James M. Dorsey

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    For Saudi Arabia, Iran Looms, Israel Beckons and the Taliban Cause Goosebumps

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    Prince Khalid bin Salman may not have planned it that way, but the timing of his trip to Moscow last week and message to Washington resounded loud and clear. By not postponing the visit, the Saudi deputy defense minister signaled that he was trying to hedge his kingdom’s bets by signing a defense cooperation agreement with Russia. This took place just as the United States fumbled to evacuate thousands of people from Afghanistan after that country was captured by Taliban militants.

    Saudi Arabia would have wanted to be seen as hedging its bets with or without the US debacle. The kingdom realizes that Russia will exploit opportunities created by the fiasco in Afghanistan but is neither willing nor capable of replacing the US as the Gulf’s security guarantor.

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    Nevertheless, Saudi Arabia likely wants to capitalize on jitters in the US as Washington tries to get a grip on what went wrong and come to terms with the fact that Afghanistan will once again be governed by the Taliban. In 2001, the US ousted the ultraconservative militants from power because they harbored al-Qaeda terrorists who planned the 9/11 attacks from Afghanistan.

    Al-Qaeda, alongside various other militant groups, still has a presence in Afghanistan. The Taliban insist that no one will be allowed to operate cross-border or plan and/or launch attacks on other countries from Afghan soil.

    Jitters in the Gulf

    Yet the willingness to exploit US discomfort may also signal jitters in Saudi Arabia. The American withdrawal from Afghanistan raises questions for Riyadh. First, is the US still reliable when it comes to the defense of the kingdom and the Arabian Peninsula? Second, does the US move undermine confidence in Washington’s ability to negotiate a potential revival of the Iranian nuclear deal if and when talks start again? Third, could Afghanistan become a battlefield in the rivalry between Saudi Arabia and Iran, despite both sides seeking to dial down tensions?

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    Neil Quilliam, a Middle East analyst at Chatham House, argues that Iran’s Islamic Revolutionary Guard Corps (IRGC) has increased its influence among the Taliban at the expense of the Saudis, who backed away from the group in the wake of the 9/11 attacks in 2001. The kingdom and the Taliban’s paths further diverged with Saudi Crown Prince Mohammed bin Salman liberalizing the once-shared ultra-conservative social mores while Afghanistan appears set to reintroduce them.

    “The Taliban leadership will likely begin a campaign to challenge the legitimacy of the Al Saud and appeal directly to the Saudi population to challenge the ruling family’s authority. At the same time, the Saudi leadership will be keen to align policy with the US and its Western partners and will follow their lead in establishing diplomatic relations with the new Afghan government and providing aid to the country’s population,” Quilliam predicted.

    His analysis assumes that reduced Saudi interaction and closer Iranian ties with the Taliban mean that the group’s inclinations would lean more toward Tehran than Riyadh.

    In a similar vein, some analysts have noted that Saudi Arabia was absent among the Gulf states that helped the US and European countries with evacuations from Afghanistan. Instead, it sent its deputy defense minister to Moscow.

    Others suggested that Saudi Arabia chose to remain on the sidelines and hedge its bets, given its history with the Taliban. Until 2001, Saudi Arabia was a major influence among Afghan jihadists, whom it funded during the war against the Soviets in the 1980s. It was also one of three countries to recognize the Taliban government in Afghanistan when it first gained power in 1996. Fifteen of the 19 perpetrators of the 9/11 attacks were Saudi nationals. By then, Saudi influence had already waned, as was evident in the Taliban’s refusal to hand over Osama bin Laden before the attacks took place. 

    If proven correct, Quilliam’s prediction would amount to a break with the Taliban record of not operating beyond Afghanistan’s borders except in Pakistan, even though it tolerates al-Qaeda militants and others on territory it controls. Moreover, despite being strange bedfellows, the need to accommodate one another is unlikely to persuade the Taliban to do Iran’s bidding. “Iran has tried to increase its influence within the group by getting closer to certain factions, but it is still suspicious of the Taliban as a whole,” said Fatemeh Aman, a nonresident senior fellow at the Middle East Institute.

    Iran and Israel

    Moreover, the Taliban may want to steer clear of the Iranian-Saudi rivalry. This is particularly if those who believe that US unreliability, as demonstrated in Afghanistan, leaves Saudi Arabia no choice but to escalate the war in Yemen and confront Iran more forcefully get their way.

