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      in World Politics

      Can Self-Help Diplomacy Lower Political Heat in the Middle East?

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      Since the end of the 1973 Arab-Israeli War, the United States has been the unchallenged dominant power in the Middle East and North Africa. As such, it often saw its role, for better or worse, as fixing the region’s many problems. The Israeli-Palestinian conflict, Iraq and Saddam Hussein, Iran, high oil prices, Gulf security, Western Sahara, menacing non-state organizations, counterterrorism, human rights, democracy, autocratic leaders, failed states — whatever the concern or challenge, the Americans came to view them as priority issues and their responsibility. Moreover, many regional states and even their citizens often saw America’s involvement as a necessity, sometimes even an obligation to tamp down the region’s frenzied political climate.

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      But times have changed. Three recent presidents — Barack Obama, Donald Trump and now Joe Biden — have made efforts to distance the US from its endless, exasperating entanglements in the Middle East. Those efforts had distracted the United States from its principal challenges in the world — China and Russia — and sapped it of its military, economic and political might and influence. America received very little in return on its investment. Furthermore, years of US involvement in the region had also fractured the American public’s support for the more critically important role it must play in anchoring the international order.

      Enter the Others

      Downgrading America’s involvement in the Middle East isn’t necessarily a bad thing. For decades, many in the Middle East and in the US had argued that the region’s problems must be tackled by the governments and people of the region. Outsiders can play a supporting role, but the tough decisions can only be made by the governments themselves. That may now be happening.

      But handing off the task of addressing the region’s manifold challenges got off to a poor start. Neither the US, nor the international community, nor the states of the Middle East seemed able to solve the conundrum of the region’s three failed states.

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      Then, starting around 2015, Saudi Crown Prince Mohammed bin Salman started ordering others around — imposing a blockade on Qatar, detaining the Lebanese prime minister, jailing courageous dissidents and largely harmless millionaires, ordering a hit job on journalist Jamal Khashoggi and jumping into the Yemeni Civil War. And it all went bad, very bad in fact. Additionally, it provoked other would-be movers and shakers to get in the act, including the United Arab Emirates, Turkey, Iran, China, Russia and even Israel. And not always with good intent or positive results.

      After years of misdirection, however, governments now seem to be taking a more sober and responsible approach that could prove genuinely beneficial for the region. For starters, they have embarked on a simple approach: dialog. They are talking about their problems, especially those between and among one another. Dialog leads to understanding, which can lead to shared interests. Ultimately, to be effective, dialog must lead to compromise. That involves the inevitable give-and-take that allows nations, especially those close to one another, to live and thrive in peace and prosperity.

      It’s a Start

      One of the most encouraging initiatives may be the most unexpected: dialog between the Middle East’s two major powers, Iran and Saudi Arabia, and hosted by perhaps the most unlikely state, Iraq, unquestionably the region’s most conflict-ridden for decades. The issues are many between these two historic rivals, separated by a narrow gulf on whose name neither seems able to agree. But the larger gulf lies in their differing views of the other, their competing religious sects — the Saudi uber-conservative Wahhabi Sunni Islam vs. Iran’s clerically-led, conservative Shia Islam — perceptions of the other’s role and intentions in the region, their wealth, and relations with and ties to the broader international community, almost non-existent in the case of Iran.

      One especially neuralgic issue for both is their respective roles in the Yemen War. It is now abundantly clear that the Saudis’ overwhelming military power, bolstered by the US and some European nations, cannot defeat the Houthi rebels. Nor can it end either the war or even its costly intervention in it. The Saudis need help. Enter the Iranians, who have been supporting the Shia-affiliated Zaydi Houthis in this war since 2013. With ideology and much-needed weapons and funding, though much less than what Saudi Arabia has expended, the Iranians have empowered the rebels to the point where they are now an established power in a future Yemen, whether unified or bifurcated.

      So, the two regional powers are talking it out. The Saudis want out of the war, but they also want reliable security along their southwestern border. The Iranians want a Shia power on the Arabian Peninsula, but preferably one at peace.

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      Yemen may be the most immediate challenge for the two states. But there are others. More broadly, Saudi Arabia and Iran need to reach a modus vivendi in the region. On-again, off-again formal relations, menacing behavior toward each other’s oil and shipping interests, and verbal assaults do little more than increase the temperature in a region plagued by heat, literally and figuratively.

      Brothers Reconcile?

      Saudi Arabia has also launched a campaign to repair the frayed relations among its Arab neighbors. Last week, Mohammed bin Salman week began a PR campaign to demonstrate a new and improved political environment. In a swing through the neighboring Gulf states of Oman, the UAE, Bahrain and, most importantly, Qatar, he seems to be trying to rebuild what once had been the region’s preeminent multilateral organization, the Gulf Cooperation Council.

