30 billion, mostly in credit facilities and investment, from allies but this fell short of the $88 billion Baghdad says it needs to recover from three years of war. Donors and investors gathered in Kuwait to mull ways to rebuild Iraq’s economy and infrastructure as it emerges from a ruinous conflict with Islamic State militants who seized almost a third of the country before being beaten back. “If we compare what we got today to what we need, it is no secret, it is of course much lower than what Iraq needs,” Iraqi Foreign Minister Ibrahim AQl-Jaafari told a news conference. “But we know that we will not get everything we want.” The United States

and United Nations say that failure to help Iraq rebuild could unravel its gains against Islamic State since economic and social problems that bred sectarian conflict, creating political space for jihadists, would persist. For his part, U.N. Secretary-General Antonio Guterres called the conference “an enormous success”. Although the United States said it was extending a $3 billion credit line to Iraq, it has not provided any direct government assistance. It instead hoped it could count largely on Gulf allies to shoulder the burden of rebuilding Iraq. Saudi Arabia will provide $1 billion through its Saudi Fund for Development and $500 million in export credit, Foreign Minister Adel Jubeir told the conference. “Kuwait has earmarked $1 billion in loans to Iraq and will commit to another $1 billion as investments,” Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah said at the gathering. The United Arab Emirates pledged $500 million but added that there were $5.5 billion in private sector investments in Iraq. Turkey will give Iraq $5 billion in credit lines, Foreign Minister Mevlut Cavusoglu said, and other allies made smaller pledges. Those sums are dwarfed by the more than $88.2 billion that Iraqi officials have said would be necessary for reconstruction after years of war, with housing a particular priority. Officials say almost $23 billion is needed for short-term reconstruction and over $65 billion in the medium term. Iraq might have been unable to attract more pledges because due to its association with corruption, UNDP Administrator Achim Steiner told Reuters. Investors see Iraq as the 10th most corrupt country, according to Transparency International. Still, Steiner said, the amount pledged was significant. “Would you be better without the pledges made today? The answer is clearly no. Would you be better off if all of it was in the form of grants funding? Absolutely.” Iraq, which still owes Kuwait reparations from the 1991

Gulf War, declared victory over Islamic State in December, having taken back all territory the militants captured in 2014 and 2015. The group has been largely defeated in Syria too. But the fighting has been devastating - leaving thousands dead, millions displaced and almost 150,000 houses destroyed. Rebuilding homes, hospitals, schools, roads, businesses and telecommunications will be crucial to providing jobs for the young, reversing displacement, and putting an end to decades of political and sectarian violence. On the day of the conference in Kuwait, the United Nations launched a twoyear ‘Recovery and Resilience program’ designed to help Iraq’s government fast-track the social dimensions of reconstruction. “The program will ... help families when they return home to get back on their feet, provide specialized support to survivors ... of sexual and gender-based violence, people who survived injuries,” Lise Grande, the U.N. Humanitarian Coordinator for Iraq, told Reuters. She also cited a special program to promote community reconciliation in areas with strong sectarian tensions. Rebuilding Iraq after three years of war with Islamic State will cost more than $88 billion, with housing a particularly urgent priority, Iraqi officials told an international donors’ conference. The seven provinces attacked by the militants suffered $46 billion in direct damage, including the destruction of 147,000 housing units, and the security forces took $14 billion in losses. Tens of billions more were lost indirectly through damage to the wider economy and years of lost growth, the planning ministry said. Iraq has published a list of some 157 projects for which it is seeking investment. They include rebuilding destroyed facilities such as Mosul airport and new investments to diversify the economy away from crude oil sales, developing transport, agriculture

Traveling Exhibit Saudi-Iraqi Ties

Iraq has suffered from decades of war. It fought Iran for most of the 1980s and invaded Kuwait in 1990, leading to defeat by a U.S.-led coalition and more than a decade of sanctions. and oil-related industry including petrochemicals and refining. On the other hand, it is important to mention that nations could help by acting as guarantors with lenders, allowing Iraq to take out soft loans to fund infrastructure projects, Mahdi al-Alaq, SecretaryGeneral of Iraq’s Council of Ministers, told the conference. U.S. officials said the United States, which occupied Iraq from 2003-2011 and now leads an international coalition that provided air support against Islamic State, does not plan to pledge funds at the Kuwait conference. Lise Grande, U.N. Humanitarian Coordinator for Iraq, said failure to help Iraq could lead to renewed instability. “If the international community doesn’t help the government of Iraq to stabilize these areas (devastated by the war) the gains against Daesh could be at risk,” she said, using the Arabic acronym for Islamic State. Non-governmental organizations pledged $330 million in humanitarian aid at a parallel NGO conference, Kuwait’s state news agency KUNA reported. Baghdad has said it is determined to tackle the red tape and corruption that hamper investment. Iraq has suffered from decades of war. It fought Iran for most of the 1980s and invaded Kuwait in 1990, leading to defeat by a U.S.-led coalition and more than a decade of sanctions. A U.S.-led invasion in 2003 toppled dictator Saddam Hussein and was followed by years of occupation, insurgency and sectarian and ethnic conflict, before Islamic State emerged in 2014.

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António Guterres UN SECRETARY GENERAL STATEMENT I am delighted to be here with you today to discuss the reconstruction of Iraq, a country that has suffered so much and that has so much to contribute to the world. I thank the government of Kuwait for demonstrating, once again, its commitment to its neighbour. We are all grateful to the Amir for his role as a bridge-builder, an honest broker, and a source of support to countries in the region and around the world. The Amir’s generosity in hosting donor conferences for the people of Syria has helped raise billions of dollars for humanitarian efforts. Kuwait’s dedication to the humanitarian cause goes beyond Syria and Iraq to include Chad, Ethiopia, Kenya, Nigeria, Somalia and Sudan. Last year, Kuwait co-hosted a donor conference for Rohingya refugees and host communities in Bangladesh. Your contribution was rightly recognized by my predecessor, who designated the Amir a Humanitarian Leader and honoured the State of Kuwait as a Humanitarian Centre. Today, I would like to reiterate my appreciation and thanks. I would also like to congratulate the Government and people of Iraq on their victory against Daesh’s murderous campaign. I pay tribute to their determination and to their resilience in the face of unimaginable suffering. I wish Prime Minister Abadi every success in his efforts to build a cohesive, non-sectarian future for Iraq. Tens of thousands of Iraqis have lost their lives. Hundreds of thousands have lost their homes and livelihoods. Close to six million have been displaced.

Women and girls have been targeted for sexual violence on a staggering scale. Iraqis have made a massive national effort, providing 80 per cent of the humanitarian support needed for their fellow countrymen and women. Throughout the conflict, the Iraqi people never wavered from their legendary tradition of hospitality, as families and communities across the country opened their homes to those fleeing death and chaos. I myself have witnessed Iraqis who have nothing, but somehow find the resources to help others. Iraqis will never refuse to help a stranger in trouble. It sometimes seems that those who have the least, give the most to others. The United Nations, its governmental and non-governmental organization partners, and civil society have supported national efforts, reaching some two million people every month with aid. The international community will continue to stand with Iraq as it recovers from its national nightmare. The conflict created staggering levels of destruction. Schools, hospitals, roads and homes are still contaminated by unexploded ordnance and improvised explosive devices. Whole neighborhoods, even entire cities, are uninhabitable. The fighting has now stopped, but there is an enormous task ahead. Iraqis are building a new Iraq. We should all stand ready to support their efforts to build a country that is committed to unity and inclusivity at all levels and for all areas. An Iraq that is ready for wide-ranging reforms, including to its public finance and

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security sectors. The UN system will do its part and stands with you, every step of the way. Millions of displaced people have already returned home to rebuild their lives. But some 2.5 million people are still displaced. Helping them to return home safely and voluntarily, and with dignity, is one of Iraq’s highest priorities. The UN Development Programme’s Funding Facility for Stabilization is working in 25 cities and districts, supporting the return of displaced people to their homes, laying the groundwork for reconstruction and recovery. But we must and will do more. Today, I am delighted to launch the United Nations Recovery and Resilience programme for Iraq. This two-year programme is designed to help the Government fast-track the social dimensions of reconstruction. It aims to make immediate and tangible improvements to people’s daily lives, rather than the long timelines associated with major infrastructure projects and economic reforms. It will revitalize areas that are at risk of violence, and support broad political participation and inclusive social development. The Recovery and Resilience programme will help those who have suffered most. It will offer hope, and opportunity. Education, culture and heritage will also be key elements for successful reconstruction. UNESCO’s initiative to coordinate international efforts for the reconstruction of the Old City of Mosul deserves our full support. I urge all those here today to support both these initiatives politically, and with resources. Reconstruction and development programmes must go hand-in-hand with

a strategy to prevent the recurrence of violent extremism and terrorism in Iraq. This must include full respect for human rights, including political, civil, economic, social and cultural rights. There will be a major role for civil society. Counter-terrorist policies must address the factors that radicalize young people, including lack of education and opportunity. This requires national and international development programmes to prioritize training and jobs for Iraq’s young women and men. Women, girls and all those who step outside traditional gender roles have suffered terrible abuses in Iraq over recent years, from execution to torture and sexual slavery. We must continue offering them support to help them to heal. Iraq’s reconciliation process must also include accountability for the crimes that have been committed. Women must participate fully in decision-making on all political issues, from reconstruction to national reconciliation. I call on the authorities to fully implement Iraq’s National Action Plan on Security Council resolution 1325 on women, peace and security, as well as the Joint Communique on conflict-related sexual violence. National reconciliation and unity are a necessity. They are also an opportunity to address the causes of violent extremism. Success will require compromise for the greater good. That can only come through accommodating the interests of all parts of Iraqi society. Agreement must be based on citizenship, equal rights and opportunities for all. Iraq’s demographic diversity is a vital part of its rich history. All Iraqis share a remarkable past and a promising future. I am encouraged to see progress in the Baghdad-Erbil dialogue, and I hope that meetings between the federal Government and Kurdistan Regional government will continue and resolve outstanding issues. The Parliamentary elections scheduled for May will be key to Iraq’s unity, political stability, reconstruction and economic recovery. The participation of women, young people, minorities and civil society in the electoral process will be critical. Iraq and its people have survived great horror and pain. The whole world owes you a debt for your struggle against the deadly global threat posed by Daesh. It is time to demonstrate our lasting gratitude and solidarity with the Iraqi people. The United Nations, and the entire international community, stands with Iraq. Thank you.

Iranian Protests

IRAN CLAMPS DOWN AT HOME, SOWS TURMOIL ACROSS THE REGION While the Islamic Republic is busy sowing unrest from Yemen to Syria and beyond, it has cracked down on protests and stifled freedom domestically.

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ran’s revolutionary regime has been busily spreading its tentacles across the Middle East for decades, planting its proxies in Lebanon and Yemen and bolstering its ties with the savage dictatorship in Damascus. This poses a major threat to regional security and particularly to the Gulf states, key western allies and source of much of the world’s energy.

But while the West has been reluctant to challenge Iran’s building of armies of loyalist forces from Sanaa to Beirut, bolstered by Khomeinist fanaticism, the regime has increasingly faced demands from its own people, fed up with the sorry state of the country’s economy and their lack of political freedom. Protests hit dozens of cities over the new year, fuelled by economic grievances

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and the public’s increasing frustration with Iran’s involvement in regional conflicts whilst it ignores the needs of its own people. A few hundred demonstrators gathered in the northeastern city of Mashhad and several other towns on December 28 to protest high living costs. Videos on reformist media showed protesters focusing their ire on President Hassan Rouhani but there are also slogans lambasting the entire regime and Iran's meddling across the Middle East. The next day larger-scale protests flared up in more cities including religious centre Qom, where footage shows hundreds of demonstrators chanting "Death to the dictator" and "Free political prisoners". The security services responded with brutal force. By the time the protests subsided, they had left at least 21 people dead. All sides of the political spectrum accept that deep undercurrents of frustration driven by unemployment, high living costs and perceived corruption have turned Iran into a tinderbox. "People have had enough, especially the young people. They have nothing to be happy about," Sarita Mohammadi, a 35-year-old teacher in Tehran, told AFP. "People cannot afford to buy a house, to continue their education. They can no longer put up with the situation." Destablising region, ignoring citizens But protestors also chanted "Not Gaza, not Lebanon, my life for Iran" -a reference to anger in some circles that the government is focusing on the wider region rather than improving conditions at home. They have a point. Iran has put vast resources into battling its regional proxies. It has supported Yemeni Houthi rebels who have destablised their entire country and fired ballistic missiles into Saudi Arabia, throwing a lit match in the tinderbox of Saudi-Iranian relations.