    “We should take a lesson from the events in Afghanistan, and especially from the mistakes [that were made there], regarding Yemen. This is the time to crush the Houthis without considering the international forces,” said Saudi columnist Safouq al-Shammari, echoing other commentators in Saudi media. “Giving Israel a free hand regarding the Iranian nuclear issue has become a reasonable [option] … It seems like [Israel’s] extremist [former prime minister] Netanyahu, was right to avoid coordinating with the [Biden] administration, which he considered weak and failing.”

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    Shammari’s notions fit into Mohammed bin Salman’s effort to replace the religious core of Saudi identity with hyper-nationalism. They also stroke with thinking among more conservative Israeli analysts and retired military officers. In Shammari’s vein, retired Major General Gershon Hacohen of the Israel Defense Forces (IDF) walked away from the US debacle in Afghanistan, warning that “for all its overwhelming material and technological superiority, the IDF stands no chance of defeating Israel’s Islamist enemies unless its soldiers are driven by a relentless belief in the national cause.”

    By the same token, Major General Yaakov Amidror, a former national security adviser and head of military intelligence research, argued that the US withdrawal would drive home to the Gulf states the proposition that an “open relationship with Israel is vitally important for their ability to defend themselves.” He added that Israel could not replace the US as the region’s security guarantor, “but together with Israel these countries will be able to build a regional scheme that will make it easier for them to contend with various threats.”

    By implication, Amidror was urging the United Arab Emirates and Bahrain, which last year established diplomatic relations with Israel, to forge closer security cooperation with the Jewish state. He suggested that Saudi Arabia may, in the wake of the events in Afghanistan, be more inclined to build formal ties with Israel. Yet while there is little doubt that Mohammed bin Salman would like to have an open relationship with Israel, it is equally possible that the victory of religious militants in Afghanistan will reinforce Saudi hesitancy to cross the Rubicon at the risk of sparking widespread criticism in the Muslim world.

    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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      What Starts in Afghanistan Does Not Stay in Afghanistan

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      The Taliban’s offensive in Afghanistan has shifted the Central Asian playing field on which China, India and the United States compete with rival infrastructure-driven approaches. At first glance, a Taliban takeover of Afghanistan would give China a 2:0 advantage against the US and India, but that could prove to be a shaky head start.

      The fall of the US-backed Afghan government led by President Ashraf Ghani will shelve if not kill Indian support for the Iranian port of Chabahar, which was intended to facilitate Indian trade with Afghanistan and Central Asia. Chabahar was also viewed by India as a counterweight to the Chinese-supported Pakistani port of Gwadar, a crown jewel of Beijing’s transportation, telecommunications and energy-driven Belt and Road Initiative (BRI).

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      The United States facilitated Indian investment in Chabahar by exempting the port from harsh sanctions against Iran. The exemption was intended to “support the reconstruction and development of Afghanistan.” However, due to stalled negotiations with Iran about a revival of the 2015 nuclear agreement, the US announced in July — together with Afghanistan, Pakistan and Uzbekistan — plans to create a platform that would foster regional trade, business ties and connectivity.

      The connectivity end of the plan resembled an effort to cut off one’s nose to spite one’s face. It would have circumvented Iran and weakened Chabahar but potentially strengthened China’s Gwadar alongside the port of Karachi. That has become a moot point with the plans certain to be shelved as the Taliban take over Afghanistan and form a government that would be denied recognition by at least the democratic parts of the international community.

      China

      Like other Afghan neighbors, neither Pakistan, Uzbekistan nor China are likely to join a boycott of the Taliban. On the contrary, China last month made a point of giving a visiting Taliban delegation a warm welcome. Yet recognition by Iran, Central Asian states and China of a Taliban government is unlikely to be enough to salvage the Chabahar project. “Changed circumstances and alternative connectivity routes are being conjured up by other countries to make Chabahar irrelevant,” an Iranian source told Hard News, a Delhi-based publication.

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      The Taliban have sought to reassure China, Iran, Uzbekistan and other Afghan neighbors that they will not allow Afghanistan to become an operational base for jihadist groups. This includes al-Qaeda and Uighur militants of the Turkestan Islamic Party (TIP). The Taliban have positioned themselves as solely concerned with creating an Islamic emirate in Afghanistan and having no inclination to operate beyond the country’s borders. But they have been consistent in their refusal to expel al-Qaeda, even if the group is a shadow of what it was when it launched the 9/11 attacks in 2001.

