Saudi Arabia raced on Sunday to restart operations at oil plants hit by drone attacks which slashed its production by half, as Iran dismissed US claims it was behind the assault.

Saudi Arabia raced on Sunday to restart operations at oil plants hit by drone attacks which slashed its production by half, as Iran dismissed US claims it was behind the assault. The Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, have claimed Saturday's strikes on two plants owned by state giant Aramco. The kingdom is focusing on restoring production at the plants, as the Saudi bourse slumped three per cent as the week's trading began on Sunday morning. Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field. Saudi's energy infrastructure has been hit by the Huthis many times before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six percent of the world's oil supply. "The genie is out of the bottle," said Bill Farren-Price, director of the London-based RS Energy Group. "It is now clear that Saudi and other Gulf oil facilities are vulnerable to this kind of attack, which means that the geopolitical risk premium for oil needs to rise." The full extent of the damage was not clear, nor the type of weapons used, and reporters were kept away from the plants amid beefed-up security. Saudi interior ministry spokesman Mansour al-Turki told there were no casualties in the attacks. Aramco has said it will dip into its reserves to offset the disruption, but the incident could affect investor confidence as its stock market debut looms.

Saudi races to restore supply after oil plants hit by drone strike blamed on Iran

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

<a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">Saudi Arabia</a> has yet to comment on the extent of damage on its <a href="https://www.wionews.com/business-economy/oil-edges-down-on-lower-demand-outlook-us-china-trade-dispute-242428">oil production</a> but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent&nbsp;of global supply has been affected.

Saudi Arabia, the <a href="https://www.wionews.com/business-economy/opec-cuts-2020-oil-demand-forecast-urges-effort-to-avert-a-new-glut-249037">Organization of the Petroleum Exporting Countries</a>' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity.

Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage.

Industry sources have said Saudi Arabia will be able to restore supply within days.

A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US&nbsp;shale production.

The <a href="https://www.wionews.com/business-economy/us-briefly-overtakes-saudi-arabia-as-top-oil-exporter-international-energy-agency-249182">United States has briefly overtaken Saudi Arabia</a> as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer.

Analysts have repeatedly underestimated US&nbsp;output growth gains with the country now producing around 15 per cent&nbsp;of global supply.

Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela.

Both are subject to US&nbsp;sanctions and have seen their exports reduced to a trickle over the past year as US&nbsp;President Donald Trump has tightened sanctions.

Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too.

While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further.

Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019.

WILDCARDS

OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem.

Nigerian exports have also suffered big from disruptions.

Meanwhile, US&nbsp;crude oil production is expected to rise to new records.

However, large US&nbsp;crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide.

The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions.

"We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average.

"Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers. Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent of global supply has been affected. Saudi Arabia, the Organization of the Petroleum Exporting Countries' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage. Industry sources have said Saudi Arabia will be able to restore supply within days. A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US shale production. The United States has briefly overtaken Saudi Arabia as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer. Analysts have repeatedly underestimated US output growth gains with the country now producing around 15 per cent of global supply. Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela. Both are subject to US sanctions and have seen their exports reduced to a trickle over the past year as US President Donald Trump has tightened sanctions. Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too. While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further. Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019. WILDCARDS OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem. Nigerian exports have also suffered big from disruptions. Meanwhile, US crude oil production is expected to rise to new records. However, large US crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide. The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions. "We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average. "Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

Global spare oil capacity in United States hands after Saudi outage

Iraq denied on Sunday that its territory had been used to carry out attacks on oil facilities in Saudi Arabia, referring to an incident that knocked out more than half the Kingdom's output.

A Baghdad government statement denied "media reports that (Iraqi) territory was used to attack Saudi oil installations using drones," vowing to punish anyone who intended to use Iraq as a launchpad for attacks in the region.

Meanwhile, an Iranian Revolutionary Guards commander said on Sunday that US bases and aircraft carriers in the region were within range of Iranian missiles after the&nbsp;<a href="https://www.wionews.com/world/united-states-blames-iran-for-saudi-attacks-pretend-diplomacy-249751">US&nbsp;accused Iran of leading attacks on Saudi oil plants</a>, raising tensions in the Middle East.

Yemen's Iran-aligned Houthi group said it&nbsp;<a href="https://www.wionews.com/videos/drone-attack-at-saudi-arabias-oil-refinery-massive-fire-broke-out-249565">attacked two Saudi Aramco oil plants</a>&nbsp;on Saturday at the heart of Saudi Arabia's oil industry, knocking out more than half the Kingdom`s output.

US Secretary of State Mike Pompeo accused Iran of being behind the attacks, ruling out Yemeni involvement and denouncing Tehran for engaging in false diplomacy.

Pompeo said on Twitter on Saturday that there was no evidence the attacks came from Yemen.

“Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometres around Iran are within the range of our missiles,” the head of Iran's Revolutionary Guards Corps Aerospace Force Amirali Hajizadeh said on Sunday.

The semi-official Tasnim news agency also quoted him saying that "Iran has always been ready for a "full-fledged" war", without mentioning Saturday's attacks in Saudi Arabia.

One of the plants attacked is the world’s biggest petroleum processing facility.

US&nbsp;President Donald Trump told Saudi de facto ruler Crown Prince Mohammed bin Salman that Washington was ready to work with the kingdom to guarantee its security, according to the White House.

Iraq denied on Sunday that its territory had been used to carry out attacks on oil facilities in Saudi Arabia, referring to an incident that knocked out more than half the Kingdom's output.

Iraq denied on Sunday that its territory had been used to carry out attacks on oil facilities in Saudi Arabia, referring to an incident that knocked out more than half the Kingdom's output. A Baghdad government statement denied "media reports that (Iraqi) territory was used to attack Saudi oil installations using drones," vowing to punish anyone who intended to use Iraq as a launchpad for attacks in the region. Meanwhile, an Iranian Revolutionary Guards commander said on Sunday that US bases and aircraft carriers in the region were within range of Iranian missiles after the US accused Iran of leading attacks on Saudi oil plants, raising tensions in the Middle East. Yemen's Iran-aligned Houthi group said it attacked two Saudi Aramco oil plants on Saturday at the heart of Saudi Arabia's oil industry, knocking out more than half the Kingdom`s output. US Secretary of State Mike Pompeo accused Iran of being behind the attacks, ruling out Yemeni involvement and denouncing Tehran for engaging in false diplomacy. Pompeo said on Twitter on Saturday that there was no evidence the attacks came from Yemen. “Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometres around Iran are within the range of our missiles,” the head of Iran's Revolutionary Guards Corps Aerospace Force Amirali Hajizadeh said on Sunday. The semi-official Tasnim news agency also quoted him saying that "Iran has always been ready for a "full-fledged" war", without mentioning Saturday's attacks in Saudi Arabia. One of the plants attacked is the world’s biggest petroleum processing facility. US President Donald Trump told Saudi de facto ruler Crown Prince Mohammed bin Salman that Washington was ready to work with the kingdom to guarantee its security, according to the White House.

Iraq denies its territory was used to launch attack on Saudi oil facilities

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14).

Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery.

The videographer who declined to be identified told Reuters in a message that he was woken up by sounds coming from the refinery and started filming the flames and smoke at 4:15am&nbsp;(0115 GMT).

"Everyone was horrified to hear sound of a bomb exploding constantly," he said.

Abqaiq, about 60 km (37 miles) southwest of Dhahran in Saudi Arabia's Eastern Province, contains the world's largest oil processing plant. Most Saudi oil exported from the Gulf is processed there.

The report from Al-Arabiya TV did not give further details, said Saudi authorities later will issue a statement on the fire.

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14). Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery.

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14). Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery. The videographer who declined to be identified told Reuters in a message that he was woken up by sounds coming from the refinery and started filming the flames and smoke at 4:15am (0115 GMT). "Everyone was horrified to hear sound of a bomb exploding constantly," he said. Abqaiq, about 60 km (37 miles) southwest of Dhahran in Saudi Arabia's Eastern Province, contains the world's largest oil processing plant. Most Saudi oil exported from the Gulf is processed there. The report from Al-Arabiya TV did not give further details, said Saudi authorities later will issue a statement on the fire.

Flames and smoke rise over Aramco refinery in Saudi Arabia

Drone attack at Saudi Arabia's oil refinery, Massive fire broke out. Watch this video to know more.

Drone attack at Saudi Arabia's oil refinery, Massive fire broke out

WION exclusively in conversation with political analyst Waiel Awwad. Watch video to know more.

WION exclusively in conversation with political analyst Waiel Awwad

Saudi Arabia says drones attacked oil facilities. Watch video to know more

Saudi Arabia says drones attacked oil facilities

Drone attacks sparked fires at two Saudi Aramco oil facilities on Saturday, the interior ministry said, the latest such assault claimed by Yemeni rebels as the energy giant prepares for a much-anticipated stock listing.

Drone attacks sparked fires at two Saudi Aramco oil facilities on Saturday, the interior ministry said, the latest such assault claimed by Yemeni rebels as the energy giant prepares for a much-anticipated stock listing. Huge palls of smoke rose into the sky after the pre-dawn attacks on Abqaiq and Khurais, two major Aramco facilities in eastern Saudi Arabia, which follow a spike in regional tensions with Iran. The attacks highlight how the increasingly advanced weaponry of the Iran-linked Huthi rebels -- from ballistic missiles to unmanned drones -- poses a serious threat to oil installations in Saudi Arabia, the world's top crude exporter. "At 4:00 am (0100 GMT) the industrial security teams of Aramco started dealing with fires at two of its facilities in Abqaiq and Khurais as a result of... drones," the interior ministry said in a statement carried by the official Saudi Press Agency. "The two fires have been controlled." The statement added that an investigation had been launched after the attack in the kingdom's Eastern Province, but did not specify the source of the drones. It also did not say if there were any casualties or whether operations at the two facilities had been affected. The full extent of the damage was not immediately clear as reporters were not allowed near the plants where Saudi authorities appeared to have beefed up security. In recent months, the Huthi rebels have carried out a spate of cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for a long-running Saudi-led bombing campaign on rebel-held areas in Yemen. The rebels launched "a large-scale operation involving 10 drones that targeted refineries in Abqaiq and Khurais in eastern Saudi Arabia", the group's Al-Masirah television reported. Last month, an attack claimed by Yemen's Huthi rebels sparked a fire at Aramco's Shaybah natural gas liquefaction facility -- close to the Emirati border -- but no casualties were reported by the company. Rebel drones also targeted two oil pumping stations on Saudi Arabia's key east-west pipeline in May, shutting it down for several days. Rebel threat The growing attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to rebel attacks four years after a Saudi-led coalition launched a military intervention in Yemen. The Abqaiq facility, 60 kilometres (37 miles) southwest of Aramco's Dhahran headquarters, is home to the company's largest oil processing plant. It has been targeted by militants in the past. In an attack claimed by Al-Qaeda in February 2006, suicide bombers with explosive-laden vehicles attempted to penetrate the processing plant, killing two security guards. The two bombers also died in the attack, which failed to breach the compound, authorities reported at the time. In 2014, a Saudi court sentenced a man to death for links to the 2006 attack. Two other Saudis were jailed for 33 and 27 years respectively, state media reported. Khurais, 250 kilometres from Dhahran, hosts a major Aramco oil field. Tensions in the Gulf have soared since May, with US President Donald Trump calling off air strikes against Iran at the last minute in June after it downed a US drone. The United States and Saudi Arabia have also blamed Iran for multiple attacks on tankers in the Gulf. The latest attacks come as Saudi Arabia, the world's top crude exporter, accelerates preparations for a much-anticipated initial public offering of Aramco. The mammoth IPO forms the cornerstone of a reform programme envisaged by the kingdom's de facto ruler Crown Prince Mohammed bin Salman, a son of King Salman, to wean the Saudi economy off its reliance on oil. Aramco is ready for a two-stage stock market debut including an international listing "very soon", its CEO Amin Nasser told reporters on Tuesday.