      Mohammed bin Salman single-handedly fractured the Gulf alliance when he imposed his 2017 blockade on Qatar, joined by the UAE, Bahrain and Egypt. It backfired. Qatar remained in the good graces of the US, drew the political and military support of peripheral power Turkey and earned the support of Iran. Consider it the young prince’s on-the-job training in global as well as regional politics. He is now devoting particular attention to Doha in the hope of what yet we aren’t quite certain. But this repair work and goodwill tour cannot help but create progress.

      And not to be outdone, the Gulf’s other power, the UAE, has embarked on its own diplomatic repair mission. Like the Saudis, the Emiratis want to lower the temperature in the Gulf, and their position as the region’s prime economic entrepôt gives them special heft. The UAE’s ties to the US, still the unquestioned but now quiescent power in the Gulf, also lend special weight.

      Could It All Be for Naught?

      Looming over all of these laudable efforts, however, is Iranian behavior in the region. All eyes are now on the recently restarted talks over the Joint Comprehensive Plan of Action (JCPOA) in Vienna, Austria. Following a near-six-month hiatus at Iran’s request, the P5+1 group and Iran renewed negotiations to reinstate the JCPOA — aka the Iran nuclear deal.

      But it is the critical non-dialog between the US and Iran — the two countries are still not meeting face-to-face but rather communicating through the intermediation of the other P5+1 countries — that bears the most serious watching. Unless they can agree on a way forward that puts Iran’s nuclear weapons potential well into the very distant future while also lifting America’s onerous and inescapably crippling sanctions on the Islamic Republic, the heat in the Middle East will become white hot.

      Embed from Getty Images

      Judging from the US State Department’s uncharacteristically downcast semi-official readout of the first round of the negotiation restart, there is cause for concern. Iran’s counterproductive, albeit predictable, maximalist opening gambit soured the P5+1, even China and Russia. Negotiators met again last week. Unless there is a greater attitude toward compromise, however, pessimism will win out. Positions will harden. And more extreme (and dangerous) measures will become viable.

      President Biden has reiterated the US pledge that Iran will not get nuclear weapons. But neither he nor his secretary of state, Antony Blinken, will state what the consequences of failed talks might be.

      Israel, however, is not so coy. Recent Israeli statements confirm that the military option is very much in play. As if to put an even finer point on the matter, US Defense Secretary Lloyd Austin visited Jerusalem late last week for meetings with his Israeli counterpart, Defense Minister Benny Gantz. Both men are retired top generals of their respective armed forces and will have discussed military and other options.

      Military action would be an unspeakable disaster for the Middle East. But so would a nuclear-armed or even nuclear-capable Iran. Even an approach that stops short of armed conflict will impose extraordinary hardship on the region, certainly prompting other states to consider acquiring nuclear weapons and further isolate Iran.

      It would be unfair to place the entirety of the burden for the success of these talks on Tehran. However, unless Iran understands the futility of its mindless pursuit of nuclear weapons, no effort at fostering understanding elsewhere can temper the region’s mercury-popping political heat.