      The TIP has occasionally issued videos documenting its presence in Afghanistan. But it has, by and large, kept a low profile and refrained from attacking Chinese targets in Afghanistan or across the border in Xinjiang, the northwestern Chinese province in which authorities have brutally cracked down on ethnic Turkic Uighurs. As a result, the Taliban reassurance was insufficient to stop China from repeatedly advising its citizens to leave Afghanistan as soon as possible. “Currently, the security situation in Afghanistan has further deteriorated … If Chinese citizens insist on staying in Afghanistan, they will face extremely high-security risks, and all the consequences will be borne by themselves,” the Chinese foreign ministry said.

      Pakistan

      The fallout of the Taliban’s sweep across Afghanistan is likely to affect China beyond Afghan borders, perhaps no more so than in Pakistan, a major focus of Beijing’s single largest BRI-related investment. This has made China a target for attacks by militants, primarily Baloch nationalists. In July, nine Chinese nationals were killed in an explosion on a bus transporting Chinese workers to the construction site of a dam in the northern mountains of Pakistan, a region prone to attacks by religious militants. This incident raises the specter of jihadists also targeting China. It was the highest loss of life of Chinese citizens in recent years in Pakistan.

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      The attack occurred amid fears that the Taliban will bolster ultra-conservative religious sentiment in Pakistan that celebrates the group as heroes, whose success enhances the chances for austere religious rule. “Our jihadis will be emboldened. They will say that ‘if America can be beaten, what is the Pakistan army to stand in our way?’” said a senior Pakistani official. Indicating its concern, China has delayed the signing of a framework agreement on industrial cooperation, which would have accelerated the implementation of projects that are part of the China-Pakistan Economic Corridor (CPEC).

      Kamran Bokhari, writing for The Wall Street Journal, explained: “Regime change is a terribly messy process. Weak regimes can be toppled; replacing them is the hard part. It is only a matter of time before the Afghan state collapses, unleashing chaos that will spill beyond its borders. All of Afghanistan’s neighbors will be affected to varying degrees, but Pakistan and China have the most to lose.”

      The demise of Chabahar and/or the targeting by the Taliban of Hazara Shia Muslims in Afghanistan could potentially turn Iran into a significant loser too.

      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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      Can Saudi Arabia Balance Social and Economic Change?

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      The World Bank issued a stark warning in its 2018 outlook for the Saudi economy: “The Kingdom likely faces a looming poverty problem.” The bank has since noted in its 2019 and 2020 outlooks that “while no official information is available on poverty, identifying and supporting low-income households is challenging.” Dependent on world oil prices, the curve of gross domestic product (GPD) per capita in Saudi Arabia was never a straight line upward. Instead, it ebbed and flowed.

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      In one example, Saudi GDP per capita dropped by almost half from a peak of $17,872 in 1981 to $8,685 in 2001, the year in which 15 Saudi middle-class nationals constituted the majority of jihadists who flew airplanes into New York’s World Trade Center towers and the Pentagon in Washington. It was also the year in which many Saudis struggled to make ends meet amid depressed oil prices and then-King Abdullah’s efforts to introduce a measure of Saudi fiscal restraint. Many people held two to three jobs.

      “Prior to the Gulf War, we didn’t pay rent in student dormitories — now we do,” a Saudi student enrolled in Saudi Arabia’s prestigious King Fahd Petroleum and Minerals University told this writer at the time. “In the past, it didn’t matter if you didn’t complete your studies in five years. Now you lose your scholarship if you don’t. Soon we’ll be asked to pay for tuition. Before the Gulf War, you had 10 job offers when you graduated. Now you’re lucky if you get one,” the student said referring to the US-led reversal of the Iraqi invasion of Kuwait in 1990.

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      “There’s nothing to do here but sit around, watch television and smoke shisha,” added Abdulaziz, one of the student’s friends. “There’s nothing we can do to change things. That’s why we get married early, only to discover that it was a mistake.”

      Saudi GDP per capita has dropped again, although less dramatically, from $23,337 in the year that the World Bank warned about looming poverty to $20,110 in 2020. On a positive note, the bank reports that while “poverty information and access to survey data to measure welfare conditions have been limited,” Saudi Arabia has seen “gains in administrative capacity to identify and support low-income households.” It warned, however, that the middle class could be most exposed to the pains of austerity and fiscal restraint.

