Tag Archives: Saudi Arabia

Saudi king says kingdom has made progress in tackling terrorism

FILE PHOTO: Saudi Arabia's King Salman bin Abdulaziz Al Saud at a summit of Gulf Cooperation Council leaders in Riyadh, Saudi Arabia May 21, 2017. REUTERS/Jonathan Ernst/File Photo

MECCA, Saudi Arabia (Reuters) – Saudi King Salman, receiving dignitaries attending the annual Muslim haj pilgrimage, said on Saturday the kingdom had made progress in eradicating terrorism aimed at attacking its holy sites, state news agency SPA reported.

Saudi Arabia, which stakes its reputation on its guardianship of Islam’s holiest sites and organizing the haj, has been hit by bombings in recent years and uncovered plots to carry out attacks in Mecca.

“The limbs of terrorism have sought to harm the holy cities, paying no attention to their sanctity,” SPA quoted King Salman as telling foreign dignitaries at a reception he held in Mecca, where more than 2 million pilgrims are performing haj.

“But the kingdom, by the grace of God and in cooperation with its sisters and friends, has made big successes in eradicating terrorism and has worked decisively and with determination to dry its sources,” he added, without elaborating.

Salman also said Saudi Arabia had devoted all its material and human resources to ensure the safety of pilgrims who come from all over the world to perform the five-day ritual, a religious duty to be undertaken once in a lifetime by every able-bodied Muslim who can afford the journey.

“We are determined, with God’s permission, to continue to provide the highest level of services for the two holy mosques … to ensure the safety of those who seek the sacred house of God,” he said.

The pilgrimage has frequently been hit by stampedes and fires. In the most recent incident, hundreds of pilgrims were killed in a crush two years ago.

(Writing by Sami Aboudi; Editing by Greg Mahlich)

Iran sends pilgrims back to haj in test for broader dialogue

Iranian pilgrims wait at the Imam Khomeini airport in Tehran as they depart for the annual haj pilgrimage to the holy city of Mecca, in Tehran, Iran, July 31, 2017.

By Mahmoud Mourad and Bozorgmehr Sharafedin

MECCA/LONDON (Reuters) – Iranian pilgrims returned to haj this year for the first time since a deadly crush in 2015, in what could be an important confidence-building measure for dialogue on other thorny issues between Iran and Saudi Arabia.

Nearly 800 people were killed, according to Riyadh, when two large groups of pilgrims arrived at a crossroads east of Mecca. Counts by countries of repatriated bodies showed over 2,000 people may have died, including more than 400 Iranians.

Iran’s Supreme Leader has said his people would never forget that “catastrophe”, but President Hassan Rouhani suggested a trouble-free haj this year could help build confidence in other areas of dispute between the arch-rivals.

So far, Iranian pilgrims say they are satisfied.

“To be honest, the Saudis are doing a great job, working hard to deliver the best service,” said Pir-Hossein Kolivand, head of Iran’s Emergency Medical Services.

“The 2015 incident happened because of mismanagement, but Saudis seem to have fixed that,” he told Reuters in a phone interview from Mecca.

Iranian pilgrims participated without incident in the symbolic stoning of the devil on Friday, the riskiest part of the haj because of the large crowds involved, an Iranian journalist accompanying them said.

All told, more than 2.3 million pilgrims are participating in the five-day ritual, a religious duty once in a lifetime for every able-bodied Muslim who can afford the journey.

Rouhani said Tehran had sent pilgrims to haj based on Saudi promises of safety. He said he still lacked confidence in Riyadh but hoped it would build goodwill.

Iranian pilgrims arrive for the annual haj pilgrimage, in Arafat outside the holy city of Mecca, Saudi Arabia August 30, 2017. Picture taken August 30, 2017.

Iranian pilgrims arrive for the annual haj pilgrimage, in Arafat outside the holy city of Mecca, Saudi Arabia August 30, 2017. Picture taken August 30, 2017. REUTERS/Suhaib Salem

“If our pilgrims come back satisfied, and if Saudi Arabia’s behavior is within religious and international frameworks, I think the situation would be more convenient to resolve the issues,” he was quoted as saying by state news agency IRNA.

Relations between Shi’ite-led Iran and Sunni power Saudi Arabia are at their worst in years, with each accusing the other of subverting regional security and supporting opposite sides in conflicts in Syria, Iraq and Yemen.

Iranian protesters stormed the Saudi embassy in Tehran in January 2016 after a prominent Saudi Shi’ite cleric was executed, prompting Riyadh to close the embassy.

Saudi Arabia and several other Arab governments severed ties with Qatar in June, citing its support for Iran as one of the main reasons. Iran accused Saudi Arabia of being behind deadly attacks in Tehran claimed by Islamic State, something Riyadh denied.

 

ID BRACELETS

Until now, no Saudi report on the 2015 crush has been published, and the bodies of dozens of Iranian victims remain unidentified.

