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Hezbollah media unit: Islamic State leader reported in Syrian town

BEIRUT (Reuters) – A Hezbollah-run media unit said on Friday Islamic State leader Abu Bakr al-Baghdadi was reported to have been in the Syrian town of Albu Kamal during the Syrian army and its allies’ operation to clear it.

The military unit did not say what had happened to Baghdadi, give further details or identify its sources.

The U.S.-led coalition against Islamic State said on Friday it had no “releasable information” on Baghdadi’s whereabouts.

Syria’s army declared victory over Islamic State on Thursday, saying its capture of the jihadists’ last town in the country marked the collapse of their three-year rule in the region.

But the army and its allies are still fighting Islamic State in desert areas close to Albu Kamal near the border with Iraq, the Syrian army said on Thursday.

On Friday, the Syrian Observatory for Human Rights said Islamic State has taken back control of half of Albu Kamal.

The capture of the border town had sealed “the fall of the terrorist Daesh organization’s project in the region”, an army statement said on Thursday, using the Arabic acronym for Islamic State.

An audio message purported to be from Baghdadi was released in September. Baghdadi declared himself caliph and heir to Islam’s historic leaders from the great medieval mosque in Iraq’s Mosul in 2014.

(This version of the story was refiled to clarify source in headline)

(Reporting by Sarah Dadouch; Editing by Samia Nakhoul, Tom Perry and Andrew Roche)

Hezbollah says Saudi declares war on Lebanon, detains Hariri

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah is seen on a video screen as he addresses his supporters in Beirut, Lebanon November 10,

By Tom Perry and Ellen Francis

BEIRUT (Reuters) – Hezbollah’s leader said on Friday that Saudi Arabia had declared war on Lebanon and his Iran-backed group, accusing Riyadh of detaining Saad al-Hariri and forcing him to resign as Lebanon’s prime minister to destabilize the country.

Hariri’s resignation has plunged Lebanon into crisis, thrusting the small Arab country back to the forefront of regional rivalry between the Sunni Muslim monarchy Saudi Arabia and Shi’ite revolutionary Islamist Iran.

Sayyed Hassan Nasrallah said Saudi Arabia’s detention of Hariri, a long-time Saudi ally who declared his resignation while in Riyadh last Saturday, was an insult to all Lebanese and he must return to Lebanon.

“Let us say things as they are: the man is detained in Saudi Arabia and forbidden until this moment from returning to Lebanon,” Nasrallah said in a televised speech.

“It is clear that Saudi Arabia and Saudi officials have declared war on Lebanon and on Hezbollah in Lebanon,” he said. His comments mirror an accusation by Riyadh on Monday that Lebanon and Hezbollah had declared war on the conservative Gulf Arab kingdom.

Riyadh says Hariri is a free man and he decided to resign because Hezbollah was calling the shots in his government. Saudi Arabia considers Hezbollah to be its enemy in conflicts across the Middle East, including Syria and Yemen.

Western countries have looked on with alarm at the rising regional tension.

U.S. Secretary of State Rex Tillerson warned other countries and groups against using Lebanon as vehicle for a larger proxy fight in the Middle East, saying Washington strongly backed Lebanon’s independence and respected Hariri as a strong partner of the United States, referring to him as prime minister.

“There is no legitimate place or role in Lebanon for any foreign forces, militias or armed elements other than the legitimate security forces of the Lebanese state,” Tillerson said in a statement released by the U.S. State Department.

The French foreign ministry said it wanted Hariri to be fully able to play what it called his essential role in Lebanon.

Hariri has made no public remarks since announcing his resignation in a speech televised from Saudi Arabia, saying he feared assassination and accusing Iran and Hezbollah of sowing strife in the Arab world.

Two top Lebanese government officials, a senior politician close to Hariri and a fourth source told Reuters on Thursday that the Lebanese authorities believe Hariri is being held in Saudi Arabia.

Nasrallah said Saudi Arabia was encouraging Israel to attack Lebanon. While an Israeli attack could not be ruled out entirely, he said, it was unlikely partly because Israel knew it would pay a very high price. “I warn them against any miscalculation or any step to exploit the situation,” he said.

“Saudi will fail in Lebanon as it has failed on all fronts,” Nasrallah said.

Riyadh has advised Saudi citizens not to travel to Lebanon, or if already there to leave as soon as possible. Other Gulf states have also issued travel warnings. Those steps have raised concern that Riyadh could take measures against the tiny Arab state, which hosts 1.5 million Syrian refugees.

AOUN TELLS SAUDI ENVOY HARIRI MUST RETURN

Hariri’s resignation unraveled a political deal among rival factions that made him prime minister and President Michel Aoun, a political ally of Hezbollah, head of state last year.