      A Different Saudi Arabia

      To be sure, the Saudi Arabia at the turn of the century is not the same kingdom as today. Saudis made up one of the largest contingents of foreign fighters in the Islamic State group that seized territory in Syria and Iraq in 2014. Despite this, Saudi citizens are unlikely to respond to a unilateral rewriting of a social contract that promised cradle-to-grave-welfare and potential economic hardship by drifting toward militancy and extremism at a time that a young crown prince has promised massive change and delivered some.

      Crown Prince Mohammed bin Salman has liberalized social mores, rolled back the influence of ultra-conservative clerics, created greater leisure and entertainment offerings, and enhanced women’s rights and professional opportunities. This forms part of his plan to wean Saudi Arabia off its dependency on oil exports and diversify the economy. He has simultaneously tightened the political aspect of the kingdom’s social contract involving the public’s absolute surrender of all political rights, including freedom of expression, media and assembly.

      In exchange, Mohammed bin Salman’s Vision 2030 reform plan promises, according to the World Bank, to protect citizens from the pain of economic change by “modernizing the social welfare system, redirecting price subsidies toward those in need, preparing and training those unable to find employment, and providing tailored care and support to the most vulnerable citizen.” In doing so, the government has sought to soften the impact of higher energy prices and the tripling of value-added tax and expatriate levy.

      Embed from Getty Images

      More than social protections, Vision 2030 is about creating jobs for Saudis in a country where unemployment was 11.7% in the first quarter of this year. In the last three years, the Saudi private sector reportedly created a third of the 1.2 million jobs the kingdom needs to generate by 2022 to meet its unemployment target. The country’s statistics agency said the first-quarter unemployment was Saudi Arabia’s lowest in nearly five years. But the decline was partly driven by people dropping out of the labor force rather than new job creation.

      Jobs for Saudis

      In May, Mohammed bin Salman asserted in a wide-ranging interview that “we have 200,000 to 250,000 people getting into the job market each year and public sector jobs are limited.” Taking tourism as an example, he said the development of the industry would create 3 million jobs, 1 million of which would be for Saudis who, over time, could replace expats who would initially fill two-thirds of the openings.

      “Once we create three million jobs, we can Saudize them in the future. There are also jobs in the industrial sector and so on,” Prince Mohammed said. He predicted at the same time that the percentage of foreigners in the kingdom could increase from a third of the population today to half in the next decade or two.

      Writing about the changing social contract in Saudi Arabia, Mira al-Hussein and Eman Alhussein cautioned that the government needs to manage rapid economic and social change, in part by providing clearer information to the public. The scholars identified issues involving rights of foreigners versus rights accorded children of mixed Saudi and non-Saudi marriages, the rollback of religion in public life and austerity measures as potential points of friction in the kingdom. “The ramifications of existing grievances and the increasing polarization within Gulf societies … as well as the extensive social engineering programs have pitted conservatives against liberals. Arab Gulf States’ ability to redefine their social contracts without turbulence will depend on their tactful avoidance of creating new grievances and on solving existing ones,” the authors wrote.

      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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      Saudi Seeks to Replace UAE and Qatar

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      Saudi Arabia has stepped up efforts to outflank the United Arab Emirates and Qatar as the commercial, cultural and/or geostrategic hub in the Gulf. The Saudis recently expanded their challenge to the smaller Gulf states by seeking to position Saudi Arabia as the region’s foremost sports destination, once Qatar has had its moment in the sun with the 2022 FIFA World Cup. The kingdom seeks to secure a stake in the management of regional ports and terminals, which have so far been dominated by the UAE and, to a lesser extent, Qatar.

      The kingdom kicked off its effort to cement its position as the Middle East’s behemoth earlier this year. In February, Saudi Arabia announced it would cease doing business by 2024 with international companies whose regional headquarters were not based in the country. 

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      The UAE ranks 16th on the World Bank’s 2020 Ease of Doing Business Index as opposed to Saudi Arabia at number 62. As a result, freewheeling Dubai has long been the preferred regional headquarters of international firms. The Saudi move “clearly targets the” United Arab Emirates and “challenges the status of Dubai,” said a UAE-based banker.

      Saudi Arabia is a latecomer to the port control game, which is dominated by Dubai’s DP World. That company operates 82 marine and inland terminals in more than 40 countries, including Djibouti, Somaliland, Saudi Arabia, Egypt, Turkey and Cyprus. The kingdom’s expansion into port and terminal management appears to be less driven by geostrategic considerations. Instead, Saudi Arabia’s Red Sea Gateway Terminal (RSGT), backed by the Public Investment Fund (PIF), the Saudi sovereign wealth fund, said it was targeting ports that would service vital Saudi imports, such as those related to food security.