      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 Elections

      Thomas Barrack, Trump Fund-Raiser, Is Indicted on Lobbying Charge

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      Mr. Barrack, the chairman of Donald Trump’s inaugural committee, was accused of failing to register as a lobbyist for the United Arab Emirates, obstruction of justice and lying to investigators.WASHINGTON — Thomas J. Barrack Jr., a close friend of former President Donald J. Trump’s and one of his top 2016 campaign fund-raisers, was arrested in California on Tuesday on federal charges of failing to register as a foreign lobbyist, obstruction of justice and lying to investigators.A seven-count indictment accused Mr. Barrack, 74, of using his access to Mr. Trump to advance the foreign policy goals of the United Arab Emirates and then repeatedly misleading federal agents about his activities during a June 2019 interview.Federal prosecutors said Mr. Barrack used his position as an outside adviser to Mr. Trump’s campaign to publicly promote the Emirates’ agenda while soliciting direction, feedback and talking points from senior Emirati officials.Once Mr. Trump was elected, they said, Mr. Barrack invited senior Emirati officials to give him a “wish list” of foreign policy moves they wanted Washington to take within the first 100 days, first six months, first year and by the end of Mr. Trump’s term, prosecutors said.Among other key Emirati objectives, Mr. Barrack pushed for the Trump administration not to hold a summit with Qatar, a rival Persian Gulf power that was under a blockade that the Emirates and Saudi Arabia, an Emirati ally, had organized, they said.Mr. Barrack is latest in a long string of former Trump aides, fund-raisers and associates to face criminal charges. The former president’s company, the Trump Organization, and its chief financial officer were indicted this month on state fraud and tax charges. Mr. Trump’s former personal lawyer, Michael D. Cohen, pleaded guilty in a hush-money scandal.Mr. Trump pardoned his 2016 campaign manager, Paul Manafort, who had been convicted in the special counsel’s investigation, and his former chief strategist, Stephen K. Bannon, who had been under federal indictment on charges that he misused money he helped raise for a group backing Mr. Trump’s border wall.Authorities have scrutinized a number of Trump aides and associates over suspicions that they improperly provided governments or other foreign interests access to Mr. Trump, his campaign or his administration. The indictment portrayed Mr. Barrack as a flagrant example of abusing such influence.“The defendant is charged with extremely serious offenses based on conduct that strikes at the very heart of our democracy,” the prosecutors in the case wrote to a federal judge in Los Angeles, asking her to detain Mr. Barrack pending his removal to New York for a bail hearing. “The defendant is charged with acting under the direction or control of the most senior leaders of the U.A.E. over a course of years.”Matt Herrington, a lawyer for Mr. Barrack, said: “Tom Barrack has made himself voluntarily available to investigators from the outset. He is not guilty and will be pleading not guilty.”Two other men were also charged with acting as Emirati agents without registering with the Justice Department, as required: Matthew Grimes, a former top executive at Mr. Barrack’s company, and Rashid al-Malik Alshahhi, an Emirati businessman who is close to the Emirates’ rulers.Mr. Grimes, 27, was arrested on Tuesday. Authorities were unable to arrest Mr. al-Malik, 43. An Emirati citizen, he had long lived primarily in California, prosecutors said. But three years ago, after the F.B.I. interviewed him, he left the country and has not returned, prosecutors said in court papers. Lawyers or representatives for the two men could not reached for comment.Prosecutors said Mr. Trump was among those betrayed by Mr. Barrack’s hidden allegiance to a foreign government from early 2016 to early 2018. And Mr. Barrack’s hopes to influence Mr. Trump or his aides were sometimes dashed.For example, Mr. Barrack had hoped that Mr. Trump would name him to be a Middle East envoy or an ambassador to the Emirates. Prosecutors said that Mr. Barrack advised Mr. al-Malik that such posts would empower the Emirates, and that Mr. al-Malik agreed Mr. Barrack could “deliver more” in such roles.But Mr. Trump did not give Mr. Barrack either job, and he remained an outside adviser to the administration.The indictment suggests that Mr. Barrack was working in direct cooperation with Crown Prince Mohammed bin Zayed, the de facto ruler of the Emirates and ostensibly one of Washington’s closest partners in the region. That could have implications for current U.S. policy.The indictment does not explicitly name Crown Prince Mohammed, but appears to clearly refer to him as “Emirati Official 1.” For instance, it states that “Emirati Official 1” met with Mr. Trump at the White House on May 15, 2017, the same day Crown Prince Mohammed met with the president. Other descriptions also match that of Crown Prince Mohammed, often referred to by American officials as M.B.Z.The indictment said that “Emirati Official 1” worked with Mr. Barrack to help scuttle U.S. plans for a conference at Camp David, Md., to press the Emirates to mend the rift with Qatar, another American partner.The indictment also referred to Mr. Barrack’s work with “Emirati Official 5,” who appears to fit the description of the Emirates’ influential ambassador to Washington, Yousef al-Otaiba. The indictment said that early in the Trump transition, the official wrote to Mr. Barrack to ask if he had insight into the new administration’s foreign policy appointments.“I do, and we are working through them in real time and I have our regional interest in high profile,” Mr. Barrack wrote back, according to the indictment.Mr. Barrack’s real estate and private equity firm, Colony Capital, profited from substantial investments from the Emirates and Saudi Arabia, countries that are closely aligned. In the three years after Mr. Trump became the Republican Party’s nominee for president in July 2016, Colony Capital received about $1.5 billion from those two Persian Gulf countries through investments or other transactions. Of that, about $474 million came from sovereign wealth funds controlled by their governments.Mr. Barrack stepped down as Colony Capital’s executive chairman in March. The firm was recently renamed DigitalBridge. According to a filing this month with Securities and Exchange Commission, Mr. Barrack owns 10 percent of that firm and is one of its directors.Mr. Barrack has been friends with Mr. Trump since the 1980s. He helped raise money for Mr. Trump’s first presidential campaign and ran his transition team after Mr. Trump won. He was perhaps best known for leading Mr. Trump’s inaugural committee, which raised $107 million — the most money ever collected and spent to celebrate an inauguration.Critics claimed the committee became a hub for peddling access to foreign officials or business leaders, or those acting on their behalf, but investigations by several local jurisdictions into the committee’s activities petered out with no charges filed.The federal inquiry into Mr. Barrack’s ties with foreign leaders was an outgrowth of the investigation led by Robert S. Mueller III, the special counsel, into Russian interference in the 2016 presidential election.The special counsel’s work put a spotlight on violations of the Foreign Agents Registration Act, known as FARA, and led to a greater effort by the Justice Department to enforce it. The law requires those who work for foreign governments, political parties or other entities to influence American policy or public opinion to disclose their activities to the department.Several former Trump aides who were charged by the special counsel acknowledged violating the statute in guilty pleas, including Mr. Manafort, the 2016 campaign chairman, and Rick Gates, the deputy chairman. Mr. Mueller referred Mr. Barrack’s case to the U.S. attorney’s office in Brooklyn, apparently because the allegations went beyond his investigative mandate.According to the indictment, Mr. al-Malik was a key intermediary between Mr. Barrack and the Emirati leadership. In court papers, prosecutors said Mr. Barrack told State Department officials in 2017 that he did not know where Mr. al-Malik was from or whether he was affiliated with any foreign government. But privately, prosecutors said, Mr. Barrack repeatedly referred to Mr. al-Malik as the Emirates’ “secret weapon” to advance its foreign policy agenda with the Trump campaign and administration.After one media appearance, Mr. Barrack emailed Mr. al-Malik, boasting that he had “nailed it” for the “home team” — meaning the Emirates, the indictment said. The two men repeatedly met personally with high-level leaders of the Emirates and Saudi Arabia, including in May, August and December of 2016, court papers say. Late Tuesday, a federal magistrate detained Mr. Barrack and Mr. Grimes, pending a bail hearing on Monday. Prosecutors had described Mr. Barrack as a flight risk, citing his wealth, Lebanese citizenship, private jet and deep ties to the Emirates and other Persian Gulf countries.The indictment comes at a delicate moment for U.S. diplomacy in the region because the Emirates is waiting for the Biden administration to finalize approval of a $23 billion sale of high-tech weaponry agreed upon under Mr. Trump — including 50 F-35 fighter jets, as well as sophisticated drones.Sharon LaFraniere More