Family members of 11 Iranians whose bodies are still missing are traveling to Mecca later this year for DNA tests, an Iranian official said.

This year, Iran issued its nearly 90,000 pilgrims blue electronic bracelets to help organizers trace and identify them.

An Iranian pilgrim shows bracelet on his hand during the annual haj pilgrimage, in Arafat outside the holy city of Mecca, Saudi Arabia August 30,

An Iranian pilgrim shows bracelet on his hand during the annual haj pilgrimage, in Arafat outside the holy city of Mecca, Saudi Arabia August 30, 2017. REUTERS/Suhaib Salem

Dozens of Iranians clad in traditional white clothes and a distinctive red mark arrived in orange buses on Thursday at their encampment in Mount Arafat.

Pilgrims who spoke with Reuters, many with previous experience at the haj, say their facilities and treatment by the Saudi authorities are better than in past years and include air conditioned tents.

“The way that security handled the Iranian pilgrims until now has been good,” said Samir Shuahni, an Iranian journalist with the delegation.

“This is what I’ve noticed for the nearly month that I’ve been in Mecca and Medina: there is good cooperation and the pilgrims are moving freely.”

Iranians said the Saudi authorities had asked them not to hold a traditional Shi’ite prayer in an open space in Medina, citing it as a potential target for Islamic State militants.

Such restrictions have not troubled Iranians still in shock from the IS attack in Tehran which killed at least 18 people.

“I think that is reasonable,” said Mahdi Hadibeh, an Iranian photographer in Mecca. “Iranians are holding the ceremonies separately in their hotels.”

 

 

(Writing by Stephen Kalin; editing by Ralph Boulton)

 

Blasphemy laws on the books in one-third of nations: study

Protesters hold placards condemning the killing of university student Mashal Khan, after he was accused of blasphemy, during a protest in Islamabad, Pakistan April 18, 2017

By Stephanie Nebehay

GENEVA (Reuters) – Laws prohibiting blasphemy are “astonishingly widespread” worldwide, with many laying down disproportionate punishments ranging from prison sentences to lashings or the death penalty, the lead author of a report on blasphemy said.

Iran, Pakistan, and Yemen score worst, topping a list of 71 countries with laws criminalizing views deemed blasphemous, found in all regions, according to a comprehensive report issued this month by the U.S. Commission on International Religious Freedom.

The bipartisan U.S. federal commission called for repeal of blasphemy statutes, saying they invited abuse and failed to protect freedoms of religion and expression.

“We found key patterns. All deviate from freedom of speech principles in some way, all have a vague formulation, with different interpretations,” Joelle Fiss, the Swiss-based lead author of the report told Reuters.

The ranking is based on how a state’s ban on blasphemy or criminalizing of it contravenes international law principles.

Ireland and Spain had the “best scores”, as their laws order a fine, according to the report which said many European states have blasphemy laws that are rarely invoked.

Some 86 percent of states with blasphemy laws prescribe imprisonment for convicted offenders, it said.

Proportionality of punishment was a key criteria for the researchers.

“That is why Iran and Pakistan are the two highest countries because they explicitly have the death penalty in their law,” Fiss said, referring to their laws which enforce the death penalty for insulting the Prophet Mohammad.

Blasphemy laws can be misused by authorities to repress minorities, the report said, citing Pakistan and Egypt, and can serve as a pretext for religious extremists to foment hate.

Recent high-profile blasphemy cases include Jakarta’s former Christian governor being sentenced to two years in jail in May for insulting Islam, a ruling which activists and U.N. experts condemned as unfair and politicized. Critics fear the ruling will embolden hardline Islamist forces to challenge secularism in Indonesia.

A Pakistani court sentenced a man to death last month who allegedly committed blasphemy on Facebook, the first time the penalty was given for that crime on social media in Muslim-majority Pakistan.

“Each of the top five countries with the highest scoring laws has an official state religion,” the report said, referring to Iran, Pakistan, Yemen, Somali and Qatar. All have Islam as their state religion.

Saudi Arabia, where flogging and amputations have been reported for alleged blasphemy, is not among the top “highest-risk countries”, but only 12th, as punishment is not defined in the blasphemy law itself.

“They don’t have a written penal law, but rely on judges’ interpretation of the Sharia. The score was disproportionately low,” Fiss said. “If a law is very vague, it means prosecutors and judges have a lot of discretion to interpret.”

 

(Reporting by Stephanie Nebehay; Editing by Toby Chopra)

 

With a wary eye on Iran, Saudi and Iraqi leaders draw closer

With a wary eye on Iran, Saudi and Iraqi leaders draw closer

By Ahmed Rasheed and Sylvia Westall

BAGHDAD/DUBAI (Reuters) – It was an unusual meeting: An Iraqi Shi’ite Muslim cleric openly hostile to the United States sat in a palace sipping juice at the invitation of the Crown Prince of Saudi Arabia, the Sunni kingdom that is Washington’s main ally in the Middle East.