The coalition government included Hezbollah, a heavily armed military and political organization.

Hariri’s resignation is being widely seen as part of a Saudi attempt to counter Iran as its influence deepens in Syria and Iraq and as Riyadh and its allies battle Iranian-allied Houthi rebels in Yemen.

Aoun told Saudi Arabia’s envoy on Friday that Hariri must return to Lebanon and the circumstances surrounding his resignation as prime minister while in Saudi Arabia were unacceptable, presidential sources said.

An “international support group” of countries concerned about Lebanon, which includes the United States, Russia and France, appealed for Lebanon “to continue to be shielded from tensions in the region”. In a statement, they also welcomed Aoun’s call for Hariri to return.

In the first direct Western comment on Hariri’s status, France and Germany both said on Friday they did not believe Hariri was being held against his will.

“Our concern is the stability of Lebanon and that a political solution can be put in place rapidly,” French Foreign Minister Jean-Yves Le Drian told Europe 1 radio.

“As far as we know, yes: we think (Hariri) is free of his movements and it’s important he makes his own choices,” he said.

Tillerson told reporters on Friday there was no indication that Hariri was being held in Saudi Arabia against his will but that the United States was monitoring the situation.

Posters depicting Lebanon’s Prime Minister Saad al-Hariri, who has resigned from his post, are seen in Beirut, Lebanon, November 10, 2017. REUTERS/Mohamed Azakir

STUCK BETWEEN ANTAGONISTIC INTERESTS

On Thursday, Hariri’s Future Movement political party said his return home was necessary to uphold the Lebanese system, describing him as prime minister and a national leader.

Aoun has refused to accept the resignation until Hariri returns to Lebanon to deliver it to him in person and explain his reasons.

Top Druze politician Walid Jumblatt said it was time Hariri came back after a week of absence “be it forced or voluntary”.

Jumblatt said on Twitter there was no alternative to Hariri.

In comments to Reuters, Jumblatt said Lebanon did not deserve to be accused of declaring war on Saudi Arabia. “For decades we’ve been friends,” he said.

“We are a country that is squeezed between two antagonistic interests, between Saudi Arabia and Iran,” he said. “The majority of Lebanese are just paying the price … Lebanon can not afford to declare a war against anybody.”

The Saudi foreign minister accused Hezbollah of a role in the launching of a ballistic missile at Riyadh from Yemen on Saturday. Saudi Arabia’s Crown Prince Mohammed bin Salman said Iran’s supply of rockets to militias in Yemen was an act of “direct military aggression” that could be an act of war.

Nasrallah mocked the Saudi accusation that Iran and Hezbollah were behind the firing of the missile from Yemen, saying Yemenis were capable of building their own missiles.

(Reporting by Dominiqu Vidalon and John Irish in Paris, Sarah Dadouch, Lisa Barrington, Laila Bassam and Tom Perry in Beirut; Writing by Tom Perry; Editing by Peter Graff)

Middle East tensions loom over Dubai aerospace pageant

Al Fursan, the UAE Air Force performs during Dubai Airshow November 8, 2015. REUTERS/Ahmed Jadallah/File Photo

By Alexander Cornwell and Tim Hepher

DUBAI (Reuters) – Rising Middle East tensions and a corruption crackdown in Saudi Arabia will cast a shadow over next week’s Dubai Airshow, as military and aerospace leaders try to gauge whether they might prolong a weapons-buying spree in the region.

Fraying business confidence since the summer, when a sudden rift emerged between Arab powers, means the recent rapid growth of major Gulf airlines will also be under scrutiny when the Middle East’s largest industry showcase opens on Sunday.

The biennial gathering has produced a frenzy of deals in the past, especially four years ago when Dubai’s Emirates and Qatar Airways opened the show with a display of unity as they unveiled a headline-grabbing order for passenger jets.

But highlighting the current rift between Qatar and Arab nations including the United Arab Emirates, Qatar Airways’ outspoken chief executive will not be at the show, which has also been overshadowed by political upheaval in Saudi Arabia.

Distrust between Arab Gulf states, on top of escalating tensions between regional arch-rivals Saudi Arabia and Iran, is likely to keep defense spending high on the agenda at the Nov 12-16 event, to be attended by dozens of military delegates.

Saudi Arabia and allies are exploring increases in missile defenses following ballistic missile tests in Iran, which have been heavily criticized by Saudi Arabia and the United States.

Iran views its ballistic missile program as an essential precautionary defense.

“The hot area for the Middle East has been air defense,” said Sash Tusa, aerospace analyst at UK-based Agency Partners.

“While the issue of Iran’s missile tests is new, demand from the Emirates and Saudi Arabia already reflects the fact that they have been at war, in some cases on two fronts, for over two years.”