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      in World Politics

      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.

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      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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      in World Politics

      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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      UAE Diplomats Accused in International Gold Smuggling Syndicate

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      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

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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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      How the End of the Gulf Crisis Affects Sudan

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      Sudan has been at the center of the diverging interests of wealthy Gulf states for many years. Having been close allies of former Sudanese President Omar al-Bashir, Saudi Arabia, the United Arab Emirates and Qatar had longstanding business, military and political interests in the country prior to the Gulf crisis in 2017. In June of that year, Saudi Arabia, the UAE, Bahrain and Egypt — known as the Arab quartet — cut diplomatic and trade relations with Qatar.

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      After almost four years of severed ties, reconciliation in January led to the subsequent lifting of the blockade against Qatar and the formal restoration of relations. The resolution of the dispute is a positive regional development. However, it remains fragile because the issues that sparked the rift in the first place were never resolved.

      It is therefore unlikely that the Gulf reconciliation will usher in a new beginning or bring about a return to pre-crisis normalcy. Deep-rooted mistrust between the Gulf countries, ongoing rivalries between them, divergence in their policies and geostrategic competition in Africa could trigger the next diplomatic crisis among member states of the Gulf Cooperation Council (GCC).

      Sudan’s Attempt to Play All Sides

      Most Arab and sub-Saharan African states tried to resist pressure to join the anti-Qatar coalition and delicately maneuver their way into neutrality. These states were uneasy about their move because they feared that the Arab quartet would use their economic might against them. As a result, some African states cut or downgraded ties with Qatar.

      Financial influence in Africa has helped GCC states capitalize on their geostrategic location, increase their food security and advance their diplomatic and security goals. By offering substantial economic incentives, they have been able to bolster peace agreements between warring factions. Some GCC states have achieved notable success, growing influence and African allies that support their policies. Sudan is a case in point. In 2019, Saudi investments in Sudan were estimated at $12 billion, the UAE at $7 billion and Qatar at $4 billion, as per the Sudanese Bureau of Statistics. 