Yemeni rebel drones spark fires at two Saudi Aramco oil facilities

Global oil demand is weathering economic headwinds, the International Energy Agency (IEA) said on Thursday, buoyed by lower prices brought on by abundant supply as the United States briefly dethroned Saudi Arabia as the world's top exporter.

"With oil prices currently about 20 per cent&nbsp;lower than a year ago, there will be support for consumers," the IEA said in its monthly report.

"Booming shale production has allowed the US&nbsp;to close in on, and briefly overtake, Saudi Arabia as the world's top oil exporter ... in June, after crude exports surged above 3 million barrels per day (bpd)."

The Paris-based agency maintained its estimate for growth in global oil demand during 2019 at 1.1 million bpd and 1.3 million bpd for next year, assuming no further breakdown in US-China trade talks and citing an easing of tensions around Iran.

A rebound in US&nbsp;production following Hurricane Dorian along with steep output growth from Brazil and the North Sea were set to drive production from outside the Organization of the Petroleum Exporting Countries (OPEC) up sharply, it added.

Non-OPEC production growth is seen rising to 2.3 million bpd in 2020, up 400,000 from this year. Meanwhile, demand for OPEC crude is set to reach 28.3 million bpd in the first half of 2020, 1.4 million bpd less than the group produced in August.

The discrepancy may prompt OPEC and its allies including Russia to revisit their production-curbing pact.

"The implied market balance (will be) returning to a significant surplus and placing pressure on prices," the IEA said. "The challenge of market management remains a daunting one well into 2020."&nbsp;

Global oil demand is weathering economic headwinds, the International Energy Agency (IEA) said on Thursday, buoyed by lower prices brought on by abundant supply as the United States briefly dethroned Saudi Arabia as the world's top exporter.

Global oil demand is weathering economic headwinds, the International Energy Agency (IEA) said on Thursday, buoyed by lower prices brought on by abundant supply as the United States briefly dethroned Saudi Arabia as the world's top exporter. "With oil prices currently about 20 per cent lower than a year ago, there will be support for consumers," the IEA said in its monthly report. "Booming shale production has allowed the US to close in on, and briefly overtake, Saudi Arabia as the world's top oil exporter ... in June, after crude exports surged above 3 million barrels per day (bpd)." The Paris-based agency maintained its estimate for growth in global oil demand during 2019 at 1.1 million bpd and 1.3 million bpd for next year, assuming no further breakdown in US-China trade talks and citing an easing of tensions around Iran. A rebound in US production following Hurricane Dorian along with steep output growth from Brazil and the North Sea were set to drive production from outside the Organization of the Petroleum Exporting Countries (OPEC) up sharply, it added. Non-OPEC production growth is seen rising to 2.3 million bpd in 2020, up 400,000 from this year. Meanwhile, demand for OPEC crude is set to reach 28.3 million bpd in the first half of 2020, 1.4 million bpd less than the group produced in August. The discrepancy may prompt OPEC and its allies including Russia to revisit their production-curbing pact. "The implied market balance (will be) returning to a significant surplus and placing pressure on prices," the IEA said. "The challenge of market management remains a daunting one well into 2020."

US briefly overtakes Saudi Arabia as top oil exporter: International Energy Agency

It's clear that Israel will not jeopardise its ties with India at any cost. There is a good case to make in favour of this question. Let's address the question with reference to context. The Muslim world has not turned its back on Pakistan on the Kashmir issue but countries like Saudi Arabia and UAE have made it clear that they consider the Kashmir issue as India's internal matter.

Besides - they have also endorsed India's terms of engagement with Pakistan. The India-Pakistan issue is a bilateral issue, that's the consensus of the Arab world.

Russia too has a similar stance on Kashmir but countries like Russia, UAE and Saudi Arabia are playing the balancing act. These countries want to ensure strong ties with Islamabad, but they won't take on strategic partners like India.

It brings to mind another country which received symbolic support and little else - &nbsp;Palestine. There are 31 countries in the world that openly support the Palestinian cause. All these countries have not recognised Israel but not one of these countries have come to the rescue of the Palestinians.

This is because these countries are afraid of derailing ties with Israel. Even countries like Saudi Arabia view Iran as the enemy, not Israel. The importance of Israel has practically drained out all support for the Palestine cause.

Pakistan is at a similar stage. Islamabad wants to forge strong ties with Israel and Russia. Pakistan thinks such relationships would lend support for its stance against India but it's clear that no country in the world would choose Pakistan over India. Firstly, India is a huge economy with great potential to lead global growth and the Indian market is a source of opportunity for all countries.

India is a vibrant democracy with a growing stature in the global arena. India also practises non-alignment, in letter and spirit and has proven peace credentials. India is simply too big to ignore, siding with India has great strategic benefits - economic and non-economic. On the contrary - Pakistan is a failing economy, their democracy is in a shambles and the state controls the government.

The contrasting fortunes of India and Pakistan reveal one thing for sure - Pakistan is getting overlooked by the world.

(Disclaimer: WION Edit is the channel's take on the big events of the world)

It's clear that Israel will not jeopardise its ties with India at any cost. There is a good case to make in favour of this question. Let's address the question with reference to context.

It's clear that Israel will not jeopardise its ties with India at any cost. There is a good case to make in favour of this question. Let's address the question with reference to context. The Muslim world has not turned its back on Pakistan on the Kashmir issue but countries like Saudi Arabia and UAE have made it clear that they consider the Kashmir issue as India's internal matter. Besides - they have also endorsed India's terms of engagement with Pakistan. The India-Pakistan issue is a bilateral issue, that's the consensus of the Arab world. Russia too has a similar stance on Kashmir but countries like Russia, UAE and Saudi Arabia are playing the balancing act. These countries want to ensure strong ties with Islamabad, but they won't take on strategic partners like India. It brings to mind another country which received symbolic support and little else - Palestine. There are 31 countries in the world that openly support the Palestinian cause. All these countries have not recognised Israel but not one of these countries have come to the rescue of the Palestinians. This is because these countries are afraid of derailing ties with Israel. Even countries like Saudi Arabia view Iran as the enemy, not Israel. The importance of Israel has practically drained out all support for the Palestine cause. Pakistan is at a similar stage. Islamabad wants to forge strong ties with Israel and Russia. Pakistan thinks such relationships would lend support for its stance against India but it's clear that no country in the world would choose Pakistan over India. Firstly, India is a huge economy with great potential to lead global growth and the Indian market is a source of opportunity for all countries. India is a vibrant democracy with a growing stature in the global arena. India also practises non-alignment, in letter and spirit and has proven peace credentials. India is simply too big to ignore, siding with India has great strategic benefits - economic and non-economic. On the contrary - Pakistan is a failing economy, their democracy is in a shambles and the state controls the government. The contrasting fortunes of India and Pakistan reveal one thing for sure - Pakistan is getting overlooked by the world. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Is Pakistan the new Palestine?

<a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">OPEC</a> on Wednesday cut its forecast for growth in world <a href="https://www.wionews.com/business-economy/oil-edges-down-on-lower-demand-outlook-us-china-trade-dispute-242428">oil demand</a> in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude.

In a monthly report, the Organization of the Petroleum Exporting Countries said <a href="https://www.wionews.com/business-economy/oil-hits-six-week-high-on-hopes-of-extended-opec-output-cuts-248741">oil</a> demand worldwide would expand by 1.08 million barrels per day, 60,000 BPD&nbsp;less than previously estimated, and indicated the market would be in surplus.

The weaker outlook amid a <a href="https://www.wionews.com/photos/us-china-trade-war-in-10-dates-241155#march-8-2018-tax-on-steel-aluminium-241132">US-China trade war</a>&nbsp;and Brexit could press the case for OPEC and its allies to maintain or adjust their policy of cutting output.

Iraq said ministers would on Thursday discuss whether deeper cuts were needed.

OPEC, in the report, lowered its forecast for world economic growth in 2020 to 3.1 per cent&nbsp;from 3.2 per cent&nbsp;and said next year's increase in oil demand would be outpaced by "strong growth" in supply from rival producers such as the United States.

"This highlights the shared responsibility of all producing countries to support oil market stability to avoid unwanted volatility and a potential relapse into market imbalance," the report said.

OPEC, Russia and other producers have since January&nbsp;1 implemented a deal to cut output by 1.2 million BPD. The alliance, known as OPEC+, in July renewed the pact until March 2020 and a committee reviewing the pact meets on Thursday.

Oil prices pared an earlier gain after the report was released to sit just below $63 a barrel.

Despite the OPEC-led cut, oil has tumbled from April's 2019 peak above $75, pressured by trade concerns and an economic slowdown.

The report said oil inventories in industrialised economies fell in July, a development that could ease OPEC concern over a possible glut.

Even so, stocks in July exceeded the five-year average,&nbsp;a yardstick OPEC watches closely&nbsp;by 36 million barrels.

OPEC and its partners have been limiting supply since 2017, helping to clear a glut that built up in 2014-2016 when producers pumped at will, and revive prices.

The policy has given a sustained boost to US&nbsp;shale and other rival supply, and the report suggests the world will need less OPEC crude next year.

Demand for OPEC crude will average 29.40 million BPD in 2020, OPEC said, down 1.2 million BPD from this year.

OPEC said its oil output in August rose, however, by 136,000 bpd to 29.74 million BPD according to figures the group collects from secondary sources.

It was the first increase this year. <a href="https://www.wionews.com/business-economy/saudi-arabia-replaces-aramco-chairman-ahead-of-potential-ipo-247313">Saudi Arabia</a>, Iraq and Nigeria boosted supply.

Top exporter Saudi Arabia told OPEC that the kingdom raised August output by just over 200,000 BPD to 9.789 million BPD. Saudi Arabia continues to pump far less than its quota of 10.311 BPD.

Thanks in part to Saudi restraint, producers are still over-complying with the supply-cutting deal. Losses in Iran and Venezuela, two OPEC members facing US sanctions, have widened the supply reduction.

August's increase, however, puts OPEC output further above the 2020 demand forecast.

The report suggests there will be a 2020 supply surplus of 340,000 BPD if OPEC keeps pumping at August's rate and other things remain equal, more than the surplus forecast in last month's report.

OPEC on Wednesday cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude.