Iran’s Mullahs have also supported the Syrian regime, seeing the survival of the Syrian government as being crucial to its regional interests. Iran’s supreme leader Ali Khamenei is vocally in favor of the Syrian government. When the country’s uprising developed into a civil war, there were increasing reports of Iranian military support and of Iranian training of the NDF (National Defense Forces) both in Syria and in Iran. Iranian security and intelligence services are advising and assisting the Syrian military in order to preserve Syrian President Bashar Al-Assad’s hold on power. Those efforts include training, technical support, and combat troops. By December 2013, Iran was thought to have approximately 10,000 operatives in Syria. Lebanese Hezbollah fighters backed by Iran’s government have taken direct combat roles since 2012. In the summer of 2013, Iran and Hezbollah provided important battlefield support for Assad, allowing it to make advances on the opposition. In 2014, coinciding with the peace talks at Geneva, Iran stepped up support for Assad. According to the United Nations envoy to Syria, Staffan de Mistura, the Iranian government spends at least $6 billion annually on maintaining Assad’s government. However, Nadim Shehadi, the director of the Fares Center for Eastern Mediterranean Studies at Tufts University, said that his research puts the actual number at $15 billion annually. From January 2013 onward, the powerful Iranian Revolutionary Guard Corps (IRGC) has lost more than 2,000 troops in Syria, reports said. More than 1,000 of the deaths have been Iranian soldiers, mostly officers, including several high ranking officials, notably generals. The reports added that the remaining deaths consist of auxiliaries recruited from Afghan and Pakistani immigrants inside Iran, who joined the IRGC in

Protestors also chanted “Not Gaza, not Lebanon, my life for Iran” -- a reference to anger in some circles that the government is focusing on the wider region rather than improving conditions at home. exchange for salaries and citizenship, -- an arrangement similar to France’s Foreign Legion. Targeting Bahrain In Bahrain, a militant Shiite antigovernment protest movement has been hijacked by Iran for its own ends. Awardwinning journalist Baria Alamuddin writes, “In the years after 2011, I grew accustomed to receiving a condescending grimace from Western officials when I asked about Iranian terrorism in Bahrain.” Often this would earn her a lecture about “prisoners of conscience” and “rights to peaceful protest”, she said. But despite the Bahraini authorities’ efforts to reach consensus with opposition entities via dialogue, reforms and permitting licensed protests, there was a stiff refusal to countenance Iranian meddling in the Gulf and to recognize the militant and sectarian ideology of these Tehran-backed groups. “Today, not only has the mountain of evidence become incontrovertible, but the Trump administration has loudly denounced terrorist entities pursuing Iran’s agenda in Bahrain,” she said. The spotlight has since fallen on a previously unknown figure, Murtaza AlSanadi, who fled to Iran in 2012. Al-Sanadi is the effective leader of the terrorist group Al-Ashtar Brigades, responsible for a string of killings of policemen in Bahrain. Al-Sanadi recruited hundreds of impressionable young men, many radicalized while on a pilgrimage or religious study. Along with training by the Revolutionary Guard in Iran, numerous militants travelled to

Iranian Protests

The Hezbollah Brigades was also recently in the news as it sought to take receipt of half a billion dollars in ransom from 24 Qatari hostages kidnapped in 2015—the largest ransom in history.

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Iraq for training with the Hezbollah Brigades, an Iranian proxy fighting as part of Al-Hashd Al-Shaabi that is complicit in war crimes, including sectarian cleansing and mass summary executions. As dangerous as learning to build bombs is the poisoning of minds against Arab heritage and nationalism. Differences in religious belief between Shiites and Sunnis are tiny, yet these radicals are brainwashed into a culture of anti-Arab sectarian hatred. Western misconceptions on this issue are rooted in the post-9/11 belief that terrorism is a Sunni phenomenon. But while Daesh tends to flaunt its violent acts, Iranian proxies in Iraq, Syria, and elsewhere have been more discreet about the trail of blood they leave behind. It has been relatively easy for Bahraini militants to join bus-loads of pilgrims visiting Iraq and obtain training from the Hezbollah Brigades. Pakistan’s leaders recently protested Iran’s policy of recruiting and radicalizing

Pakistani and Afghan nationals for cannon-fodder in the Syrian conflict. During the 1980s Iran-Iraq war, Iraq used a similar tactic of battle-hardening Gulf militants on the frontlines, before sending them home to wage war. A number of prominent Bahraini militants even lost their lives in this fighting. This militarization of Bahraini radicals culminated in a 1981 coup attempt by an Iranian proxy, the Islamic Front for the Liberation of Bahrain. “The West may no longer be in denial about Tehran’s interference, but we seem little closer to a coherent strategy for halting its regional stranglehold by dismantling proxy militias and terrorist cells and wreaking havoc across the Arab world,” Alamuddin said. The Hezbollah Brigades was also recently in the news as it sought to take receipt of half a billion dollars in ransom from 24 Qatari hostages kidnapped in 2015—the largest ransom in history.

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Although the money (for now) has been impounded on the orders of Iraqi Prime Minister Haider Al-Abadi, the dangers of handing over such a huge sum to terrorists and war criminals are only too obvious. Given the Hezbollah Brigades’ support for Bahraini militants, this ransom money is in effect enabling terrorists to commit mass murder in a fellow Gulf Cooperation Council (GCC) nation, not to mention encouraging hostagetakers to strike again against high-value regional states. Population swaps Among the other catastrophic consequences of this hostage deal are Syrian population swaps. In 2016, it became widely known that Iranian proxies were lobbying hard for a deal that removed Sunnis from the towns of Madaya and Zabadani, between Damascus and the Lebanese border. Demographic engineering and

sectarian cleansing are war crimes. Parties enabling such measures should be conscious of their obligations and the consequences under international law. “Tehran’s motivations are clear: Controlling weapons convoys to Hezbollah and a contiguous territory reaching the Mediterranean,” Alamuddin said. “I speak to Syrians who exclaim that Iran is creating a ‘hundred Palestines’. Does anyone believe that Syrians will simply walk away from land that has been theirs for hundreds of years?” Militant Al-Sanadi, who uses Iranian media outlets to incite “holy war”, is one of many Arabs who have sold out their nations and declared their allegiance to the Mullahs. His designation as a “global terrorist” is belated recognition that when Iranian leaders threaten that the Fifth Fleet could be “razed to the ground”, they are not joking. A Washington Post report cites the seizure in Bahrain of “armor-piercing

projectiles capable of slicing through a tank”, C4 explosive “in quantities that could sink a battleship… that almost certainly originated in Iran.” Militants were building sophisticated explosively formed projectiles (EFPs), devices last seen being used by the Hezbollah Brigades against US troops in Iraq. In American politics, we are accustomed to policy U-turns every four to eight years -- or in Donald Trump’s case, from one day to the next. This makes the West ill-equipped to grapple with an Iranian strategy for regional dominance with the patience and tenacity to remain consistent over many decades. The West may no longer be in denial about Iran’s meddling, but we are little closer to a coherent strategy for halting its regional stranglehold by dismantling proxy militias and terrorist cells wreaking havoc across the Arab world.

Saudi-German Ties

SPA

GERMAN INDUSTRIAL GIANT ‘MAKING GOOD PROGRESS’ As German’s vast thyssenkrupp Industrial Solutions prepares to build the $1.12 billion Yamama Cement plant, The Diplomat spoke to its new Chief Executive Officer Dr. Peter Feldhaus. Dr. Feldhaus is the new Chief Executive Officer of the thyssenkrupp Industrial Solutions (Global), which is currently building the largest cement plant in Saudi Arabia. Dr. Feldhaus has outstanding strategic skills and experience in various sectors. He closely supported the realignment of thyssenkrupp’s business area Industrial Solutions, better management and customer-focused approach within the framework of the reform program called ‘Planets’. 26


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n the interview, Dr. Feldhaus, who was accompanied by Thomas Dreling, Chief Executive Officer of Thyssenkrupp Saudi Arabia Contracting Company Ltd.;

spoke about the growing presence of thyssenkrupp in the Kingdom in particular and in the Middle East and North Africa region in general. He also focused about the

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Saudization of workforce, thyssenkrupp’s plans to support Saudi Arabia’s Vision 2030 and the company’s internal transformation program called “planets”, which is designed to make this giant German company more efficient, innovative and far ahead of its peers in the world. As German’s vast thyssenkrupp Industrial Solutions prepares to build the $1.12 billion Yamama Cement plant, The Diplomat spoke to its new Chief Executive Officer Dr. Peter Feldhaus. Feldhaus spoke about the growing presence of thyssenkrupp in Saudi Arabia and across the MENA region, the Saudisation of the company’s workforce, and its plans to support Saudi Arabia’s Vision 2030. The Diplomat: What is the purpose of your current visit to Saudi Arabia? Peter Feldhaus: First of all, the purpose of my visit is to meet our customers. The Kingdom of Saudi Arabia is specifically a key growth country for us, and hence it is important for me to acquaint myself with the Saudi business environment, talk to customers and also to government officials. Of course, it is also very important to me to meet our employees while I am here. TD: One of the most prestigious projects you have signed in Saudi Arabia is Yamama Cement Project. What stage is it at? PF: Yamama is the largest cement plant ever to be built in Saudi Arabia. We are making very good progress on the implementation of the project. Yamama Saudi Cement Company has appointed thyssenkrupp to build two turnkey cement production lines with a total capacity of 20,000 tons per day. The plants are being built at a new site about 80 km east of Riyadh. Our partnership with Yamama is built on a longstanding tradition and dates back many decades. We are delighted that Yamama is once again putting its faith in our comprehensive experience in the turnkey construction of complete cement plants worldwide. With our reliable, highly efficient technologies, we are profiting from infrastructure expansion in many growth regions and at the same time contributing to the conservation of valuable resources. thyssenkrupp Industrial Solutions

is carrying out the contract on an EPC (Engineering, Procurement, Construction) basis. Its scope of supply includes all components for the new lines, from raw material preparation to clinker manufacture to cement loading. The main components include two mobile primary crushers for limestone, three crushers for additives, two crushers for correctives as well as two circular blending beds for limestone, and various additive storage facilities. The new lines are scheduled to start operation in 2018. TD: How do you see your cooperation with Saudi Arabia in the context of the Vision 2030 reform programme? PF: The Vision 2030 is an interesting and fascinating set of framework. And thyssenkrupp Industrial Solutions can play a major role in it. We are much broader in terms of our product spectrum. Saudi Arabia has put more focus on mining, which is also an important specific part of the Vision 2030. Our experience in mining is unmatched and unparalleled. As one of the few full-

line suppliers worldwide, we are reliable partners to demanding customers, offering them tailored, cost-efficient and responsible solutions for mining, processing, handling raw materials. Our services include designing and building individual machines and complete installations as well as modernizing and upgrading existing systems. From low-cost standard machines to custom systems for extreme conditions - our solutions satisfy all requirements and create lasting value forp pour customers. To optimize our mining solutions, we use the high-precision, extremely robust radar technology, e.g. for positioning or for volumetric scans. TD: What other major projects is your firm currently working on in the region? PF: We have had several projects in the region. We have supplied mining equipment to the Ma’aden. We completed the Safwa project in Eastern Province of the Kingdom. In Egypt, thyssenkrupp Industrial Solutions will e.g. be building a nitric acid plant as

Saudi-German Ties

thyssenkrupp Industrial Solutions has a line of new technologies and services, which are designed to drive efficiency and competitiveness in the downstream industry in the Middle East

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well as an ammonium nitrate plant for Abu Qir Fertilizers. The project will start by the beginning of next year, and the contracts will be concluded soon. In fact, Middle East & Africa is a very diverse region and offers many opportunities for thyssenkrupp. It covers 70 countries with different cultures, political and economic maturity. Young populations and dynamic societies create the need for industrial products and services that offer sustainable solutions. This is where thyssenkrupp as a diversified industrial company comes in. In the region we are particularly strong in Elevator Technology and Industrial Solutions businesses, but present also with Components Technology & Materials Services. In the 2015/16 fiscal year, sales in the region amounted to around €2.4 billion. That’s something our approximately 4,300 thyssenkrupp employees in the region can be proud of. Our regional headquarters are in Istanbul, Turkey. TD: How are your services driving efficiency and competitiveness in the region, especially in downstream industry? PF: thyssenkrupp Industrial Solutions has a line of new technologies and services, which are designed to drive efficiency and competitiveness in the downstream industry in the Middle East. Most of the operation and maintenance programs for the existing plants until now are focused on supervising and executing linear updates and technological exchanges. However, asset management has to go even further and be integrated into the plants’ management and engineering processes, to be able to boost a plant’s efficiency. Combined, engineering competence, plant building experience and integrated asset management help unlock unutilized capabilities and improve the overall performance and efficiency to achieve higher performance and profit margins. We have been in this region for more than 150 years. We are developing solutions that enable the energy and industrial sectors to operate at their full potential. We are heavily investing in our electro chemical technologies, which will help energy storage.

We are in general working on optimizing the energy efficiency and ecology of our plants and technologies. For example for our cement plants, where we are reducing the energy consumption and greenhouse gas emissions.. TD: You are re-organising your firm under the transformation program ‘planets’. How will this look? PF: With planets we strategically transform our business area Industrial Solutions. We are setting Industrial Solutions up for future success. The aim is to secure growth by increasing competitiveness, focusing more strongly on customers and markets – including a strengthened regional footprint – as well as on expanding our service business. One key element of this is driving cultural change within the business area. TD: Are you working for the nationalisation (Saudisation) of the workforce in your Saudi operations? What kind of initiatives has thyssenkrupp set up to train and employ young Saudis? PF: We are generally increasing our local capabilities in the Kingdom of Saudi Arabia. To achieve this, we e.g. support the Saudi Arabian engineers program, as part of which Saudis study at German universities. Until today, we have already trained 15 of those highly qualified engineers on the job at our technology centers in Germany after their studies. All of them are now working for thyssenkrupp in Riyadh. We encourage and welcome Saudi graduates to apply at our company as we are looking to hire more Saudis in the months and years to come. TD: Tell me something about the thyssenkrupp Industrial Solutions. PF: The thyssenkrupp Industrial Solutions business area is a leading partner for the engineering, construction and service of all industrial plants and systems. In collaboration with our customers we develop top-quality solutions and deliver efficiency, reliability and sustainability over the entire life cycle. Our global network of more than 21,000 employees at over 70 locations enables us to supply turnkey plants worldwide that set benchmarks in terms of value added and resource-friendly technologies.

