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    Saudi Seeks to Replace UAE and Qatar

    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.

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    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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    Arrest of Migrant Activist Puts Qatar in the Spotlight

    Amnesty International recently called for the authorities to reveal the whereabouts of Malcolm Bidali, a Kenyan national who worked as a security guard in Qatar. According to Amnesty, he was “forcibly disappeared since 4 May, when he was taken from his labour accommodation for questioning by the state security service.”

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    Bidali, who blogs under the name Noah, has been a critic of the treatment of migrant workers in Qatar, a small Gulf state that is hosting the 2022 FIFA World Cup. “A week before his arrest, Bidali gave a presentation to a large group of civil society organizations and trade unions about his experience of working in Qatar,” Amnesty noted.

    Migrant Workers in Qatar

    For Qatar, his story draws unwelcome attention to the treatment of migrant workers in the run-up to the World Cup. The Qataris had won praise for scrapping the notorious kafala sponsor system, which ties workers to their employers with terms similar to those of indentured laborers or, as some critics say, to slavery.

    In August 2020, the government announced reforms that included a minimum wage. The changes to labor law were hailed as a landmark in a region with an appalling record of mistreatment of migrant workers. Had the amendments been fully implemented, the conditions for migrant workers would have improved significantly. But more than a year and a half after the reforms were introduced, it is clear that little has changed for many migrants in Qatar.

    An Al Jazeera investigation in March 2021 revealed that “the majority of those interviewed experienced delays in the process as well as threats, harassment and exploitation by the sponsor, with some of the workers ending up in prison and eventually deported.” The report cited the case of a migrant from the Philippines who worked at a food stall. When she told her boss she wanted to leave and get a new job, she faced threats and harassment. Her ID was canceled and she had a court case brought against her, none of which should have happened with the new laws in place. “I thought the new laws were there to help us. All I did was try and seek a better job. I don’t think I’ve committed a crime to be facing these problems,” she said.

    Writing About Rights

    Bidali’s problems arose as a result of his blogs, which challenge the rosy narrative projected by the government. In a post titled, “Minimum Wage, Maximum Adjustment,” he writes:

    “‘Peanuts.’ That’s the first thing that comes to Simon’s mind when I ask him about the changes to the minimum wage. A security guard from Kenya, toiling in Msheireb Downtown Doha, a slave to the elements for the better part of 12 hours a day. He earns [in a month] QR1250 (USD340). Paid a recruitment agent QR4400 (USD1200) to get the job, and spent a further QR1100 on related expenses. ‘There’s no difference for us (security guards). What they should have done is stipulate the specifics, like working hours, working conditions… things like that. When you take away the food and housing allowance, compensation for the work we do isn’t considered at all. We work so hard. Long commutes, long hours on-site, sweating like crazy with this heat, stress, fatigue… we don’t even eat properly.’”

    Bidali writes the following in a blog titled, “The Privilege of a Normal Life”:

    “Qatar, like all [Gulf Cooperation Council] countries, makes it virtually impossible for the spouses and partners of low-income migrant workers to accompany them for the duration of their contract. Over an extended period of time devoid of affection and intimacy, desire manifests, ever so intense. The situation isn’t made any easier when you look around and all you see are other couples of privileged nationalities, strolling side by side, holding hands, or having a meal together, enjoying each other’s company. After a magical day or night out, they retreat to their homes, where they enjoy the luxury of privacy.”

    In other blogs, he writes of the crowded and unsanitary dormitories that workers, despite some improvements, are still forced to endure.

    Amnesty told Arab Digest that since his arrest, the migrant rights activist has been allowed one short phone call to his mother. He said to her he is being held in solitary confinement, which Amnesty described as “incredibly worrying.” He is being held in an unknown place, and there are fears that he may be subjected to torture.