Saudi Arabia and Iran are facing off in proxy wars in Yemen and Syria. Saudi Arabia, which recently committed to tens of billions of dollars of U.S. equipment, says it has intercepted a missile fired from Yemen over Saudi capital Riyadh.

SAUDI CRACKDOWN

Few defense deals get signed at the show itself, but it is seen as a major opportunity to test the mood of arms buyers and their mainly Western suppliers.

But analysts say the way of doing business is up for discussion after an unprecedented crackdown on corruption in Saudi Arabia that erupted days before the show’s opening.

“The big question on many multinational company minds now … {is} will they will change the way in which decision making works when it comes to purchases of their equipment and services,” said Sorana Parvulescu, partner at Control Risks in Dubai.

Those detained in the crackdown include billionaire Prince Alwaleed bin Talal, whose Kingdom Holding part owns Saudi Arabia’s second biggest airline flynas, and Prince Miteb bin Abdullah, head of the country’s elite internal security forces.

“There will be questions around how does this impact their (foreign firms) model of operations in the country and their market share and their market position,” Parvulescu said.

Airbus and Boeing will be pushing hard for new deals on the civil side of the show at Dubai’s future mega-airport, after a pause for breath at the last edition in 2015. Boeing goes into the event with a wide lead in this year’s order race.

Emirates, the region’s biggest carrier, is expected to finalize an additional order for Airbus A380s, which if secured could be crucial to extending the costly superjumbo program.

After years of expansion, some analysts are questioning the viability of the Gulf hub model, which has seen three airlines, Emirates, Etihad Airways, and Qatar Airways, emerge as some of the world’s most influential after taking advantage of their geographic location of connecting east and west.

Leasing executives have also raised doubts over whether the Big Three will take delivery of all of the more than 500 wide-body jets currently on order from Airbus and Boeing.

In September, Middle Eastern carriers saw their slowest rate of international demand growth in over eight years.

(Reporting by Alexander Cornwell and Tim Hepher; Editing by Mark Potter)

Britain, Russia clash over Syria at chemical weapons body

AMSTERDAM (Reuters) – Britain accused Russia on Thursday of carrying out a “thinly veiled political attack” against the head of the world’s chemical weapons watchdog, escalating a row over the body’s investigation into toxic attacks in Syria.

The comments, made during a session at the Hague-based Organisation for the Prohibition of Chemical Weapons (OPCW), were the latest sign of deep political division at the body over the Syrian conflict.

In an Oct. 26 report the U.N.-OPCW investigation team blamed the Syrian government for an April 4 attack using the banned nerve agent sarin in the opposition-held town of Khan Sheikhoun, killing around 80 people. The Syrian government has denied using chemical weapons and Moscow rejected the findings.

The mechanism was established in 2015 by the U.N. Security Council to identify individuals, organizations or governments responsible for chemical attacks in Syria. Its mandate expires on Nov. 17, but its work is incomplete.

Moscow is poised to veto efforts by Britain, France, Germany and the United States to extend the mandate.

A draft Russian-Iranian proposal circulated at the OPCW and seen by Reuters called for a new investigation, to be based on samples taken from the attack site. The Syrian government itself has already presented samples from the scene to the investigation team, which tested positive for sarin.

“It is a thinly veiled political attack on the professional integrity of the director general,” the British delegation said in a statement, referring to the OPCW’s outgoing Turkish head, Ahmet Uzumcu. “It seeks to undermine the capability and competence of the (OPCW).”

The Russian delegation at the OPCW could not be reached for comment.

Syria joined the OPCW after a sarin attack on Aug. 21, 2013, killed hundreds of people in Ghouta, a district on the outskirts of Damascus. It has said it declared and destroyed all its chemical stockpile, but chemical attacks continue in the country’s civil war [L4N1L24LP].

(Reporting by Anthony Deutsch; Editing by Gareth Jones)

Syria declares victory over Islamic State

By Angus McDowall and Sarah Dadouch

BEIRUT (Reuters) – Syria’s army declared victory over Islamic State on Thursday, saying its capture of the jihadists’ last town in the country marked the collapse of their project in the region.

The army and its allies are still fighting Islamic State in desert areas near Albu Kamal, the last town the militant group had held in Syria, near the border with Iraq, the army said.

But the capture of the town ends Islamic State’s era of territorial rule over the so-called caliphate that it proclaimed in 2014 across Iraq and Syria and in which millions suffered under its hardline, repressive strictures.

Yet after ferocious defensive battles in its most important cities this year, where its fighters bled for every house and street, its final collapse has come with lightning speed.

Instead of a battle to the death as they mounted a last stand in the Euphrates valley towns and villages near the border between Iraq and Syria, many fighters surrendered or fled.