For all the implausibility, the motivations for the July 30 gathering in Jeddah between Moqtada al-Sadr and Crown Prince Mohammed bin Salman run deep, and center on a shared interest in countering Iranian influence in Iraq.

For Sadr, who has a large following among the poor in Baghdad and southern Iraqi cities, it was part of efforts to bolster his Arab and nationalist image ahead of elections where he faces Shi’ite rivals close to Iran.

For the newly elevated heir to the throne of conservative Saudi Arabia, the meeting – and talks with Iraqi Prime Minister Haider al-Abadi in June – is an attempt to build alliances with Iraqi Shi’ite leaders in order to roll back Iranian influence.

“Sadr’s visit to Saudi Arabia is a bold shift of his policy to deliver a message to regional, influential Sunni states that not all Shi’ite groups carry the label ‘Made in Iran’,” said Baghdad-based analyst Ahmed Younis.

This policy has assumed greater prominence now that Islamic State has been driven back in northern Iraq, giving politicians time to focus on domestic issues ahead of provincial council elections in September and a parliamentary vote next year.

“This is both a tactical and strategic move by Sadr. He wants to play the Saudis off against the Iranians, shake down both sides for money and diplomatic cover,” said Ali Khedery, who was a special assistant to five U.S. ambassadors in Iraq.

“NECESSARY EVIL”

Ultimately, Sadr seeks a leadership role in Iraq that would allow him to shape events without becoming embroiled in daily administration, which could erode his popularity, diplomats and analysts say.

Such a role – religious guide and political kingmaker – would fit with the patriarchal status the Sadr religious dynasty has for many Shi’ite Arabs in Iraq, Lebanon, Kuwait and Bahrain.

Days after the Jeddah meeting, Sadr met Sheikh Mohammed bin Zayed al-Nahayan, Crown Prince of Abu Dhabi, who has also taken an assertive line against Tehran, the dominant foreign power in Iraq since the 2003 U.S. invasion ended Sunni minority rule.

Iran has since increased its regional influence, with its forces and allied militias spearheading the fight against Islamic State in Iraq and Syria and holding sway in Baghdad.

For Saudi Arabia, which sees itself as the bastion of Sunni Islam, less Iranian influence in Iraq would be a big win in a rivalry that underpins conflict across the Middle East.

“There are plans to secure peace and reject sectarianism in the region,” Sadr told the Saudi-owned Asharq al-Awsat newspaper last week, saying that it was “necessary to bring Iraq back into the Arab fold”.

When asked what Saudi Arabia hoped to achieve with Sadr’s recent visit to the Kingdom and the UAE, a Saudi official at the Saudi embassy in Washington said: “Saudi Arabia hopes to encourage Iraqis to work together to build a strong resilient and independent state. With that in mind, it will reach out to any party who could contribute to achieving that goal.”

Washington supports the Saudi-Iraq rapprochement, but the embracing of Sadr raises questions about whether it sees a man known for his anti-Americanism as a reliable figure.

“It is perhaps close to a necessary evil,” a U.S. official said of the visit, although he said it was a “very uncomfortable position for us to be in” due to Sadr’s anti-Americanism, which had led to the deaths of U.S. citizens.

“His visits to the region, and broadly the high-profile visits by Iraq, those things broadly are good, in that they get Iraq facing the Gulf nations and they help to turn their attention away from Iran,” the official said.

A second U.S. official said that Washington viewed the visits positively, “not because we’re Sadr fans but because we’ve been pushing Saudi Arabia to mend fences and open gates with Iraq”.

LIMITED INFLUENCE

A politician close to Sadr said the Jeddah meeting was aimed at building confidence and toning down sectarian rhetoric between the two countries.

The rapprochement is “a careful testing of the waters with the Abadi government and some of the Shia centers of influence like Sadr and the interior minister,” said Ali Shihabi, executive director of the Washington-based Arabia Foundation.

How far detente can go is unclear: Iran has huge political, military and economic influence in Iraq. Saudi Arabia is playing catch-up, having reopened an embassy in Baghdad only in 2015 after a 25-year break caused by the Iraqi invasion of Kuwait.

Whatever the Saudis and Gulf states do, “Iran will stay the key player in Iraq for at least the next 10 years,” said Wathiq al-Hashimi, chairman of the Iraqi Group for Strategic Studies think-tank.

Khedery said Saudi Arabia and the other Gulf states were not skilled at exerting external influence.

“They usually just throw money at issues and the beneficiaries of that largesse become very, very wealthy and that’s it,” he said. The Iranians in Iraq offered intelligence, diplomatic support and cash and wielded “big sticks” against anyone stepping out of line, he said.

Still, the Jeddah meeting has produced practical results.

