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      Beirut Explosion One Year On: Are Israel and Hezbollah Responsible?

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      August 4 marks the one-year anniversary of the explosion that rocked the port of Beirut. Today, thousands of Beirutis are marching to the site in memory of the victims and in peaceful protest at continued government inaction. As Lebanon wrestles with political paralysis, a rampant pandemic and a wrecked economy, the authorities have provided no answers. To date, no one in a senior position has been held accountable for the blast that killed 218 people, injured more than 7,000 and displaced over 300,000 as large parts of the capital were laid to waste.

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      An FBI report from October last year (seen by Reuters at the end of July) concluded that the amount of ammonium nitrate left in the port warehouse by the time of the explosion constituted just one-fifth of the 2,754 tons seized by the authorities in 2013. The question the FBI did not ask was where the bulk of that shipment had gone. Arab Digest’s own account from July 20 suggests the likely destination: the regime forces of Syria’s President Bashar al-Assad. Sources claim that Assad’s ally Hezbollah moved the ammonium nitrate into Syria over the years.

      Buttressing our analysis is the fact that no insurance claim has ever emerged from the supposed destination, Mozambique, for the undelivered fertilizer. The Israelis, we postulate, in hitting a Hezbollah weapons cache in the harbor, unintentionally triggered the blast.

      No Concrete Evidence

      A new investigation published by Human Rights Watch (HRW) links to over 100 documents related to the Rhosus and its cargo, some of which have not been previously published. Once again, more questions than answers are forthcoming, including over such key issues as whether the ammonium nitrate was really ever, as has been asserted, intended for Mozambique:

      “The widely reported narrative regarding the arrival of the Rhosus, a Moldovan-flagged ship, in the port of Beirut in November 2013 carrying 2,750 tonnes of high-density ammonium nitrate is as follows: the ship’s cargo was ultimately bound for Mozambique; it entered Beirut’s port to load seismic equipment it was then meant to deliver to Jordan before traveling onward to Mozambique; the ship’s owner was a Russian national, Igor Grechushkin; and the owner of the ammonium nitrate on board, Savaro Limited, was a chemical trading company in the United Kingdom. Upon examination, however, it is not clear that any of these assertions are true.”

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      The HRW report goes on to mention three possible reasons for the blast: that the explosion was caused when welding sparks caused a fire in hangar 12, igniting the ammonium nitrate; that the explosion was caused by an Israeli airstrike; or that the explosion was an intentional act by Hezbollah. The hypothesis that the explosion might have been caused by an Israeli attack that was not an airstrike is not one that is under official consideration, although in June, investigative judge Tarek Bitar told journalists that he was “80 percent certain” that the blast was not caused by an Israeli missile.

      In July, we described how an Arab Digest member recalled the events of that day:

      “Shortly after 6 pm, we heard a jet flying at low level from the west and an explosion from the direction of the port. A couple of minutes later came the deeper sound of a surface-to-surface missile followed by another explosion. The ground then shook violently — this turned out later to be the ammonium nitrate detonating — and we watched in disbelief the plume of smoke and debris soaring into the sky. The blast reached us a few seconds later, throwing us off our feet from the terrace into the flat and blowing in all the glass.”

      For our member, it was a fortunate escape: bruised and cut, and astonished to find that, in the midst of the badly damaged flat, the internet was still working.

      Inconclusive Conclusion

      Now, a year on, there are still pressing questions about what caused the blast and who is responsible, questions that the suffering people of Lebanon deserve to have answers to. The second, and by far the most destructive explosion, occurred when a warehouse containing ammonium nitrate caught fire. A common explanation put about at the time was that the explosion had been caused by careless workers. But no concrete evidence has been brought forward to support that claim.

      France had declared that it would conduct a major investigation. However, a  French judge could not determine conclusively “whether the explosion was the result of an intentional security operation or whether it was the result of negligence in storing the ammonium nitrate and shortcomings that led to the devastating explosion.” According to Reuters, the FBI had arrived at the same inconclusive conclusion.

      The French report raised the possibility of an attack — “an intentional security operation” — together with the claim that the explosion was an accident caused by negligence. The equivocation and failure to find answers didn’t prevent the French from patronizingly scolding the Lebanese. As the French ambassador in Beirut put it, “To all this country’s leaders, I want to say that your individual and collective responsibility is considerable, be brave enough to take action, and France will help you.”

      Embed from Getty Images

      The first Lebanese judge investigating the blast was forced out in mid-February after he had attempted to charge cabinet ministers and the prime minister in office at the time of the explosion. A second judge has made virtually no headway against entrenched political elites whose central goal is to protect themselves and their fiefdoms while evading responsibility and the truth.

      On July 14, Amnesty International called for the removal of immunity for senior politicians as well as government and military personnel: “The protesters’ demand is simple: let justice take its course. We stand with these families in calling on Lebanese authorities to immediately lift all immunities granted to officials, regardless of their role or position. Any failure to do so is an obstruction of justice, and violates the rights of victims and families to truth, justice and reparations.”

      Despite pleas and protests by the families of the victims, justice is unlikely to be allowed to take its course. The judiciary itself is deeply compromised and beholden to numerous sectarian, business and political factions, a malignant legacy of Lebanon’s 1975-1990 civil war. As an article on Just Security forensically elucidates, “the corruptibility of the judicial system is no accident. Instead, the convoluted structure of the judiciary complements the structure of the rest of the political system — in that it facilitates impunity at the highest levels and protects those who have retained power in the aftermath of Lebanon’s civil war.”

      Speculations Abound

      In the absence of an independent investigation, with all the foot-dragging and obfuscation it entails, speculation abounds about what caused the explosion. There are those, including our member, who believe that what happened on August 4, 2020, was the unintended consequence of an Israeli attack on a Hezbollah weapons dump in the port. The cache was located adjacent to the warehouse holding the ammonium nitrate. The first blast, with its eerie resemblance to fireworks going off, set off the fire that caused the major blast which leveled the port and damaged much of Beirut.

      The Arab Digest member, who is familiar with both the Israeli air force tactics and their consequences, is convinced it was a missile strike: “We compared notes with a friend who had observed the jet banking away from the attack and another friend who actually saw the surface-to-surface missile flash past her office window.” The member says that, according to detailed work done by Lebanese citizen activists in the wake of the attack, the ammonium nitrate aboard the Rhosus had landed in Beirut under a cover story in 2013. 

      The shipment was subsequently seized by port authorities. The supposition put forward by the activists is that it was then trucked to Syria by Hezbollah to provide the regime forces of Bashar al-Assad with the raw material for the improvised barrel bombs they began dropping on opposition-held cities having run short of conventional ammunition. The member quoted expert sources who estimated that over several years, the original 2,750 tons had been reduced to about 400 tons at the time of the blast, which is in line with the FBI’s findings.

      Embed from Getty Images

      Richard Silverstein, who describes himself as a writer who “focusses on the excesses of the Israeli national security state,” wrote in his blog, Tikun Olam, just after the blast:

      “A confidential highly-informed Israeli source has told me that Israel caused the massive explosion at the Beirut port earlier today which killed over 100 and injured thousands. … The source received this information from an Israeli official having special knowledge concerning the matter.