In Albu Kamal, the jihadists had fought fiercely, said a commander in the pro-Syrian government military alliance. But it was captured the same day the assault began.

This sealed “the fall of the terrorist Daesh organization’s project in the region”, an army statement said, using an Arabic term for Islamic State.

The fate of its last commanders is still unknown — killed by bombardment or in battle, taken prisoner but unidentified, or hunkered into long-prepared hideouts to plot a new insurgency.

The last appearance of Abu Bakr al-Baghdadi, who declared himself caliph and heir to Islam’s historic leaders from the great medieval mosque in Iraq’s Mosul, was made in an audio recording in September.

“Oh Soldiers of Islam in every location, increase blow after blow, and make the media centers of the infidels, from where they wage their intellectual wars, among the targets,” he said.

Mosul fell to Iraqi forces in July after a nine-month battle. Islamic State’s Syrian capital of Raqqa fell in October to the Syrian Democratic Forces (SDF), a U.S.-backed alliance of Kurdish and Arab militias, after four months of fighting.

But all the forces fighting Islamic State in Syria and Iraq expect a new phase of guerrilla warfare, a tactic the militants have already shown themselves capable of with armed operations in both countries.

Western security chiefs have also said its loss of territory does not mean an end to the “lone-wolf” attacks with guns, knives or trucks plowing into civilians that its supporters have mounted around the world.

MIDDLE EAST CHAOS

As it did after previous setbacks, Islamic State’s leadership may now stay underground and wait for a new opportunity to take advantage of the chaos in the Middle East.

It might not have long to wait. In Iraq, a referendum on independence in the northern Kurdish region has already prompted a major confrontation between its autonomous government and Baghdad, backed by neighboring Iran and Turkey.

In Syria, it was two rival campaigns that raced across the country’s east this year, driving back Islamic State — the Syrian army backed by Russia, Iran and Shi’ite militias, and an alliance of Kurdish and Arab militias backed by the United States.

Syrian officials and a senior advisor to Iran have indicated the Syrian army will now stake its claim to Kurdish-held territory. Washington has not yet said how it would respond to a protracted military campaign against its allies.

Aggravating the region’s tensions — and raising the possibility of turmoil from which Islamic State could benefit — is a contest for power between Iran and Saudi Arabia.

It has developed a religious edge, pitting Shi’ite groups supported by Iran against Sunni ones backed by Saudi Arabia, infusing the region’s wars with sectarian hatred.

A senior Iranian official this week spoke from Syria’s Aleppo of a “line of resistance” running from Tehran to Beirut, an implicit boast of its region-wide influence.

In recent days the rivalry has again escalated as Riyadh accused Lebanese Hezbollah of firing a missile from the territory in Yemen of another Iranian ally, the Houthi movement.

Hezbollah is a critical part of the Tehran-backed alliance helping Syrian President Bashar al-Assad. It was Hezbollah fighters who played the key role in ousting Islamic State from Albu Kamal, a commander in that alliance told Reuters.

ISLAMIC STATE’S FALLEN ‘STATE’

Baghdadi’s declaration of a caliphate in 2014 launched a new era in jihadist ambition. Instead of al Qaeda’s strategy of using militant attacks against the West to spur an Islamist revolution, the new movement decided to simply establish a new state.

It led to a surge in recruitment to the jihadist cause, attracting thousands of young Muslims to “immigrate” to a militant utopia slickly realized in propaganda films.

Islamic State’s leadership ranks included former Iraqi officials who well understood the running of a state. They issued identity documents, minted coins and established a morality police force.

Unlike previous jihadist movements that relied on donations from sympathizers, Islamic State’s territorial grip gave it command of a real economy. It exported oil and agricultural produce, levied taxes and traded in stolen antiquities.

On the battlefield, it adapted its tactics, using heavy weaponry captured from its enemies during its first flush of military success, adding tanks and artillery to its suicide bombers and guerrilla fighters.

It imprisoned and tortured foreigners, demanding ransoms for their release and killing those whose countries would not pay in grotesque films posted online.

The number of those treated in this way was as nothing to the multitude of Syrians and Iraqis Islamic State killed for their behavior, words, sexuality, religion, ethnicity or tribe. Some were burned alive, others beheaded and some dropped from the roofs of tall buildings.

Captured women were sold as brides at slave auctions. But as Islamic State was pushed from territory in recent months, there were pictures of women pulling off face veils and smoking previously banned cigarettes.

(Reporting By Angus McDowall, Sarah Dadouch and Lisa Barrington; Writing by Angus McDowall; Editing by Angus MacSwan)

Russia opposes U.S. draft U.N. resolution on Syria chemical probe extension: RIA

MOSCOW (Reuters) – Russia opposes a draft U.N. resolution to extend the mandate of an international inquiry into chemical weapons attacks in Syria, Russian Deputy Foreign Minister Sergei Ryabkov said on Wednesday.