OPEC on Wednesday cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude. In a monthly report, the Organization of the Petroleum Exporting Countries said oil demand worldwide would expand by 1.08 million barrels per day, 60,000 BPD less than previously estimated, and indicated the market would be in surplus. The weaker outlook amid a US-China trade war and Brexit could press the case for OPEC and its allies to maintain or adjust their policy of cutting output. Iraq said ministers would on Thursday discuss whether deeper cuts were needed. OPEC, in the report, lowered its forecast for world economic growth in 2020 to 3.1 per cent from 3.2 per cent and said next year's increase in oil demand would be outpaced by "strong growth" in supply from rival producers such as the United States. "This highlights the shared responsibility of all producing countries to support oil market stability to avoid unwanted volatility and a potential relapse into market imbalance," the report said. OPEC, Russia and other producers have since January 1 implemented a deal to cut output by 1.2 million BPD. The alliance, known as OPEC+, in July renewed the pact until March 2020 and a committee reviewing the pact meets on Thursday. Oil prices pared an earlier gain after the report was released to sit just below $63 a barrel. Despite the OPEC-led cut, oil has tumbled from April's 2019 peak above $75, pressured by trade concerns and an economic slowdown. The report said oil inventories in industrialised economies fell in July, a development that could ease OPEC concern over a possible glut. Even so, stocks in July exceeded the five-year average, a yardstick OPEC watches closely by 36 million barrels. OPEC and its partners have been limiting supply since 2017, helping to clear a glut that built up in 2014-2016 when producers pumped at will, and revive prices. The policy has given a sustained boost to US shale and other rival supply, and the report suggests the world will need less OPEC crude next year. Demand for OPEC crude will average 29.40 million BPD in 2020, OPEC said, down 1.2 million BPD from this year. OPEC said its oil output in August rose, however, by 136,000 bpd to 29.74 million BPD according to figures the group collects from secondary sources. It was the first increase this year. Saudi Arabia, Iraq and Nigeria boosted supply. Top exporter Saudi Arabia told OPEC that the kingdom raised August output by just over 200,000 BPD to 9.789 million BPD. Saudi Arabia continues to pump far less than its quota of 10.311 BPD. Thanks in part to Saudi restraint, producers are still over-complying with the supply-cutting deal. Losses in Iran and Venezuela, two OPEC members facing US sanctions, have widened the supply reduction. August's increase, however, puts OPEC output further above the 2020 demand forecast. The report suggests there will be a 2020 supply surplus of 340,000 BPD if OPEC keeps pumping at August's rate and other things remain equal, more than the surplus forecast in last month's report.

OPEC cuts 2020 oil demand forecast, urges effort to avert a new glut

Saudi Arabia's Royal Family Consolidates Power With The Appointment Of Prince Abdulaziz As Energy Minister.

Gravitas: Saudi Arabia's New Energy Minister: Prince Abdulaziz Bin Salman

When former Saudi oil minister Ali al Naimi crushed oil prices in 2014 by adding to global oversupply, one man in the kingdom stood firmly against this strategy.

When former Saudi oil minister Ali al Naimi crushed oil prices in 2014 by adding to global oversupply, one man in the kingdom stood firmly against this strategy. Prince Abdulaziz bin Salman, King Salman's son and a veteran oil official, who on Sunday was named as new Saudi energy minister, is known in the industry for decades of work helping to foster OPEC production cuts. As he takes the reins at the world's largest oil exporter from Khaled al-Falih, Prince Abdulaziz faces intensifying demands from Saudi royals to prop up oil prices to help ease budget constraints and push through plans to get maximum value from a partial privatisation of state oil giant Aramco. Known in the industry as a good negotiator, Prince Abdulaziz has long experience in cutting deals within the Organization of the Petroleum Exporting Countries (OPEC) and respect among fellow OPEC members can help him implement that drive. In 2016, when OPEC agreed to cut oil output, Prince Abdulaziz worked behind the scenes to bring fellow OPEC ministers into an agreement, OPEC sources said. OPEC and non-OPEC producers later inked their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many state budgets. And when sanctions-hit Iran resisted a push by Saudi Arabia and Russia to increase oil output two years later to meet calls from U.S. President Donald Trump to cool prices, it was Prince Abdulaziz, then minister of state for energy affairs, who helped convince Iranian Oil Minister Bijan Zanganeh to agree to the deal, OPEC sources said. The prince's appointment caps 10 days of a series of swift changes that stripped Falih of his sprawling authority. Falih was once seen in the industry and by foreign diplomats as the third most powerful man in Saudi Arabia after the king and Crown Prince Mohammed bin Salman, overseeing more than half the Saudi economy through a super energy and industry ministry. His loss of power was swift. On Aug. 30, he was stripped of the industry portfolio, removed as chairman of Aramco on Sept. 2 before being replaced as energy minister on Sept. 8. But Prince Abdulaziz, an older half brother of the Crown Prince, is not expected to change the kingdom's oil and OPEC policies, Saudi officials and analysts say. "He will focus on enhancing the relationship within OPEC and with non-OPEC producers to strengthen the stability of the international oil market,” a Saudi official told Reuters. Bassam Fattouh, head of Oxford Institute for Energy Studies and a regular attendee of OPEC meetings, said he believed that the prince's appointment represents "a continuation of existing policy”. "The Prince has been a key shaper of Saudi oil and OPEC policy for many years," said Fattouh, adding that he has also been a key player in domestic oil policy such as the kingdom's energy pricing reforms, renewables and energy efficiency. Gary Ross, a veteran OPEC watcher and founder of Black Gold Investors, said he first met Prince Abdulaziz in early 1980s. “There is no one in the kingdom who knows more about oil than Prince Abdulaziz," said Ross who said he believed the new minister will stick to production cuts to maximise revenues for Saudi Arabia. “I expect no policy change - the objective is to deliver higher prices and the IPO for Aramco,” said Amrita Sen, co-founder of Energy Aspects think tank, which closely follows OPEC policies. First royal The prince's appointment broke with long-held tradition that saw oil technocrats and non-royals overseeing the energy portfolio in the world's top oil exporter. Saudi Arabia has had five oil ministers since 1960, and none of them has been a royal. Conventional thinking has been that the ruling Al Saud family has viewed the oil portfolio as so important that giving it to a prince might upset the dynasty’s delicate balance of power and risk making oil policy hostage to princely politicking, Saudi sources and diplomats say. Some industry insiders say the prince's lengthy experience has overcome what has always been seen as the impossibility of appointing a royal to the post. Former U.S. ambassador Chas Freeman said the prince represents a new phenomenon he called "a royal technocrat". "Bright, cosmopolitan, expert on the work of the ministry in which he made his career," said Freeman. "Abdulaziz bin Salman can finally attain the position for which he has been preparing himself for so long." Prince Abdulaziz, 59, joined the oil ministry in 1987 and worked closely with previous oil ministers Hisham Nazer and later with Naimi as his deputy for years. Besides delivering extra budget revenue via higher oil prices, the new minister will also have to foster relations with non-OPEC member Russia, which was instrumental in shaping a deal with non-OPEC producers. Ties between OPEC kingpin Saudi Arabia and Russia have developed since 2016 after the producer group and a number of non-member countries formed the so-called OPEC+ alliance. Two Russian energy sources said they didn’t expect cooperation to change because both sides are benefiting. Prince Abdulaziz was also instrumental in formalizing a long-term charter of cooperation between OPEC and non-OPEC exporters which was signed by the countries in June, OPEC sources said. He has also been directly involved in talks with the United States to bring nuclear technology to Saudi Arabia.

New Saudi energy minister: A royal with decades of experience in OPEC cuts

Saudi Arabia's new energy minister Prince Abdulaziz bin Salman on Monday reportedly endorsed curbing oil output to address an oversupply, as major producing nations prepare to deliberate fresh cuts.

In his first comments since being appointed by his father King Salman on Sunday, the minister signalled no major change in approach in Saudi Arabia, the de facto leader of OPEC which pumps about a third of the cartel's oil.

"The pillars of our oil policy are pre-determined and will not change," he said according to Saudi broadcaster Al-Arabiya.

The prince is in Abu Dhabi to attend the World Energy Congress, followed by a meeting on Thursday of the OPEC+ alliance's Joint Ministerial Monitoring Committee (JMMC), which monitors a supply cut deal reached last year.

The ministers will consider fresh cuts, even though analysts are doubtful such a move would succeed in bolstering crude prices which have been badly dented by the US-China trade war.

However, Prince Abdulaziz appeared to swing his support behind further output reductions to rebalance the crude market.

"Cutting output will benefit all members of OPEC," he reportedly said.

The appointment of Prince Abdulaziz, half-brother to de facto ruler Crown Prince Mohammed bin Salman, marks the first time a royal family member has been put in charge of the all-important energy ministry.

He replaces veteran official Khalid al-Falih as the world's top crude exporter accelerates preparations for a much-anticipated stock listing of state-owned oil giant Aramco, expected to be the world's biggest.

&nbsp;Stubborn slide&nbsp;

The OPEC petroleum exporters' cartel and key non-OPEC members want to halt a slide in prices that has continued despite previous production cuts and US sanctions that have squeezed supply from Iran and Venezuela.

Analysts say the JMMC has limited options when it meets in Abu Dhabi.

UAE Energy Minister Suheil al-Mazrouei said Sunday the group would do "whatever necessary" to rebalance the crude market, but admitted that the issue was not entirely in the hands of the world's top producers.

The oil market is no longer governed by supply and demand but is being influenced more by US-China trade tensions and geopolitical factors, he said.

The UAE minister said that although further cuts will be considered at Thursday's meeting, they may not be the best way to boost declining prices.

"Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said.

"But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions."

While cuts could help prices, they could also mean producers lose further market share, analysts say.

The 25-nation OPEC+ group, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, agreed to reduce output in December 2018.

That came as a faltering global economy and a boom in US shale oil threatened to create a global glut in supply.

Previous supply cuts have mostly succeeded in bolstering prices.

But this time, the market has continued to slide&nbsp;even after OPEC+ agreed in June to extend by nine months an earlier deal slashing output by 1.2 million barrels per day (BPD).

The new factor is the trade dispute between the US and China, whose tit-for-tat tariffs have created fears of a global recession that will undermine demand for oil.

Saudi Arabia's new energy minister Prince Abdulaziz bin Salman on Monday reportedly endorsed curbing oil output to address an oversupply, as major producing nations prepare to deliberate fresh cuts.

Saudi Arabia's new energy minister Prince Abdulaziz bin Salman on Monday reportedly endorsed curbing oil output to address an oversupply, as major producing nations prepare to deliberate fresh cuts. In his first comments since being appointed by his father King Salman on Sunday, the minister signalled no major change in approach in Saudi Arabia, the de facto leader of OPEC which pumps about a third of the cartel's oil. "The pillars of our oil policy are pre-determined and will not change," he said according to Saudi broadcaster Al-Arabiya. The prince is in Abu Dhabi to attend the World Energy Congress, followed by a meeting on Thursday of the OPEC+ alliance's Joint Ministerial Monitoring Committee (JMMC), which monitors a supply cut deal reached last year. The ministers will consider fresh cuts, even though analysts are doubtful such a move would succeed in bolstering crude prices which have been badly dented by the US-China trade war. However, Prince Abdulaziz appeared to swing his support behind further output reductions to rebalance the crude market. "Cutting output will benefit all members of OPEC," he reportedly said. The appointment of Prince Abdulaziz, half-brother to de facto ruler Crown Prince Mohammed bin Salman, marks the first time a royal family member has been put in charge of the all-important energy ministry. He replaces veteran official Khalid al-Falih as the world's top crude exporter accelerates preparations for a much-anticipated stock listing of state-owned oil giant Aramco, expected to be the world's biggest. Stubborn slide The OPEC petroleum exporters' cartel and key non-OPEC members want to halt a slide in prices that has continued despite previous production cuts and US sanctions that have squeezed supply from Iran and Venezuela. Analysts say the JMMC has limited options when it meets in Abu Dhabi. UAE Energy Minister Suheil al-Mazrouei said Sunday the group would do "whatever necessary" to rebalance the crude market, but admitted that the issue was not entirely in the hands of the world's top producers. The oil market is no longer governed by supply and demand but is being influenced more by US-China trade tensions and geopolitical factors, he said. The UAE minister said that although further cuts will be considered at Thursday's meeting, they may not be the best way to boost declining prices. "Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said. "But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions." While cuts could help prices, they could also mean producers lose further market share, analysts say. The 25-nation OPEC+ group, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, agreed to reduce output in December 2018. That came as a faltering global economy and a boom in US shale oil threatened to create a global glut in supply. Previous supply cuts have mostly succeeded in bolstering prices. But this time, the market has continued to slide even after OPEC+ agreed in June to extend by nine months an earlier deal slashing output by 1.2 million barrels per day (BPD). The new factor is the trade dispute between the US and China, whose tit-for-tat tariffs have created fears of a global recession that will undermine demand for oil.