      Israel targeted a Hezbollah weapons depot at the port and planned to destroy it with an explosive device. Tragically, Israeli intelligence did not perform due diligence on its target. Thus they did not know (or if they did know, they didn’t care) that there were 2,700 tons of ammonium nitrate stored in a next-door warehouse.”

      Tikun Olam referred to comments of then-President Donald Trump who, in a hastily arranged press conference, said he had met with some of his “great generals” and “they seem to think it was an attack. It was a bomb of some kind.” His comments caused consternation at the Pentagon, with Silverstein arguing that Trump had let slip “highly classified information,” i.e., that the Israelis had informed Washington that they were going to carry out an attack on a Hezbollah weapons cache.

      Silverstein, though a controversial figure, is viewed by some experts as a useful source on Israeli defense information that would otherwise be censored by the authorities. When contacted by Arab Digest, Silverstein thought it “not likely” that the Israelis would have used a fighter jet to carry out the alleged strike. He thought it too obvious and reckless. He pointed to the modus operandi used against Iranian targets where explosives were placed and then detonated remotely as a more likely approach. He said his source had not mentioned anything about using a fighter jet. “It might have been triggered by a drone,” Silverstein suggested.

      But Silverstein was certain of the attack itself: It was carried out by the Israelis. His source, he said, had been contacted by a cabinet minister in the Netanyahu government (the “Israeli official having special knowledge”) shortly after the explosion. Silverstein told Arab Digest that he was “totally confident about the source.”

      True Narrative

      Should this version, or variations on it, be the true narrative, it is understandable why Hezbollah and Israel would not want it to see the light of day. Less understandable and puzzling is why major news outlets have not touched the story when it was presented to them by reputable sources. Part of the answer may lie in the fact that the sources, either for professional or personal security concerns, have not wanted to go on the record.

      A truly independent investigation might answer the questions and uncover the truth. But for the Lebanese people, battered by an economic crisis and stalked by the COVID-19 pandemic, finding out what happened that terrible day in Beirut must join a disheartening queue. In a country that has for too long been abused by its political elites and used by foreign powers for their own purposes, seeking answers is a long and arduous task with little hope at its end that justice will be served.

      *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Austerity for the Poor and Prosperity for the Rich

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      There has been a growing interest in social protection policies in the Arab region dating back to the 1990s. Yet the impact of such measures has not been empirically and independently assessed. Evidence shows that, even before the COVID-19 pandemic, the poor have been getting poorer and the number of vulnerable groups and people living below the poverty line is increasing.

      Poverty rates have risen throughout a decade of turmoil. This started with the Arab Spring in 2010-11 and intensified when the pandemic began in 2020. The situation is worse in Arab countries where there is ongoing conflict, economic hardship or political crises. These indicators of rising poverty mean the effectiveness of the social protection policies in the region must be placed under critical examination.

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      The Arab Mashreq is a case in point. This region, which consists of Jordan, Iraq, Syria, Lebanon, Palestine and, in some definitions, Egypt, has been marred by prolonged conflict, economic turmoil and political upheaval. In response to the crises, there has been an added focus on people’s resilience mechanisms to cope with the socioeconomic uncertainty.

      From Economic Reforms to the COVID Crisis

      Since 2015, many Arab governments have introduced financial and economic reform policies, supported by the International Monetary Fund. However, in the absence of effective social protection policies, these changes led to a sharp increase in inflation. This exacerbated the hardship of the poor, caused negative repercussions for people’s living conditions and led to further structural social stratification. The negative impact on the poor was accompanied by a political narrative of austerity for a better future. Simultaneously, generous policies were introduced for the upper class.

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      The policy response in Mashreq countries to the pandemic was not an exception from this inequality paradigm. The poor have been excluded in the design of policy responses. The fragile health sectors and the coverage gap of medical insurance generated an association between appropriate recovery and the upper class. Accordingly, access to quality care was exclusively for the rich. On the other hand, the poor had to rely on public health, which is often underfunded, understaffed and lacks sufficient resources.

      In addition, government support in the form of loans and financial subsidies to recover from the economic fallout of the pandemic was directed exclusively at big businesses. This led to the shutdown of many small and medium-sized enterprises (SMEs) and caused unemployment to rise in all Mashreq countries.

      Moreover, refugees and internally displaced people were left behind in the policy response. Instead of prioritizing their needs as vulnerable people, they faced restrictions on moving out from overcrowded camps due to the lockdown measures, which exacerbated their plight. In particular, they suffered from a lack of access to health services and malnutrition.

      Resilience Mechanisms

      In the Mashreq, people have used different coping and resilience mechanisms throughout the pandemic. Yet defining what appears to be the relatively simple concept of resilience is complex. Resilience is a term that has been applied to research and practice in nearly every possible area of life and academia — from science to sociology, psychology, nursing and medicine to business and ecology. The theoretical definition of resilience is “one’s ability to bounce back or recover from adversity.” Research on coping with poverty emphasizes the importance of resilience mechanisms to be considered in the design, development and implementation of social protection policies for the prevention of risks associated with irrational resilience mechanisms.

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      Some resilience mechanisms in Arab Mashreq countries are constructive. For instance, there has been a rise in transnational family support, including remittances, and a revival in the agricultural sector due to food shortages. Dual-earner households have also increased as more women are joining the labor force. Yet the majority of reported resilience mechanisms are destructive. Seven areas are particularly important.

      First, reports show increasing numbers of children who have ab­stained from going to school or dropped out altogether, often due to rampant poverty. In recent years, economic reform policies have included a sharp reduction of fuel, electricity and water subsidies. This has led to higher living costs. In response, children have been forced to work to earn money and contribute to the family income. The pandemic has made the situation even bleaker with the new educational setup, as not everyone has access to computers or the internet. The lack of technological infrastructure has meant the poor are excluded from the online classes introduced by lockdowns.  

      Second, even before the pandemic, leftover or used food markets emerged in countries such as Jordan and Egypt. At these places, the poor can buy food at reduced prices. These markets, which sell scraps of food, have become increasingly common in areas with people on low incomes. Often, the remains of meals from restaurants and hotels are offered to families at a discounted rate, with many food items unpackaged and no information as to where or when they were made. Some customers have said that no matter the quality, they are in need of the low prices as they cannot afford to buy other food products.

      Third, the cut in subsidies and rising food prices have not only affected the poor. Many middle-class people cannot afford quality food due to the increase in prices and their depleted family savings. This has been exacerbated by economic hardship and the pandemic. This is particularly the case in Lebanon, where the lira (or pound) has lost most of its value, leading to higher costs of living. Lebanese people are reportedly cutting out meat from their diets or skipping meals. In Iraq, throughout the COVID-19 crisis, people have been forced to sell their furniture and personal items, just for the sake of buying food. Many Iraqis have lost jobs and the country lacks social protection measures.  

      Embed from Getty Images

      Fourth, in response to the rising prices of medicine in the region, people have turned to traditional medicine and herbal remedies instead. For instance, due to the loss of more than 90% of the Lebanese pound’s value, there has been a shortage of essential medicines. The catalyst behind this was the ongoing national economic crisis in Lebanon and the state measures on lifting subsidies on medicine. Pharmacies often lack basic medications for blood pressure and even painkillers and antibiotics.