Ryabkov’s comments came hours after Russia rejected a report by the international inquiry blaming the Syrian government for a deadly toxic gas attack, casting doubt on the U.N. Security Council’s ability to extend the investigation’s mandate before it expires next week.

Russia last month cast a veto at the United Nations Security Council against renewing the investigation’s mandate.

“I stress that we are in no way raising the question of ending this structure’s activities,” RIA state news agency quoted Ryabkov as saying. “We are in favor of its maintenance, but on a different basis.”

The draft U.N. resolution by the United States says Syria must not develop or produce chemical weapons, and it calls on all parties in Syria to provide full cooperation with the international probe.

The investigation by the United Nations and the Organization for the Prohibition of Chemical Weapons — known as the Joint Investigative Mechanism (JIM) — was unanimously created by the 15-member Security Council in 2015 and renewed in 2016 for another year. Its mandate is due to expire in mid-November.

The investigation found that Syrian President Bashar al-Assad’s government was to blame for a chemical attack on the opposition-held town of Khan Sheikhoun that killed dozens of people in April, according to a report sent to the Security Council on Oct. 26.

Russia, whose air force and special forces have bolstered the Syrian army, has said there is no evidence to show Damascus was responsible for the attack. Moscow maintains that the chemicals that killed civilians belonged to rebels, not Assad’s government.

(Reporting by Gabrielle Tétrault-Farber; Editing by Angus MacSwan)

Purge of Saudi princes, businessmen widens, travel curbs imposed

Saudi King Salman bin Abdulaziz Al Saud poses for a photo with National Guard Minister Khaled bin Ayyaf and Economy Minister Mohammed al-Tuwaijri during a swearing-in ceremony in Riyadh, Saudi Arabia, November 6, 2017. Saudi Press

By Stephen Kalin and Reem Shamseddine

RIYADH (Reuters) – A campaign of mass arrests of Saudi Arabian royals, ministers and businessmen widened on Monday after a top entrepreneur was reportedly held in the biggest anti-corruption purge of the kingdom’s affluent elite in its modern history.

The arrests, which an official said were just “phase one” of the crackdown, are the latest in a series of dramatic steps by Crown Prince Mohammed bin Salman to assert Saudi influence internationally and amass more power for himself at home.

The campaign also lengthens an already daunting list of challenges undertaken by the 32-year-old since his father, King Salman, ascended the throne in 2015, including going to war in Yemen, cranking up Riyadh’s confrontation with arch-foe Iran and reforming the economy to lessen its reliance on oil.

Both allies and adversaries are quietly astonished that a kingdom once obsessed with stability has acquired such a taste for assertive – some would say impulsive – policy-making.

“The kingdom is at a crossroads: Its economy has flatlined with low oil prices; the war in Yemen is a quagmire; the blockade of Qatar is a failure; Iranian influence is rampant in Lebanon, Syria and Iraq; and the succession is a question mark,” wrote ex-CIA official Bruce Riedel.

“It is the most volatile period in Saudi history in over a half-century.”

The crackdown has drawn no public opposition within the kingdom either on the street or social media. Many ordinary Saudis applauded the arrests, the latest in a string of domestic and international moves asserting the prince’s authority.

But abroad, critics perceive the purge as further evidence of intolerance from a power-hungry leader keen to stop influential opponents blocking his economic reforms or reversing the expansion of his political clout.

Prominent Saudi columnist Jamal Kashoggi applauded the campaign, but warned: “He is imposing very selective justice.”

“The crackdown on even the most constructive criticism – the demand for complete loyalty with a significant ‘or else’ – remains a serious challenge to the crown prince’s desire to be seen as a modern, enlightened leader,” he wrote in the Washington Post.

“The buck stops at the leader’s door. He is not above the standard he is now setting for the rest of his family, and for the country.”

ACCOUNTS FROZEN

The Saudi stock index initially fell 1.5 percent in early trade but closed effectively flat, which asset managers attributed to buying by government-linked funds.

Al Tayyar Travel <1810.SE> plunged 10 percent in the opening minutes after the company quoted media reports as saying board member Nasser bin Aqeel al-Tayyar had been detained in the anti-corruption drive.

Saudi Aseer Trading, Tourism and Manufacturing <4080.SE> and Red Sea International <4230.SE> separately reported normal operations after the reported detentions of board members Abdullah Saleh Kamel, Khalid al-Mulheim and Amr al-Dabbagh.

Saudi banks have begun freezing suspects’ accounts, sources told Reuters.