New Saudi Arabia oil minister Prince Abdulaziz bin Salman endorses production cuts

Oil rose on Monday on expectations that <a href="https://www.wionews.com/business-economy/saudi-arabia-replaces-aramco-chairman-ahead-of-potential-ipo-247313">Saudi Arabia</a>, the world's largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman.

Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates energy minister that OPEC and its allies are committed to balancing the crude market.

Global benchmark Brent was up 61 cents, or 1 per cent, at $62.15 a barrel by 0649 GMT, while US West Texas Intermediate was up 65 cents, or 1.2 per cent, at $57.17 a barrel.

Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, was named minister on Sunday, replacing Khalid al-Falih. He is the son of Saudi King Salman. It is the first time the energy portfolio has been handed to a member of the royal family.

He helped to negotiate the current global agreement on supply cuts between OPEC and non-OPEC countries including Russia, a group known as OPEC+.

 
A Saudi official said on Sunday there would be no shift in Saudi and OPEC policy.

"The change at the top doesn't necessarily mean a shift in policy as much as it's being viewed as a move to improve relations within OPEC and with non-OPEC producers in the wake of the latest Russian compliance fissures," said Stephen Innes, Asia Pacific market strategist at Axi Trader.

Russia's oil output in August exceeded its quota under the OPEC+ agreements.

<a href="https://www.wionews.com/opinions/aramco-ipo-how-saudi-arabia-caught-between-united-states-and-china-245687">UAE</a> Energy and Industry Minister Suhail al-Mazrouei said on Sunday that members of OPEC and non-OPEC producers were "committed" to achieving oil market balance.

Trade and geopolitical tensions are affecting the market more than demand and supply, Mazrouei said, but he was quick to rule out hasty steps influenced by the trade war between the United States and China.

"The fear of slower (oil) demand is only going to happen if that tension is escalating and I am personally hopeful that is not the case," Mazrouei told Reuters on Sunday.

Prices on Monday were also supported by a rise in oil imports in China in August, with shipments to the world's biggest importer up 3 per cent from July and nearly 10 per cent higher in the first eight months of 2019 from a year earlier.

In the United States, drilling companies cut the number of operating oil rigs for a third week in a row last week

Oil rose on Monday on expectations that Saudi Arabia, the world's largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman.

Oil rose on Monday on expectations that Saudi Arabia, the world's largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman. Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates energy minister that OPEC and its allies are committed to balancing the crude market. Global benchmark Brent was up 61 cents, or 1 per cent, at $62.15 a barrel by 0649 GMT, while US West Texas Intermediate was up 65 cents, or 1.2 per cent, at $57.17 a barrel. Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, was named minister on Sunday, replacing Khalid al-Falih. He is the son of Saudi King Salman. It is the first time the energy portfolio has been handed to a member of the royal family. He helped to negotiate the current global agreement on supply cuts between OPEC and non-OPEC countries including Russia, a group known as OPEC+. A Saudi official said on Sunday there would be no shift in Saudi and OPEC policy. "The change at the top doesn't necessarily mean a shift in policy as much as it's being viewed as a move to improve relations within OPEC and with non-OPEC producers in the wake of the latest Russian compliance fissures," said Stephen Innes, Asia Pacific market strategist at Axi Trader. Russia's oil output in August exceeded its quota under the OPEC+ agreements. UAE Energy and Industry Minister Suhail al-Mazrouei said on Sunday that members of OPEC and non-OPEC producers were "committed" to achieving oil market balance. Trade and geopolitical tensions are affecting the market more than demand and supply, Mazrouei said, but he was quick to rule out hasty steps influenced by the trade war between the United States and China. "The fear of slower (oil) demand is only going to happen if that tension is escalating and I am personally hopeful that is not the case," Mazrouei told Reuters on Sunday. Prices on Monday were also supported by a rise in oil imports in China in August, with shipments to the world's biggest importer up 3 per cent from July and nearly 10 per cent higher in the first eight months of 2019 from a year earlier. In the United States, drilling companies cut the number of operating oil rigs for a third week in a row last week

Oil rises as Saudi signals OPEC cuts to continue under new minister

Saudi King Salman on Sunday promoted one of his sons to the pivotal role of energy minister, strengthening his family's grip on the levers of power from oil to finance and defence.

The appointment of Prince Abdulaziz bin Salman as the new energy minister mirrors the ascent of his half-brother Crown Prince Mohammed bin Salman, the de facto ruler.&nbsp;

Prince Khalid bin Salman, their younger brother, is effectively in charge of the defence ministry.

Here are profiles of the king's three powerful sons:

Prince Mohammed bin Salman

The meteoric rise of the 34-year-old, known as MBS, has seemed almost Shakespearean.

In June 2017, he edged out a 58-year-old cousin, Prince Mohammed bin Nayef, to become heir to the throne.&nbsp;

He was previously his deputy.

If he succeeds as king, foreign diplomats predict the prince could well be in control of Saudi Arabia for at least half a century.

He has already amassed powers unseen by previous Saudi rulers.

Prince Mohammed is also the kingdom's defence minister and chairman of the vast Public Investment Fund, which is spearheading efforts to diversify the oil-reliant economy.

He has undertaken unprecedented social reforms, such as allowing women to drive and reopening cinemas, but has also elicited widespread criticism for cracking down on dissent.

Prince Mohammed has developed close ties with the White House under US President Donald Trump, especially with his son-in-law and adviser Jared Kushner.&nbsp;

Prince Abdulaziz bin Salman

&nbsp;The 59-year-old prince, the older half-brother to the crown prince, is the first royal family member to be named energy minister, a key post in the oil-rich kingdom.

A veteran energy official, he has decades of experience working in the ministry.

After joining the ministry in the 1980s, Prince Abdulaziz served in a variety of roles, including deputy oil minister and minister of state for energy affairs, according to Saudi media.

A graduate of the kingdom's King Fahd University of Petroleum and Minerals, the prince worked closely with the three previous oil ministers.

"(He) has attended virtually every OPEC meeting since then (and) brings a wealth of institutional experience," said Ali Shihabi, founder of the now-shuttered pro-Saudi think-tank Arabia Foundation.

The prince takes over the ministry at a time when the kingdom is reeling from low oil prices, which could impede ambitious plans to diversify its economy.

He also takes charge as the world's top crude exporter accelerates preparations for a much-anticipated stock listing of state-owned oil giant Aramco, expected to be the world's biggest.

Prince Khalid bin Salman

The 31-year-old, a younger full brother to the crown prince, was appointed deputy defence minister in February this year.

Saudi officials say he is effectively in charge of defence affairs -- at a time when the kingdom is sliding into a military quagmire in neighbouring Yemen following its intervention against Iran-linked Huthi rebels in 2015.

He is also said to be overseeing a multi-billion dollar effort to boost arms imports despite misgivings by several Western nations over the kingdom's human rights record.

A trained fighter pilot, the prince was previously the Saudi ambassador to Washington, a key ally of Riyadh.

The prince is said to be one of the most trusted members of the crown prince's inner circle.

Saudi King Salman on Sunday promoted one of his sons to the pivotal role of energy minister, strengthening his family's grip on the levers of power from oil to finance and defence.

Saudi King Salman on Sunday promoted one of his sons to the pivotal role of energy minister, strengthening his family's grip on the levers of power from oil to finance and defence. The appointment of Prince Abdulaziz bin Salman as the new energy minister mirrors the ascent of his half-brother Crown Prince Mohammed bin Salman, the de facto ruler. Prince Khalid bin Salman, their younger brother, is effectively in charge of the defence ministry. Here are profiles of the king's three powerful sons: Prince Mohammed bin Salman The meteoric rise of the 34-year-old, known as MBS, has seemed almost Shakespearean. In June 2017, he edged out a 58-year-old cousin, Prince Mohammed bin Nayef, to become heir to the throne. He was previously his deputy. If he succeeds as king, foreign diplomats predict the prince could well be in control of Saudi Arabia for at least half a century. He has already amassed powers unseen by previous Saudi rulers. Prince Mohammed is also the kingdom's defence minister and chairman of the vast Public Investment Fund, which is spearheading efforts to diversify the oil-reliant economy. He has undertaken unprecedented social reforms, such as allowing women to drive and reopening cinemas, but has also elicited widespread criticism for cracking down on dissent. Prince Mohammed has developed close ties with the White House under US President Donald Trump, especially with his son-in-law and adviser Jared Kushner. Prince Abdulaziz bin Salman The 59-year-old prince, the older half-brother to the crown prince, is the first royal family member to be named energy minister, a key post in the oil-rich kingdom. A veteran energy official, he has decades of experience working in the ministry. After joining the ministry in the 1980s, Prince Abdulaziz served in a variety of roles, including deputy oil minister and minister of state for energy affairs, according to Saudi media. A graduate of the kingdom's King Fahd University of Petroleum and Minerals, the prince worked closely with the three previous oil ministers. "(He) has attended virtually every OPEC meeting since then (and) brings a wealth of institutional experience," said Ali Shihabi, founder of the now-shuttered pro-Saudi think-tank Arabia Foundation. The prince takes over the ministry at a time when the kingdom is reeling from low oil prices, which could impede ambitious plans to diversify its economy. He also takes charge as the world's top crude exporter accelerates preparations for a much-anticipated stock listing of state-owned oil giant Aramco, expected to be the world's biggest. Prince Khalid bin Salman The 31-year-old, a younger full brother to the crown prince, was appointed deputy defence minister in February this year. Saudi officials say he is effectively in charge of defence affairs -- at a time when the kingdom is sliding into a military quagmire in neighbouring Yemen following its intervention against Iran-linked Huthi rebels in 2015. He is also said to be overseeing a multi-billion dollar effort to boost arms imports despite misgivings by several Western nations over the kingdom's human rights record. A trained fighter pilot, the prince was previously the Saudi ambassador to Washington, a key ally of Riyadh. The prince is said to be one of the most trusted members of the crown prince's inner circle.