Sadr’s office said there was an agreement to study investment in Shi’ite regions of southern Iraq. Riyadh will also consider opening a consulate in Iraq’s holy Shi’ite city of Najaf, Sadr’s base.

Saudi Arabia would donate $10 million to help Iraqis displaced by the war on Islamic State in Iraq, Sadr said, while Iraq’s oil minister said Riyadh had discussed building hospitals in Basra and Baghdad.

After the Saudi trip, Sadr again urged the Iraqi government to dismantle the Tehran-backed Shi’ite paramilitary groups involved in the fight against Islamic State – a theme that is expected to become a top election issue.

A source from Sadr’s armed group told Reuters that after the visit orders were issued to remove anti-Saudi banners from its headquarters, vehicles and streets.

Sadr had called on the Saudis to “stop hostile speeches by fanatical hardline clerics who describe Shi’ites as infidels,” and Crown Prince Mohammed had promised efforts toward this, the politician close to Sadr said.

It remains to be seen how far Saudi Arabia can prevent anti-Shi’ite outbursts by its media or on social media, since Wahhabism, the kingdom’s official ultra-conservative Sunni Muslim school, regards Shi’ism as heretical.

But the Saudi minister of state for Gulf affairs, Thamer al-Subhan, called for tolerance after greeting Sadr, using Twitter to decry “Sunni extremism and Shi’ite extremism”.

Saudi Arabia this week cracked down on Twitter users, including a radical Sunni cleric who published insulting comments about Shi’ites.

WIDER RAPPROCHEMENT

As part of the wider detente, Iraq and Saudi Arabia announced last month they are setting up a council to upgrade strategic relations.

The Saudi cabinet has approved a joint trade commission to look at investment while a Saudi daily reported the countries planned to reopen a border crossing shut for more than 25 years – a point raised by Sadr on his visit.

Brett McGurk, U.S. special envoy for the coalition against Islamic State, tweeted earlier on Wednesday that he had visited the Iraq-Saudi border: “Closed since ’90. ISIS attacked in ’15. Today: secure, re-open, bustling w/1200 pilgrims per day.”

Another sign of rapprochement is an agreement to increase direct flights to a daily basis. Iraqi Airways hopes to reopen offices in Saudi airports to help Iraqis travel to the kingdom, especially for pilgrimages, Iraq’s transport ministry said.

Then there is coordination on energy policy.

As OPEC producers, the two cooperated in November to support oil prices. Their energy ministers discussed bilateral cooperation and investment last week.

Iranian reaction to the meetings has been minimal.

“Iraqi personalities and officials do not need our permission to travel outside of Iraq or to report to us,” foreign ministry spokesman Bahram Qasemi said last week, according to the semi-official Fars news agency.

(Additional reporting by Maher Chmaytelli in Erbil, William Maclean and Rania El Gamal in Dubai and Yara Bayoumy in Washington; Editing by Giles Elgood and Leslie Adler)

Saudi Arabia and Iraq to re-open border crossing after 27 years

FILE PHOTO: A member from the Iraqi security forces stands guard at a checkpoint during a patrol at the border between Iraq and Saudi Arabia, February 17, 2016. REUTERS/Alaa Al-Marjani

RIYADH (Reuters) – Saudi Arabia and Iraq plan to open the Arar border crossing for trade for the first time since 1990, when it was closed after the countries cut ties following Saddam Hussein’s invasion of Kuwait, Saudi local media reported on Tuesday.

Saudi and Iraqi officials toured the site on Monday and spoke with Iraqi religious pilgrims, who for the past 27 years had access to the crossing only once annually during the haj season, the Mecca newspaper reported.

The governor of Iraq’s southwestern Anbar province, whose staff was on hand for the ceremonies, said the Iraqi government had deployed troops to protect the desert route leading to Arar and called its opening a “significant move” to boost ties.

“This is a great start for further future cooperation between Iraq and Saudia Arabia,” said Sohaib al-Rawi.

The announcement follows a decision by the Saudi cabinet on Monday to establish a joint trade commission with Iraq.

Saudi Arabia and the United Arab Emirates are both wooing their northern neighbor in an effort to halt the growing regional influence of arch-foe Iran.

The Sunni-led Arab Gulf countries have hosted influential Iraqi Shi’ite cleric Moqtada al-Sadr for talks with their crown princes in recent weeks, rare visits after years of troubled relations.

Sadr’s office said his meeting with Saudi Crown Prince Mohammed bin Salman resulted in an agreement for Saudi Arabia to donate $10 million in aid to the Iraqi government and study possible investments in Shi’ite regions of southern Iraq.

The opening of border crossings for trade was also on a list of goals for the talks published by Sadr’s office.

Sadr commands a large following among the urban poor of Baghdad and southern Iraq, and is one of few Iraqi Shi’ite leaders to keep some distance from Tehran.

The Saudi-Iraqi rapprochement extends back to 2015, when Saudi Arabia reopened its embassy in Baghdad following a 25-year break.