      Fifth, to cope with poverty, mothers are joining the informal sector in order to have dual-earner families. Daughters have also joined the workforce. But the problem is that this sector is not covered by any social protection schemes, which means that families struggled during the height of lockdowns to curb the spread of COVID-19.

      Sixth, the unprecedented rise in food prices has led some of the poor to buy their daily needs of food products via the postpaid system, or the so-called popular “note.” This system, known as shokok, is based on mutual trust between grocery store owners and residents in poor areas. As part of shokok, a shop owner archives either daily or weekly the merchant records of customer withdrawals on a note before collecting the cash at the end of each month.

      Seventh, the United Nations and several media outlets have reported increased rates of crimes, drug abuse, robberies and rising cases of suicide as some people struggle to cope with poverty and hardship.

      In light of these resilience mechanisms, social protection systems have to be rethought in Arab Mashreq countries. When left behind, most vulnerable people generate their own forms of resilience, which might be destructive. To a major extent, the policy response is designed for the poor to fund the rich. However, the unmet needs of the poor are not only affecting their wellbeing negatively, but it will also impact the state in the long term.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      How Dubai and Abu Dhabi See the World Cup

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      With the Euros over, attention outside the UK is turning to the 2022 FIFA World Cup in Qatar. The focus in Britain, quite rightly, remains on the racist abuse directed at black members of the English football team and the extent to which the prime minister and the home secretary contribute to enabling a culture in which such abuse can flourish.

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      In the Gulf, the lucrative rights to World Cup packages are now being awarded. In Kuwait, ITL World has been appointed the sales agent. The company’s CEO, Siddeek Ahmed, could hardly contain his delight at being able to offer “fans a unique opportunity to purchase ticket-inclusive hospitality packages” for the World Cup. In addition to game tickets, the packages include flights, accommodation, transport and “leisure” programs. According to Arabian Business, the deals for the main venue, the 80,000-seat Lusail Stadium, will run from $14,350 to $74,200. That buys you all 10 matches hosted there, including the quarter-final, semi-final and final. If you are not short on cash, you can pick up a 40-seat suite at the stadium for just $2.6 million.

      In Dubai, Expat Sport Tourism DMCC won the rights, with its website urging football fans to be a part of history to see the first World Cup held in the Arab world. “From the pinnacle in high end corporate experiences to individual hospitality solutions for football fans, we can cater for all those wishing to be part of FIFA World Cup 2022” is how the firm put it.

      Not Everyone Is Happy

      With an estimated 1.5 million fans heading to Qatar next year, Dubai, with its well-established tourism and entertainment sectors, sees itself as ideally placed to cash in on the World Cup bonanza. Yet others in the United Arab Emirates are less welcoming.

      Embed from Getty Images

      Mohammed al-Hammadi is the president of the Emirates Journalists Association and editor-in-chief of the newspaper Alroeya, based in Abu Dhabi. Among the core values listed on the paper’s website are “apply best practice in line with the journalism codes” and “be an objective and trustworthy information tool.”

      Hammadi is a strong proponent of normalization. He spoke at a webinar in October 2020, after the UAE and Bahrain had announced their plan to normalize relations with Israel. The event was organized by a pro-Israeli think tank, the Washington Institute for Near East Policy (WINEP). Hammadi said he believed in both peace and advancing the rights of Palestinians, but people like him who “speak in favor of peace are stigmatized … and find themselves falling under attack.” He added that the word normalizing “has a very negative connotation in our region.”

      In June, he drew the ire of African journalists with a ham-fisted attempt to have them join a coordinated media attack on the World Cup in Qatar. They adopted a resolution denouncing efforts to “use Africa and its institutions as political football in order to settle scores in a political dispute.” The statement said:

      “While journalists in the East African region struggle to preserve their independence and freedom from rogue government and commercial interests that threaten the integrity of journalists, an outside actor is behind attempts to manipulate, divert and involve journalists in an issue completely outside the scope and powers of journalists and their unions.
      In the same way that journalists and their unions in East Africa are calling, confronting and protesting against governments for their interference in the work of journalists and the curtailment of their freedoms, all foreign powers that have a negative and false agenda must be condemned and publicly challenged as a matter of principle and consistency.”

      Twelve days later, the website Emirates Leaks, citing what it called “reliable sources,” alleged that Hammadi had attempted to pressure the heads of the journalism unions of Norway and Finland. According to the site, he wanted them to influence journalism unions in Asia and Africa to “coordinate attacks against Qatar and tarnish its image before hosting the World Cup.”

      His efforts occasioned a written question on June 23 in the European Parliament from Fulvio Martusciello. The Italian MEP accused the head of the Emirates Journalists Association of leading a smear campaign against Qatar: “Al Hammadi asked the Finnish and Norwegian Journalists Federations to exercise influence on journalists unions that he supports financially to engage in the Abu Dhabi campaign and offend Qatar. He also tried to offer them financial bribes and expensive gifts in return for achieving Abu Dhabi’s inflammatory goals.”

      So, while Dubai can barely contain its World Cup excitement, Abu Dhabi appears set to continue its anti-Qatar campaign. Imagine for a moment that the UAE was a football side and its two big stars had separate agendas and were playing only for themselves. That is not a winning formula and it’s something a good manager, like England’s Gareth Southgate, would quickly sort out.

      *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Personality and Ambition Fuel Saudi-UAE Divide

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      Personality and the conflation of national interests with personal ambition are contributing to the widening gap between Saudi Arabia and the United Arab Emirates. It was only a matter of time before Saudi Crown Prince Mohammed bin Salman (MBS) would want to go out on his own and no longer be seen as the protégé of his erstwhile mentor and Emirati counterpart, Abu Dhabi Crown Prince Mohammed bin Zayed (MBZ). By the same token, there was little doubt that the Saudi prince and future king would want to put to rest any suggestion that the UAE, rather than Saudi Arabia, called the shots in the Gulf and the Middle East.

      No doubt, MBS will not have forgotten revelations about Emirati attitudes toward Saudi Arabia and the UAE’s strategic vision of the relationship between the two countries. This was spelled out in emails by Yusuf al-Otaiba, the UAE ambassador in Washington and a close associate of MBZ, which were leaked in 2017. The emails made clear that UAE leaders believed they could use Saudi Arabia — the Gulf’s behemoth — and Mohammed bin Salman as a vehicle to promote Emirati interests.

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      “Our relationship with them is based on strategic depth, shared interests, and most importantly the hope that we could influence them. Not the other way around,” Otaiba wrote. In a separate email, the ambassador told a former US official that “I think in the long term we might be a good influence on KSA [Kingdom of Saudi Arabia], at least with certain people there.”

      A participant in a more recent meeting with Otaiba quoted the ambassador as referring to the Middle East as “the UAE region,” suggesting an enhanced Emirati regional influence. In a similar vein, former Dubai police chief Dhahi Khalfan, blowing his ultra-nationalist horn, tweeted in Arabic, “It’s not humanity’s survival of the strongest, it’s the survival of the smartest.”

      To be sure, Mohammed bin Zayed has been plotting the UAE’s positioning as a regional economic and geopolitical powerhouse for far longer than his Saudi counterpart. It is not for nothing that it earned the UAE the epitaph of “Little Sparta,” in the words of former US Secretary of Defense Jim Mattis.