Saudi king tightens grip with promotion of another son

Saudi Arabia and the United Arab Emirates called on Yemen’s separatists and the internationally-recognised government of President Abd-Rabbu Mansour Hadi to halt all military actions in south Yemen.&nbsp;

A joint statement by the two Gulf states, leaders of an Arab coalition that is battling Yemen’s Iran-aligned Houthis, called on the UAE-backed separatists and the Saudi-backed government to prepare for “constructive dialogue” to end the crisis between the two nominal allies.

Talks to end the power struggle, in the Red Sea city of Jeddah, reached a dead-end and both sides were gathering troops to prepare for further battle, officials said on Friday, an indication that a rift between Saudi Arabia and ally UAE had deepened.

The war for the south has opened a new battlefront that risks further fragmenting Yemen and threatens to complicate U.N. efforts to end the multi-tiered war, which contains conflicts within conflicts.

“They (the two countries) also called for an immediate end to all military operations as well as violations against any public and private property,” the joint statement carried by state news agencies SPA and WAM, said.

“They have been preparing for a constructive dialogue to end the dispute and address its effects,” it added.

The breakaway movement is part of the Saudi-led coalition that intervened in Yemen in March 2015 to restore Hadi’s government which was ousted from power by the Houthis in the capital Sanaa in late 2014.

But they have clashed often with the government and seized Aden, its interim base, last month.

The UAE, which has been hostile to Hadi’s government because it includes Islamists, intervened last week to support the separatists by launching airstrikes on government forces as they tried to recapture Aden, forcing them to withdraw.

Saudi Arabia called on the separatists, who seek to revive the former South Yemen republic, to cede control of Aden and voiced its support for President Hadi on Thursday, threatening “to react decisively”.

However, Sunday’s statement said the two Gulf states reiterated their support of Yemen’s “legitimate government”.

Saudi Arabia and the United Arab Emirates called on Yemen’s separatists and the internationally-recognised government of President Abd-Rabbu Mansour Hadi to halt all military actions in south Yemen.

Saudi Arabia and the United Arab Emirates called on Yemen’s separatists and the internationally-recognised government of President Abd-Rabbu Mansour Hadi to halt all military actions in south Yemen. A joint statement by the two Gulf states, leaders of an Arab coalition that is battling Yemen’s Iran-aligned Houthis, called on the UAE-backed separatists and the Saudi-backed government to prepare for “constructive dialogue” to end the crisis between the two nominal allies. Talks to end the power struggle, in the Red Sea city of Jeddah, reached a dead-end and both sides were gathering troops to prepare for further battle, officials said on Friday, an indication that a rift between Saudi Arabia and ally UAE had deepened. The war for the south has opened a new battlefront that risks further fragmenting Yemen and threatens to complicate U.N. efforts to end the multi-tiered war, which contains conflicts within conflicts. “They (the two countries) also called for an immediate end to all military operations as well as violations against any public and private property,” the joint statement carried by state news agencies SPA and WAM, said. “They have been preparing for a constructive dialogue to end the dispute and address its effects,” it added. The breakaway movement is part of the Saudi-led coalition that intervened in Yemen in March 2015 to restore Hadi’s government which was ousted from power by the Houthis in the capital Sanaa in late 2014. But they have clashed often with the government and seized Aden, its interim base, last month. The UAE, which has been hostile to Hadi’s government because it includes Islamists, intervened last week to support the separatists by launching airstrikes on government forces as they tried to recapture Aden, forcing them to withdraw. Saudi Arabia called on the separatists, who seek to revive the former South Yemen republic, to cede control of Aden and voiced its support for President Hadi on Thursday, threatening “to react decisively”. However, Sunday’s statement said the two Gulf states reiterated their support of Yemen’s “legitimate government”.

Saudi Arabia, UAE urge Yemen government and separatists to halt fighting

Union Petroleum and Natural Gas Minister Dharmendra Pradhan will embark on a three-nation visit to Saudi Arabia, the UAE and Qatar from September 7 to 12 to engage with his counterparts in oil and gas as well as steel sectors in these countries.

He will be accompanied by an official and business delegation during his visit, an official statement said.

In Saudi Arabia, Pradhan will hold meetings with his counterpart Khalid Al-Falih and the senior management of Aramco, the national oil company of the kingdom country.

"During his meetings, the minister will seek to further enhance cooperation with Saudi Arabia in the entire value chain of hydro-carbon sector. Saudi Arabia has traditionally been a top supplier of crude oil to India," the statement said.

During his visit to the UAE, Pradhan is scheduled to meet his counterparts Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Industry and Dr. Sultan Ahmad Al Jaber, Minister of State and the ADNOC Group CEO and discuss issues of bilateral hydrocarbon as well as steel sector engagement within the overall framework of India-UAE Strategic Partnership.

The Union Minister will also participate in the eighth Asian Ministerial Energy Roundtable (AMER) at Abu Dhabi on September 10, where India is the co-host along with the UAE.

India will co-host the ninth edition of Asian Ministerial Energy Roundtable in 2021, according to the statement.

On the sidelines of the roundtable, Pradhan will meet his counterparts from the Asian region and heads of international energy organisations, who are attending the Asian Ministerial Energy Roundtable and the World Energy Congress.

In Qatar, Pradhan will pay a courtesy call on Prime Minister and Interior Minister, Sheikh Abdullah bin Nasser bin Khalifa Al Thani, apart from meeting his counterpart, the Minister of State of Energy Affairs, Saad Sherida Al Kaabi, said the statement.

Qatar is India's largest LNG and LPG supplier. (ANI)&nbsp;

 
&nbsp;

Union Petroleum and Natural Gas Minister Dharmendra Pradhan will embark on a three-nation visit to Saudi Arabia, the UAE and Qatar from September 7 to 12 to engage with his counterparts in oil and gas as well as steel sectors in these countries.

Union Petroleum and Natural Gas Minister Dharmendra Pradhan will embark on a three-nation visit to Saudi Arabia, the UAE and Qatar from September 7 to 12 to engage with his counterparts in oil and gas as well as steel sectors in these countries. He will be accompanied by an official and business delegation during his visit, an official statement said. In Saudi Arabia, Pradhan will hold meetings with his counterpart Khalid Al-Falih and the senior management of Aramco, the national oil company of the kingdom country. "During his meetings, the minister will seek to further enhance cooperation with Saudi Arabia in the entire value chain of hydro-carbon sector. Saudi Arabia has traditionally been a top supplier of crude oil to India," the statement said. During his visit to the UAE, Pradhan is scheduled to meet his counterparts Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Industry and Dr. Sultan Ahmad Al Jaber, Minister of State and the ADNOC Group CEO and discuss issues of bilateral hydrocarbon as well as steel sector engagement within the overall framework of India-UAE Strategic Partnership. The Union Minister will also participate in the eighth Asian Ministerial Energy Roundtable (AMER) at Abu Dhabi on September 10, where India is the co-host along with the UAE. India will co-host the ninth edition of Asian Ministerial Energy Roundtable in 2021, according to the statement. On the sidelines of the roundtable, Pradhan will meet his counterparts from the Asian region and heads of international energy organisations, who are attending the Asian Ministerial Energy Roundtable and the World Energy Congress. In Qatar, Pradhan will pay a courtesy call on Prime Minister and Interior Minister, Sheikh Abdullah bin Nasser bin Khalifa Al Thani, apart from meeting his counterpart, the Minister of State of Energy Affairs, Saad Sherida Al Kaabi, said the statement. Qatar is India's largest LNG and LPG supplier. (ANI)

Dharmendra Pradhan to embark on three-nation visit to Saudi Arabia, UAE, Qatar today

Gravitas: UAE, Saudi ministers visit Pakistan. Watch video to know more.

Gravitas: UAE, Saudi ministers visit Pakistan

Little suggests that fabulously wealthy Gulf states and their Middle Eastern and North African beneficiaries have recognised what is perhaps the most important lesson of this year’s popular uprisings in Algeria and Sudan and the 2011 Arab revolts: All that glitters is not gold.

Saudi Arabia, the United Arab Emirates and to a lesser extent Kuwait have in the last decade invested billions of dollars in either reversing or hollowing out the revolts’ achievements in a bid to ensure that political change elsewhere in the region does not come to haunt them.

Qatar, in a counterintuitive strategy that has earned it the ire of the rulers of Saudi Arabia and the UAE, has sought to achieve the same goal by attempting to be on the right side of the region’s forces of change.

The irony is that both approaches, despite also involving huge investments at home in economic diversification, education and healthcare, could produce the very result Gulf states seek to avoid: A region that has many of the trappings of 21st century knowledge states but that is incapable of catering to the aspirations of a youth bulge expected to annually increase the workforce by a million people over the next 12 years.

UNICEF, the United Nations Children's Fund, concluded earlier this year, that the region’s youth bulge was a double-edged sword. It could either pose a threat to regional stability or be an asset for development.

Turning the youth bulge into an asset “Requires urgent and significant investment to create opportunities for meaningful learning, social engagement and work, all of which are currently limited, particularly for young women and the most vulnerable,” the UN agency said in a report entitled MENA (Middle East and North Africa) Generation 2030.

UNICEF arrived at its conclusion even though Gulf states have adopted grandiose plans that envision them becoming within a matter of a decade or two diversified, knowledge-driven economies that enact the social reforms needed to create an opportunity for all segments of society.

The group’s conclusion applies as much to the wealthy Gulf states as it does to the Arab beneficiaries of their politically motivated financial largesse.

The problems with the flexing of the Gulf states’ financial muscle as well as the implementation of reform plans are multi-fold.

They relate as much to quality of the upgrading of services such as education as they are about how political intent shapes development efforts and how high domestic debt in countries like Egypt, where 27 per cent of government expenditure goes to interest payments, and Lebanon, which spends 38 per cent of its budget on debt servicing, benefits Gulf banks and stymies social and economic development.

Credit rating agency Fitch recently downgraded Lebanon’s credit rating to CCC from B- because of "intensifying pressure on Lebanon's financing model and increasing risks to the government's debt-servicing capacity."

Gulf scholar Rohan Advani notes that Gulf institutions account for most of the financial sector investment in countries like Algeria, Egypt, Jordan, Iraq, Tunisia, Libya, Syria, and Yemen.

“In Lebanon, just over 50 per cent of the country’s bank assets are held by GCC-related banks, in Palestine this figure is 63 per cent, and in Jordan it is as high as 86 per cent,” Advani wrote in a review of political economist Adam Hanieh’s study of Gulf finance, Money, Markets, and Monarchies.

Hanieh argues that the bulk of the debt payments are to financial establishments whose major shareholders include Gulf institutions in a process in which “the Arab state…increasingly mediates the transfer of national wealth to large Gulf-related banks.”

Advani warned that “Indebted governments are compelled to intensify a politics of austerity, further trapping these societies in cycles of debt. Investments in social programs or infrastructural developments are often stalled. Popular movements are unable to realise their demands at the state level due to the requirements of foreign creditors and domestic capitalists. The ensuing scenario is one where alternative politics are asphyxiated and increasingly circumscribed by an atrophied status quo.”

That may well be the purpose of the exercise with economic diversification efforts in the Gulf being driven more by the need of autocracies to upgrade their autocratic style and create an opportunity for a restive youth in a bid to ensure regime survival rather than by the acknowledgement of a government’s responsibility to serve the people.

The result is a flawed approach to all aspects of reform.