Dozens of people have been detained in the crackdown, which have alarmed much of the traditional business establishment. Billionaire Prince Alwaleed bin Talal, Saudi Arabia’s best-known international investor, is also being held.

The attorney general said on Monday detainees had been questioned and “a great deal of evidence” had been gathered.

“Yesterday does not represent the start, but the completion of Phase One of our anti-corruption push,” Saud al-Mojeb said. Probes were done discreetly “to preserve the integrity of the legal proceedings and ensure there was no flight from justice.”

Investigators had been collecting evidence for three years and would “continue to identify culprits, issue arrest warrants and travel restrictions and bring offenders to justice”, anti-graft committee member Khalid bin Abdulmohsen Al-Mehaisen said.

“THE NOOSE TIGHTENS”

The front page of leading Saudi newspaper Okaz challenged businessmen to reveal the sources of their assets, asking: “Where did you get this?”

Another headline from Saudi-owned al-Hayat warned: “After the launch (of the anti-corruption drive), the noose tightens, whomever you are!”

A no-fly list has been drawn up and security forces in some Saudi airports were barring owners of private jets from taking off without a permit, pan-Arab daily Al-Asharq Al-Awsat said.

Among those detained are 11 princes, four ministers and tens of former ministers, according to Saudi officials.

The allegations against the men include money laundering, bribery, extortion and taking advantage of public office for personal gain, a Saudi official told Reuters. Those accusations could not be independently verified and family members of those detained could not be reached.

A royal decree on Saturday said the crackdown was launched in response to “exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money”.

The new anti-corruption committee has the power to seize assets at home and abroad before the results of its investigations are known. Investors worry the crackdown could ultimately result in forced sales of equities, but the extent of the authorities’ intentions was not immediately clear.

“OVERKILL”

Among those detained is Prince Miteb bin Abdullah, who was replaced as minister of the National Guard, a pivotal power base rooted in the kingdom’s tribes. That recalled a palace coup in June which ousted his elder cousin, Mohammed bin Nayef, as heir to the throne.

The moves consolidate Prince Mohammed’s control of the internal security and military institutions, which had long been headed by separate powerful branches of the ruling family.

Consultancy Eurasia Group said the “clearly politicized” anti-corruption campaign was a step toward separating the Al Saud family from the state: “Royal family members have lost their immunity, a long standing golden guarantee”.

Yet many analysts were puzzled by the targeting of technocrats like ousted Economy Minister Adel Faqieh and prominent businessmen on whom the kingdom is counting to boost the private sector and wean the economy off oil.

“It seems to run so counter to the long-term goal of foreign investment and more domestic investment and a strengthened private sector,” said Greg Gause, a Gulf expert at Texas A&M University.

“If your goal really is anti-corruption, then you bring some cases. You don’t just arrest a bunch of really high-ranking people and emphasize that the rule of law is not really what guides your actions.”

Over the past year, MbS has become the top decision-maker on military, foreign and economic policy, championing subsidy cuts, state asset sales and a government efficiency drive.

The reforms have been well-received by much of Saudi Arabia’s overwhelmingly young population, but resented among some of the more conservative old guard.

The crown prince has also led Saudi Arabia into a two-year-old war in Yemen, where the government says it is fighting Iran-aligned militants, and into a dispute with Qatar, which it accuses of backing terrorists, a charge Doha denies. Detractors of the crown prince say both moves are dangerous adventurism.

The Saudi-led military coalition said on Monday it would temporarily close all air, land and sea ports to Yemen to stem the flow of arms from Iran to Houthi rebels after a missile fired toward Riyadh was intercepted over the weekend.

Saudi Prince Alwaleed’s investments: http://tmsnrt.rs/2j5fE04

(Reporting By Stephen Kalin, Editing by William Maclean)

Islamic State on verge of defeat after fresh losses in Syria, Iraq

Shi'ite Popular Mobilization Forces (PMF) fighters fire a cannon against Islamic State militants in Al-Qaim, Iraq November 3, 2017.

By Angus McDowall and Raya Jalabi

BEIRUT/ERBIL (Reuters) – Islamic State’s self-proclaimed caliphate was on the verge of final defeat on Friday, with Syrian government forces capturing its last major city on one side of the border and Iraqi forces taking its last substantial town on the other.

The losses on either side of the frontier appear to reduce the caliphate that once ruled over millions of people to a single Syrian border town, a village on a bank of the Euphrates in Iraq and some patches of nearby desert.

Officials on both sides of the border said its final defeat could come swiftly, although they still fear it will reconstitute as a guerrilla force, capable of waging attacks without territory to defend.

Iraq’s Prime Minister Haidar Abadi announced that government forces had captured al-Qaim, the border town where the Euphrates spills from Syria into Iraq. That leaves just the village of Rawa further down river on the opposite bank still in the hands of the ultra-hardline militants, who swept through a third of Iraq in 2014.