      Windows of Opportunity

      No doubt, smarts count for a lot. But, in the ultimate analysis, the two crown princes appear to be exploiting windows of opportunity that exist as long as their most powerful rivals, Turkey and Iran, fail to get their act together. The Saudis and Emiratis see the Turks and Iranians as threats to their regional power. Both Turkey and Iran have far larger, highly educated populations, huge domestic markets, battle-hardened militaries, significant natural resources and industrial bases.

      Embed from Getty Images

      In the meantime, separating the wheat from the chaff in the Gulf spat may be easier said than done. Bader al-Saif, a Gulf analyst, notes that differences among Arab states have emerged as a result of regime survival strategies that are driven by the need to gear up for a post-oil era. The emergence of a more competitive landscape need not be all negative. Saif warns, however, that “left unchecked … differences could snowball and negatively impact the neighborhood.

      Several factors complicate the management of these differences. For one, the Vision 2030 plan for weening Saudi Arabia off its dependence on the export of fossil fuel differs little from the perspective put forward by the UAE and Qatar, two countries that have a substantial head start.

      Saudi Arabia sought to declare an initial success in the expanded rivalry by revealing last week that the International Air Transport Association (IATA), the airline industry body, had opened its regional headquarters in Riyadh. IATA denied that the Saudi office would have regional responsibility. The announcement came on the heels of the disclosure of Saudi plans to create a new airline to compete with Emirates and Qatar Airways.

      Further complicating the management of differences is the fact that Saudi Arabia and the UAE are likely to compete for market share as they seek to maximize their oil export revenues in the short and medium term. This is particularly before oil demand potentially plateaus and then declines in the 2030s.

      Finally, and perhaps most importantly, economic diversification and social liberalization are tied up with the competing geopolitical ambitions of the two princes in positioning their countries as the regional leader. Otaiba signaled MBZ’s ambition in 2017 in an email exchange with Elliot Abram, a neoconservative former US official. “Jeez, the new hegemon! Emirati imperialism! Well, if the US won’t do it, someone has to hold things together for a while,” Abrams wrote to the ambassador, referring to the UAE’s growing regional role. “Yes, how dare we! In all honesty, there was not much of a choice. We stepped up only after your country chose to step down,” Otaiba replied.

      The Muslim Brotherhood and Hamas

      Differences in the ideological and geopolitical thinking of the princes when it comes to political Islam and the Muslim Brotherhood reemerged recently. Differing Saudi and Emirati approaches were initially evident in 2015 when King Salman and his son began their reign in Saudi Arabia. This was a period when Mohammed bin Zayed, who views political Islam and the Brotherhood as an existential threat, had yet to forge close ties to the new Saudi leadership. At the time, Saudi Foreign Minister Saud al-Faisal, barely a month after King Salman’s ascendancy, told an interviewer that “there is no problem between the kingdom” and the Brotherhood.

      Just a month later, the Muslim World League, a body established by Saudi Arabia in the 1960s to propagate religious ultra-conservatism and long dominated by the Muslim Brotherhood, organized a conference in a building in Mecca that had not been used since the banning of the brothers. The Qataris, who have a history of close ties to the Brotherhood, were invited.

      After King Salman and his son came to power, Saudi Arabia adopted a harder approach toward Brotherhood-related groups as Mohammed bin Zayed gained influence in Saudi affairs. The Muslim League has since become Mohammed bin Salman’s main vehicle for promoting his call for religious tolerance and inter-faith dialogue. Saudi Arabia and the UAE are portraying themselves as icons of a socially moderate form of Islam that, nonetheless, endorses autocratic rule.

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      Last week, the kingdom signaled a potential change in its attitude toward Brotherhood-related groups with the broadcast of an interview with Khaled Meshaal, the Qatar-based head of the political arm of Hamas. The interview was aired on Al Arabiya, the Saudi state-controlled news channel. Hamas, the Palestinian Islamist group that controls Gaza, maintains relations with Iran and is viewed as being part of a Brotherhood network. Meshaal called for a resumption of relations between Saudi Arabia and the Palestinian movement.

      In 2014, Saudi Arabia designated Hamas as a terrorist organization. This was part of a dispute between Qatar, a supporter of Hamas and the Muslim Brotherhood, and Saudi Arabia, the UAE and Bahrain, which had all withdrawn their ambassadors from Doha. The Saudis were particularly upset by the close relations that Hamas had forged with Iran and Turkey, Riyadh’s main rivals for regional hegemony.

      A litmus test of the degree of change in Saudi Arabia’s attitude will be whether it releases scores of Hamas members. These members were arrested in 2019 as part of Saudi efforts to garner Palestinian support for then-US President Donald Trump’s controversial peace plan for the Israeli-Palestinian conflict. Quoting the Arabic service of Turkey’s state-run Anadolu news agency, Al-Monitor reported that Al Arabiya had refrained from broadcasting a segment of the interview in which Meshaal called for the release of the detainees.

      Despite Differences

      The Saudi–UAE rivalry and the ambitions of their leaders make it unlikely that Mohammed bin Salman and Mohammed bin Zayed will look at structural ways of managing differences. This includes areas like greater regional economic integration through arrangements for trade and investment and an expanded customs union. The latter would make the region more attractive to foreign investors and improve the Gulf states’ bargaining power.

      In the absence of strengthening institutions, the bets are on the crown princes recognizing that, despite their differences, “it doesn’t make sense for either one of them to let go of the other.”

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      America’s Afghan War Is Over. But What About Iraq and Iran?

      by

      At Bagram air base, Afghan scrap merchants are already picking through the graveyard of US military equipment that was until recently the headquarters of America’s 20-year occupation of their country. Afghan officials say the last US forces slipped away from Bagram in the dead of night, without notice or coordination. 

      The Taliban are rapidly expanding their control over hundreds of districts in Afghanistan, usually through negotiations between local elders, but also by force when troops loyal to the Kabul government refuse to give up their outposts and weapons. A few weeks ago, the Taliban controlled a quarter of the country. Now it’s a third. They are taking control of border posts and large swathes of territory in the north of the country. These include areas that were once strongholds of the Northern Alliance, a militia that prevented the Taliban from unifying the country under their rule in the late 1990s. 

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      People of goodwill all over the world hope for a peaceful future for the people of Afghanistan, but the only legitimate role the United States can play there now is to pay reparations, in whatever form, for the damage it has done and the pain and deaths it has caused. Speculation in the US political class and corporate media about how the US can keep bombing and killing Afghans from “over the horizon” should cease. The US and its corrupt puppet government lost this war. Now it’s up to the Afghans to forge their future. 

      Iraq

      So, what about America’s other endless crime scene: Iraq? The US corporate media only mention Iraq when our leaders suddenly decide that the over 150,000 bombs and missiles they have dropped on Iraq and Syria since 2001 were not enough, and dropping a few more on Iranian allies there will appease some hawks in Washington without starting a full-scale war with Iran.

      But for 40 million Iraqis, as for 40 million Afghans, America’s most stupidly chosen battlefield is their country, not just an occasional news story. They are living their entire lives under the enduring impacts of the neocons’ war of mass destruction.

      Embed from Getty Images

      Young Iraqis took to the streets in 2019 to protest 16 years of corrupt government by the former exiles to whom the United States handed over their country and its oil revenues. The protests were directed at the Iraqi government’s corruption and failure to provide jobs and basic services to its people, but also at the underlying, self-serving foreign influences of the US and Iran over every Iraqi government since the 2003 invasion.