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State Budget

KINGDOM CHALKS UP PROGRESS IN LARGEST-EVER BUDGET Riyadh’s 2018 budget shows major progress in key areas as the Kingdom moves to slash its deficit and decrease its dependence on oil without hurting citizens’ wallets.


George Pontino Jr Photo

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he Government of Saudi Arabia has announced its full year budget for 2018, the largest in the country’s history. The figures reveal progress in all areas, most notably an increase in non-oil revenues, a narrowing deficit, good debt management and a clear path to achieving a fiscal balance by 2023. This has been achieved without compromising key services provided to Saudi nationals. The Saudi government under the leadership of Custodian of the Two Holy Mosques King Salman has also announced a number of new development initiatives aimed at stimulating non-oil growth. Government spending will now be deployed through three key pillars – the annual Budget, National Development Funds and the Public Investment Fund. Together they will coordinate and amplify the impact of government spending over the coming years. In 2018 the three pillars will amount to SAR 1.11 trillion ($300 billion) in government spending, the highest amount ever. This proves that the Saudi Government is putting its citizens at the heart of its efforts to build a strong economy, support the private sector, deliver stable economic performance in the medium term and improve fiscal management whilst rolling out further fiscal and economic reforms. As part of the Government’s pledge to increase its levels of transparency and disclosure, for the first time this year’s budget statement includes mid-term guidance that provides a clear roadmap outlining how fiscal balance will be achieved. The Fiscal Balance Program will be extended to 2023, a move endorsed by the IMF, to limit any short-term negative impact on economic growth. The financial indicators for the full year 2017 as follows: Total revenues for 2017 amounted to SAR 696 billion, 1% more than had previously been projected, representing a 34% increase over the previous year. This is mainly

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due to higher oil prices and continued implementation of reforms aimed at increasing non-oil revenues. Non-oil revenues were SAR 256 billion, surpassing the projected total by 21%, representing a 38% increase over the previous year. This is due to the government's efforts to introduce new initiatives that generate non-oil revenues, such as taxes on certain goods that are deemed harmful. Oil revenues amounted to SAR 440 billion, an increase of 32% over the previous year. Expenditure in 2017 reached 926 billion SAR while revenues reached 696 billion SAR. Sustainable growth in sight King Salman,chaired the Saudi Cabinet's session at Al-Yamamah Palace on Dec 19, during which the State's General Budget for the fiscal year 2018 was approved. The budget, he said, takes into account the lower oil price levels compared to previous years, and has been planned in order to continue development and enhancement process towards achieving the Kingdom's Vision 2030. He said that the Vision 2030 aims at increasing the size of the national economy and sustain its growth, through diversification of the economic base, sources of income and the capacity to adapt to developments and for overcoming challenges. King Salman said that dozens of programs have been launched to realize the goals of diversifying the economic base and empower the private sector to play a major role, in sustaining expenditure efficiency, in order to realize appropriate economic growth rates, mitigate the burden on the citizens and tackle possible impacts, in addition to supporting the private sector. He hailed the achievements related to decreasing the deficit of the budget of the current fiscal year to 8.9% of the GDP from 12.8% during the last fiscal year. Despite increasing the expenditure in next year's budget, he added that the target is to decrease the deficit to be less than 8% of the Gross

Non-oil revenues were SAR 256 billion, surpassing the projected total by 21%, representing a 38% increase over the previous year. This is due to the government’s efforts to introduce new initiatives that generate non-oil revenues, such as taxes on certain goods that are deemed harmful. Domestic Product, in spite of the great and expansionary volume of the budget. The king stated that government programs have managed to downsize depending on oil to about 50%, adding that the development funds and the General Investments Fund take part in the capital and investment expenditure, with portions that exceeded capital expenditure volume, in the budgets of previous years, in addition to government keeping leading with capital expenditure, at an increase of 13%. As a result, the government decided to invest these successes, expand development and adjust the fiscal balance program till the year 2023. While maintaining fiscal policies, including the level of debt to GDP to remain below 30% with a level of deficit to be gradually decreased. The king said “this budget continues to disburse on various development sectors in all regions of the Kingdom at high rates. It also includes allocations for housing, and a large expenditure of government funds that would contribute to push the economic wheel forward, and provide more employment opportunities for male and female citizens.” The king announced that he directed “ministers and all officials to raise the level of performance, develop government services and enhance the efficiency of expenditure and transparency to meet the aspirations and the satisfaction of citizens for the services provided to them as well as to reflect the desired objectives of the allocated amounts in this budget, and the emphasis on continuing to fight corruption and maintain public money.

State Budget

The King added that the 2018 budget comes at a crucial time in the Kingdom’s economic history: “We see publicprivate partnerships in infrastructure and development projects, including in public utilities services and social capital sectors such as health and education, as well as the anticipated privatization of state enterprises and the mother of all privatizations, Aramco.”

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He emphasized that the budget takes into consideration the “continuation of work towards comprehensive and balanced development in all regions of the Kingdom, without any distinction.” Whatever the case may be, but next year will be “a litmus test for private-sector engagement in the Saudi Arabian economy,” a leading regional economist said in reaction to the Kingdom’s budget announced. Nasser Saidi, the former chief economist of the Dubai International Financial Centre and Lebanese economy minister, said “Much hinges on providing the stimulus and incentives to the SME (small and medium enterprises) sector and women’s greater participation in the labor force.” Crucial moment The King added that the 2018 budget comes at a crucial time in the Kingdom’s economic history: “We see publicprivate partnerships in infrastructure and development projects, including in public utilities services and social capital sectors such as health and education, as well as the anticipated privatization of state enterprises and the mother of all privatizations, Aramco.” Jason Tuvey, a Middle East economist at London-based consultancy Capital Economics, said the budget — which

forecasts the biggest-ever expenditure in the Kingdom’s history — amounted to a “modest” loosening of fiscal policy in 2018. “The effect of the introduction of the Citizens Account (a plan to compensate the less well-off for the forecast higher cost of living) and the recent SR72 billion ($19.2 billion) private-sector stimulus will be partly offset by the introduction of VAT (value-added tax, set to be introduced in 2018), other fees and levies, and subsidy removal. Saidi said the big expenditure was in part enabled by the improvement in oil revenues in the second half of 2017. “The Saudi 2018 budget reflects the modest recovery of oil prices during the latter half of 2017, which resulted in a lower budget deficit than expected, and the start of the implementation of the National Transformation Plan (NTP) 2.0 on a conservative estimate of oil prices in 2018.” He said: “The services sectors, including tourism and hospitality, and their support infrastructure of transport and logistics (ports, airports and their services) represent low-hanging fruit.” Tuvey noted that the budget statement

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had confirmed that the date for achieving a balanced budget is 2023, rather than 2020 as had previously been suggested. “That is fair enough because policymakers have undertaken a lot of austerity over the past couple of years and the IMF said that they could afford to take longer over it. But that also means there will have to be more austerity over the next few years, in the absence of any great rise in the price of oil,” he said. The economist added that there had appeared to be a big ramp-up in spending in the Kingdom in the final quarter of 2017. Accounting and consulting firm KPMG released the details of a survey of top executives in the Kingdom, in which it was revealed that 70 percent thought that growth would be between 2 and 5 percent over the next three years. Highlights of the Saudi Budget 2018: • Approved 2018 Saudi budget: Expenditure 978 bln SAR, revenues 783 bln SAR, deficit 195 SAR • Expected 2019 Saudi budget: Expenditure 1006 bln SAR, revenues 843 bln SAR, deficit 163 bln SAR • Expected 2020 Saudi budget: expenditure 1050 bln SAR, revenues 909 bln SAR, deficit 141 bln SAR

• Expected 2021 Saudi budget: expenditure 1080 bln SAR, revenues 955 bln SAR, deficit 126 bln SAR • Expected 2022 Saudi budget: expenditure 1107 bln SAR, revenues 1049 bln SAR, deficit 57 bln SAR • Fiscal balance expected to be achieved in 2023 with expenditure of 1134 bln SAR, revenues 1138 bln SAR, surplus 4 bln SAR • The 2018 state budget has the biggest expenditure of any adopted budget in the kingdom’s history, and it will be funded from the following sources: 50% from oil revenues, 30% from non-oil revenues, 12% from debt and 8% from government balances • In 2018, tax on goods and services will generate around 85 bln SAR • The budget allocates 2.5 billion riyals a month to the Citizens’ Account in 2018 • Public debt’s percentage compared to GDP will not exceed 25% during fiscal balance phase • General reserves will not decrease below 250 bln SAR during financial balance phase • Gradual increase of energy, water prices as expats’ levy continues to increase as previously announced

• General expenditure in 2018 to include general budget expenditure, expenditure of Public Investment Fund, other development funds • Expenditure of Public Investment Fund, other development funds in 2018 to reach 133 bln SAR • Total value of government’s capital expenditure is 338 bln SAR • Funds’ capital expenditure to be spent on housing, energy, mining, industry, transportation, entertainment, communication, technology and small and mediumsized enterprises • GDP decreased by 0.5% in 2017, to increase by 2.7% in 2018 • GDP of non-oil private sector increased by 1.5% in 2017, to increase by 3.7% in 2018 • Total value of stimulus packages for private sector are 200 bln SAR • Capitals of Industrial Development Fund, Real Estate Development increased by 40 bln SAR in 2018 • 72 bln SAR will be spent on recent stimulus packages from 2017 until 2020 • Remaining 88 bln SAR are for future packages aimed at developing private sector, supporting local content

GCC Economy

GCC ECONOMIC GROWTH PROSPECTS TO IMPROVE IN 2018 Economic growth prospects of the oil exporting countries from the region, particularly the GCC countries are projected to improve in 2018, according to Middle East Economy Watch report from PwC. The report, like other similar studies agree that the GDP growth across the region remained subdued in 2017 despite efforts to boost the non-oil private sector economic activities amid fiscal consolidation.

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lthough 2017 showed signs of improvement in GDP growth compared to 2016, this was less than anticipated at the start of the year due to the oil market. Brent crude oil has averaged $52/barrel (Dh190.84) so far this year, lower than about $58/barrel expected at the start of the year. This, according to PwC was due to inadequate compliance with cuts, at least until August plus revivals in production in Libya, Nigeria and US shale. “While the economic and fiscal outturns for the first half of the year are less than anticipated, momentum is building in key parts of the region. These signs suggest that stronger economic growth could return in 2018, so long as oil prices maintain or

exceed current price levels,” said Richard Boxshall, Senior Economist at PwC Middle East. The International Monetary Fund (IMF) in its latest Global Economic Outlook has projected stronger growth outlook for the region’s oil exporting countries although prolonged low oil prices are expected to remain a drag on GDP growth of oil exporters. While the IMF has welcomed the fiscal reforms across the GCC, it expects the impact of low oil prices on region’s economic growth linger for longer. “Prolonged slump in oil prices are weighing on the economic growth outlook across the Middle East. Oil exporters are hard hit with long term implications for their growth outlook,” said

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Gian Maria Milesi-Ferretti, Deputy Director of Research Department of the IMF. The latest IMF forecast for 2018 showed the regional GDP growth rebounding to 3.3 per cent, largely driven by turnaround in key regional economies such as the UAE, Saudi Arabia and Kuwait. While Saudi Arabia’s real GDP growth is forecast to be flat at 0.1 per cent, down from 1.7 per cent last year. Next year Saudi’s GDP is likely to see a marginal improvement largely driven by non-oil sector growth. Saudi Arabia’s real GDP growth is expected to be close to zero (0.1 per cent) as oil GDP declines in line with Saudi Arabia’s commitments under the Opec agreement. However, the IMF expects to strengthen over the medium-term as structural reforms are implemented. Non-oil growth in Saudi is projected to pick up to 1.7 per cent in 2017 with further uptick in 2018 with a projected overall GDP growth of 1.1 per cent. The UAE’s economic growth, which faced a persistent slowdown from 2015, is expected to bounce back in 2018, according to the IMF. The IMF has projected a 1.3 per cent growth in the UAE’s real GDP in 2017, which it expects to surge to 3.4 per cent in 2018. Deficits fall The fiscal adjustment programs across the GCC have seen deficits declining, but PwC analysts said, faster decline in deficits are important to achieve stronger growth. Data for the first half of the year shows that Oman and Qatar deficits are down by about a third compared with the first part of 2016, and is less than anticipated. And although the Saudi data shows more improvement, cutting the deficit in the first half of the year by more than 50 per cent, the Saudi government pledging to repay various public sector benefits and bonuses could increase expenditure in the second half, leading to larger deficits than anticipated for the year as a whole. Whatever the case may be, the pegs are likely to stay. The lower for longer oil price environment has prompted renewed debate in the suitability of the GCC currency pegs. Since the mid-1980s, the Gulf currencies have all been pegged at fixed rates to the US dollar, with the exception of Kuwait which

pegs to a basket of currencies. The pegs compel central banks (including Kuwait’s) to broadly match US interest rates, even if business cycles are not aligned, as is currently the case, and so the rates don’t necessarily suit the Gulf’s economic needs and can create pressure on the pegs. While external pressure remains within comfortable boundaries, it is also up for debate whether they remain economically suitable. Devaluations, either one-off moves or free-float regimes, would not do much to boost competitiveness in most Gulf countries. This is because of the current paucity of non-commodity exports, except in a few cases — for example Dubai’s tourism sector. Richard Boxshall, Senior Economist at PwC Middle East, added: “A change in the currency regime is only likely to make good economic sense if and when commodities play a much smaller role in the Gulf economies as a result of successful diversification efforts. For most countries, this remains a fairly distant goal,” said Boxshall. It is important to note here that the economic growth in the Gulf region is set to improve next year, after two difficult years of low oil prices and government austerity measures, according to a report released recently. In its 2018 forecast, global advisory firm Oxford Economics predicted that the six members of the Gulf Cooperation Council (GCC) will grow by 2.7 percent, compared to just 0.3 percent in 2017. This is the fastest expansion in three years and comes on the back of rising oil prices, helping to ease government austerity measures put in place over the last few years, the report said. In a breakdown of individual GCC countries, the report said Oman will lead the way with 5 percent growth next year, compared to 0.2 percent in 2017. The United Arab Emirates (UAE) is likely to see 3.3 percent growth, up from 1.7 percent this year. Qatar, which has been the focus of an economic and political boycott by GCC neighbours Bahrain, the UAE and Saudi Arabia, is predicted to grow by 3.1 percent, compared to 1.3 percent in 2017.