Saudi Foreign Minister Adel al-Jubeir visited Baghdad in February, and the two countries announced in June they would set up a coordination council to upgrade ties.

(Reporting by Katie Paul and Ahmed Rasheed, editing by Pritha Sarkar)

Qatar crisis strains Saudi-led Arab alliance in Yemen war

Soldiers and members of the Popular Resistance militiamen backing Yemen's President Abd-Rabbu Mansour Hadi walk as they head to the frontline of fighting against forces of Houthi rebels in Makhdara area of Marib province, Yemen June 28, 2017. Picture taken June 28, 2017. REUTERS/Ali Owidha

By Aziz El Yaakoubi

DUBAI (Reuters) – A crisis between Qatar and four Arab countries is straining a Saudi-led coalition backing Yemen’s government in a two-year war against Iranian-aligned Houthis and slowing the alliance’s military advances.

At the heart of the crisis is the accusation that Qatar supports the Muslim Brotherhood, an Islamist movement that coalition mainstays Saudi Arabia and the United Arab Emirates have designated a terrorist group.

But Yemen’s government is packed with supporters of the Islah party, an affiliate of the Muslim Brotherhood, threatening the unity of the alliance which has already been weakened by the withdrawal of Qatar’s forces after the row erupted on June 5.

“The Gulf rift has cast a shadow on the government and could split it as ministers linked to Islah sympathize with Qatar,” a senior official in the Yemeni government, who asked not to be named, told Reuters.

The coalition is seeking to restore the internationally-recognized government of President Abd-Rabbu Mansour Hadi and backs forces fighting Houthi rebels and troops loyal to former President Ali Abdullah Saleh.

Fighting near the Red Sea port city of al-Mokha, where a UAE-backed offensive was being prepared on the port of Hodeidah which handles most of Yemeni food imports, has slowed.

“The fighting has been frozen since the start of the dispute with Qatar, which reflects the extent of the UAE concerns over the strength of Islah in the province,” a local official told Reuters. UAE officials did not respond to requests for comment.

Saudi Arabia currently hosts the exiled Yemeni government which includes five cabinet ministers from the Islah party. The chief of staff also belongs to Islah and Vice President Ali Mohsen al-Ahmar is a close Islah ally.

TRIBESMEN, SOLDIERS CRITICAL

The party also has thousands of followers fighting against the Houthi forces who control the capital Sanaa with Saleh loyalists. Unusually in Yemen’s fractured political landscape, Islah has supporters in the north and south of the country.

Since the Saudi-led coalition intervened in Yemen in 2015, Islah has tried to distance itself from the Brotherhood, in deference to the government-in-exile’s Saudi hosts. The coalition depends heavily on Islah fighters on the ground.

“Whatever Saudi Arabia’s current view of the Muslim Brotherhood in other countries, in Yemen they are natural allies against the Houthi-Saleh alliance,” April Longley Alley, a senior Arabian Peninsula analyst for the International Crisis Group (ICG) said.

“In many fighting fronts in the north, tribesmen or soldiers associated with Islah are a critical, if not the most important, part of the anti-Houthi fighting force.”

Saudi officials were not immediately available for comment.

The Brotherhood has posed a big challenge to Arab rulers in the Middle East, where it has built a strong base opposed to the principle of dynastic rule.

While Qatar has supported the movement, Gulf monarchies and emirates, including Saudi Arabia and the UAE, have spent billions trying to prevent the Brotherhood holding power in the Arab world since 2011 uprisings swept the region.

UAE UNCOMFORTABLE

The UAE, a crucial member of the coalition and which is more hostile to the Brotherhood than other members, appears to have been the most uncomfortable about its military fighting alongside Brotherhood-linked Islah forces.

The UAE has also built a southern army that remains under the influence of southern Yemeni politicians who are hostile to the Brotherhood’s ideology and want to break with the north.

On the frontlines in the south, the offensive against the Houthis and Saleh forces has slowed down because of the UAE position on Islah, local officials said. UAE officials were not available to comment.

Fighting in the two strategic provinces of Taiz and Marib has halted for more than a month, except for occasional air strikes and naval shelling on the rebels.

Cracks in the Yemeni government on the Qatar crisis were highlighted when the quarrel broke out with Egypt, Saudi Arabia, Bahrain and the United Arab Emirates imposing travel and diplomatic sanctions on Qatar.

Yemen’s government rushed to express solidarity with Qatar on the state news agency website. Within two hours that message of support was wiped off. The next day the government cut ties with Doha, falling into line with Saudi and the others.

(Reporting By Aziz El Yaakoubi; editing by Sami Aboudi)

UK government declines to publish review on funding of extremism

FILE PHOTO: Britain's Home Secretary, Amber Rudd, arrives in Downing Street for a cabinet meeting, in central London, Britain June 20, 2017. REUTERS/Eddie Keogh

By Michael Holden

LONDON (Reuters) – The British government said on Wednesday it would not publish in full its report on the sources of funding of Islamist extremism in Britain, prompting opposition charges that it was trying to protect its ally Saudi Arabia.