      A new government was formed in May 2020, headed by Iraqi Prime Minister Mustafa al-Kadhimi, previously the head of Iraq’s intelligence service and, before that, a journalist and editor for the Al-Monitor website. Kadhimi has initiated investigations into the embezzlement of $150 billion in Iraqi oil revenues by officials of previous governments, who were mostly former Western-based exiles like himself. He is now walking a fine line to try to save his country, after all it has been through, from becoming the front line in a new US war on Iran.

      Recent US airstrikes have targeted the Hashd al-Shaabi, known in English as the Popular Mobilization Forces (PMF). The PMF, which is made up of mostly Iraqi Shia armed groups, was formed in 2014 to fight the Islamic State (IS). At the time, IS had seized territory spanning both Iraq and Syria, breaking the border between the two countries and declaring a caliphate. The PMF comprises about 130,000 troops in 40 or more different units. Most of them were recruited by pro-Iranian Iraqi political parties and groups. Now, the PMF is an integral part of Iraq’s armed forces and is credited with playing a critical role in the war against IS.

      Western media represent the PMF as militias that Iran can turn on and off as a weapon against the United States. But the PMF has its own interests and decision-making structures. When Iran has tried to calm tensions with the US, it has not always been able to control the PMF. General Haider al-Afghani, the Iranian Revolutionary Guard officer in charge of coordinating with the PMF, recently requested a transfer out of Iraq. He complained that the PMF paid no attention to him.

      Ever since the US assassination of Iran’s General Qasem Soleimani and PMF commander Abu Mahdi al-Muhandis in January 2020, the PMF has been determined to force the last remaining US occupation forces out of Iraq. After the killing, the Iraqi national assembly passed a resolution calling for US forces to leave Iraq. Following US airstrikes against PMF units in February 2021, Iraq and the US agreed in early April that American combat troops would soon depart. 

      But no date has been set, no detailed agreement has been signed, many Iraqis do not believe US forces will leave, nor do they trust the Kadhimi government to ensure their departure. As time has gone by without a formal agreement, some PMF forces have resisted calls for calm from their own government and Iran and stepped up attacks on US forces. 

      At the same time, the Vienna talks over the Iran nuclear agreement have raised fear among PMF commanders that Iran may sacrifice them as a bargaining chip in a renegotiated nuclear agreement with the United States. So, in the interest of survival, the commanders have become more independent of Iran and cultivated a closer relationship with Kadhimi. This was evidenced in Kadhimi’s attendance at a huge military parade in June to celebrate the seventh anniversary of the PMF’s founding. 

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      The next day, the US bombed PMF forces in Iraq and Syria, drawing public condemnation from Kadhimi and his cabinet as a violation of Iraqi sovereignty. After conducting retaliatory strikes, the PMF declared a new ceasefire on June 29, apparently to give Kadhimi more time to finalize a withdrawal agreement. But six days later, some of them resumed rocket and drone attacks on US targets.

      Whereas Donald Trump only retaliated when rocket attacks in Iraq killed Americans, a senior US official has revealed that President Joe Biden has lowered the bar, threatening to respond with airstrikes even when Iraqi militia attacks do not cause US casualties. But US air strikes have only led to rising tensions and further escalations by Iraqi militia forces. If American forces respond with more or heavier airstrikes, the PMF and Iran’s allies throughout the region can respond with more widespread attacks on US bases. The further this escalates and the longer it takes to negotiate a genuine withdrawal agreement, the more pressure Kadhimi will get from the PMF and other sectors of Iraqi society to show US forces the door.

      The official rationale for the US presence and that of NATO training forces in Iraqi Kurdistan is that the Islamic State is still active. In January, a suicide bomber killed 32 people in Baghdad. The group still has a strong appeal to oppressed young people across the Arab and Muslim world. The failures, corruption and repression of successive post-2003 governments in Iraq have provided fertile soil.

      Iran

      But the United States clearly has another reason for keeping forces in Iraq, as a forward base in its simmering war on Iran. That is exactly what Kadhimi is trying to avoid by replacing US forces with the Danish-led NATO training mission in Iraqi Kurdistan. This mission is being expanded from 500 to at least 4,000 forces, made up of Danish, British and Turkish troops. 

      If Biden had quickly rejoined the nuclear agreement with Iran after taking office in January, tensions would be lower by now and the US troops in Iraq might well be home already. Instead, Biden obliviously swallowed the poison pill of Trump’s Iran policy by using “maximum pressure” as a form of “leverage,” escalating an endless game of chicken the United States cannot win — a tactic that Barack Obama began to wind down six years ago by signing the JCPOA.

      The US withdrawal from Iraq and the Iran nuclear deal are interconnected, two essential parts of a policy to improve US–Iranian relations and end Washington’s antagonistic and destabilizing interventionist role in the Middle East. The third element for a more stable and peaceful region is the diplomatic engagement between Iran and Saudi Arabia, in which Kadhimi’s Iraq is playing a critical role as the principal mediator.    

      The fate of the Joint Comprehensive Plan of Action (JCPOA), as the Iran deal is formally known, is still uncertain. The sixth round of shuttle diplomacy in Vienna ended on June 20 and no date has been set for a seventh round yet. Biden’s commitment to rejoining the JCPOA seems shakier than ever. Ebrahim Raisi, the president-elect of Iran, has declared he will not let the Americans keep drawing out the negotiations. 

      Embed from Getty Images

      In an interview in June, US Secretary of State Antony Blinken upped the ante by threatening to pull out of the talks altogether. He said that if Iran continued to spin more sophisticated centrifuges at higher and higher levels, it will become very difficult for the United States to return to the original deal, which was signed in 2015 under Obama. Asked whether or when the US might walk away from negotiations, he said, “I can’t put a date on it, [but] it’s getting closer.”

      What should really be “getting closer” is the US withdrawal of troops from Iraq. While Afghanistan is portrayed as the “longest war” the United States has fought, the US military has been bombing Iraq for most of the last 30 years. The fact that the US military is still conducting “defensive airstrikes” 18 years after the 2003 invasion and nearly 10 years since the official end of the war proves just how ineffective and disastrous this US intervention has been.

      Biden certainly seems to have learned the lesson in Afghanistan that the US can neither bomb its way to peace nor install puppet governments at will. When pilloried by the press about the Taliban gaining control as US troops withdraw, Biden said: “For those who have argued that we should stay just six more months or just one more year, I ask them to consider the lessons of recent history.” He added: “Nearly 20 years of experience has shown us, and the current security situation only confirms, that ‘just one more year’ of fighting in Afghanistan is not a solution but a recipe for being there indefinitely. It’s the right and the responsibility of the Afghan people alone to decide their future and how they want to run their country.”  

      The same lessons of history apply to Iraq. The US has already inflicted so much death and misery on the Iraqi people, destroyed so many of its beautiful cities and unleashed so much sectarian violence and IS fanaticism. Just like the shuttering of the massive Bagram base in Afghanistan, Biden should dismantle the remaining imperial bases in Iraq and bring the troops home.

      The Iraqi people have the same right to decide their own future as the people of Afghanistan. All the countries of the Middle East have the right and the responsibility to live in peace, without the threat of American bombs and missiles always hanging over their heads. 