Global advisory firm Oxford Economics predicted that the six members of the Gulf Cooperation Council (GCC) will grow by 2.7 percent, compared to just 0.3 percent in 2017. The pace of the turnaround will be slower in Bahrain, with growth set to remain at 1.8 percent next year, similar to levels seen in 2017. Similarly, Saudi Arabia will grow by 2 percent next year, after a decline of 0.3 percent in 2017. Kuwait’s economy is also forecast to grow by 2.4 percent, following a decline of 1.7 percent in 2017. Despite the upbeat outlook, the report warned that some potential geopolitical risks in the region could undermine growth in 2018, such as the increased tensions between Saudi Arabia and Iran, the ongoing GCC dispute with Qatar, the anticorruption crackdown in Saudi Arabia and the resignation of the government in Kuwait in October. The report’s findings come as the Organization of the Petroleum Exporting Countries this week said it expects the world oil market to be balanced by late 2018 as its deal with other producers to cut output reduces excess oil in storage. Prices this week were trading near $64 a barrel, close to their highest since 2015. In line with the Oxford Economies predictions, Reuters reported this week that the non-oil part of the UAE economy is expected to grow 3 percent this year, up from 2.7 percent last year. “The recent improvement in oil prices has shed a positive sentiment on the economic activity in the non-oil sector and boosted economic confidence,” the UAE central bank said in a third-quarter review published on Wednesday, Reuters reported. At the same time, Dubai announced record spending of 56.6 billion UAE dirhams ($15.6 billions) for 2018, with much of it being spent on infrastructure development ahead of the emirate’s hosting of the World Expo 2020, the Khaleej Times reported. The UAE’s economy, the second largest in the Arab world after Saudi Arabia,

GCC Economy

“There is a challenging and mixed outlook for the region, caused by the drop in oil revenues, fiscal austerity, higher inflation rates and continued political uncertainty.

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was also given the thumbs up by a senior International Monetary Fund official this week, who predicted that the country’s economy is expected to recover gradually next year, with no significant blow to growth expected from the introduction of a 5 percent value-added tax in January. “We see a gradual recovery for the UAE over the next few years on the back of firming oil prices, a pick-up in global trade, investment for Expo 2020 and easing fiscal consolidation,” Natalia Tamirisa, IMF mission chief to the UAE, told Reuters in a phone interview recently. The business confidence is also growing. In fact, the confidence in the Middle East is stable, even with the adoption of VAT in the GCC, according to the latest edition of the Global Economic Conditions Survey (GECS) released on January 25. The quarterly survey of global CFOs and finance professionals, conducted by ACCA (the Association of Chartered Certified Accountants) and IMA (the Institute of Management Accountants), found a challenging outlook for the region, but with opportunities for growth too. Hanadi Khalife, director, MEA & India Operations of IMA said: “There is a challenging and

mixed outlook for the region, caused by the drop in oil revenues, fiscal austerity, higher inflation rates and continued political uncertainty. While these factors are likely to continue to weigh on the region’s prospects in 2018, governments in the UAE and Saudi have started taking measures to ease austerity and boost private sector activity in an effort to improve the business confidence outlook.” Lindsay Degouve de Nuncques, head of ACCA Middle East said: “At the moment confidence is lower in the UAE than usual, whilst confidence in Saudi Arabia is in negative territory. Both countries have adopted VAT this month, which may be causing some slight concerns around increased consumer costs this quarter, as reported. Once the initial implementation period has waved, we should see consumer confidence return and therefore a rise in sentiment.” Positively, there has been an improvement in government spending across UAE, which reflects its strong fiscal position compared with the rest of the region and the likelihood of its fiscal austerity easing slightly in 2018, along with an increasing non-oil dependent sector” continues Lindsay.

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Global economic confidence remained relatively high at the end of 2017 despite a slight dip in confidence from the previous quarter. Narayanan Vaidyanathan, head of business insights at ACCA said: “Despite a small dip, the relatively high level of confidence reflects a stronger economic outlook in the US and India. The overall outlook for 2018 is a promising one in terms of global economic growth and confidence. Some of the signs of a global economic recovery in 2017 look set to continue, with improvements for developed and emerging markets.” On the other hand, family-run businesses in the Gulf Cooperation Council (GCC) countries remain, by and large, highly resilient at the start of year 2018, proving once again that this important segment of the economy will continue to drive the regional growth. A recent report released by KPMG revealed that despite the challenges brought about by low oil prices, family businesses across the GCC maintain the drive forward towards sustained economic growth. The report titled “GCC Family Business Survey 2017” noted that over a third of the companies interviewed showed that their revenue had increased in the previous 12 months and 38 percent reported stable or improving year-on-year revenue. The said companies continue to form the backbone of the region’s economy, it added. Fuad Chapra, head of deal advisory and family business at KPMG in Saudi Arabia, said family businesses across the GCC continue to witness continuous growth and positive performance. “Family businesses in the region have demonstrated strong resilience towards business challenges,” Fuad Chapra pointed out. On the whole, the picture for family businesses seems relatively optimistic. This is owing to the fact that 33% of them registered revenue increase in the past 12 months, 38% managed to keep the revenue steady in the said period and only 29% suffered a drop. In terms of their overseas investment, the past year witnessed 38% of them posting an increase in overseas activity, 10% decreased activity and 33% remained steady.

Over half of respondents feel confident about their businesses’ prospects as they continue to adjust to the new norm of lower oil prices, the KPMG report said. The family business leaders interviewed across the region reaffirmed the strengths and key attributes of such businesses, with 57% of them having long-term strategic perspective, 59% asserted that they had fast and flexible decision making processes and 54% demonstrated shared values and ethos. “Family businesses in the region are known for having a long-term perspective, which ensures the sustainability of their business” Fuad Chapra remarked. He explained that “in the GCC, family businesses continue to form the backbone of the economy. Fifty-seven percent of those surveyed suggested that they are confident about their business prospects in the coming 12 months and we can take this sentiment as a positive indicator for the region’s economic conditions.” The survey identified that for many family businesses, growth is still high on the agenda, with 81 percent focusing on improving profitability and 55 percent on increasing revenue. As family businesses continue through the generations, it is essential that appropriate profit is generated to distribute to an increasing number of shareholders. Nearly half of respondents noted that increased competition was a major concern, and hence it is not surprising that 38 percent are planning to diversify into new products and services and 23 percent were looking to move into new markets. Yet despite this positive outlook, smooth transition the family business to next generation remains a primary concern for family business owners as well as increased competition, the “war for talent’ and a decline in profitability, the KPMG survey found out. “Smooth transition the family business on to the next generation is a top priority and a consistent concern for many family business owners “the survey pointed out. A total of 88 percent of respondents believed that preparing and training the

next generation is crucial for the business’ survival and success, and “that it is the responsibility of the senior generation to cascade to the next generation a solid and sustainable set of values and guiding beliefs, along with the family’s principles.” The survey further said over 60% of respondents indicated that they have members of the next generation in management roles within the company and 25% have recruitment in process. “Successful family businesses are investing an increasing level of resources, time and energy into building their leadership from within the family to ensure the longterm continuity of the business,” the survey noticed. Finding the right balance between the interests of the family and that of the business is a key concern for family businesses – and was reported as important or very important by 77 percent of respondents. Family businesses are increasingly establishing procedures and processes to manage expectations of family members and avoid conflict. Moreover, 30% of respondents said they are looking to become more innovative and 38% consider diversifying into new products and services, to manage on their family businesses. A total of 84 percent of respondents noted that their strategic plan includes investments, both internally and externally. Even with a reasonable level of confidence and good business results, profitability will determine their ability to succeed and grow. And 38 percent are looking for ways to diversify into new areas and planning to invest in diversification. “Family businesses in the GCC grow their business and pursue new opportunities by relying on increased profitability, revenue and diversification,” Fuad Chapra added. Ensuring a smooth transition to the next generation is crucial for the family businesses, the report noted. For this reason, family businesses continue to focus on hiring talent, with 95 percent of those surveyed stating that they see benefit in having non-family executives within the business.

Digital Economy

SHOULD YOU BUY BITCOIN? By Adair Turner

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nlike gold or tulips, whose supply is fixed in the short term and constrained by nature in the medium term, immaterial Bitcoin could in principle be created in infinite quantities. In fact, the currency’s supply is limited by clever software algorithms, supported by huge quantities of computing power, which have enabled Bitcoin’s creators to achieve a previously impossible trinity:

decentralized “mining,” collectively limited aggregate supply, and anonymity. In theory, the latter could allow Bitcoin or other cryptocurrencies to be not only an arbitrary store of value, but also an anonymous medium of exchange for large-value transactions, just like suitcases full of high-denomination dollar bills, with no mark identifying the owner, but now in digital form. But, as Kenneth Rogoff has

PROJECT SYNDICATE © 2018

In December, as the Bitcoin price neared $20,000, a friend asked me whether she should invest. I said that I hadn’t the faintest idea. Today, with the price below half that, my reply remains the same. Over the next year, the Bitcoin price could double, soar tenfold, or collapse by 95% or more, and no economic analysis can help predict where in that range it will lie. Like other cryptocurrencies, Bitcoin serves no useful economic purpose, though in macroeconomic terms, such currencies probably also do little harm.

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argued, anonymous large-denomination notes play no useful role in legitimate commerce. They are, however, the favored medium of exchange for drug lords, tax avoiders, terrorists, and other criminals. But if, as Rogoff argues, there is therefore a good case for eliminating them, the last thing the world needs is to recreate the same problem in digital form. South Korea has therefore banned the anonymous trading of cryptocurrencies, and other regulators around the world are considering whether to do the same. The best case for going further and banning cryptocurrencies entirely is actually environmental. Estimates of how much electricity Bitcoin mining requires vary widely – some put it as high as 30 terawatt hours per year (equivalent to Morocco’s entire electricity demand), while others suggest it’s a sixth of that. But whatever the true quantity, the related carbon dioxide emissions are adding to global warming, in return for no social benefit.

At the same time, fears that speculative bubbles in cryptocurrencies could drive macroeconomic instability appear overstated. But not always: whereas the Wall Street boom of the 1920s ended in the Great Depression, the tulip bubble of the 1630s seems to have had little impact on the Netherlands’ medium-term growth path. What matters is the scale of the boom, and whether it is financed with debt. Booms and busts in individual equity stocks or specific commodities typically have little macro-level effect: and even huge swings in entire equity-market sectors – such as the NASDAQ boom and bust of 1998-2002 – may have only a mild adverse impact on overall economic growth. By contrast, property booms and busts have historically been the most dangerous, because the total value of real estate wealth usually dwarfs equity values, and because real-estate booms are often debt-financed. Regulators should therefore keep a careful eye on any credit-financed cryptocurrency speculation. But with total

cryptocurrency values still equal to just a minute fraction of global realestate wealth, the overall risk remains slight. Some individual investors will certainly lose their shirts, but the impact on economic growth will most likely be close to nil. The wider social challenge, however, is to channel human ingenuity into welfare-boosting innovation rather than zero-sum gambling activities. The distributedledger technology underpinning cryptocurrencies can be used to reduce transaction costs and eliminate risks across multiple financial and trading activities. That would be worth doing. As for whether you should invest in Bitcoin, I cannot say. Personally, I would rather buy a lottery ticket. Adair Turner was a former chairman of the United Kingdom’s Financial Services Authority

Oil Outlook

OIL PRICES LOOKING UP, ANALYSTS SAY Expectations of robust demand growth and high commitment to OPEC and allied production cuts have prompted analysts to raise their oil price forecasts to $55.78 per barrel.

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ccording to a Reuters poll of 32 analysts and economists, West Texas Intermediate is expected to trade at an average $55.78 a barrel in 2018. That is up from the previous forecast of $54.78 a barrel they predicted right after major producers extended a production cut deal through to the end of 2018. Analysts had cited that extension as a sign that market rebalancing could speed up -- as it appears to be doing. The 2018 is unlikely to see a massive ramp-up in US shale production that could wreck attempts by Russia, Saudi Arabia and other producers to stabilize oil prices and shrink surplus inventories. Senior Wood Mackenzie energy analyst Ryan Duman said there were “headwinds”

for the US shale industry which would hold back production next year, reducing the danger that the oil price would head south again. “US shale operators who don’t have rigs or crews under contract are going to have to pay dearly because the oil services industry is overstretched right now,” he said, adding that it had pared back considerably during the slump, and building it up would take time. The big question over the sector is how quickly shale wells can online. “One of the things we are looking for in 2018 is the rate of completions, whether they start to catch up to the rate of drilling. And then, how fast can the oil get to market,” he said.