On the Syrian side, government forces declared victory in Deir al-Zor, the last major city in the country’s eastern desert where the militants still had a presence. Government forces are now about 40 km away from Albu Kamal, the Syrian town across the border from al-Qaim, and preparing for a final confrontation.

A U.S.-led international coalition which has been bombing Islamic State and supporting ground allies on both sides of the frontier said before the fall of al-Qaim that the militant group had just a few thousand fighters left, holed up in the two towns on either side of the border.

“We do expect them now to try to flee, but we are cognisant of that and will do all we can to annihilate IS leaders,” spokesman U.S. Colonel Ryan Dillon said.

“As IS continues to be hunted into these smallest areas … we see them fleeing into the desert and hiding there in an attempt to devolve back into an insurgent terrorist group,” said Dillon. “The idea of IS and the virtual caliphate, that will not be defeated in the near term. There is still going to be an IS threat.”

The group’s leader, Abu Bakr al-Baghdadi, is believed to be hiding in the desert near the frontier.

BESIEGED IN ALL DIRECTIONS

Driven this year from its two de facto capitals — Iraq’s Mosul and Syria’s Raqqa — Islamic State has been squeezed into an ever-shrinking pocket of desert straddling the frontier by enemies that include most regional states and global powers.

In Iraq, it faces the army and Shi’ite armed groups, backed both by the U.S.-led international coalition and by Iran. In Syria, the U.S.-led coalition supports an alliance of Kurdish and Arab militias north and east of the Euphrates, while Iran and Russia support the government of President Bashar al-Assad.

On the Syrian side, Friday’s government victory at Deir al-Zor, on the west bank of the Euphrates, ended a two month battle for control over the city, the center of Syria’s oil production. Islamic State had for years besieged a government enclave there until an army advance relieved it in early September, starting a battle for jihadist-held parts of the city.

“The armed forces, in cooperation with allied forces, liberated the city of Deir al-Zor completely from the clutches of the Daesh terrorist organization,” state media reported, using an Arabic acronym for Islamic State.

Engineering units were searching streets and buildings in Deir al-Zor for mines and booby traps left behind by Islamic State fighters, a Syrian military source told Reuters.

The source added that he did not believe the final battle at the Albu Kamal border town would involve “fierce resistance”, as many fighters had been surrendering elsewhere.

“Some of them will fight until death, but they will not be able to do anything,” he said. “It is besieged from all directions, there are no supplies, a collapse in morale, and therefore all the organization’s elements of strength are finished.”

Once Albu Kamal falls, “Daesh will be an organization that will cease to exist as a leadership structure,” the military source said. “It will be tantamount to a group of scattered individuals, it will no longer be an organization with headquarters, with leadership places, with areas it controls.”

In Iraq, Abadi congratulated his forces for capturing al-Qaim “in record time” only hours after commanders announced they had entered it. Earlier in the day, they seized the border checkpoint on the road to Albu Kamal in Syria.

Iraq’s joint operations command said the only territory left to capture is Rawa, a small village on the opposite bank of the Euphrates.

Iraq has been carrying out its final campaign to crush the Islamic State caliphate while also mounting a military offensive in the north against Kurds who held an independence referendum in September.

(Reporting by Angus McDowall and Tom Perry in Beirut and Raya Jalabi in Erbil; Writing by Angus McDowall; Editing by Peter Graf)

Putin, Trump may meet next week at APEC summit

Russian President Vladimir Putin enters a hall to meet with members of the Presidential Council for Civil Society and Human Rights at the Kremlin in Moscow, Russia October 30, 2017

MOSCOW (Reuters) – Russian President Vladimir Putin and U.S. President Donald Trump may meet next week at an Asian economic summit amid strains over sanctions against Moscow, the Syria conflict and the investigation into alleged Russian meddling in the 2016 U.S. presidential campaign.

The Kremlin on Friday said talks were under way to set up an encounter at the Asia-Pacific Economic Cooperation (APEC) summit in Danang, Vietnam, from Nov. 8-10.

Trump told Fox News in an interview late on Thursday that it was possible he would meet with Putin during the trip.

“We may have a meeting with Putin,” he said. “And, again – Putin is very important because they can help us with North Korea. They can help us with Syria. We have to talk about Ukraine.”

Representatives for the White House did not immediately reply to a request for comment on Friday.

“It (the meeting) is indeed being discussed,” Kremlin spokesman Dmitry Peskov told reporters. “It’s hard to overestimate the importance and significance for all international matters of any contact between the presidents of Russia and the United States.”