    Claims by Qatari Authorities

    The treatment of Bidali by Qatari authorities stands in stark contrast to their claims of change in the Gulf state. In 2020, Yousuf Mohamed Al Othman Fakhroo, the labor minister, said Qatar is “committed to creating a modern and dynamic labour market.” He added that the reforms “mark a major milestone in this journey and will benefit workers, employers and the nation alike.” That thought was echoed at the time by the general secretary of the International Trade Union Confederation (ITUC), Sharan Burrow, who described the changes as “a new dawn for migrant workers.” Both the ITUC and FIFA, world football’s governing body, had pushed hard for the reforms, using the World Cup as leverage.

    Last week, Amnesty provided Arab Digest with the following statement:

    “Three weeks after his arrest, we still have very little information on Malcolm Bidali’s fate. Despite our appeals and those of Malcolm’s mother, the government has continued to refuse to disclose his whereabouts or to explain the real reason for the ongoing detention of this courageous activist who risked his own safety to try to improve life for all migrant workers in the country. … If he is detained solely on the basis of his legitimate human rights work he must be released immediately and unconditionally, and at an absolute minimum he should be granted access to a lawyer. Such practice by the Qatar authorities sends a clear signal that it will not tolerate migrant workers speaking out and claiming their rights, and can spread fear amongst activists and other workers.”

    The ITUC and FIFA have not commented publicly on the detention and disappearance of Malcolm Bidali. For weeks, the government had only confirmed his arrest and that he was being investigated for “violating Qatar’s security laws and regulations.” He has since been “charged with receiving payment to spread disinformation in the country,” Al Jazeera reports.

    *[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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    Qatar Is Set for Its First National Elections

    President-elect Joe Biden’s foreign policy will be anchored in the traditional pursuit of America’s international role and interests. Biden has had a lengthy career in the Senate, where he served as the chairman of the Foreign Relations Committee. He also served as vice president under Barack Obama for eight years. Biden’s many speeches and comments …
    Continue Reading “Qatar Is Set for Its First National Elections”
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    Getting Qatar’s Tourism Sector Back on Track After COVID-19

    COVID-19 has undoubtedly had a massive impact on the global tourism industry, perhaps none more so than in Europe, where many countries are considering or have already reopened resorts to limit the damage. While Qatar’s tourism sector remains small by comparison, there can be no denying that it has also taken a hit. However, this is not the first time the country has confronted an existential challenge to this increasingly important economic activity.

    Tourism makes a formidable contribution to the global economy. According to the World Travel and Tourism Council, in 2019 the sector accounted for 10.3% of global GDP and approximately 330 million jobs. Unsurprisingly, COVID-19 has been nothing short of a disaster for this vital sector. Thanks to lockdowns and other precautionary measures, this past April and May witnessed a near 100% reduction in tourist arrivals worldwide.

    The United Nations World Tourism Organization (UNWTO) warns that COVID-19 might yet result in the loss of 1.1 billion tourist arrivals, $1.2 trillion in revenues and 120 million jobs. Hotels are already feeling the pinch, with the Intercontinental Group expecting revenue per available room — a commonly used indicator — to have dropped by 80% in April. Other hotel chains have made equally gloomy predictions.

    Trouble Ahead

    Though not as developed as major destinations in Europe, North America and further afield, Qatar’s tourist sector has also suffered under COVID-19. Statistics for March indicate a 78% reduction in tourist arrivals, with the figures for April and May expected to be even worse. With lockdown measures still firmly in place, it remains to be seen how many of the country’s restaurants and local tourist facilities will emerge from the pandemic unscathed.

    Qatar’s hosting of the FIFA World Cup 2022 nevertheless underlines why its tourist industry needs to make as full a recovery as possible from COVID-19. It is expected that millions of fans will visit the country for the world’s top football tournament. Most will require accommodation and entertainment beyond the stadiums.

    In keeping with governments around the world, Qatar has initiated general support and subsidized loan programs to mitigate the impact of the coronavirus on business revenues. The country can also draw inspiration from a number of international efforts to restart the global tourism sector. These include 23 actionable recommendations developed by the UNWTO to mitigate the impact of COVID-19, accelerate recovery through national policies and build resilience through lessons learned.