      In January, PIF and China’s Cosco Shipping Ports each bought a 20% stake in RSGT. The Chinese investment fits into Beijing’s larger Belt and Road Initiative (BRI), which involves the acquisition of stakes in ports and terminals in Saudi Arabia, Sudan, Oman and Djibouti, where China has a military base.

      Jens Floe, the chief executive officer of RSGT, said the company planned to invest in at least three international ports in the next five years. He said each investment would be up to $500 million. “We have a focus on ports in Sudan and Egypt. They weren’t picked for that reason, but they happen to be significant countries for Saudi Arabia’s food security strategy,” Floe said.

      Saudi Sports

      Saudi Arabia’s increased focus on sports, including a possible bid to host the 2030 World Cup, serves multiple goals. First, it offers Saudi youth, who account for more than half of the kingdom’s population, a leisure and entertainment opportunity. Second, it boosts Crown Prince Mohammed bin Salman’s burgeoning development of a leisure and entertainment industry. The Saudis believe this could allow the kingdom to polish its image tarnished by human rights abuse, including the killing of Saudi journalist Jamal Khashoggi in 2018, and challenge Qatar’s position as the face of Middle Eastern sports.

      Embed from Getty Images

      A recent report by Grant Liberty, a London-based human rights group that focuses on Saudi Arabia and China, estimated that Riyadh has invested $1.5 billion in the hosting of multiple sporting events. These include the final games of Italy and Spain’s top football leagues, Formula 1 races, boxing, wrestling and snooker matches, and golf tournaments. So far, Qatar is the Middle East’s leader in the hosting of sporting events, followed by the UAE.

      According to Grant Liberty, further bids for events worth $800 million have failed. This did not include an unsuccessful $600-million offer to replace Qatar’s beIN Sports as the Middle Eastern broadcaster of the UEFA Champions League. Saudi Arabia reportedly continues to ban beIN from airing in the kingdom, despite the lifting of the Saudi-Emirati-led diplomatic and economic boycott of Qatar in January.

      Oil Exports

      Mohammed bin Salman’s Vision 2030 plan to diversify and streamline the Saudi economy and ween it off dependency on oil exports “has set the creation of professional sports and a sports industry as one of its goals,” said Fahad Nazer, spokesperson for the Saudi Arabian Embassy in Washington. “The kingdom is proud to host and support various athletic and sporting events which not only introduce Saudis to new sports and renowned international athletes but also showcase the kingdom’s landmarks and the welcoming nature of its people to the world.”

      The increased focus on sports comes as Saudi Arabia appears to be backing away from its intention to reduce the centrality of energy exports for its economy. Energy Minister Prince Abdulaziz bin Salman, the crown prince’s brother, recently ridiculed an International Energy Agency (IEA) report, saying “there is no need for investment in new fossil fuel supply” as “the sequel of the La La Land movie.” He went on to ask, “Why should I take [the report] seriously?”

      Putting its money where its mouth is, Saudi Arabia intends to increase its oil production capacity from 12 million to more than 13 million barrels a day. This is based on the assumption that global efforts to replace fossil fuel with cleaner energy sources will spark sharp reductions in American and Russian production. The Saudis believe that demand in Asia for fossil fuels will continue to rise even if it drops in the West. Other Gulf producers, including the UAE and Qatar, are following a similar strategy.

      “Saudi Arabia is no longer an oil country, it’s an energy-producing country … a very competitive energy country. We are low cost in producing oil, low cost in producing gas, and low cost in producing renewables and will definitely be the least-cost producer of hydrogen,” Prince Abdulaziz said. He appeared to be suggesting that the kingdom’s doubling down on oil was part of a strategy that aims to ensure that Saudi Arabia is a player in all conventional and non-conventional aspects of energy. By implication, he was saying that diversification was likely to broaden Saudi Arabia’s energy offering, rather than significantly reduce its dependence on energy exports.

      “Sports, entertainment, tourism and mining alongside other industries envisioned in Vision 2030 are valuable expansions of the Saudi economy that serve multiple economic and non-economic purposes,” said a Saudi analyst. “It’s becoming evident, however, that energy is likely to remain the real name of the game.”

      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

      Athletes Shake Up Sports Governance

      by

      Sports governance worldwide has had its legs knocked out from under it. Yet national and international sports administrators are slow in realizing the magnitude of what has hit them. Tectonic plates underlying the guiding principle that sports and politics are unrelated have shifted, driven by a struggle against racism and a quest for human rights and social justice.