      Due to Saudi Arabia’s large investments, Sudan supported the Saudi-led coalition’s war in Yemen in 2015 by deploying Rapid Support Forces and severing diplomatic ties with Iran. However, Bashir’s relationship with Riyadh and Abu Dhabi began stalling in the last few years of his rule. As part of the UAE and Saudi Arabia’s regional efforts to counter what they considered political Islam, Bashir was expected to root out Islamists in Sudan. However, since Islamists were deeply engrained in Sudan’s government, he could not risk alienating them and did not oblige.

      The Gulf dispute put Bashir in another uncomfortable position. Saudi Arabia, the UAE and Qatar were all key investors in Sudan and he could not afford to alienate any of them. Therefore, Bashir took the safest route of remaining neutral while offering to mediate between the opposing sides.

      The Sudanese leader’s reaction to the Gulf rift was not surprising. Historically, he cooperated with all regional powers, never fully aligning with any of them. His hands-off approach and ability to easily switch from the role of an army leader to an advocate of political Islam, enabled Sudan to simultaneously ally with rival GCC camps. It seems that Bashir’s key goal was to benefit economically from all Gulf states.

      Sudan Under the New Transitional Government

      Unfortunately for Bashir, Sudan’s economy collapsed, nationwide protests erupted in December 2018 and none of his Gulf allies came to his rescue. The GCC states were probably influenced by growing uncertainty regarding Bashir’s future. Their goal was to protect their investments, not Bashir. Without GCC financial support, the Sudanese president found his days in power numbered.

      In April 2019, Saudi Arabia and the UAE backed a military coup that ended three decades of Bashir’s rule and led to the creation of a Transitional Military Council (TMC). The GCC duo promptly promised a staggering $3 billion in aid to support the TMC. However, growing international pressure pushed the TMC to sign a power-sharing agreement with Sudan’s pro-democracy movement. The TMC transferred power to a sovereignty council for a transitional period. Elections to usher in a civilian-led government are planned in late 2023 or early 2024.

      Embed from Getty Images

      Saudi Arabia and the UAE have vested interests in backing the Sudanese military and ensuring it maintains control of the political transition. Consequently, they continue to offer economic and humanitarian support to Sudan. In return, the TMC has supported their war efforts in Yemen and, more recently, in Libya.

      After the 2019 revolution, Sudan temporarily cut ties with Qatar, accusing it of supporting Islamists. Qatar had a close relationship with Bashir’s former ruling National Congress Party that drew the ire of the TMC. However, Qatar has since rebuilt its influence by supporting Sudan’s removal from the US list of State Sponsors of Terrorism (SST). In October 2020, Doha announced that a peace agreement had been brokered between the transitional government and rebel forces. Qatar has also provided much-needed humanitarian relief.

      Sudan remains a country of great economic and security importance to the world. It has an abundance of natural resources. The African Development Bank Group estimates that approximately 63% of Sudan’s land is agricultural but only 15-20% is under cultivation. This offers vast investment opportunities in agriculture. Sudan is also strategically located on the Red Sea just south of the Suez Canal, a key shipping passage for world trade.

      Major Challenges and Future Scenarios

      Sudan’s transitional government recently set its priorities for 2021, which include a focus on the economy, peace, security, foreign relations and the ongoing democratic transition. However, the challenges facing the transitional government are dire. Foreign debt has risen to over $60 billion and inflation has crossed 300%. The country faces massive unemployment and chronic shortages of bread, fuel and foreign currency. Sudan is in the throes of a complex power struggle between civilians and the military. The Grand Ethiopian Renaissance Dam (GERD) threatens Sudan’s water security. Sudanese and Ethiopian troops have clashed at the border. If this was not daunting already, Sudan has registered nearly 32,000 confirmed cases of COVID-19, as of April 9.

      In response to some of these challenges, the transitional government has instituted seismic constitutional changes. After nearly three decades, the US removed Sudan from the SST list in January, eliminating a major hurdle to debt relief and bringing an end to the country’s isolation from global financial systems. However, the transitional government remains under pressure to deliver quick economic wins. If it fails, power may shift back toward the military. In these tough circumstances, the transitional government’s success and Sudan’s democratic future depend on outside financial support.

      For Sudan, the Gulf crisis served as a minor inconvenience. The revolution and Sudan’s removal from the SST list are more significant developments. GCC states are now encountering a growing number of new regional and international players who are looking at Sudan with increased interest. This could very well cause a shift in Gulf–Sudan relations.

      Although GCC states have a shared strategic interest in Sudan’s stability, this takes a back seat to alliances that promote the individual interests of these Gulf countries. They are all trying to increase their regional influence and are turning post-revolution Sudan into another theater of GCC rivalry. Given Sudan’s fragile economic and political situation, it needs financial support. Economic forces played a major role in the fall of Omar al-Bashir’s regime and will determine the survival of the transitional government.

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