The report, commissioned in November 2015 by then-Prime Minister David Cameron, was handed to the government last year and ministers have been under pressure to release its findings following three deadly attacks in Britain since March which have been blamed on Islamist militants.

Home Secretary (interior minister) Amber Rudd said that though some extremist Islamist organizations were receiving hundreds of thousands of pounds, she had decided against publishing the review in full.

“This is because of the volume of personal information it contains and for national security reasons,” she said in a written statement to parliament.

The review found the most common source of support for these organizations was from small, anonymous donations from people based in Britain, according to Rudd.

But it also found overseas funding was a significant source of income for a small number of organizations.

“Overseas support has allowed individuals to study at institutions that teach deeply conservative forms of Islam and provide highly socially conservative literature and preachers to the UK’s Islamic institutions,” Rudd’s statement said. “Some of these individuals have since become of extremist concern.”

Critics were quick to see a cover-up to shield Saudi Arabia, a powerful Gulf ally of Britain and the world’s biggest oil exporter. The Home Office later released a statement denying this.

“Contrary to suggestions by some media outlets, diplomatic relations played absolutely no part in the decision not to publish the full report,” the statement said.

Lawmaker Caroline Lucas, co-leader of the Green Party who had been pressing the government to release the report, said Rudd’s statement was unacceptable.

“The statement gives absolutely no clue as to which countries foreign funding for extremism originates from – leaving the government open to further allegations of refusing to expose the role of Saudi Arabian money in terrorism in the UK,” she said.

That view was echoed by the Liberal Democrats and the main opposition Labour party.

“There is a strong suspicion this report is being suppressed to protect this government’s trade and diplomatic priorities, including in relation to Saudi Arabia,” said Labour’s home affairs spokeswoman, Diane Abbott.

Britain’s Henry Jackson Society (HJS) think tank last week released a report which said foreign funding for Islamist extremism in Britain primarily came from governments and government-linked foundations in the Gulf, as well as Iran.

“Foremost among these has been Saudi Arabia, which since the 1960s has sponsored a multimillion dollar effort to export Wahhabi Islam across the Islamic world, including to Muslim communities in the West,” the report said.

The Saudi government has demanded the HJS provide evidence for its claims, saying it was committed to fighting terrorism and violent extremism at home and across the world.

“If there is a list of names of Saudi individuals or organizations with proven links to UK terrorism, the think tank should present them and Saudi Arabia will deal with them,” Saudi Information Minister Awwad Alawwad said in a statement.

(Additional reporting by Kylie MacLellan and William MacLean in Dubai; Editing by Mark Heinrich)

U.S. foreign chief Tillerson arrives in Gulf for talks on Qatar crisis

U.S. Secretary of State Rex Tillerson makes a speech during the opening ceremony of the 22nd World Petroleum Congress in Istanbul, Turkey, July 9,

By Jonathan Landay and Tom Finn

ISTANBUL/DOHA (Reuters) – U.S. Secretary of State Rex Tillerson arrived in Kuwait on Monday for talks aimed at resolving the crisis triggered by the the cutoff of links with Qatar by Saudi Arabia and Arab allies allies.

In Doha, a Western diplomat said creation of a “terror finance monitoring mechanism” would feature in the talks, but declined to elaborate. Saudi Arabia, Bahrain, UAE and Egypt imposed sanctions last month, accusing Doha of aiding terrorism, something it denies.

The State Department said Tillerson, who forged extensive ties in the Gulf as CEO of ExxonMobil, would hold talks with leaders in Kuwait, Qatar and Saudi Arabia.

He was flying from Istanbul where he attended an international petroleum conference.

R.C. Hammond, a senior adviser to Tillerson, said he would explore ways to end a stalemate following Qatar’s rejection of 13 demands issued as condition for ending sanctions.

“The trips to Saudi Arabia and Qatar are about the art of the possible,” said Hammond, who added that the 13 demands “are done” and “are not worth revisiting as a package. Individually there are things in there that could work”.

The demands included the closing of Al Jazeera, the Qatar-based pan-Arab television network, and a Turkish military base in Qatar. Saudi Arabia and its backers, which accuse Al Jazeera of being a platform for extremists and an agent of interference in their affairs, have threatened further sanctions against the emirate. Al Jazeera denies the allegations.

Riyadh and its allies accuse Qatar of financing extremist groups and allying with Iran, the Gulf Arab states’ regional rival. Qatar denies that it supports militant organizations, and many experts see the blockade as an attempt by Saudi Arabia to rein in Qatar’s increasingly independent foreign policy.

 

TWO-WAY STREET

The crisis has hit travel, food imports to Qatar, ratcheted up tensions in the Gulf and sown confusion among businesses, while pushing Qatar closer to Iran and Turkey which have offered support.