      The NBA Is Conflicted Over National Symbols

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      The principle was repeatedly challenged over the last year by athletes and businesses forcing national and international sports federations to either support anti-racist protest or, at the very least, refrain from penalizing those who use their sport to oppose racism and promote human rights and social justice — acts that are political by definition. The assault on what is a convenient fiction that sports and politics do not mix started in the US. This was not only the result of Black Lives Matter protests on US streets, but also the fact that, in contrast to the fan-club relationship in most of the world, American sports clubs and associations see fans as clients — and the client is king.

      From Football to F1

      The assault moved to Europe in the last month with the national football teams of Norway, Germany and the Netherlands wearing T-shirts during qualifiers for the 2022 FIFA World Cup that supported human rights and change. The European sides added their voices to perennial criticism of migrant workers’ rights in Qatar, the host of next year’s World Cup. Gareth Southgate, the manager of the English national team, said the Football Association was discussing migrant rights in the Gulf state with Amnesty International.

      While Qatar is the focus in Europe, greater sensitivity to human rights appears to be moving beyond. Formula One driver Lewis Hamilton told a news conference in Bahrain ahead of this season’s opening Grand Prix that there “are issues all around the world, but I do not think we should be going to these countries and just ignoring what is happening in those places, arriving, having a great time and then leave.” Hamilton has been prominent in speaking out against racial injustice and social inequality since the National Football League in the US endorsed the Black Lives Matter movement and players taking the knee during the playing of the American national anthem in protest against racism.

      Embed from Getty Images

      In a dramatic break with its ban on “any political, religious or personal slogans, statements or images” on the pitch, FIFA, the governing body of world football, said it would not open disciplinary proceedings against the European players who wore the T-shirts. “FIFA believes in the freedom of speech and in the power of football as a force for good,” a spokesperson said.

      The statement constituted an implicit acknowledgment that standing up for human rights and social justice was inherently political. It raises the question of how FIFA will reconcile its stand on human rights with its statutory ban on political expression. It makes maintaining the fiction of a separation between politics and sports ever more difficult to defend. It also opens the door to a debate on how the inseparable relationship that joins sports and politics at the hip like Siamese twins should be regulated.

      Georgia’s Voting Law

      Signaling that a flood barrier may have collapsed, Major League Baseball this month said it would be moving its 2021 All-Star Game out of Atlanta in response to a new law in the US state of Georgia that threatens to potentially restrict voting access for people of color. In a shot across the bow to FIFA and other international sports associations, major companies headquartered in Georgia, including Coca-Cola, Delta Airlines and Home Depot, adopted political positions in their condemnation of the Georgia voting law.

      The greater assertiveness of athletes and corporations in speaking out for fundamental rights and against racism and discrimination will make it increasingly difficult for sports associations to uphold the fiction of a separation between politics and sports. The willingness of FIFA, the US Olympic and Paralympic Committee (USOPC), and other national and international associations to look the other way when athletes take their support for rights and social justice to the sports arena has let the genie out of the bottle. It has sawed off the legs of the FIFA principle that players’ “equipment must not have any political, religious or personal slogans.”

      Already, the US committee has said it would not sanction American athletes who choose to raise their fists or kneel on the podium at this July’s Tokyo Olympic Games as well as future tournaments. The decision puts the USOPC at odds with the International Olympic Committee’s (IOC) strict rule against political protest. The IOC suspended and banned US medalists Tommie Smith and John Carlos after the sprinters raised their fists on the podium at the 1968 Mexico City Olympics to protest racial inequality in the United States.

      Regulation

      Acknowledging the incestuous relationship between sports and politics will ultimately require a charter or code of conduct that regulates it and introduces some form of independent oversight. This could be something akin to the supervision of banking systems or the regulation of the water sector in Britain, which, alongside the United States, holds privatized water as an asset.

      Human rights and social justice have emerged as monkey wrenches that could shatter the myth of a separation between sports and politics. If athletes take their protests to the Tokyo Olympics and the 2022 World Cup, the myth would sustain a significant body blow. In December 2020, a statement by US athletes seeking changes to the USOPC’s rule banning protest at sporting events said: “Prohibiting athletes to freely express their views during the Games, particularly those from historically underrepresented and minoritized groups, contributes to the dehumanization of athletes that is at odds with key Olympic and Paralympic values.”

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