    In a similar vein, the European Union has developed a comprehensive framework for rejuvenating its tourism sector. This calls for a recovery strategy and a common approach to lifting travel restrictions between member states. Additional measures include the development of detailed health and safety measures for hospitality establishments and the transportation of passengers and personnel to and from tourist destinations. In the case of the latter, Greece has already issued a list of protocols for traveling around its network of islands by ferry.

    When it comes to small states, Singapore has developed two initiatives that might be of interest to Qatar. The Marketing Partnership Program aims to improve cooperation and encourage synergies between stakeholders in the city state’s tourist industry. To assist, the program makes funds available for marketing costs and collaboration between businesses. From there, the Stories Content Fund encourages local and global content creators to create compelling and positive stories about Singapore’s tourist sector.

    Been Here Before

    These are by no means the only initiatives Qatar might look to when reawakening its currently dormant tourist sector. There is also a case for taking the best ideas from as many global efforts as possible to develop a hybrid action plan with two interconnected phases.

    Focusing on the short term, phase one is concerned with mitigating the impact of COVID-19 and restarting tourism activities following the easing of travel and social distancing measures. Taking a cue from Singapore, Qatar could develop public relations activities to highlight that the country is a safe and interesting place to visit. This could be supported by tourism vouchers for Qatar Airways stopover passengers, an initiative that resonates with the EU’s travel vouchers program.

    Phase two is focused on strategic and structural issues. As per the mandate of the Qatar National Tourism Council, the country should accelerate efforts to develop a clear vision for its tourist industry. Inspiration could be drawn from Australia’s bid to become “the most desirable and memorable destination on earth” or Morocco’s practical goal to make tourism an engine of development. Either way, Qatar needs to factor agility and resilience into its future tourism sector. This entails working with stakeholders to identify challenges as well as opportunities to diversify the country’s tourism offerings. Doing so will help shield Qatar from the volatility of limited market penetration.

    It should also be remembered that Qatar has prior experience of navigating its tourism industry through difficult times. In 2016, almost 3 million tourists visited the country, the majority coming from fellow Gulf Cooperation Council and Arab states. Tourist arrivals have nevertheless diminished in recent years due to the reduction of visitors from the states involved in the ongoing blockade of Qatar. According to the Qatar Planning and Statistics Authority, arrivals from the Arab world declined by 76% between 2016 and 2019.

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    Qatar has responded with a strategy to diversify tourist arrivals and new tourism markets. In the immediate aftermath of the blockade, nationals from 80 countries were granted visa-free entry into the country. The development of the Qatar National Museum and other tourist attractions was also expedited. High-profile marketing campaigns such as Qatar Airways’ “A World like Never Before” continue to highlight the diversity of the country’s tourist sector.

    Such initiatives undoubtedly contributed to a 38% increase in tourist arrivals from other parts of the world between 2016 and 2019. Additionally, hotel bookings rose from 4.97 million nights in 2016 to 5.38 million in 2018, suggesting that the average length of stay in Qatar has increased. The country’s museums also benefited from a fresh approach to attracting tourists, with visits rising from 477,000 in 2016 to 597,000 just two years later. According to the UNWTO, Qatar’s tourism sector generated $5.6 billion in 2018 despite the negative impact of the blockade.

    Qatar’s response to the blockade offers key insights into how tourism can get back on track once the worst of COVID-19 is over. Tourism sectors around the world will need to act quickly and decisively upon the resumption of business as usual. Well-executed, creative public relations campaigns should highlight what makes a country, resort or attraction a compelling place to visit. Diversity, safety and resilience will also be at the heart of tomorrow’s tourism strategies.

    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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    The Legal Routes for Resolving the Gulf Crisis

    Since 2017, the blockade of Qatar has continued to have a profound impact on the country. Transportation routes have been disrupted, supply chains have been altered, and family and friends remain separated. In response, the Gulf state has deployed various legal mechanisms to resolve the ongoing regional dispute and help reintroduce a sense of normalcy […] More