The United States worries the crisis could affect its military and counter-terrorism operations and increase the regional influence of Tehran, which has been supporting Qatar by allowing it to use air and sea links through its territory.

Qatar hosts Udeid Air Base, the largest U.S. military facility in the Middle East, from which U.S.-led coalition aircraft stage sorties against Islamic State in Syria and Iraq.

U.S. President Donald Trump has expressed support for Saudi Arabia in the dispute.

Hammond said it was critical that not only Qatar, but Riyadh and its allies take steps to halt any financial support flowing to extremists groups, especially following the defeat of Islamic State in the northern Iraqi city of Mosul.

“It’s a two-way street,” he said. “There are no clean hands here.”

“We want progress on terrorism financing. The president strongly believes that if you cut off financing, you cut off the ability of terror to take hold in new areas,” Hammond said.

Moreover, he said, “the longer that this struggle is in place, the more opportunity there is for Iran.”

 

(Editing by Jeremy Gaunt)

 

Qatar rift risks raising cost for Gulf debt issuers and slowing Saudi reforms

FILE PHOTO: Cars drive past the King Abdullah Financial District, north of Riyadh, Saudi Arabia, March 1, 2017. REUTERS/Faisal Al Nasser/File Photo

By Saeed Azhar, Davide Barbuscia and Katie Paul

DUBAI/RIYADH (Reuters) – Qatar’s rift with its Arab neighbors is threatening to puncture investor appetite for the Gulf region as a whole, translating into potentially higher debt costs for governments and possibly slowing the pace of Saudi Arabia’s economic reforms.

Saudi, United Arab Emirates, Bahrain and Egypt broke relations and transport ties with Qatar on June 5, alleging it finances terrorism, something Doha vehemently denies.

The move has thrown the region — which has been relatively stable, if troubled by Sunni and Shi’ite Muslim rivalry — into diplomatic turmoil that is now putting off investors.

“We were used to a relatively peaceful region and now the landscape has changed,” said Brigitte Le Bris, head of emerging debt and currencies at Paris-based Natixis Asset Management, which manages about 350 billion euros ($392 billion) in assets.

“We are not yet ready to increase our exposure to the region. We need to know whether this crisis is isolated to Qatar or it can spread and affect other countries or the crisis can worsen.”

One obvious area is sovereign debt, where the crisis has the potential of raising borrowing costs.

Following the sanctions, rating agency Standard & Poor’s downgraded Qatar while Fitch put it on its watchlist for a potential downgrade.

To date, foreign investors still appear to be comfortable holding Qatar paper due to the size of the country’s reserves and assets held by its sovereign wealth fund, Qatar Investment Authority.

Yields on Qatar’s sovereign dollar bonds maturing in 2026 spiked over 40 basis points after the sanctions were announced on June 5 but have now recovered nearly 20 bps.

Other Gulf Cooperation Council countries’ sovereign bonds saw some weakness in the immediate aftermath of the diplomatic crisis, but again have largely gone back to their pre-crisis levels.

How long this lasts, however, may depend on how long the crisis goes on, which may be “for years” according to one UAE minister..

The market’s take, however, is that the diplomatic crisis will be resolved via political mediation, said Max Wolman, senior portfolio manager at Aberdeen Asset Management in London.

“But if the likes of Bahrain, Oman or even Saudi Arabia were to issue these days, I think there would be a slight risk premium of 10 to 15 basis points in the primary to the secondary market because of current political uncertainty,” he said.

SAUDI REFORMS

Another risk could be to Saudi Arabia’s economic reforms, many of which depend on investor cash flowing in.

“Investors may become concerned about Saudi over-extending itself, as the war in Yemen continues and domestically reforms have adversely impacted consumer sentiment,” Asha Mehta, portfolio manager at Acadian Asset Management.

A senior banker, who has done extensive investment banking work in the Middle East, pointed to the high-profile listing of oil company Aramco as a potential issue.

“If the situation continues like this and they planned their IPO, they would be bombarded with questions on this (political upheaval),” he told Reuters, asking not to be named.

Even though the Aramco IPO is not expected until 2018, Saudi Arabia was preparing the sale of government stakes in airports, healthcare and educational firms, aiming to raise $200 billion.

The privatization is part of the reforms to reduce Saudi Arabia’s dependence on oil, after its price plunge hurt the kingdom’s economy and stretched its finances.

Bank of America Merrill Lynch in a recent note said geopolitics may delay the reforms, although not derail them.

Saudi’s reform process could get some impetus, however, from the announcement on Wednesday that Mohammed bin Salman will become the crown prince, replacing his cousin in a sudden announcement that confirms Saudi Arabia King Salman’s 31-year-old son as next ruler of the kingdom.

MBS, as he is known, was behind the sweeping economic reforms aimed at ending the kingdom’s “addiction” to oil, part of his campaign.