In Saudi Arabia, Crown Prince Mohammed bin Salman’s Vision 2030 economic and social reform plan that calls for greater private sector involvement has turned into a top-down effort that emphasises state control with the government’s Public Investment Fund (PIF) as the key player.

A combination of depressed oil prices and the recent replacement of energy minister Khalid al-Falih as chairman of the board of Aramco by PIF head Yasir al-Rumayyan, a close associate of Prince Mohammed, raises questions about the state oil company’s positioning in advance of a much-touted initial public offering.

Ellen Wald, an energy analyst and author of a history of Aramco, the kingdom’s main source of revenue, noted that at PIF Al-Rumayyan had overseen investments more geared towards speculative gains than the sustainable growth of Saudi wealth.

Wald said that raised the question of whether Al-Rumayyan’s objective with Aramco would be to serve the company’s long-term interests or those of the PIF.

Aramco this year bought a 70 per cent stake in petrochemicals maker Saudi Basic Industries Corp for $69 billion in an effort to raise funds for PIF and delay the Aramco IPO that had originally been scheduled for 2018 but has since been delayed until 2020 or 2021. The megadeal is expected to boost the oil company’s downstream growth plans.

Nonetheless, Wald cautions that Al-Rumayyan’s appointment “Doesn't necessarily bode well for Aramco, which is a different kind of company. It has to make stable decisions for the long term," she said.

By the same token, UNICEF warned that poverty, violent conflict, restrictive social norms, patriarchy, rights violations and lack of safe spaces for expression and recreation were limiting opportunities as well as civic adolescent and youth engagement.

Gulf emphasis on geopolitical dominance, regime survival and return on financial investment produces short term solutions that often exacerbate conflict, produce little trickle-down effect and few prospects for long-term stability.

“As a result, adolescents and youth in MENA (the Middle East and North Africa) feel disillusioned, with girls and young women, refugees, those with disabilities and the poor being particularly marginalised and underrepresented,” the UNICEF report said.

“Youth unemployment in the region is currently the highest in the world. Education systems are failing to prepare adolescents and youth for the workplace, and markets are not generating urgently needed jobs,” the report warned.

Gulf wealth glitters but if the UNICEF report is anything to go by, it has yet to demonstrate that it can produce the gold of a development that is sustainable and benefits not only all segments of Gulf societies but also of those across the region that have become dependent on it. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

Little suggests that fabulously wealthy Gulf states and their Middle Eastern and North African beneficiaries have recognised what is perhaps the most important lesson of this year’s popular uprisings in Algeria and Sudan and the 2011 Arab revolts: All that glitters is not gold.

Little suggests that fabulously wealthy Gulf states and their Middle Eastern and North African beneficiaries have recognised what is perhaps the most important lesson of this year’s popular uprisings in Algeria and Sudan and the 2011 Arab revolts: All that glitters is not gold. Saudi Arabia, the United Arab Emirates and to a lesser extent Kuwait have in the last decade invested billions of dollars in either reversing or hollowing out the revolts’ achievements in a bid to ensure that political change elsewhere in the region does not come to haunt them. Qatar, in a counterintuitive strategy that has earned it the ire of the rulers of Saudi Arabia and the UAE, has sought to achieve the same goal by attempting to be on the right side of the region’s forces of change. The irony is that both approaches, despite also involving huge investments at home in economic diversification, education and healthcare, could produce the very result Gulf states seek to avoid: A region that has many of the trappings of 21st century knowledge states but that is incapable of catering to the aspirations of a youth bulge expected to annually increase the workforce by a million people over the next 12 years. UNICEF, the United Nations Children's Fund, concluded earlier this year, that the region’s youth bulge was a double-edged sword. It could either pose a threat to regional stability or be an asset for development. Turning the youth bulge into an asset “Requires urgent and significant investment to create opportunities for meaningful learning, social engagement and work, all of which are currently limited, particularly for young women and the most vulnerable,” the UN agency said in a report entitled MENA (Middle East and North Africa) Generation 2030. UNICEF arrived at its conclusion even though Gulf states have adopted grandiose plans that envision them becoming within a matter of a decade or two diversified, knowledge-driven economies that enact the social reforms needed to create an opportunity for all segments of society. The group’s conclusion applies as much to the wealthy Gulf states as it does to the Arab beneficiaries of their politically motivated financial largesse. The problems with the flexing of the Gulf states’ financial muscle as well as the implementation of reform plans are multi-fold. They relate as much to quality of the upgrading of services such as education as they are about how political intent shapes development efforts and how high domestic debt in countries like Egypt, where 27 per cent of government expenditure goes to interest payments, and Lebanon, which spends 38 per cent of its budget on debt servicing, benefits Gulf banks and stymies social and economic development. Credit rating agency Fitch recently downgraded Lebanon’s credit rating to CCC from B- because of "intensifying pressure on Lebanon's financing model and increasing risks to the government's debt-servicing capacity." Gulf scholar Rohan Advani notes that Gulf institutions account for most of the financial sector investment in countries like Algeria, Egypt, Jordan, Iraq, Tunisia, Libya, Syria, and Yemen. “In Lebanon, just over 50 per cent of the country’s bank assets are held by GCC-related banks, in Palestine this figure is 63 per cent, and in Jordan it is as high as 86 per cent,” Advani wrote in a review of political economist Adam Hanieh’s study of Gulf finance, Money, Markets, and Monarchies. Hanieh argues that the bulk of the debt payments are to financial establishments whose major shareholders include Gulf institutions in a process in which “the Arab state…increasingly mediates the transfer of national wealth to large Gulf-related banks.” Advani warned that “Indebted governments are compelled to intensify a politics of austerity, further trapping these societies in cycles of debt. Investments in social programs or infrastructural developments are often stalled. Popular movements are unable to realise their demands at the state level due to the requirements of foreign creditors and domestic capitalists. The ensuing scenario is one where alternative politics are asphyxiated and increasingly circumscribed by an atrophied status quo.” That may well be the purpose of the exercise with economic diversification efforts in the Gulf being driven more by the need of autocracies to upgrade their autocratic style and create an opportunity for a restive youth in a bid to ensure regime survival rather than by the acknowledgement of a government’s responsibility to serve the people. The result is a flawed approach to all aspects of reform. In Saudi Arabia, Crown Prince Mohammed bin Salman’s Vision 2030 economic and social reform plan that calls for greater private sector involvement has turned into a top-down effort that emphasises state control with the government’s Public Investment Fund (PIF) as the key player. A combination of depressed oil prices and the recent replacement of energy minister Khalid al-Falih as chairman of the board of Aramco by PIF head Yasir al-Rumayyan, a close associate of Prince Mohammed, raises questions about the state oil company’s positioning in advance of a much-touted initial public offering. Ellen Wald, an energy analyst and author of a history of Aramco, the kingdom’s main source of revenue, noted that at PIF Al-Rumayyan had overseen investments more geared towards speculative gains than the sustainable growth of Saudi wealth. Wald said that raised the question of whether Al-Rumayyan’s objective with Aramco would be to serve the company’s long-term interests or those of the PIF. Aramco this year bought a 70 per cent stake in petrochemicals maker Saudi Basic Industries Corp for $69 billion in an effort to raise funds for PIF and delay the Aramco IPO that had originally been scheduled for 2018 but has since been delayed until 2020 or 2021. The megadeal is expected to boost the oil company’s downstream growth plans. Nonetheless, Wald cautions that Al-Rumayyan’s appointment “Doesn't necessarily bode well for Aramco, which is a different kind of company. It has to make stable decisions for the long term," she said. By the same token, UNICEF warned that poverty, violent conflict, restrictive social norms, patriarchy, rights violations and lack of safe spaces for expression and recreation were limiting opportunities as well as civic adolescent and youth engagement. Gulf emphasis on geopolitical dominance, regime survival and return on financial investment produces short term solutions that often exacerbate conflict, produce little trickle-down effect and few prospects for long-term stability. “As a result, adolescents and youth in MENA (the Middle East and North Africa) feel disillusioned, with girls and young women, refugees, those with disabilities and the poor being particularly marginalised and underrepresented,” the UNICEF report said. “Youth unemployment in the region is currently the highest in the world. Education systems are failing to prepare adolescents and youth for the workplace, and markets are not generating urgently needed jobs,” the report warned. Gulf wealth glitters but if the UNICEF report is anything to go by, it has yet to demonstrate that it can produce the gold of a development that is sustainable and benefits not only all segments of Gulf societies but also of those across the region that have become dependent on it. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Gulf economies: All that glitters is not gold

Saudi Minister of State for Foreign Affairs, Adel bin Ahmed Al-Jubeir will arrive in Pakistan on Wednesday to discuss regional developments with top Pakistani leadership, amid the ongoing tensions between New Delhi and Islamabad over the Kashmir issue.

During the one-day visit, Al-Jubeir will hold meetings with Pakistan Prime Minister Imran Khan, Foreign Minister Shah Mehmood Qureshi and Chief of Army Staff (COAS) General Qamar Javed Bajwa, reported The Express Tribune.

The minister had earlier visited Pakistan in March as part of Riyadh's efforts to de-escalate tensions between New Delhi and Islamabad that had emerged in the aftermath of the airstrike conducted by Indian Air Force at Balakot.

The news of the Foreign Minister's visit came after Pakistan Prime Minister Imran Khan dialled Saudi Crown Prince Mohammed bin Salman as part of Islamabad`s nefarious designs to internationalise the Kashmir issue after New Delhi changed the constitutional status of the region by abrogating Article 370.

Pakistan is rattled by the Indian government`s move to strip the special status accorded to Jammu and Kashmir under Article 370 and has found itself completely isolated on the matter after being snubbed at the United Nations Security Council, as well as by many countries, including US, Russia, and France.&nbsp;

Saudi Minister of State for Foreign Affairs, Adel bin Ahmed Al-Jubeir will arrive in Pakistan on Wednesday to discuss regional developments with top Pakistani leadership, amid the ongoing tensions between New Delhi and Islamabad over the Kashmir issue.

Saudi Minister of State for Foreign Affairs, Adel bin Ahmed Al-Jubeir will arrive in Pakistan on Wednesday to discuss regional developments with top Pakistani leadership, amid the ongoing tensions between New Delhi and Islamabad over the Kashmir issue. During the one-day visit, Al-Jubeir will hold meetings with Pakistan Prime Minister Imran Khan, Foreign Minister Shah Mehmood Qureshi and Chief of Army Staff (COAS) General Qamar Javed Bajwa, reported The Express Tribune. The minister had earlier visited Pakistan in March as part of Riyadh's efforts to de-escalate tensions between New Delhi and Islamabad that had emerged in the aftermath of the airstrike conducted by Indian Air Force at Balakot. The news of the Foreign Minister's visit came after Pakistan Prime Minister Imran Khan dialled Saudi Crown Prince Mohammed bin Salman as part of Islamabad`s nefarious designs to internationalise the Kashmir issue after New Delhi changed the constitutional status of the region by abrogating Article 370. Pakistan is rattled by the Indian government`s move to strip the special status accorded to Jammu and Kashmir under Article 370 and has found itself completely isolated on the matter after being snubbed at the United Nations Security Council, as well as by many countries, including US, Russia, and France.