Putin and Trump first met at a G20 summit in Hamburg in July when they discussed allegations of Russian meddling in the U.S. election last year but agreed to focus on better ties rather than litigating the past.

But relations between Moscow and Washington have soured further since then.

Trump in August grudgingly signed off on new sanctions against Russia, a move Moscow said ended hopes for better ties. Putin ordered Washington to cut its embassy and consular staff in Russia by more than half.

Tensions have also flared over the conflict in Syria.

If it the Trump-Putin meeting comes about, it would come as investigations in Washington over alleged Russian meddling in the presidential election and possible collusion by the Trump campaign yielded its first indictments.

U.S. special counsel Robert Mueller’s office this week unveiled charges against former Trump campaign manager Paul Manafort, Manafort associate Richard Gates and campaign foreign policy adviser George Papadopoulos. Manafort and Gates pleaded not guilty while Papadapoulos pleaded guilty.

The Wall Street Journal also has reported that U.S. authorities have enough evidence to charge six members of the Russian government in the hacking of Democratic National Committee computers during the 2016 campaign.

(Reporting by Polina Nikolskaya in Moscow and Susan Heavey in Washington; Writing by Andrew Osborn; Editing by Maria Kiselyova and Bill Trott)

Fresh losses in Syria and Iraq push Islamic State ‘caliphate’ to the brink

By Angus McDowall and Raya Jalabi

BEIRUT/ERBIL (Reuters) – Islamic State’s self-proclaimed caliphate was all but reduced on Friday to a pair of border towns at the Iraq-Syria frontier, where thousands of fighters were believed to be holding out after losing nearly all other territory in both countries.

Forces in Syria and Iraq backed by regional states and global powers now appear on the cusp of victory over the group, which proclaimed its authority over all Muslims in 2014 when it held about a third of both countries and ruled over millions.

On the Syrian side, government forces declared victory in Deir al-Zor, the last major city in the country’s eastern desert where the militants still had a presence. On the Iraqi side, pro-government forces said they had captured the last border post with Syria in the Euphrates valley and entered the nearby town of al-Qaim, the group’s last Iraqi bastion.

A U.S.-led international coalition which has been bombing Islamic State and supporting ground allies on both sides of the frontier said the militant group now has a few thousand fighters left, mainly holed up at the border in Iraq’s al-Qaim and its sister town of Albu Kamal on the Syrian side.

“We do expect them now to try to flee, but we are cognisant of that and will do all we can to annihilate IS leaders,” spokesman U.S. Colonel Ryan Dillon said.

He estimated there were 1,500-2,500 fighters left in al-Qaim and 2,000-3,000 in Albu Kamal.

But both the Iraqi and Syrian governments and their international backers say they worry that the fighters will still be able to mount guerrilla attacks once they no longer have territory to defend.

Driven this year from its two de facto capitals — Iraq’s Mosul and Syria’s Raqqa — Islamic State is pressed into an ever-shrinking pocket of desert straddling the frontier.

In Iraq, it faces the army and Shi’ite armed groups, backed both by the U.S.-led international coalition and by Iran. In Syria, the coalition supports an alliance of Kurdish and Arab militias in areas north and east of the Euphrates, while Iran and Russia support the government of President Bashar al-Assad.

On the Syrian side, the government victory at Deir al-Zor, on the west bank of the Euphrates, ends a two month battle for control over the city, the center of Syria’s oil production. Islamic State had for years besieged a government enclave there until an army advance relieved it in early September, starting a battle for jihadist-held parts of the city.

Engineering units were searching streets and buildings in Deir al-Zor for mines and booby traps left behind by Islamic State fighters, a Syrian military source told Reuters.

Government forces are still about 40km from the border at Albu Kamal, where they are preparing for a final showdown.

“The defeat of Albu Kamal practically means Daesh will be an organization that will cease to exist as a leadership structure,” the military source said. “It will be tantamount to a group of scattered individuals, it will no longer be an organization with headquarters, with leadership places, with areas it controls.”

BESIEGED FROM ALL DIRECTIONS

The source added that he did not believe the final battle at Albu Kamal would involve “fierce resistance”, as many fighters had been surrendering elsewhere.

In Iraq, the military’s Joint Operations Command said on Friday the army, along with Sunni tribal fighters and Iran-backed Shi’ite paramilitaries known as Popular Mobilisation, had captured the main border crossing on the highway between al-Qaim and Albu Kamal.

They had also entered the town of al-Qaim itself, which is located just inside the border on the south side of the Euphrates. The offensive is aimed at capturing al Qaim and another smaller town further down the Euphrates on the north bank, Rawa.

(Reporting by Angus McDowall and Tom Perry in Beirut and Raya Jalabi in Erbil; Writing by Angus McDowall; Editing by Peter Graf)

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