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“What we need to see is a massive rehiring to make up for the labor that was let go during the bad times, and operators need more equipment, such as pressure pumping and other assets, in order to push forward with hydraulic fracturing — in other words, the completion stage — which comes after the rigs have dug the wells.” There were also infrastructure challenges in terms of transporting shale oil to refiners, some of which don’t process that type of crude. Asked if he thought the US could overtake Saudi Arabia to become the world’s secondlargest producer after Russia, Duman said that could be years away, “although I am not saying it won’t happen.” US Looks to Rehire and Rebuild He said the main obstacles for US shale were a lack of takeaway capacity (pipelines and other equipment, essential to get crude to market) and a dearth of workers, both skilled and unskilled, after massive layoffs three years ago. “We have seen rigs added back quickly this year, but operators can’t get the crude to customers fast enough — which has implications for costs,” he said. But analysts agree the outlook for 2019 is a different matter, as long as the oil price stays between $60 and $65 — because at those prices the shale operators were in the money. “I think 2018 could be about hiring and rebuilding the sector that has been neglected in recent years. After that, a very strong production year in 2019,” Duman said. One important factor was that technological improvements and efficiencies would gradually make the shale industry more profitable. Operators today are able to drill and complete wells much faster than before thanks to developments in predictive analytics or big data all of which propel optimisation. In the Permian Basin (the region of Texas and New Mexico at the center of the shale revolution), Goldman Sachs estimates that wells have become 50 percent more productive over the past two years. Shale companies have locked in higher oil prices when they occur by turning to hedging

Analysts agree the outlook for 2019 is a different matter, as long as the oil price stays between $60 and $65 — because at those prices the shale operators were in the money. contracts. More and more oil companies are using hedges to give them certainty. “But the other part of it is the sheer learning curve … shale is still in its infancy if you think about how young the industry is compared with Big Oil,” said Duman. But will huge quantities of US shale be cascading into the market next year? Duman didn’t think so — “We have growth rates almost equivalent for 2017 and 2018 at about 850,000-900,000 bpd,” he said. His overall analysis was echoed by BP CEO Bob Dudley, who told the Financial Times that traditional producers such as Saudi Arabia would continue to exert more influence over crude prices. Dudley said he was less worried than before about the extent to which US shale resources could hold down prices as more was learned about their geology. He said: “There are cracks appearing in the model of the Permian being one single, perfect oilfield.” He warned of emerging technical challenges, and called into question the ability of shale companies to rival conventional producers over the long term. Dudley was outspoken on another matter. While acknowledging that oil faced longterm competition from electric vehicles, he claimed the technology had been “hyped” and that environmental problems surrounding the mining and disposal of materials used in lithium-ion batteries that power electric vehicles had been underestimated. US Output to Grow Long Term The International Energy Agency (IEA) predicts a recovery in oil prices this year to about $63 per barrel had spurred growth in US tight oil output (which includes crude, condensates and natural gas liquids, which the IEA said would cause global supplies to exceed demand in the first half of 2018. It

added US oil output until 2025 will be the strongest seen by any country in the history of crude markets, making it the “undisputed” leader among global producers. “Technological advances that have enabled production from US shale oilfields to thrive will lead to growth of 8 million barrels a day between 2010 and 2025, surpassing expansion rates enjoyed by any other nation,” said IEA executive director, Fatih Birol. In an interview with Bloomberg, Birol said the US would become the undisputed global oil and gas leader for decades to come, and is expected to account for 80 percent of the increase in global supply over the same period. US tight oil production will rise to 13 million bpd by 2025, out of total US output of 16.9 million bpd. “The growth in production is unprecedented, exceeding all historical records, even Saudi Arabia after production from the mega Ghawar field or Soviet gas production from the super Siberian fields,” he said. Moreover, if oil did settle at $60, we should expect a ramp up in US production which would stop inventories coming down, according to Birol. OPEC’s views are different still. OPEC and other producers want to get stocks down to the five year average in order to remove the glut built up when the price was above $100. At a recent forum in London, secretary general Mohammed Barkindo said the global oil market was tightening at an “accelerating pace,” and he cited a sharp reduction in worldwide inventories as evidence that last year’s agreement by producers to cut supply was having an effect. “OPEC stocks in September were about 160 million barrels above the five-year average, down from 340 million in January. There has been a massive drainage of oil tanks across all regions, a balanced oil market was fully in sight,” Barkindo said. Perhaps the only thing one can say with any degree of certainty about the oil industry is that there is widespread disagreement about almost everything. It was ever thus.

Crisis Management

THREE HUMANITARIAN CHALLENGES FOR AFRICA by Fatoumata Nafo-Traoré

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n mid-2017, when a cholera outbreak in Somalia threatened to overwhelm local hospitals, health experts feared the worst. With crippling drought, malnutrition, and poverty already endemic, an outbreak of deadly diarrhea seemed destined to paralyze the fragile state. But, despite the dire predictions, institutional paralysis was avoided. Although hundreds died and many more became sick, the collective response managed by governments, NGOs, and local communities, including the

national Red Crescent Societies supported by the Red Cross movement, contained the disease. Somalia’s experience gives me great hope for Africa’s future. But it also serves as a reminder that local capacity is easily inundated during times of crisis. While some parts of Africa have become selfsufficient in terms of public health, others continue to lean heavily on global aid. For these areas, partnership is the best means of minimizing risks.


When a cholera epidemic threatened to overwhelm Somalia's healthcare system last year, a coordinated response by local, regional, and international organizations contained the crisis and saved countless lives. Somalia and other African states facing natural or manmade disasters this year should seek to build on that success.

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In particular, three key challenges this year are likely to pose the severest tests of Africa’s ability to manage humanitarian crises. The first challenge is violence in the Democratic Republic of the Congo. Last year, conflict in the DRC’s central Kasai region displaced some 1.4 million people, bringing the total displaced population to 4.1 million – the largest concentration of internal refugees anywhere in Africa. The violence has exacerbated food insecurity, with more than three million people severely undernourished. Unfortunately, the Kasai crisis is expected to worsen in 2018. A recent assessment by the Red Cross Society of the DRC warns that the number of people displaced will continue to rise, and with a fast-spreading cholera outbreak threatening the region, a coordinated plan of action is urgently needed. The second challenge this year is Somalia’s food insecurity, which, according to the Famine Early Warning Systems Network, is expected to intensify this year. Belowaverage rainfall in 2017 stunted harvests, and most regions have not fully recovered. As humanitarian aid is channeled to the country,

efforts must be made to target long-term solutions, such as improving agricultural output, educational access, and economic opportunity. Historically, most aid to the country has been earmarked for emergency relief; even the collective cholera response was narrowly focused on short-term health. But Somalia desperately needs a more holistic, long-term development strategy. Natural and manmade crises will continue to plague Africa, but organizations like mine are working hard to bring about a brighter future through improved capacity building. To succeed, however, local and international development partners must reorient their thinking; humanitarian aid alone will not solve Africa’s myriad challenges. While money is clearly needed, it must be spent more strategically to improve structural weaknesses that perpetuate instability. For example, if more funding were devoted to community-level health care projects, local organizations would be better positioned to lead when outbreaks threaten.

Put simply, the international development community must do more to invest in grassroots solutions, empowering Africans rather than treating them as subcontractors to their own suffering. Not only are local organizations better positioned to navigate complex cultural and linguistic landscapes; they also have more to lose if they fail. Last year was devastating for many Africans, as millions suffered from drought, hunger, and violence. But in Somalia, a coordinated response to a serious health threat offered new hope for a more secure future. When local ingenuity and international support align, the cycle of suffering can be broken. For many African countries, the ability to look confidently beyond the next crisis is the first step on the long road to selfreliance.

Fatoumata Nafo-Traoré is Regional Director for Africa for the International Federation of Red Cross and Red Crescent Societies.

World Media

THE RETURN OF THE NEWSPAPER by Bajinder Pal Singh

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rump led the multi-pronged attack on traditional news media, and newspapers in particular. But many members of the press were also quick to declare that their own character limit had been reached. Accused of being elitist and out of sync with readers, newspapers’ reactions ranged from self-flagellation to repentance for the election result. Flummoxed by the clobbering from all sides, pundits who could not get the Trump election right prophesied that declining sales, falling readership, and flagging credibility heralded the demise of the newspaper, as we have known it. But more than one year later, it is clear that Trump’s victory did not mean any such thing. On the contrary, his ascendancy has made the newspaper business more relevant

than ever. The most remarkable media story of 2017 may have been how Trump inadvertently made newspapers great again. Newspapers achieved this remarkable turnaround by doing what they do best: investigative journalism and breaking stories. Since November 2016, and particularly since Trump’s inauguration in January last year, newspapers have led with stories ranging from conflicts of interest involving Trump’s son-inlaw, Jared Kushner, to evidence that the president’s former national security adviser, Michael Flynn, met with former Russian Ambassador Sergey Kislyak. These tales of political intrigue competed for attention with lurid allegations of sexual misconduct by Hollywood producer Harvey


Social media are no longer the new kid on the block, but in 2016, platforms like Twitter and Facebook looked poised to nudge traditional newspapers into obsolescence. Following President Donald Trump’s victory in the United States, it seemed that the mainstream media had not only lost the plot, but had also lost their relevance.

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Weinstein, US Senate candidate Roy Moore, and other powerful men. And the pummeling of Trump with inconvenient facts has not been limited to Russia’s meddling in the election. It is important to remember that newspapers’ investments in rapid-response investigative teams, long-form stories, and data-driven journalism are possible only because more people are paying for their news, especially through digital subscriptions. Millennials in the West, dismayed by the surge in “fake news,” are helping reverse declining circulations in major markets. Growth trends are even more pronounced in the Asia Pacific region, where readers in China and India are leading a return to traditional newspapers. These tales of political intrigue competed for attention with lurid allegations of sexual misconduct by Hollywood producer Harvey Weinstein, US Senate candidate Roy Moore, and other powerful men. And the pummeling of Trump with inconvenient facts has not been limited to Russia’s meddling in the election. It is important to remember that newspapers’ investments in rapid-response investigative teams, long-form stories, and data-driven journalism are possible only because more people are paying for their news, especially through digital subscriptions. Millennials in the West, dismayed by the surge in “fake news,” are helping reverse declining circulations in major markets. Growth trends are even more pronounced in the Asia Pacific region, where readers in China and India are leading a return to traditional newspapers. Of course, newspapers’ post-election rebound was not entirely their own doing; it was also facilitated by social media’s failure to consolidate its gains. Blinkered by the illusion of having snatched whatever influence newspapers commanded, social media’s mavens bungled their attempts to dethrone the older medium. Instead of breaking stories, they took to drafting manifestos, like Facebook founder Mark Zuckerberg’s 5,700-word jeremiad about nothing in particular. And, while there was a time when 140 characters may have been

more appealing than 700-word opinion pieces, brevity is no longer enough. (Nor, for that matter, is lengthy incoherence). Having abducted the truth, social media were at a loss about what to do with it. They did not innovate by, for example, following the lead of BuzzFeed, a once-notorious “clickbait” factory that soon expanded into serious reportage and long-form journalism. After the US election, BuzzFeed shook up the media industry by publishing the Steele dossier, a collection of private intelligence on Trump gathered by a former British MI6 officer. A few months later, it produced an 8,500-word expose on Milo Yiannopoulos, a former star commentator for Breitbart News. The Columbia Journalism Review called the article “groundbreaking,” though recent squabbles with CNN indicate a certain reluctance to accept BuzzFeed as a legitimate news organization – and, potentially, even the emergence of a new media war. Meanwhile, most major social media platforms continued to feature whatever presidential nonsense interested or amused their users, like analyzing “covfefe.” This has led many to assume that Trump himself drives the social media agenda. Perhaps he does. But Trump’s ad nauseam tweets about failing newspapers and fake news have also spurred more reasonable consumers to embrace newspapers as a

bastion of anti-Trumpism. In other words, newspapers’ revival is a visceral, if partisan, response to social media in the Trump era. Trump, the upstart, is leading the battle against the media Brahmins, buoyed by a fellow disruptor, social media. But Trump’s campaign is a losing one. Newspapers have gained allies even on Capitol Hill. When Congress grills executives from Facebook, Twitter, and Google, glee is evident in news headlines. To add insult to social media’s injury, it is newspaper articles that are being relentlessly quoted in congressional testimony. For example, former FBI Director James Comey’s memo on his interactions with Trump, which led to the hiring of a special prosecutor to investigate the Trump campaign’s connections to Russia, was leaked to The New York Times. As calls to rein in social media grow, it is the world’s newspapers – until very recently thought to be on the ropes – that have provided the reporting needed to convince policymakers to act. Because social media companies, for all their power and potential, never developed the journalistic capacities needed to displace traditional news media, the pendulum has changed direction. Bajinder Pal Singh is Director of Media and Communications at the Asian Institute of Technology (AIT) in Thailand.

Chess

SAUDI ARABIA HOSTS WORLD CHESS CHAMPIONSHIP The Kingdom has made a historic step by hosting a global chess tournament for the first time in its history. The iconic APEX Convention Center in Riyadh hosted the King Salman World Rapid and Blitz Chess Championships in December 2017, with grandmasters from 55 countries competing under supervision of the World Chess Federation (FIDE). Organised by the Saudi General Sports Authority (GSA), the event concluded after full league sessions. The venue was turned into an Arabian mirage, with traditional red Saudi textiles and coverings, and a Bedouin tent with pillows and floor settings.