Saudi Arabia Foreign Minister Adel bin Ahmed Al-Jubeir to visit Pakistan today

Foreign Ministers of the United Arab Emirates (UAE) and Saudi Arabia, Sheikh Abdullah bin Zayed bin Sultan Al Nahyan and <a href="https://www.wionews.com/world/saudi-arabia-foreign-minister-to-visit-pakistan-today-247502">Adel bin Ahmed Al-Jubeir</a>, respectively, arrived in Islamabad on Wednesday to discuss the Kashmir issue that has been persistently internalised by Pakistan since India changed the constitutional status of the region.&nbsp;

Giving an update on the arrival of the foreign delegates, Pakistan Foreign Minister Shah Mehmood Qureshi took to Twitter saying that the situation in Jammu and Kashmir will be discussed as the EU Parliament, along with the Organisation of Islamic Cooperation`s (OIC) Independent Permanent Human Rights Commission (IPHRC), "calls for an end to the curfew" in the region.

During the one-day visit, Al Nahyan and Al-Jubeir will hold meetings with Pakistan Prime Minister Imran Khan, Foreign Minister Shah Mehmood Qureshi and Chief of Army Staff (COAS) General Qamar Javed Bajwa, reported The Express Tribune.

The Saudi Foreign Minister had earlier visited Pakistan in March as part of Riyadh`s efforts to de-escalate tensions between New Delhi and Islamabad that had emerged in the aftermath of the airstrike conducted by Indian Air Force at Balakot.

Showing the so-called solidarity with the Kashmiris on its part, Pakistan has reached out to numerous countries, including the Middle East, and China, ever since the Indian Parliament last month revoked Article 370 and Article 35 (A) of the Indian Constitution that accorded special status to the region.

However, the cash-strapped country has been repeatedly snubbed by the international community over its efforts after New Delhi time and again denied any third party interference in the issue, calling it to be a "strictly internal" matter of the country.

Instead of addressing pressing issues like struggling economy, rising inflation, and poverty, Pakistanis have been concentrating more on Kashmir, with the Foreign Minister himself apprising the United Nations over the matter more than thrice in a month.

Qureshi wrote, "Have been reaching out to 2-4 FMs every day to keep the world updated about the daily atrocities and worsening conditions" in Jammu and Kashmir, adding, "The humanitarian crisis unfolding has caught the world`s attention."

The news of the Foreign Minister`s visit came after Pakistan Prime Minister Imran Khan dialled Saudi Crown Prince Mohammed bin Salman as part of Islamabad`s nefarious designs to deflect the regional developments amid the ongoing tensions between New Delhi and Islamabad over the Kashmir issue.

Pakistan is also looking forward to raising the Kashmir issue during the United Nations General Assembly meeting in New York next month.&nbsp;

Foreign Ministers of the United Arab Emirates (UAE) and Saudi Arabia, Sheikh Abdullah bin Zayed bin Sultan Al Nahyan and Adel bin Ahmed Al-Jubeir, respectively, arrived in Islamabad on Wednesday to discuss the Kashmir issue that has been persistently internalised by Pakistan since India changed the constitutional status of the region.

Foreign Ministers of the United Arab Emirates (UAE) and Saudi Arabia, Sheikh Abdullah bin Zayed bin Sultan Al Nahyan and Adel bin Ahmed Al-Jubeir, respectively, arrived in Islamabad on Wednesday to discuss the Kashmir issue that has been persistently internalised by Pakistan since India changed the constitutional status of the region. Giving an update on the arrival of the foreign delegates, Pakistan Foreign Minister Shah Mehmood Qureshi took to Twitter saying that the situation in Jammu and Kashmir will be discussed as the EU Parliament, along with the Organisation of Islamic Cooperation`s (OIC) Independent Permanent Human Rights Commission (IPHRC), "calls for an end to the curfew" in the region. During the one-day visit, Al Nahyan and Al-Jubeir will hold meetings with Pakistan Prime Minister Imran Khan, Foreign Minister Shah Mehmood Qureshi and Chief of Army Staff (COAS) General Qamar Javed Bajwa, reported The Express Tribune. The Saudi Foreign Minister had earlier visited Pakistan in March as part of Riyadh`s efforts to de-escalate tensions between New Delhi and Islamabad that had emerged in the aftermath of the airstrike conducted by Indian Air Force at Balakot. Showing the so-called solidarity with the Kashmiris on its part, Pakistan has reached out to numerous countries, including the Middle East, and China, ever since the Indian Parliament last month revoked Article 370 and Article 35 (A) of the Indian Constitution that accorded special status to the region. However, the cash-strapped country has been repeatedly snubbed by the international community over its efforts after New Delhi time and again denied any third party interference in the issue, calling it to be a "strictly internal" matter of the country. Instead of addressing pressing issues like struggling economy, rising inflation, and poverty, Pakistanis have been concentrating more on Kashmir, with the Foreign Minister himself apprising the United Nations over the matter more than thrice in a month. Qureshi wrote, "Have been reaching out to 2-4 FMs every day to keep the world updated about the daily atrocities and worsening conditions" in Jammu and Kashmir, adding, "The humanitarian crisis unfolding has caught the world`s attention." The news of the Foreign Minister`s visit came after Pakistan Prime Minister Imran Khan dialled Saudi Crown Prince Mohammed bin Salman as part of Islamabad`s nefarious designs to deflect the regional developments amid the ongoing tensions between New Delhi and Islamabad over the Kashmir issue. Pakistan is also looking forward to raising the Kashmir issue during the United Nations General Assembly meeting in New York next month.

UAE, Saudi Foreign Ministers arrive in Pakistan to discuss Kashmir issue

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

"I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter.

Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy.

The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices.

Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue.

"All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News.

"Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO."

Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale.

It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much.

Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed.

Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices.

It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company.

The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.

Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO). "I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter. Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy. The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices. Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue. "All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News. "Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO." Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale. It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much. Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed. Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices. It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company. The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil. Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO. The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia replaces Aramco chairman ahead of potential IPO

A controversial former security official and Abu Dhabi-based political operator, Mohammed Dahlan, has lurked for several years in the shadows of Palestinian politics. Now, he could emerge as a monkey wrench in an attempt to pave the way for US President Donald J Trump’s much-maligned ‘deal of the century’ to resolve the Israeli-Palestinian conflict.

President Mahmoud Abbas, the head of the Palestine Authority, and Hamas, the Islamist group that controls the Gaza Strip, have condemned the proposed, yet to be published deal and boycotted a conference in Bahrain in June organised by Jared Kushner, Trump’s negotiator and son-in-law, that focussed on economic aspects of the proposal.

The Palestinian boycott followed Abbas’ earlier rejection of the United States as a mediator in the Israeli-Palestinian conflict after the Trump administration recognised Jerusalem as Israel’s capital, cut off funding and closed down the Palestinian representation in Washington. Trump has since recognised the occupied Syrian Golan Heights as part of Israel.

Kushner unveiled at the conference, attended by government officials and businessmen from the Gulf, the United States, Europe and Asia, a $50 billion investment plan, $28 billion of which would be earmarked for the creation of Palestinian jobs and reduction of poverty.

The Trump administration has said it would release political details of the peace plan only after the September 17 Israeli election so that it does not become an issue in what appears to be a tight electoral race between prime minister Benyamin Netanyahu's right-wing Likud and former military chief Benny Gantz’s Blue and White.

Saudi and United Arab Emirates crown princes, Mohammed bin Salman and Mohammed bin Zayed, have quietly sought to support the US peace effort that in Kushner’s words will deviate from the 2002 Arab peace plan by not calling for a two-state solution to the Israeli-Palestinian conflict.

Dahlan, who is believed to be close to the UAE’s Prince Mohammed as well as former Israeli defence minister Avigdor Lieberman, has played an important role in that effort, particularly with regard to UAE efforts to clip Hamas’ wings.

Dahlan went into exile in the UAE in 2007 after Hamas defeated his US-backed efforts to thwart the group’s control in Gaza. US President George W Bush described Dahlan at the time as “our boy.”

Dahlan has since been indicted by Abbas’ Palestine Authority on corruption charges.

In his latest move, Dahlan is reported to be considering the establishment of a long muted political party, a move that would enjoy UAE and Egyptian support but could divide his following in Gaza.

Some of Dahlan’s supporters in the Democratic Reform Current that remains part of Abbas’ Al Fatah movement, argued in the past that a party would further fragment the Palestinian political landscape.

The revived talk of a party appears to be fuelled by Israel’s facilitation of hundreds of millions of US dollars in Qatari support for Gaza’s health and education services as well as reconstruction.

Qatar, with its close ties to various Islamist movements, has long supported Hamas, while Prince Mohammed’s visceral opposition to any expression of political Islam has pitted the UAE against the movement.

The two states’ diametrically opposed views of political Islam lie at the core of the rift in the Gulf with the UAE alongside Saudi Arabia leading a more than two-year-old diplomatic and economic boycott of Qatar.

The revived talk follows a failed 2017 effort to negotiate Dahlan’s return to Gaza in talks between Hamas, representatives of Egyptian intelligence, and the Palestinian politician.

The deal would have involved Hamas sharing power with Dahlan in exchange for a loosening of the Israeli-Egyptian economic stranglehold on the impoverished Gaza Strip at a time that Abbas was refusing to pay salaries of Gazan civil servants and Israel was reducing electricity supplies in a bid to force Hamas’ hand.

The talk of Dahlan making a political move comes against the backdrop of a broader, sustained UAE-Saudi effort to facilitate the US peace plan, despite the two states’ official insistence that East Jerusalem should be the capital of an independent Palestinian state, and counter manoeuvring in Palestine by Qatar and its, ally Turkey.&nbsp;

Saudi Arabia and the UAE sought to weaken Turkish efforts to exploit opposition to Trump’s recognition of Jerusalem to bolster its claim to leadership of the Muslim world and weaken Jordan’s role as the custodian of the Haram esh-Sharif in the city that is home to the Al Aqsa mosque, Islam’s third most holy site.

Speaking earlier this year to an Arab media outlet believed to be close to Qatar, Kamal Khatib, an Israeli Palestinian Islamist leader, asserted that Dahlan, working through local businessmen, had unsuccessfully tried to acquire real estate adjacent to the holy site, known to Jews as the Temple Mount where Judaism’s two ancient temples once stood.

With approximately half of its population of Palestinian descent, Jordan has walked a tight rope balancing its reluctance to endorse the Trump administration’s approach to Israeli-Palestinian peace-making with its complex ties to the UAE and Saudi Arabia.

Unlike Jordan, the UAE and Saudi Arabia are not shackled by Palestinian demographics but need to tread carefully in supporting an initiative that is widely believed to be designed to deprive Palestinians of independent statehood because of domestic public sentiment and fears that it would backfire and strengthen Hamas.

A formal re-entry into Palestinian politics by Dahlan could help resolve the UAE and Saudi dilemma that is accentuated by concern that too much pressure on Abbas to reverse his rejection of US mediation could boost Hamas with its ties to the Muslim Brotherhood.

Said one Gulf official: “We are trying to strike a delicate balance. The key in doing so is to strengthen moderates, not extremists,” The official’s codeword for Hamas and other Islamists. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

A controversial former security official and Abu Dhabi-based political operator, Mohammed Dahlan, has lurked for several years in the shadows of Palestinian politics.