      Let’s hope Biden has learned another history lesson: that the United States should stop invading and attacking other countries.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      The Libyan Government Faces Numerous Challenges

      by

      On February 5, the Libyan Political Dialogue Forum (LPDF), a 75-member body, supervised by the United Nations, approved Abdul Hamid Dbeibeh’s list of officials to temporarily run national affairs. Their mandate will last until presidential and parliamentary elections take place on December 24. The list includes Mohammed al-Manfi as chairman and Musa al-Koni and Abdullah Hussein al-Lafi as members of the Presidential Council. Dbeibeh became the prime minister of Libya.

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      On March 10, Dbeibeh presented his cabinet to members of parliament and won the confidence of 132 deputies out of the 133 who attended the session in Sirte. The internationally recognized national unity government based in Tobruk was subsequently sworn in, but it faces many challenges. These include political, military, economic, and social and human rights issues.

      Political Challenges

      Dbeibeh is a businessman-turned-politician from Misrata, a port city that is around 200 kilometers to the east of Tripoli, the Libyan capital. During his time in business, he was involved in political circles as a trusted person of the ruling Arab Socialist Union. In 2007, Muammar Gaddafi, the ruler of Libya at the time, charged Dbeibeh with the task of running the state-owned Libyan Investment and Development Company (LIDCO). The firm was responsible for some of the country’s biggest public works projects. After the Libyan revolution of 2011, which led to the overthrow and subsequent death of Gaddafi, the Libya al-Mustakbal (Libya Future) movement was founded by Dbeibeh.

      The prime minister has succeeded in forming a broad-based coalition government that has brought together representatives of most stakeholders from the political, regional and tribal scenes in Libya. Dbeibeh crystallized a state of relative consensus between the different parties that have lived during a state of dissonance and a raging power struggle. This culminated in Major General Khalifa Haftar’s declaration of war on Tripoli in April 2019. Haftar’s heavy losses, his failed coup against civilian rule, the suffering of Libyans from war and their forced displacement pushed the bickering parties to negotiate and reach a political agreement. This deal was endorsed by the United Nations mission, under the pressure of countries such as the United States, Germany, Britain and Italy. The formation of the new Libyan government is based on a fragile consensus dictated by necessity. The sustainability of this is a challenge in itself, requiring a high degree of governmental harmony and solidarity.

      Embed from Getty Images

      Dbeibeh’s team now faces the challenge of bridging the gap between the various actors on Libya’s political scene and bringing them together under a single banner. This national project entails the extension of state sovereignty over the whole of Libyan territory and the consolidation of civil peace, taking into account public interest. The new government is also required to implement the roadmap drawn up by the LPDF. Most importantly, this includes the unification of sovereign institutions to elect new leaders to manage the transitional phase. It also involves creating conditions for organizing legislative and presidential elections at the end of the year.

      The formation of the national unity government represented a historic moment that was the result of talks between the most prominent political actors in Libya. It served as a political solution to the Libyan crisis and a transition from a situation of war to one of peace.

      Despite the peaceful transition of power from Fayez al-Sarraj, the prime minister under the Government of National Accord (GNA), to Dbeibeh, some political figures have not fully grasped the scope of change taking place in Libya. Instead, they have resisted the shifts in government to preserve their influence and personal and factional interests.

      An example of this is the case of Aguila Saleh Issa, the speaker of parliament and president of the House of Representatives (HOR). Issa was expected to vacate his role, as decided by the forum, to allow a new figure from the south to be head of the legislative body. The aim is to create a balance between the different regions of Libya. Yet the speaker has clung on to his position.

      Issa has a long history of obstructing the path for a peaceful settlement to the Libyan crisis. In 2016, the US Treasury’s Office of Foreign Assets Control (OFAC) adopted sanctions against him. He was accused of being “complicit in, actions or policies that obstruct, undermine, delay, or impede, or pose a significant risk of obstructing, undermining, delaying, or impeding, the adoption of or political transition to the GNA.” In addition to this, parliament remained divided and suspended during his term and only met on rare occasions.

      Military Challenges

      On the military front, the UN Security Council has called on all parties to abide by the ceasefire agreed in Geneva under the UN in October 2020. Yet in March this year, a UN report stated that the arms embargo in Libya is “totally ineffective.” The Geneva agreement issued a 90-day deadline for foreign mercenaries to leave the country. The stated period has since passed, but Libya is still teeming with local and international armed groups.

      This complex situation poses a major challenge to the national unity government. Officials are primarily concerned with forcing all parties to respect the ceasefire and stop the imports of weapons by land, sea and air. In addition to this, millions of weapons — smuggled or stolen — are handled illegally in Libya.

      The state needs to regain its authority and have a monopoly on the use of weapons. This requires forcing the armed brigades in the east and west to hand over their equipment to the Ministries of Defense and Interior. This approach calls for dissolving Libyan militias, draining their sources of funding, rehabilitating their members and reintegrating them into official security and defense structures. This includes institutions such as the police, army, civil protection or border control, which have specific laws and codes of conduct and a clear hierarchy subject to civilian leadership.

      Embed from Getty Images

      The government will likely face resistance from armed groups. The brigades loyal to General Haftar, who considers himself above the state and does not accept the command of civilian leadership, will present a particular challenge.

      Mercenaries also pose a risk. There are an estimated 20,000 foreign fighters in Libya, according to former UN Envoy Stephanie Williams. Most of them are stationed in the east of Libya and in the oil crescent, a coastal area that hosts most of the country’s oil export terminals. The fighters include Sudanese, Chadian, Syrian and Russian nationals earning high salaries.

      Their deportation presents a further challenge because the groups are part of a network of power relations involving other countries. Russia, Turkey, Egypt and France have used fighters and technical experts as bargaining chips to ensure their share of reconstruction projects and natural resources in Libya. The Libyan government needs to create a situation where locals reject the presence of mercenaries and put pressure on them to leave.

      The support of the European Union, the United States and Britain is also important. Such global powers must intensify diplomatic and field efforts on these armed groups to surrender their positions and weapons to the Libyan government. If this can be achieved in a manner that guarantees the sustainability of peace and stability, foreign investors might view Libya as a safe country for commercial and economic activity.

      Economic, Social and Human Rights Challenges

      The Dbeibeh government has inherited an economy that has been weakened by war and financial and administrative corruption. The economy has been severely affected by the deliberate halting of oil production and export by tribes and militias loyal to Haftar. It has also been impacted by depleted parallel institutions and informal trade as well as the smuggling of fuel and other basic materials. “Due to the closure of oil wells and restrictions put by pro-Haftar armed groups, the Libyan economy suffered a loss of $5 billion in January 2020,” Mucahit Aydemir reports. “From 2016-2019, the country has already lost more than $100 billion, as Ibrahim Cadran, an Haftar ally interrupted the oil excavation in the east of the country.”

      It is assumed that the national unity government will set an audited public budget and liberate oil fields from foreign, tribal or militia domination. The interim leaders should also seek to restore the export of oil, the country’s primary source of income. Undertaking these urgent, necessary reforms will allow the provision of cash liquidity, secure salaries and help the Libyan dinar (LD) recover, if only relatively. According to the World Bank, the dinar “continues to suffer in the parallel market because of political uncertainties and macroeconomic instability. In the first two quarters of 2020, the LD in the parallel market lost 54 percent of its value.”