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rabic coffee was continuously served to eager visitors. Female chess players were not required to wear abayas, but opted to wear black or navy suits. “It was a well-represented championship, with all continents participating,” FIDE referee Jamie Kenmure told The Diplomat, praising “very good turnout”. Russian champion Vladimir Fedoseev said the committee had given players “a very comfortable and good atmosphere. Saudi Arabia may not have a long chess history,

but with this tournament it’s on its way.” England grandmaster Nigel D. Short expressed his happiness over Riyadh hosting this world championship. “It’s a superbly organized event with exceptional arrangements,” he said. “The playing hall is awesome, the prize money is fantastic, and the organizer has extended warm hospitality.” The championship “will mark a golden moment for Saudi sports,” he added. Ukrainian player Kuzubov Yuriy said: “The tournament is excellent and will be

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a huge success. Its organization has been perfect.” When asked if he would like to compete in the Kingdom again, he said: “Yes of course, the organizers have provided excellent conditions for the players.” Saudi player Afnan Hassan was thrilled to enter the tournament, saying: “I’ve played chess since I was very young, but it’s my first time competing in a world championship.” The opening ceremony was attended by the GSA’s chairman, FIDE’s CEO and deputy president, and the presidents of the Asian Chess Federation, the Confederation of Chess for Americas, and the Saudi Arabia Chess Federation. The world’s top players, including the Norwegian world champion Magnus Carlsen, were in the Saudi capital to take part. Chess is not very popular in the Kingdom but the Saudi Chess Federation aimed to attract the Saudi youth to the game. It also hopes Saudi chess players will gain experience through meeting the international stars. A sum of $2 million was allocated for the prizes of the King Salman World Chess Championships, the highest in the history of the Chess Federation. In a liberalising move, the website added that there was no need for women to wear a hijab or Abaya during the games. The World Chess Federation announced on its website that the dress code for the event and it was dark blue or black formal suits, with white shirts, either open-necked or with a tie, for men and dark blue or black formal trouser suits with high-necked white blouses for women. Saudi champion Abdurrahman AlMasrahi, along with Ahmed Al-Ghamdi and Emad Al-Habeeb, joined renowned champions including Magnus Carlsen, the highest-rated chess player in the world and World Champion in classical chess, the incumbent World Rapid and Blitz Champions — Sergey Karjakin (Russia) and Vassily Ivanchuk (Ukraine) — and more than 180 top grandmasters. Notable entries included world No. 2 Levon Aronian of Armenia, No. 3 Shakhriyar Mamedyarov of Azerbaijan

and former World Champion Viswanathan Anand of India. ‘Available for everyone’ “Chess is available for everyone,” the Hungarian-American grandmaster Susan Polgar said. “It doesn’t limit your dress code and your physical strength doesn’t matter. Gender or age are not limitations.” Polgar, 48, was speaking at an event at King Abdullah University of Science and Technology in Thuwal, where she played against 10 international opponents simultaneously in a two-hour exhibition — and beat them all. The grandmaster, who was ranked the world’s top female chess player at the age of 15, challenged a Russian grandmaster herself when she was 4 years old. She lost — but it was a memorable and educational experience. “Hopefully, I will give the same pleasant lifetime memories to my opponents here, regardless of the result,” she said. Polgar’s visit came a few weeks after the King Salman World Rapid and Blitz chess championship in late December, which she described as “a fantastic opportunity.” “It is fortunate that the government decided to understand the value of chess and

support it with the championship last year. This is a chance for all Saudis, including women.” Polgar, a five-time Olympic champion, believes chess teaches people to be objective and to look at both sides of the coin. “I think a shortcoming in society is that people think too much only from their point of view and don’t look at the whole picture or from the other side’s perspective,” she said. Entering the male-dominated world of chess was challenging, but it did not deter Polgar. She paved the way for other female chess players by becoming the first woman to qualify for the Men’s World Chess Championship. Initially, she was not allowed to enter, but the World Chess Federation changed its policy to include women. “I think there are still very few women playing chess and, therefore, there are only a few good women players. If you go to a chess club, you will see that about 90-100 percent of members are men,” she said. Specialized women’s championships can be empowering “as some women don’t feel socially comfortable in the environment — being one of the very few women in a room full of men.”

New Media

THE SOCIAL MEDIA THREAT TO SOCIETY AND SECURITY

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ot only is the survival of open society in question; the survival of our entire civilization is at stake. The rise of leaders such as Kim Jong-un in North Korea and Trump in the US have much to do with this. Both seem willing to risk a nuclear war in order to keep themselves in power. But the root cause goes even deeper. Mankind’s ability to harness the forces of nature, both for constructive and destructive purposes, continues to grow, while our ability to govern ourselves properly fluctuates, and is now at a low ebb. The rise and monopolistic behavior of the giant American Internet platform companies is contributing mightily to the US government’s impotence. These companies have often played an innovative and liberating role. But as Facebook and Google have grown ever more powerful, they have become obstacles to innovation, and have caused a variety of problems of which we are only now beginning to become aware. Companies earn their profits by exploiting their environment. Mining and oil companies exploit the physical environment; social media companies expoit the social

environment. This is particularly nefarious, because these companies influence how people think and behave without them even being aware of it. This interferes with the functioning of democracy and the integrity of elections. Because Internet platform companies are networks, they enjoy rising marginal returns, which accounts for their phenomenal growth. The network effect is truly unprecedented and transformative, but it is also unsustainable. It took Facebook eight and a half years to reach a billion users, and half that time to reach the second billion. At this rate, Facebook will run out of people to convert in less than three years. Facebook and Google effectively control over half of all digital advertising revenue. To maintain their dominance, they need to expand their networks and increase their share of users’ attention. Currently they do this by providing users with a convenient platform. The more time users spend on the platform, the more valuable they become to the companies. Moreover, because content providers cannot avoid using the platforms and must


The current moment in world history is a painful one. Open societies are in crisis, and various forms of dictatorships and mafia states, exemplified by Vladimir Putin’s Russia, are on the rise. In the United States, President Donald Trump would like to establish his own mafiastyle state but cannot, because the Constitution, other institutions, and a vibrant civil society won’t allow it.

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accept whatever terms they are offered, they, too, contribute to the profits of social media companies. Indeed, the exceptional profitability of these companies is largely a function of their avoiding responsibility – and payment – for the content on their platforms. The companies claim that they are merely distributing information. But the fact that they are near-monopoly distributors makes them public utilities and should subject them to more stringent regulation, aimed at preserving competition, innovation, and fair and open access. Social media companies’ true customers are their advertisers. But a new business model is gradually emerging, based not only on advertising but also on selling products and services directly to users. They exploit the data they control, bundle the services they offer, and use discriminatory pricing to keep more of the benefits that they would otherwise have to share with consumers. This enhances their profitability even further, but the bundling of services and discriminatory pricing undermine the efficiency of the market economy. Social media companies deceive their users by manipulating their attention, directing it toward their own commercial purposes, and deliberately engineering addiction to the services they provide. This can be very harmful, particularly for adolescents. There is a similarity between Internet platforms and gambling companies. Casinos have developed techniques to hook customers to the point that they gamble away all of their money, even money they don’t have. Something similar – and potentially irreversible – is happening to human attention in our digital age. This is not a matter of mere distraction or addiction; social media companies are actually inducing people to surrender their autonomy. And this power to shape people’s attention is increasingly concentrated in the hands of a few companies. It takes significant effort to assert and defend what John Stuart Mill called the freedom of mind. Once lost, those who grow up in the digital age may have difficulty regaining it. This would have far-reaching political consequences. People without the freedom

of mind can be easily manipulated. This danger does not loom only in the future; it already played an important role in the 2016 US presidential election. There is an even more alarming prospect on the horizon: an alliance between authoritarian states and large, data-rich IT monopolies, bringing together nascent systems of corporate surveillance with already-developed systems of state-sponsored surveillance. This may well result in a web of totalitarian control the likes of which not even George Orwell could have imagined. The countries in which such unholy marriages are likely to occur first are Russia and China. Chinese IT companies in particular are fully equal to the US platforms. They also enjoy the full support and protection of President Xi Jinping’s regime. China’s government is strong enough to protect its national champions, at least within its borders. US-based IT monopolies are already tempted to compromise themselves in order to gain entrance to these vast and fastgrowing markets. These countries’ dictatorial leaders may be only too happy to collaborate with them, in the interest of improving their methods of control over their own populations and expanding their power and influence in the United States and the rest of the world. There is also a growing recognition of a connection between the dominance of the platform monopolies and rising inequality. The concentration of share ownership in the hands of a few individuals plays some role, but the peculiar position occupied by the IT giants is even more important. They have achieved monopoly power while also competing against one another. Only they are big enough to swallow start-ups that could develop into competitors, and only they have the resources to invade one another’s territory. The owners of the platform giants consider themselves the masters of the universe. In fact, they are slaves to preserving their dominant position. They are engaged in an existential struggle to dominate the new growth areas that artificial intelligence is opening up, like driverless cars.

The impact of such innovations on unemployment depends on government policies. The European Union, and particularly the Nordic countries, are much more farsighted than the United States in their social policies. They protect the workers, not the jobs. They are willing to pay for retraining or retiring displaced workers. This gives workers in Nordic countries a greater sense of security and makes them more supportive of technological innovations than workers in the US. The Internet monopolies have neither the will nor the inclination to protect society against the consequences of their actions. That turns them into a public menace, and it is the regulatory authorities’ responsibility to protect society against them. In the US, regulators are not strong enough to stand up to the monopolies’ political influence. The EU is better positioned, because it doesn’t have any platform giants of its own. The EU uses a different definition of monopoly power from the US. Whereas US law enforcement focuses primarily on monopolies created by acquisition, EU law prohibits the abuse of monopoly power regardless of how it is achieved. Europe has much stronger privacy and data protection laws than America. Moreover, US law has adopted a strange doctrine that measures harm as an increase in the price paid by customers for services received. But that is almost impossible to prove, given that most giant Internet platforms provide a majority of their services for free. Moreover, the doctrine leaves out of consideration the valuable data that platform companies collect from their users. The EU Commissioner for Competition Margrethe Vestager is the champion of the European approach. It took the EU seven years to build a case against Google. But, as a result of its success, the process of instituting adequate regulation has been greatly accelerated. Moreover, thanks to Vestager’s efforts, the European approach has begun to affect attitudes in the US. It is only a matter of time before the global dominance of the US Internet companies is broken. Regulation and taxation, spearheaded by Vestager, will be their undoing.

Women Empowerment

SPA

SAUDI WOMEN ATTEND FOOTBALL MATCHES AS RESTRICTIONS EASED The clash between Saudi football teams Al-Hilal and AlIttihad is a fairly common fixture. But their January match at Riyadh’s King Fahd International Stadium was momentous: for the first time in the Kingdom’s history, women joined men in the stadium to cheer for their team.

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housands of cheering and flag-waving female football fans headed to King Fahd International Stadium to support their team in the professional league game

that pitted Al-Hilal against Al-Ittihad, the first ever Saudi ‘Classico’ game attended by female spectators. The match came after authorities abolished a rule that prevented women

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from attending matches at the country’s stadiums, the latest in a string of reforms bringing female Saudis into the workforce, allowing them to drive and to start businesses without needing a male guardian’s consent. It was clear from the opening whistle that many of the women present were diehard football fans. Scores of women in small and big groups across the stadium waved Al-Ittihad’s yellow and black banners or Al-Hilal’s blue and white flags. The women joined other fans, enthusiastically singing their team anthems. “I’m not only here because I’m a football fan but I’m here because I’m

proud of what’s happening in my country; I love Al-Ittihad and I’m a die-hard AlIttihad fan,” said Lama, a 30-year-old businesswoman. The spirited game between two of the country’s top football clubs ended in a 1-1 draw. Teams of female ushers, wearing blue tops over their black abayas, guided the women and other family members to their seats in special sections of the stadium. According to the organisers, more than 7,000 seats were allocated for women in the stadium that has a capacity of over 68,000. “I am extremely glad to be here where the history is made,” said Manal Al Buraik, Saudi Entrepreneur, 40, speaking in the Al-Hilal crowd section. “On the

other hand, officially, Saudi women now have a major role and effect in the sports industry by investing their money, and getting more jobs.” The same week, Pearl Stadium in Jeddah’s King Abdullah Sports City saw women watch in person for the first time as Al-Ahli beat Al-Batin 5-0. Women were also allowed to watch AlIttifaq play Al-Faisali on January 18 at Prince Mohammed bin Fahd Stadium in Dammam. In October, the General Sports Authority (GSA) issued a decision that as of early 2018 the three stadiums, previously male-only facilities, will be prepared to be ready for families, including allocation of special places

Women Empowerment

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Outside the stadium, there was a festive atmosphere as women painted hearts on the faces of children with the colours of their favorite teams, among other activities organised by GSA and the sports federation headed by Princess Reema.

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for seating and entrances. The decision to open stadiums for women spectators was one of a series of landmark decisions last year empowering women in the Kingdom, following King Salman’s historic announcement in September that women would be allowed to drive from June 2018. ‘Inclusive society’ Men in the crowd also expressed their happiness at the fact women were allowed in the stadium. “A great development has taken place in our country. It’s a historic moment. This is all about an inclusive society,” said Abdulrahman Mohammed, a 30-year-old banker who accompanied three female relatives next to him to the stadium.