Brent was unchanged at $46.02 barrel at 0651 GMT on Wednesday at multi-month lows after falling nearly 2 percent in the previous session to its lowest settlement since November as investors discounted evidence of strong compliance to a deal to cut a global output.

(additional reporting by Marc Jones in London, and Tom Arnold in Dubai Editing by Jeremy Gaunt)

Gulf crisis seen widening split in Syria rebellion

FILE PHOTO: A rebel fighter from the Ahrar al-Sham Islamic Movement reacts as they fire grad rockets from Idlib countryside, towards forces loyal to Syria's President Bashar al-Assad stationed at Jureen town in al-Ghab plain in the Hama countryside, Syria, April 25, 2015. REUTERS/Mohamad Bayoush/File Photo

By Tom Perry and Suleiman Al-Khalidi

BEIRUT/AMMAN (Reuters) – Confrontation between Qatar and Saudi Arabia is creating unease among Syrian rebels who expect the crisis between two of their biggest state backers to deepen divisions in the opposition to President Bashar al-Assad.

Together with Turkey and the United States, Qatar and Saudi Arabia have been major sponsors of the insurgency, arming an array of groups that have been fighting to topple the Iran-backed president. The Gulf support has however been far from harmonious, fuelling splits that have set back the revolt.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar a week ago, accusing it of fomenting regional unrest, supporting terrorism and getting too close to Iran, all of which Doha denies.

It is the biggest rift among Gulf Arab states in years.

“God forbid if this crisis is not contained I predict … the situation in Syria will become tragic because the factions that are supported by (different) countries will be forced to take hostile positions towards each other,” said Mustafa Sejari of the Liwa al Mutasem rebel group in northern Syria.

“We urge our brothers in Saudi Arabia and Qatar not to burden the Syrian people more than they can bear.”

The Syrian rebellion can ill afford more internal conflict.

The opposition has been losing ground to Damascus ever since the Russian military deployed to Syria in support of Assad’s war effort in 2015. Assad now appears militarily unassailable, though rebels still have notable footholds near Damascus, in the northwest, and the southwest.

In the fractured map of the Syrian insurgency, Qatari aid has gone to groups that are often Islamist in ideology and seen as close to the Muslim Brotherhood – a movement that is anathema to Saudi Arabia, the United Arab Emirates and Egypt.

Turkey, which has swung firmly behind Qatar in the Gulf crisis, is thought to have backed the same groups as Qatar in northern Syria, including the powerful conservative Islamist faction Ahrar al-Sham.

Qatar is also widely believed to have ties to al Qaeda-linked jihadists of the group once known as the Nusra Front, which has rebranded since formally parting ways with al Qaeda and is now part of the Tahrir al-Sham Islamist alliance.

While Qatar has officially denied Nusra ties, it has mediated the release of hostages held by the group including Americans, Greek Orthodox nuns and members of the Lebanese security forces.

Saudi aid has meanwhile been seen as targeted more closely at groups backed through programs run by the U.S. Central Intelligence Agency – programs in which Qatar has also participated even as it has backed groups outside that channel.

The United Arab Emirates has also played an influential role in that program, together with staunch U.S. ally Jordan. These powers wield more influence in southern Syria than the north.

NORTH-SOUTH SPLIT

“It will increase the split between north and south, as the north is mainly funded by Qatar and Turkey, and the south is supported by Jordan and the (U.S.-led) coalition,” said an opposition source familiar with foreign support to the rebels.

A second opposition source, a senior rebel official, said the Gulf crisis “will certainly affect us, people are known to be with Saudi, or Qatar, or Turkey. The split is clear.”

Adding to rebel concerns, the crisis has also nudged Qatar closer to Iran, which has sent planes loaded with food to Doha. “Any rapprochement between Qatar and Iran, or any other state and Iran, is very concerning for us,” the rebel official said.

A senior Turkish official said it was very important that the Qatar crisis did not take on “further dimensions”.

“These developments will have certain effects on the developments in Syria, its effects will be seen on the field. The elements which Qatar supports may slightly weaken on the field,” the official said.

Opposition sources fear the Gulf crisis could spark new bouts of conflict, particularly in the Eastern Ghouta area near Damascus where the Saudi-backed Jaish al-Islam has been fighting the Qatari-backed Failaq al-Rahman intermittently for more than a year. That quarrel has helped government forces regain parts of the area.

The four Arab states that have turned against Qatar last week issued a list of dozens of people named as terrorists with links to Qatar, including prominent Islamist insurgent Sheikh Abdullah al-Muhaysini, a Saudi national based in Syria known for mobilizing support for jihadist groups.

The U.S. Treasury last year blacklisted him for acting on behalf of and supporting the Nusra Front, saying he had raised millions of dollars for the group.

(Additional reporting by Orhan Coskun in Turkey; writing by Tom Perry; editing by Peter Graff)