      On the social and human rights front, it is imperative for the new government to provide citizens with essential services, such as clean water, electricity, gas, medicine and basic foodstuffs, and to fight the wastage of public money and increasing prices. In March, UN Special Envoy Jan Kubis said the “country is facing an acute electricity crisis this summer and there are risks to its water security as well.” He added that “UN agencies estimate that over 4 million people, including 1.5 million children, may face being denied access to clean water and sanitation if immediate solutions are not found and implemented.”

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      In addition, the coronavirus was confirmed to have spread to Libya on March 24, 2020, when the first case was reported in Tripoli. Libya is vulnerable to the effects of the pandemic due to the impact of the last civil war, which led to a dire humanitarian situation and the destruction of the country’s health infrastructure. In April, Libya launched its vaccination program against COVID-19, but, as with most countries in Africa, the supplies of doses remain low. At the time of publishing, the country had recorded more than 195,000 infections and over 3,200 deaths.

      In light of risks to the country’s health care, an effective strategy must be implemented to combat COVID-19. This must take into account sufficient steps to prevent the spread of the coronavirus, import the necessary number of vaccine doses and guarantee access to health services for those suffering from the COVID-19 disease.

      It is also important for authorities to release political prisoners, deal with cases of enforced disappearances, extrajudicial killings and end impunity for those committing crimes. Those forcibly displaced during the civil war must also be allowed to return to their homes and resume their professional lives in a safe environment. The building blocks for a project of transitional justice as a prelude to a practical, inclusive and fair system of reconciliation must also be pursued.

      The time available to the Dbeibeh government is limited and the challenges it faces are plenty. But this should not prevent the interim administration from being able to introduce changes and pave the way for political, economic and human rights reform. However, this will be possible only if officials are united and cooperate to serve the public and if international support continues for the national unity government. Most importantly, to succeed, the government will need the support of Libyans themselves.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      How China’s Growing Dominance Will Impact Sino-Gulf Relations

      by

      The COVID-19 pandemic has sent shockwaves through energy markets. Since March 2020, lockdowns around the world have led adults to work remotely and children to learn virtually. Last year, according to estimates, global energy demand and investment fell by 5% and 18%, respectively.

      Yet as restrictions ease and economies pick up pace, the sense of normality that many hope for is one of the few luxuries energy producers cannot afford. In the race to comply with mounting political pressure to reduce carbon emissions while simultaneously securing their energy futures, the Sino-Gulf alliance may become the new center of gravity for global energy markets.

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      The pandemic has undoubtedly cast a dark shadow on energy. The International Energy Agency (IEA) recently revealed that energy demand will not return to pre-pandemic levels until 2023 in its most optimistic outlook or 2025 in the case of a delayed economic recovery. However, a return to pre-COVID demand does not necessitate a return to pre-crisis growth. Predicted growth in demand between 2019 and 2030 is estimated at 4% in the delayed recovery case, compared to 12% in a COVID-free world.

      Nevertheless, the pandemic has also highlighted the importance of a reliable and accessible electricity supply. The IEA predicts that the electricity sector, whose demand outpaces other fuels, will support economic recovery and account for 21% of global final energy consumption by 2030. This push for electricity is widely driven by the various global emission reduction targets, increased use of electric vehicles and heat sources in advanced economies, and greater consumption from emerging markets.

      Leader of the Pack

      Of the countries driving this growth, China is leading the pack and is predicted to be the main driver of energy demand over the next decade. Following his call for an “energy revolution,” President Xi Jinping has sought to reposition China as a key player in global energy markets. While the Chinese are currently the world’s biggest consumers and producers of coal-fired electricity, Xi’s pledge to make China carbon neutral by 2060 means that energy demands are increasingly being met via renewables.

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      China is predicted to account for 40% of global renewable expansion, leading in the realm of nuclear power, biofuel production and will account for almost half of globally distributed photovoltaic power. In addition to this, Chinese demand is also predicted to account for 40% of global electricity sector growth by 2030, up from 28%. It was as a consequence of East Asia’s growing appetite for clean energy that, in 2016, global electricity investment outpaced that of oil and gas for the first time in history.

      However, as with everything, there will be winners and losers. While electricity is on the up, sluggish global oil demand has led to falling oil prices. With demand predicted to plummet in the 2030s, there is a growing urgency for Gulf Arab states to diversify as oil becomes more of a burden than a blessing. Yet, in their hurry to claim their stake in the new energy world order, Gulf countries may begin to look east rather than west for a friend to rely on.

      China and the Gulf

      Sino-Gulf relations are not a new occurrence. As the world’s largest importer of oil and natural gas, these two commodities dominate Chinese trade relations and have been the basis of the Saudi-led Gulf alliance. The Gulf Cooperation Council supplies over 30% of China’s oil imports, with Saudi Arabia topping the list, accounting for over 16% of the oil import total. Nevertheless, in a world that is increasingly turning its back on oil, GCC states and China may increasingly look to each other to secure their respective energy futures.

      From the establishment of the China–Arab States Cooperation Forum (CASCF) in 2004 to the China–GCC Strategic Dialogue in 2010, Sino-Gulf relations have grown from strength to strength. As such, it was hardly supplying when China gave the GCC a starring role in its Belt and Road Initiative. Announced in 2013, this global infrastructure project that seeks to boost physical connectivity, financial integration, trade and economic growth has become the core pillar of China’s increasingly active foreign policy approach under Xi.

      During the Sixth Ministerial Conference of the CASCF in 2014, Xi spoke about the Gulf Arab states as “natural cooperative partners in jointly building” the BRI. This set the stage for a flood of multi-billion-dollar investments and agreements between China and the Gulf states, advancing the Belt and Road Initiative in the Arabian Peninsula and deepening economic ties.

      Chinese investment activity in the Gulf has followed the “1+2+3” Sino-Arab cooperation framework. This features energy cooperation as its central axis, investment and infrastructure, and accelerating breakthroughs in three high-tech sectors, namely aviation satellite, nuclear energy and new energy. However, there is no doubt that the BRI aims primarily to strengthen this central pillar of energy cooperation. Aptly described as “oil roads,” the initiative will enable China to establish the necessary infrastructure, transport and refinery facilities needed to secure its energy future and keep GCC coffers full.

      These ambitious plans will be of greater significance in the years to come. Despite the economic and energy market turmoil triggered by the pandemic, Sino-Gulf relations show no signs of slowing. Rather, the pandemic may have made way for a greater mutual dependence between China and the Gulf states. This is particularly true for the GCC, whose economic wellbeing depends heavily on the revival of global oil markets. China may prove to be the answer to Gulf ministers’ prayers, stimulating growth by providing a guaranteed revenue stream for the region’s main export, no doubt stabilizing GCC economies.

      Embed from Getty Images

      Beyond the energy sector, however, the two regions offer a wealth of investment opportunities that will likely deepen relations, particularly as the GCC economies realize their various diversification plans. The synergies between the GCC’s various “vision” agendas and China’s BRI are extensive, thus acting as a major point of collaboration. The two are already in the final stages of concluding the long-awaited China–GCC free trade agreement, a move that would no doubt propel economic cooperation and open the doors to a vast array of trading opportunities. Saudi Arabia has already taken active steps to consolidate this BRI-vision cooperation by signing various agreements and memorandums of understanding with China. Riyadh has since considered the BRI to be “one of the main pillars of the Saudi Vision 2030,” consequently making China “among the Kingdom’s biggest economic partners.” 