“This development should have happened 30 years ago. But it’s better late than never. And here I am with three of my female family members. I am feeling great as they are enjoying the game.” One of the attendees of Saturday’s game in Riyadh was Princess Reema bint Bandar, an advocate for women’s sports who last year became the first woman to be appointed as head of a Saudi sports federation, the Saudi Federation for Mass Participation, and who also serves as Deputy for Planning and Development at GSA. She shook hands with some of the women and families attending. Outside the stadium, there was a festive atmosphere as women painted

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hearts on the faces of children with the colours of their favorite teams, among other activities organised by GSA and the sports federation headed by Princess Reema. “This is a joyous day; tonight we all stand together, teams aren’t the main focal point; us attending is,” Layla told The Diplomat during the Saturday night game. “And we will cheer until our throats go sore.” “It’s a historic game, the first in which Saudi families can enter a stadium together,” said Lina Al-Maeena, a member of Saudi Arabia’s advisory body the Shura Council, and director of the country’s first women-only basketball team. “They are finally going to have activities and entertainment together where they’re not separated, where parents go with their kids and mothers and even grandmothers, where they can enjoy sports events specifically, together.” For the first time on Friday, Saudi women were allowed to enter a sports stadium to watch a soccer match between two local teams -- though rules dictate that they must be segregated from the male-only crowd with designated seating in the so-called “family section.” The move is Saudi Arabia’s first social reform planned for this year granting women greater rights. The Kingdom has also announced that starting in June, women will be allowed to drive for the first time in the country’s history. To prepare for the change at sports stadiums, the Kingdom has designated “family sections” in the stands for women, separated by barriers from the male-only crowd. The stadiums have also been fitted with female prayer areas, restrooms and smoking areas, as well as separate entrances and parking lots for female spectators. Crown Prince Mohammed Bin Salman, Saudi Arabia’s liberalising

deputy premier and minister of defence, is seen as the driving force behind these changes. He is set to inherit a country where more than half the population is under 25 years-old and hungry for change. The crown prince’s also aims to raise local spending on entertainment as the country faces years of budget deficit amid continued lower oil prices. In a one-off, the main stadium in Riyadh allowed families to enter and watch national day festivities in September -marking the first time female spectators had set foot inside the stadium. For years, Areej al-Ghamdi could only cheer her favourite football team from home, but everything changed now when Saudi Arabia allowed women into the stadium for the first time. The university student was among around 300 Saudi women who thronged Pearl stadium in the Red Sea city of Jeddah after the Kingdom eases decades-old rules. “I came with my father and my brother – we’re fans of AlAhli,” said Ghamdi. The young woman said she always used to cheer her home team from the comfort of her living room. “We love the club very much, and our home would often become an arena for supporters,” said Ghamdi, who wore a black abaya robe and a black scarf with a green AlAhli scarf round her neck. “This is the first time we’ll be cheering for real, not just in front of the television. It is so much better here.” The game began at 8:00 pm, but two hours before the historic kick-off enthusiasm was palpable as women supporters began arriving at the stadium. Among the first were a woman accompanied by a younger female and a girl. “This event proves that we are heading for a prosperous future. I am very proud to be a witness of this massive change,” said Lamya Khaled Nasser, a 32-year-old fan from the Red Sea city.

“This event proves that we are heading for a prosperous future. I am very proud to be a witness of this massive change,” said Lamya Khaled Nasser, a 32-year-old fan from the Red Sea city.

Ruwayda Ali Qassem, another Jeddah resident, spoke of a “historic day in the Kingdom which culminates (in) ongoing fundamental changes”. “I am proud and extremely happy for this development and for the kingdom’s moves to catch up with civilised measures adopted by many countries,” she said. Women entering the venue waited in long queues to be searched by women security personnel who wore orange vests over their black abayas, while inside the stadium another team directed them to their seats. Jeddah resident Noura Bakharji was among those who patiently waited for her turn, and for a reason. Bakharji said she always felt bitter when her brothers came home from stadiums to tell her about the excitement of watching football matches in person. “I always watched games on TV while my brothers went to the stadiums... I asked myself repeatedly ‘Why I can’t go?’” she told said. “Today, things have changed. It’s a day of happiness and joy.” “As we speak; Saudi women fans are entering soccer stadiums!” Baeshen tweeted. “This is more than women’s rights: today’s match between Al-Ahli and Al-Batin, and the ones to follow, are opportunities for families to come together and enjoy KSA’s national sport – soccer! I’m rooting for the ladies – enjoy!”

Women in Sports

SQUASH ACE NADA ABO ALNAJA BLAZING A TRAIL FOR LIBERATED WOMEN IN SAUDI ARABIA Abo Alnaja never thought she would witness the day when the Kingdom staged a squash event for females let alone one on the Professional Squash Association (PSA) tour. And she would have laughed you out of town had you suggested she would play in it. But that all became a stunning reality for her on Jan. 8. “It was truly amazing from every aspect,” Abo Alnaja said of the $165,000 event held at Princess Nora bint Abdul Rahman University in Riyadh as reported by Arab News, a leading English daily.

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here were a lot of angles to it that mthe experience so amazing.” For starters she got to play against Camille Serme, the world No. 3. Yes, she lost in straight sets but it was all about making history for the wildcard entry. There are some things, some experiences that riyals just cannot buy. “It was much, much better than I thought,” she said. “I expected her to slam the ball hard and just kill it, but she was really kind to me. She knew that I’m not a pro and was really, really nice to me. I truly appreciated that. I was so nervous but she helped me ease into it. It got smoother as I went along. I could

have played better but my nerves got the best of me on that day. It was really good.” Abo Alnaja rubbed shoulders with some of the greats of the game. The locker room was like a who’s who of women’s squash. “I’ve watched them play for so long and when I had the chance to meet them face to face it was amazing,” she said. “I watched how they train, how they eat, how they play and it gave me a lot of positive input that I can apply to my own life and get better. Nicol David was one of the people who made me love squash. Meeting her face to face was amazing and it was a truly incredible experience.”

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Abo Alnaja was not just gift-wrapped the chance to play in such a landmark event. It was not handed on a plate. She had to come through qualifying and win four matches. “An email was sent to everyone who is interested in squash in Saudi Arabia,” she said. “I got to play matches with four ladies. There were actually five but one of them dropped out on the day of the match. I won all of the games and next day I was selected to play. I was in the office when I got the email from Mr.Ziad. I was screaming and jumping around. People were like ‘What’s wrong with this lady?’ It was incredible, a dream come true.” Ziad is Ziad Al-Turki, the Saudi businessman and chairman of the PSA, the man who made it all happen, the man with a vision to bring top-level women’s squash to the Kingdom. “He has fought for this for a very long time and finally, with the changes that are happening in the country, he was able to make it a reality,” Abo Alnaja said. “His passion for the game of squash is so high and he did so much for it. For it to be available for us in the country is like a dream come true. Four or five years ago if someone told me this could be my reality I wouldn’t have ever believed it.” Princess Reema bint Bandar has been driving attempts to loosen some gender restrictions and, as deputy president of Saudi Arabia’s Women’s Sports Authority and vice president of the Saudi General Authority for Sports Planning and Development, she played a pivotal role in the staging of the world-ranking squash event in Riyadh, one that should help alter the sporting landscape in the Kingdom. “She’s become the figure of sports participation,” said Abo Alnaja. “Everything we see today is because of her. She did a lot for us, especially to bring in the Saudi Women’s Masters. Squash is only a small part of everything she is supporting. She is doing so much work and it’s very commendable.” Seismic changes are taking place in Saudi Arabia as part of an attempt to engage the female population and make them an integral part of the development process. King Salman ordered that driving licenses be issued to women who wanted them, while

women’s rights were expanded further when they were allowed into football stadiums for the first time. “It’s a turning point,” said Abo Alnaja. “We finally got the right to drive, the right to go and attend matches in the stadiums — a lot of changes are happening. The positive changes Crown Prince Mohammed bin Salman is making in our country are pivotal for us. It’s going to take time to implement — these things can’t happen overnight and it’s going to take a while to put a system in place for us. But I’m pretty excited about getting my car and driving to work. It’s a very exciting time to be witnessing these changes. It’s truly incredible. I’m 32 and I grew up witnessing the extremes. Now things are changing before our eyes. It’s an amazing change to see. We are living in such a great time and I hope these positive changes keep on going in our country.” Abo Alnaja wants to be a pioneer for women’s squash in the Kingdom. She wants to build on the swirl of positivity created by the Saudi Women’s Masters and inspire the next generation. With a master’s in marketing, gained while studying in France, she is perfectly equipped to do so. “My goal has always been to establish an academy for females,” she said. “When I started

playing I didn’t have the proper foundation, yet I loved the game so much. It made me frustrated that I didn’t have any coaches, that I didn’t have access to proper training, I didn’t have the guidance I needed. I felt like I had a mission to provide this for other people. “Maybe this is my opportunity is to make a change for the future generation. Maybe someday in the future we can have academies and set the roadmap for children to actually become pros. It’s a pivotal moment in our history. “People are approaching me in light of everything that happened in the media. Women have started to call me, approach me and they want to play with me and get tips from me. There is an interest but we have to work so hard to take it to the next level. There is a lot of work that needs to be done.” Al-Turki can now use Abo Alnaja as a poster girl, a way of mobilizing a new wave of female players in the Kingdom. “Nada will hopefully be an inspiration to other young Saudi women,” he said. “I know the other players enjoyed meeting and playing alongside her and found her to be very inspirational. She held her own among the best players in the world and is committed to help develop a generation of female Saudi squash players.”

Women in Sports

Abo Alnaja is not resting on her laurels or basking in her big moment of glory. She is training hard, sometimes twice a day at two different gyms in Jeddah, one where she plays squash and the other where she works on her physical conditioning.

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Such talk is all a far cry from the days, almost 10 years ago, when the 32-year-old first started out on a very lonely road. Abo Alnaja experimented with volleyball, basketball and football but was always drawn to the sport of squash. “I started playing on my own in a club in Jeddah in 2008,” she said. “I was obese and it was a way to move and get into fitness. I just played it for fun at the beginning. Gradually, after I went to France to get my master’s, I met some pro players, I started to play more and more. I got coached by several coaches there and when I came back I decided I wanted to keep playing. I kept playing solo in the same club. I did a lot of solo practice but it’s not that great an outcome when you are on your own and there are no matches. I never imagined meeting Camille Serme in an actual match.”

Abo Alnaja is not resting on her laurels or basking in her big moment of glory. She is training hard, sometimes twice a day at two different gyms in Jeddah, one where she plays squash and the other where she works on her physical conditioning. She combines this with working at Emkan Education in Jeddah as a manager of support services. The youngest of five siblings, Abo Alnaja must be making her family extremely proud. “They are all very supportive of me, very proud of me,” she said. “They are trying to encourage me and taking steps toward me achieving my dreams. I have two brothers and two sisters. They are really supportive, they want me to get better. My mother and niece were there at the Saudi Masters. Just seeing the look in their eyes when I was giving my speech, they were so proud of me. Nothing can match that.”

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FEMALE SQUASH PROFESSIONALS “MADE HISTORY” AT SAUDI TOURNAMENT Saudi Arabia, in a historic move, hosted the first female squash tournament in early January this year. In addition to the lucrative $165,000 prize fund up for grabs in the Saudi Women›s Squash Masters, the players were battling it out for points on the PSA World Series Standings — which are currently headed up by Egypt’s ElWelily, pictured. The Saudi Arabia Squash Federation President says the world’s top female players “made history” by competing in the first professional women’s squash tournament to ever take place in the Kingdom. The world’s leading female players are in Riyadh for the first World Series event of 2018 — the Saudi PSA Women’s Squash Masters — which concluded in Riyadh. The tournament, held at Princess Nora bint Abdul Rahman University in Riyadh, features 32 international players, including Nada Abo Al-Naja, Saudi’s wildcard player. She plays world No. 3 and No. 2 seed Camille Serme. Following recent initiatives from the General Authority of Sports in Saudi Arabia to increase sporting participation and awareness across the country, the $165,000 tournament played a crucial role in inspiring a new generation of Saudis to become active within sport. “Things are changing in Saudi, and they are changing fast,” said Ziad Al-Turk, who is also the Chairman of the PSA, at the official tournament dinner. “Win or lose, you [the players] are making history.” Eighttime world champion Nicol David tweeted: “Truly honored to be part of this historical moment in Saudi Arabia.” The tournament was scheduled to take place in November but was postponed due to “logistical challenges.” “Bringing professional squash back to Saudi Arabia for the first time since 2010 has been an ambition of mine and I am grateful for the support of the Women’s Department of the Saudi General Authority for Sport

“Things are changing in Saudi, and they are changing fast,” said Ziad Al-Turk, who is also the Chairman of the PSA, at the official tournament dinner. “Win or lose, you [the players] are making history.” to see this come to fruition,” said Al-Turk. “Not only is squash one of the healthiest sports it is the perfect sport for the Saudi climate. I’m hoping that this tournament will increase local participation in Saudi Arabia, and I look forward to working with all parties involved throughout the next six months, ensuring continued success for years to come.” The staging of the tournament comes hot on the heels of the Saudi General Sports Authority approving three football stadiums to allow women to attend Saudi Professional League matches for the first time

“We look forward to growing the female participation of the sport of squash,” said Princess Reema bint Bandar bin Sultan, President of the Saudi Federation for Community Sports. “It is a dynamic game that involves fast thinking and fast reaction times, skills that are well reflected in the women of Saudi Arabia.” With no qualifying rounds featured at the tournament, 32 of the world’s top players — comprised of 12 nationalities — go straight into the main draw, with stars such as world champion Raneem El-Welily, world No. 3 Camille Serme, world No. 5 Nouran Gohar and Nicol David joining the battle for the prize purse. Egypt’s World No.1 and tournament top seed Nour El-Sherbini will get her tournament under way against France’s world No. 30 Coline Aumard and is seeded to meet compatriot and world No. 5 Nouran Gohar — who starts her tournament against Australia’s former world champion Rachael Grinham — in the last four. The Egyptian two-time world champion was also predicted to face off against world No. 3 Camille Serme in the final should they both play to their seeding. Meanwhile, newly crowned world champion El Welily — who triumphed over El Sherbini in December to win squash’s biggest tournament — started her tournament against Belgium’s world No. 27 and Open International de Squash de Nantes runner-up Nele Gilis as she sought to keep her strong run of form going in her first tournament since lifting the PSA World Championship crown in Manchester. Other big names in the draw included US Open winner Nour El-Tayeb, who came up against Hong Kong’s world No. 36 Liu Tsz-Ling in round one of the World Series tournament, and English pair Alison Waters and Sarah-Jane Perry, who took on Egypt’s Heba El-Torky and Hong Kong’s Joey Chan, respectively, in the opening round of the historic event.