      Closer Partners

      It is thus clear that, willingly or unwillingly, recent global events have further pushed China and GCC into each other’s arms. Sino-Gulf relations can be expected to gain serious traction in the next few years, especially in the realm of energy cooperation, which is likely to continue to spearhead this strategic alliance as a sector of great mutual importance. Meanwhile, as China seeks to entrench itself in the Gulf, it may find itself caught in the middle of the regional power struggles that threaten stability, namely the Iran-Saudi rivalry. President Xi, however, shows no intent of mixing business with politics, as seen in his recent regional tour, which saw him visit both Saudi Arabia and Iran among others.

      Nevertheless, if China wishes to grow its presence in the Gulf, ensuring regional peace will undoubtedly become a priority for Beijing. Chinese neutrality may be exactly what is needed to defuse regional tensions and maintain a level of accord that keeps the feud below boiling point. Yet despite Sino-Gulf relations taking center stage in the near future, China will not be replacing the United States as the dominant foreign power in the Middle East any time soon. Beijing’s focus on economic rather than political matters makes China, to use the words of Prince Turki bin Faisal Al Saud, “not necessarily a better friend, but a less complicated friend.”

      *[Fair Observer is a media partner of Gulf State Analytics.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      UAE Diplomats Accused in International Gold Smuggling Syndicate

      by

      The United Arab Emirates is one of the world’s major gold trading hubs. In 2019, it was the fifth-biggest importer and fourth-biggest exporter globally. During the COVID-19 pandemic, international demand has surged. But as Reuters reported in 2019, much of this gold is smuggled from West Africa and produced by artisanal and small-scale gold mining, a trade that funds armed conflict, costs producing countries in lost tax revenue and has significant consequences on public health and the environment.

      This is a story that has long been in the public domain: In 2020, the Financial Action Task Force published a report that stated: “The UAE’s understanding of the risks it faces from money laundering, terrorist financing and funding of weapons of mass destruction is still emerging … The risks are significant, and result from the UAE’s extensive financial, economic, corporate and trade activities, including as a global leader in oil, diamond and gold exports.”

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      In 2018, a UN report stated, “In every state [in the Economic Community of West African States region], it was reported that most of the gold exported from the region is destined for Dubai. Most of this gold is thought to be exported by plane; gold is thought to be smuggled, for the most part, out of the region through airports.”

      The UAE authorities have been facing increasingly strenuous calls to clean up their bullion trade. In 2019, an International Crisis Group report called on them to ensure income from the gold trade is not used to finance terrorism. In December 2020, the UK Home Office national risk assessment stated: “These deficiencies expose the UAE, and other countries, to abuse by international controller networks which continue to launder the proceeds of crime to and from countries including the UK. These criminal networks exploit features of the UAE’s laws and systems, in order to move cash and gold easily into and out of the country, as well as engage in money laundering through the UAE property market, international trade, and newer areas such as crypto assets.”

      Last year, the London Bullion Market Association (LBMA), the world’s most influential gold market authority, threatened to stop UAE bullion from entering the mainstream market if it failed to meet regulatory standards. Since gold was the UAE’s largest export after oil in 2019, a trend that in a post-oil age looks only set to grow, the authorities responded by quickly pledging support for an LBMA initiative in December 2020 to crack down on illegal gold trading and improve regulation around issues like money laundering and unethical sourcing.

      Gold Discovered in India

      But recent developments in a court case in India are once again calling into question the UAE’s commitment to clean up its bullion trade. In June 2020, Indian customs discovered over 30 kilograms of gold worth — at the official market rate — more than $2.1 million. The gold was found in diplomatic baggage addressed to the UAE Consulate-General Office in Thiruvananthapuram, the capital of the southern Indian state of Kerala; it had been listed as bathroom fittings, noodles, biscuits and dates. The subsequent investigation has opened a Pandora’s Box of organized crime that has already led to around 30 arrests, including a host of alleged facilitators, financiers, gold traders, former employees of the UAE Consulate and a principal secretary to the Kerala chief minister.

      Embed from Getty Images

      The National Investigation Agency (NIA), which is India’s counterterrorism task force, and at least four other central government agencies are now conducting separate but related investigations into a US dollar smuggling operation from Thiruvananthapuram airport to Cairo via Muscat. The operation was allegedly run by the former UAE Consulate Finance Department head, Khaled Ali Shoukry, an Egyptian national. The other investigations involve corrupt schemes related to various local government projects in Kerala, including the Wadakanchery LIFE Mission housing project, which is funded by the UAE Red Crescent, and the Kerala Infrastructure Investment Fund Board.

      This is the first time UAE diplomats have ever been publicly implicated in gold smuggling. Emirati authorities have promised to cooperate, claiming they were duped by their Indian and Egyptian staff. But the former UAE consul general, Jamal Hussain al-Zaab, and Admin Attaché Rashed Khamis Ali Musaiqri both fled home last year before they could be questioned and are now claiming diplomatic immunity.

      However, a steady stream of information has been coming to light through disclosures in Kerala High Court. The NIA said 150 kilograms of gold was smuggled through Thiruvananthapuram airport in the last six months in a similar fashion, and most of the money was used for funding terrorism. According to sources quoted in Indian media, over 20 such consignments allegedly came to India from Dubai since September 2019, around 19 of which were addressed to the UAE consul general and one was in the name of the admin attaché. At the same time, senior Indian politicians linked to the case were enjoying five-star trips to the UAE.

      The Claims

      In March, the political temperature rose significantly when two of the key accused, Indian nationals employed in the consular office, testified that the UAE consul general was personally involved in the criminal enterprise. Swapna Suresh, formerly the consul general’s Arabic-language translator, and another employee, Sarith P.S., stated in an affidavit that the consul general, as well as several senior Indian politicians, were aware of the gold and dollar smuggling activities and were coordinating illegal financial dealings under the cover of various projects run by the state government.

      “Swapna and Sarith [the accused] stated that it was a common practice among foreign nationals, including diplomats working at UAE Consulate, to carry currency notes above permitted limits. We suspect that they were engaged in hawala activities to fund smuggling of gold from Dubai to Kerala. Similarly, they also smuggled goods from abroad using diplomatic privileges and sold them in the Kerala market. Many Indian employees of the consulate were aware of such activities and they will be questioned soon” an Indian customs official reportedly said.

      The UAE consul general, Swapna alleged, split a 3-million UAE dirham ($817,000) commission for the Wadakkanchery project three ways between himself, Shoukry and her. Another accused claimed the consul general and Shoukry were carrying out illegal gold smuggling activities while working in the UAE Mission in Vietnam before coming to Thiruvananthapuram.

      The Indian Ministry of External Affairs recently issued permission to arraign the former consul general and admin attaché who served at the UAE Consulate in Thiruvananthapuram. “Both of them assisted Swapna Suresh and Sarith PS to clear the baggage containing gold that arrived from the UAE. They also were receiving remuneration as per the quantity of gold smuggling on 21 occasions. They are equally involved as other accused persons,” an Indian customs official reportedly said.

      *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More