Camel Festival

CAMEL BEAUTY CONTEST WAS HIGHLIGHT OF KING ABDULAZIZ CAMEL FEST

Custodian of the Two Holy Mosques King Salman and Crown Prince Mohammed bin Salman, minister of defense, attended the final day celebrations of the King Abdulaziz Camel Festival, a month-long event that celebrates the Kingdom’s culture and heritage, on Feb 1. Along with large crowds of spectators, the king and crown prince watched the last two rounds of camel races at the festival site in Al Dhahna, 120 km northeast of Riyadh, before awarding prizes to the winners of the King Abdulaziz Camel Pageant and the King Abdulaziz Camel Race.

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he world’s biggest camel festival, held under the patronage of King Salman, featured a camel beauty contest, with prizes amounting to a staggering $30 million. The competition, having been founded in 1999 by a group of local Bedouin people, went on to receive support from the Saudi royal family. Due to its rising popularity, it turned into a heritage festival, attracting people from across the Gulf Cooperation Council (GCC) to travel to showcase their finest camels. Over the course of the festival, a total of 2,172 race winners were awarded with prize money. Around 26,000 camels participated in the “ww” or beauty contest, which crowned the most beautiful, as well as the world’s tallest camels. More than 300,000 people attended this year’s festival since the gates opened on January 1, a significant increase on last year. The festival, which was founded in 1999 by a group of Bedouins, has become a major annual event, attracting spectators from all over the world. The title of this year’s festival was “Camels are Civilization”. Some of the most attractive features of the event included camel beauty and obedience contests as well as racing, where big prize money was up for grabs. Visitors could also watch artists creating textiles using camel hair and sand-art and attend workshops on how to get creative in the desert. The month-long festival also included theatre performances, painting

and story-telling workshops for children, as well as traditional Saudi Ardha dance and poetry recitals. The concluding celebrations were attended by King of Bahrain Hamad bin Isa Al Khalifa; Crown Prince of Kuwait Sheikh Nawaf Al-Ahmad Al-Jaber AlSabah; Dubai’s Crown Prince Sheikh Hamdan bin Mohammed Al-Maktoum; Oman’s Minister of Sports Affairs Sheikh Saad bin Mohammed Al-Saadi; Saudi Minister of Interior Prince Abdulaziz bin Saud bin Naif; and the festival’s General Supervisor, Dr Fahd Al-Sammari, along with other notables. “The King Abdulaziz Camel Festival is a national and cultural event that emphasizes our Arab and Islamic identity and the rootedness of our national heritage and preserves it for the generations to come,” Dr Al-Sammari was quoted as saying by the official Saudi Press Agency. After the prizes were handed out, King Salman and spectators were treated to a dance performance entitled “Camels in Our World”, which celebrated the Middle

Eastern and African countries to which camels are indigenous. This was followed by the traditional Ardha sword dance and the Saudi national anthem. King Salman was handed a ceremonial sword and took part from his seat in the stands, to cheers from the crowd. On the other hand, it must be noted that the festival was first of its kind this year. This world’s first and leading camel festival included initiatives to raise awareness, promote national pride, and celebrate core regional cultural and heritage practices in the Kingdom and across the GCC. Steeped in tradition but forward-thinking in its approach, the event also pushed boundaries of technology and creativity to offer a oneof-a-kind, fun-filled festival attracting fans from around the globe. One of the greatest national celebrations of its kind in the world, this year’s spectacle is set to be the most successful yet. For those not participating, this year the month-long festival has taken the event to new heights with an array of

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entertainment and happenings for all the family. The month-long King Abdulaziz Camels Festival celebrated the crucial role of the camel through an eclectic mix of traditional events, competitions and heritage-focused activities, including new and innovative activations (The Heritage Market & Sanam Exhibition, Camel Obedience, Racing and Beauty Competitions, The Panoramic Dome, Camel Hair Art, Sand Art and Family Friendly Entertainment). Among the most important things that Saudi Arabia is interested in from the environmental point of view, the King Abdulaziz Camel Festival is working to adopt some sites on sustainable energy through the installation of lamps, devices and extensions based on solar energy. At the heart of the festival, of course, was the much-loved and celebrated camel, reflecting the uniting role the camel has played for the Saudi Kingdom and the Gulf throughout history. Known as ‘the ship of the desert’ – over many centuries and still today camels have become such an integral part of day-to-day life that they have formed part of the region’s personality and pride. This huge event presented six colorbased categories for King Abdulaziz Award For Camel Beauty and Camel Racing, as well as Camel Obedience awards with total prizes for competitions. Camels are celebrated as an authentic symbol of the desert lifestyle of the people of the Arabian Peninsula. Historically and still today camels remain connected to Arabs history and life and are treasured for their special and unique characteristics. Once a main source of transport, a loyal friend, a sturdy worker, a shady support to lean as well as a reliable food resource. Today despite modern urbanization, camels still remain a great source of pride not only for camel breeders but all Arabs, who recognize camels as icons of Arab

The camel festival was distinguished this year for the presence of the tallest camel in the world which will hopefully make it into the Guinness World Records. heritage, life and economy. Important in every pillar of society – economically, politically and culturally – camels are not only referred to throughout ancient religious texts and poetry, but are a source of meat, milk, leather and transport. A trading pillar in the Arab world, they have always been a renewable economic resource – making them an essential part of the region’s growth, while reinforcing the tie with tradition. The camel festival was distinguished this year for the presence of the tallest camel in the world which will hopefully make it into the Guinness World Records. Fares Al-Dalbji, a supervisor at the festival, said the camel whose height is three meters breaks the previous record of the tallest camel which is 190 cm. The eight-year-old yellow camel belongs to Sultan Al-Rashidi from Ha’il, Dalbji said, adding that he has two other camels from the same breed but they are not this tall. Dalbji said they contacted Guinness Book, which voiced its preliminary approval, adding that work is underway to register the camel. A team was dispatched to the festival earlier in the week to examine the camel, take samples and install the electronic chip, and a health certificate will later be issued to resume the official registration process. Dalbji added that there have been offers to buy the camel for $80,000 (SR300,000), noting, however, that the price will increase after it is registered in Guinness Book. The festival entered a crucial stage as the competition in the beauty and speed categories intensified

and contestants sought to win prizes reaching millions of dollars. It was the second edition of the world’s largest camel festival. According to the organizers, the festival is held on 30 million sq. meters in the middle of the desert. The location holds an important historical meaning as it was the starting point of the armies of the Kingdom’s founder late King Abdulaziz on their mission to unite the country. The festival started on Jan. 1 and will continue duntil Feb. 1. “The number of visitors varied between 25,000 and 30,000 per day,” said Sultan Al-Bokami, the festival’s spokesman. “People come here looking for originality, heritage and culture. There is also a big turnout from expatriates and staff members of embassies.” He added that the foreigners love camels and the desert. In an effort to stop oil dependence and diversify its economy, Saudi Arabia, which is visited by millions of people who perform their pilgrimage yearly, is reviving its tourism sector to add extra income in light of the drop in oil prices. Saudi Arabia is set to begin issuing tourist visas in the first quarter of 2018 for the first time in history. Around 26,000 camels participated in the “Camel Mazayen” contest which crowns the most beautiful camel. The tense competition led some camel owners to perform plastic surgery on the animals to increase their chances of winning. More than 20 such cases were caught so far, according to the organizers. “The monitoring of fraud and tampering has proved to be successful,” said Prince Muhammed Bin Turki Bin Saud who is participating in the contest. “This is considered torture for the camel and puts it through severe pain which is inhumane behavior.” To the untrained eye, the camel might not be the most attractive of animals. It might not rank alongside the more majestic beasts of the animal kingdom

Camel Festival

About 30,000 camels competed in the monthlong extravaganza honoring the “ships of the desert” and their place in the country’s history.

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like the lion or the elephant. In the popular imagination, it struggles to compete with the cuteness of other national emblems like the panda or the koala bear. But beauty is in the eye of the beholder, and such is the camel’s importance in Saudi Arabia’s history and culture that it is the subject of a beauty contest every year. Fawzan al-Madi, the head judge of the contest, is no untrained eye. He knows what makes a camel beautiful. “Its height is essential, also the elongation of its neck is important: the longer, the better, ” he says in between judging rounds. “In addition to the size of the head, the size of the nose, the lips of the best camels are usually dangling downward. This is important, too.” Held in the Ad-Dahna Desert, northeast of Riyadh, the King Abdulaziz Camel Festival handed out more than $30 million in prize money to owners of the winning camels.

About 30,000 camels competed in the month-long extravaganza honoring the “ships of the desert” and their place in the country’s history. For centuries they were the preferred mode of transporting goods and people across the harsh desert landscape of the Arabian Peninsula. Their milk and their meat have long been used to sustain locals here. “To us, camels are considered a historical symbol,” Madi says. “Many countries in the region have symbols, and we chose the camel because throughout the years camels were a transportation method. The milk of the camels is very popular here and has always been.” “King Abdulaziz managed to unify Arabia on the back of a camel,” he adds. Madi and his fellow judges stood alongside the track as the camels paraded by them 30 at a time, led by a trainer who whoops and hollers to move the herd.

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Hundreds of spectators watched on and cheered as the camels trot through. It all looked innocent enough. But $30 million is enough to corrupt even something as pure as a camel pageant. In recent years, some owners have gone to great lengths to enhance the beauty of their stock, including by use of a method beloved by Hollywood celebrities: Botox. “We have a medical committee for this because it is prohibited to cheat,” says Madi. “This committee used special equipment to verify whether a camel has been injected with Botox or any similar suspicious material.” Owners who are caught cheating are banned for five years and have to pay a fine. This year, 12 camels were disqualified for having their appearance altered. “This year some of the camel’s lips were tied down to make them dangle, so they were tied down for days before

the competition and we managed to find that out and they also had injected their lips with anesthetic to also have them dangled down more,” he says. “Also, some camels’ ears were covered with oil to make them drop down more because when the ears of the camel are downwards it’s also considered a sign of beauty.” During the beauty contest, a baby camel is driven in front of the herd to encourage the other camels to trot past the judges. There’s a serious side to the festival, too. This year was the event’s biggest yet. Away from the beauty contest, there were camel races, exhibitions, sculptures and stalls selling camel milk and meat. Both the tallest camel and shortest camels in the world are here, according to organizers. Organizers say the event is about reinforcing a sense of national pride and keeping a connection to the past at a

time when the country is changing rapidly. The country’s 32-yearold crown prince, Mohammed bin Salman, has touted a program of modernization in the kingdom, as it tries to reduce its dependence on oil and open its doors to foreign business. Political and social reforms are underway, too. This year, women will be allowed to drive for the first time. More women are finding their way into the workplace. Cinemas are reopening. Tourist visa rules will be relaxed soon. After being closed off for so long, Saudi Arabia is showing signs that it wants to open up. Dr. Fahd al-Semmari, an organizer of the festival, says the government wants foreign tourists to flock to events like this when the visa changes come in.

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F WOMEN HIT SAUDI FOOTBALL STADIUMS Dr. Turki Alawwad Editor-in-Chief

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riday, January 12, 2018, was a historic day for Saudi football, as female spectators flocked to the Kingdom’s stadiums for the first time. Some 14,000 women fans attended matches across the country. The main stadium in Jeddah’s King Abdullah Sport city, known as the Shining Jewel, for the first time welcomed families to watch a professional league match between Al-Ahly and Al-Batin. The King Fahd Stadium in Riyadh meanwhile hosted female spectators at the “El Classico” of Saudi football, pitting Al-Hilal against Al-Ittihad. Women were there in their thousands. The faceoff between the top two Saudi teams turned out to be a dramatic clash, despite ending in a 1-1 draw. Some fans described it as the best match of the season. Princess Rima bint Bandar bin Sultan, who heads the Public Authority for Sport and is president of the Saudi Mass Participation Federation, expressed her delight that whole families could now enter football grounds and watch from the stands. “Your Excellency, Chairman of the Public Sports Authority Turki Al Al-Sheikh, my dear colleagues in the General Authority for Sport, thank you all for your efforts and your constant support,” she tweeted. “Today you put joy in the heart of every Saudi family and Saudi woman who attended their first match. This is a historic moment for the kingdom: God preserve you and bless all our efforts to serve our nation and its people.” The Princess herself attended the Ahly-Batin fixture as well as the Ittihad-Hilal game the following day. Regular female fans also expressed their happiness. “It’s a beautiful experience,” said one Ahly fan. “We had hoped for years to attend and support Al-Ahly, to see and cheer for the team actually from inside the stadium.” An Ittihad supporter said she loved her team “like crazy” and that going to the match to support the team was “a historic day in my life”. Women also took part in organising the matches. Some 300 women were involved in the Ahly-Batin fixture, and a similar number in the Classico. Outside the grounds, activities were laid on for children and families. Being allowed to attend football matches may not seem a major step to women in countries where they have long played their full part in public life. But it is a major step for Saudi women, who have also recently gained the right to drive and study without their families’ consent. Saudi women are gaining ever more rights, in keeping with the Kingdom’s constant state of development.