A controversial former security official and Abu Dhabi-based political operator, Mohammed Dahlan, has lurked for several years in the shadows of Palestinian politics. Now, he could emerge as a monkey wrench in an attempt to pave the way for US President Donald J Trump’s much-maligned ‘deal of the century’ to resolve the Israeli-Palestinian conflict. President Mahmoud Abbas, the head of the Palestine Authority, and Hamas, the Islamist group that controls the Gaza Strip, have condemned the proposed, yet to be published deal and boycotted a conference in Bahrain in June organised by Jared Kushner, Trump’s negotiator and son-in-law, that focussed on economic aspects of the proposal. The Palestinian boycott followed Abbas’ earlier rejection of the United States as a mediator in the Israeli-Palestinian conflict after the Trump administration recognised Jerusalem as Israel’s capital, cut off funding and closed down the Palestinian representation in Washington. Trump has since recognised the occupied Syrian Golan Heights as part of Israel. Kushner unveiled at the conference, attended by government officials and businessmen from the Gulf, the United States, Europe and Asia, a $50 billion investment plan, $28 billion of which would be earmarked for the creation of Palestinian jobs and reduction of poverty. The Trump administration has said it would release political details of the peace plan only after the September 17 Israeli election so that it does not become an issue in what appears to be a tight electoral race between prime minister Benyamin Netanyahu's right-wing Likud and former military chief Benny Gantz’s Blue and White. Saudi and United Arab Emirates crown princes, Mohammed bin Salman and Mohammed bin Zayed, have quietly sought to support the US peace effort that in Kushner’s words will deviate from the 2002 Arab peace plan by not calling for a two-state solution to the Israeli-Palestinian conflict. Dahlan, who is believed to be close to the UAE’s Prince Mohammed as well as former Israeli defence minister Avigdor Lieberman, has played an important role in that effort, particularly with regard to UAE efforts to clip Hamas’ wings. Dahlan went into exile in the UAE in 2007 after Hamas defeated his US-backed efforts to thwart the group’s control in Gaza. US President George W Bush described Dahlan at the time as “our boy.” Dahlan has since been indicted by Abbas’ Palestine Authority on corruption charges. In his latest move, Dahlan is reported to be considering the establishment of a long muted political party, a move that would enjoy UAE and Egyptian support but could divide his following in Gaza. Some of Dahlan’s supporters in the Democratic Reform Current that remains part of Abbas’ Al Fatah movement, argued in the past that a party would further fragment the Palestinian political landscape. The revived talk of a party appears to be fuelled by Israel’s facilitation of hundreds of millions of US dollars in Qatari support for Gaza’s health and education services as well as reconstruction. Qatar, with its close ties to various Islamist movements, has long supported Hamas, while Prince Mohammed’s visceral opposition to any expression of political Islam has pitted the UAE against the movement. The two states’ diametrically opposed views of political Islam lie at the core of the rift in the Gulf with the UAE alongside Saudi Arabia leading a more than two-year-old diplomatic and economic boycott of Qatar. The revived talk follows a failed 2017 effort to negotiate Dahlan’s return to Gaza in talks between Hamas, representatives of Egyptian intelligence, and the Palestinian politician. The deal would have involved Hamas sharing power with Dahlan in exchange for a loosening of the Israeli-Egyptian economic stranglehold on the impoverished Gaza Strip at a time that Abbas was refusing to pay salaries of Gazan civil servants and Israel was reducing electricity supplies in a bid to force Hamas’ hand. The talk of Dahlan making a political move comes against the backdrop of a broader, sustained UAE-Saudi effort to facilitate the US peace plan, despite the two states’ official insistence that East Jerusalem should be the capital of an independent Palestinian state, and counter manoeuvring in Palestine by Qatar and its, ally Turkey. Saudi Arabia and the UAE sought to weaken Turkish efforts to exploit opposition to Trump’s recognition of Jerusalem to bolster its claim to leadership of the Muslim world and weaken Jordan’s role as the custodian of the Haram esh-Sharif in the city that is home to the Al Aqsa mosque, Islam’s third most holy site. Speaking earlier this year to an Arab media outlet believed to be close to Qatar, Kamal Khatib, an Israeli Palestinian Islamist leader, asserted that Dahlan, working through local businessmen, had unsuccessfully tried to acquire real estate adjacent to the holy site, known to Jews as the Temple Mount where Judaism’s two ancient temples once stood. With approximately half of its population of Palestinian descent, Jordan has walked a tight rope balancing its reluctance to endorse the Trump administration’s approach to Israeli-Palestinian peace-making with its complex ties to the UAE and Saudi Arabia. Unlike Jordan, the UAE and Saudi Arabia are not shackled by Palestinian demographics but need to tread carefully in supporting an initiative that is widely believed to be designed to deprive Palestinians of independent statehood because of domestic public sentiment and fears that it would backfire and strengthen Hamas. A formal re-entry into Palestinian politics by Dahlan could help resolve the UAE and Saudi dilemma that is accentuated by concern that too much pressure on Abbas to reverse his rejection of US mediation could boost Hamas with its ties to the Muslim Brotherhood. Said one Gulf official: “We are trying to strike a delicate balance. The key in doing so is to strengthen moderates, not extremists,” The official’s codeword for Hamas and other Islamists. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

UAE backs Donld Trump's 'Deal of the century' to resolve Israeli-Palestinian conflict

Saudi-led military coalition conduct airstrikes, Dozens reported dead in Airstrikes.

Fresh airstrikes in Yemen

A Saudi-led military coalition said on Sunday it had launched air strikes on Houthi military targets in southwest Yemen that Houthi-run media said had hit a prison, killing dozens of people.

A Saudi-led military coalition said on Sunday it had launched air strikes on Houthi military targets in southwest Yemen that Houthi-run media said had hit a prison, killing dozens of people. The Sunni Muslim coalition, which has been battling the Iran-aligned Houthi movement for more than four years in Yemen, said in a statement carried on Saudi state television that it destroyed a site storing drones and missiles in Dhamar. Residents told Reuters there had been six air strikes and that a complex in the city being used as a detention centre had been hit. The Houthi health ministry spokesman, in comments carried on the group's Al Masirah TV, said 60 bodies had been pulled from rubble at the prison and that the number could rise. There was no immediate independent confirmation of the number of casualties. "The explosions were strong and shook the city," one resident said. "Afterwards ambulance sirens could be heard until dawn." The Western-backed alliance intervened in Yemen in March 2015 against the Houthis after they ousted the internationally recognised government from power in the capital, Sanaa, in late 2014. The movement, which holds most major population centres in the Arabian peninsula nation, has stepped up cross-border missile and drone attacks on Saudi Arabia in recent months. The Saudi-led alliance has responded with strikes on Houthi targets. The coalition, which has come under criticism by international rights groups for air strikes that have killed civilians, said it had taken measures to protect civilians in Dhamar and the assault complied with international law. Al Masirah quoted the head of the Houthis' national committee for prisoner affairs, Abdul Qader al-Mortada, as saying the detention centre in Dhamar housed 170 prisoners. The United Nations is trying to ease tension in Yemen to prepare for political negotiations to end the war that has killed tens of thousands and pushed the long-impoverished country to the brink of famine. The conflict is widely seen in the region as a proxy war between Saudi Arabia and Iran. The Houthis, who deny being puppets of Tehran, say they are fighting a corrupt system.

Saudi-led coalition says it bombed Houthi arms site in Yemen, group says prison hit

By David Mednicoff

While the connection of Jews to Israel is frequently in the news, the changing nature of Jewish and Israeli links to Arab countries is a story that has shown up less frequently.

Yet that change is significant and noteworthy.

A new synagogue recently open in Dubai, the first in decades.

Jared Kushner, an observant Jew and a top adviser to his father-in-law, President Donald Trump, is close friends with the acting ruler of Saudi Arabia.

The foreign minister of Bahrain, a Gulf Arab country, gave an interview to Israeli media, highlighting the important role that Israel has in the contemporary Middle East.

This is a shift in official Arab postures towards Jews and Israel.

Since Israeli independence in 1948, the country’s presence in the region and dominion over Palestinian Arabs have fostered four major wars with Arab neighbouring countries. Israel has only slowly achieved formal peace and diplomatic relations with Egypt, in 1979, and Jordan in 1994.

Why do more Arab states suddenly seem much warmer toward Israel, and, perhaps, by extension, to Jews and Judaism more generally?

There is both a simple and a complex answer here. The simple answer is Iran. The more complex one is that Israel, Arab states and the US have found increasing common priorities of national security and strong authority.

A brief history of Arab-Israeli relations

From the advent of Islam into the 20th century, Jewish communities existed and often thrived across the Arab world.

The founding of the state of Israel changed this quickly. Viewed by most Arabs as an unjust post-colonial incursion of Europeans into a newly decolonised Middle East, Israel found itself attacked when its statehood began. It didn’t help that the emerging country’s military forces, and Arab leaders as well, pushed many Palestinian Arabs to leave their homes for other Arab states.

Given Arab states’ hostility to Israel, Jews in these countries mostly fled to Europe, Israel and the U.S. The influence of strong regional Arab identity and support for Palestinian Arabs in a charged Cold War global climate encouraged further Arab-Israeli wars in 1956, 1967 and 1973.

The 1967 war gave Israel direct control of Palestinian territories, further angering Arab leaders. In 1973, Arab oil producers used the “oil weapon,” stopping oil sales to the US&nbsp;to pressure it to decrease its consistent support of Israel.

To be sure, the depth of Arab enmity towards Israel varied by country. Complex, cooperative links have nevertheless existed unofficially, such as economic ties between Arab Gulf states and Israel.

Still, after Egypt signed a peace treaty with Israel in 1979, it took another 15 years until a second Arab state, Jordan, established diplomatic relations with Israel. While Israel’s peace treaties with both Egypt and Jordan have remained intact for decades, relations have been mostly chilly, and no other Arab state has followed their lead.

Changing times and Saudi power

Now there are growing signs of at least informal relations between Israel and many other Arab states.

The driver for much of this is Saudi Arabia, and its enmity toward Iran.

In recent years, the Saudi government has attempted to become the Arab world’s major power by using its economic clout, in a reaction to its own and neighbouring states’ insecurity in the wake of the 2011 uprisings around the Arab world.

As part of this strategy, the Saudi government has intensified its long-term enmity toward Iran. Since its 1979 Islamic Revolution, Iran has been a vocal political force for Shi’i Islam, the major form of Islam distinct from Sunni Islam. Sunni Islam is the majority form of Islam which most Arabs embrace and the Saudis aspire to lead.

Under its crown prince and actual day-to-day ruler, Prince Mohammed bin Salman, Saudi Arabia has pursued its efforts to be the dominant Sunni Arab power more aggressively. This includes its military engagement in Yemen, where it has tried with limited success to eradicate local Shi’i forces that have some ties to Iran.

Forceful Saudi foreign policy under Salman has also included isolating rival Qatar, allying closely with Egypt’s military ruler Abdel Fattah el-Sisi and increasing its already huge advanced weapons purchases.

All of this is meant to both cement Saudi influence and cripple Iran. But the Saudi strategy has had mixed success.

The war in Yemen has bogged down, forcing Saudi ally, the United Arab Emirates, to pull back. Salman faces blowback from civil rights advocates for increasing Saudi crackdowns on political dissidents.

His limited success has given Salman all the more reason to stress alliances with like-minded rulers in the region. In addition to stalwart allies the UAE and Egypt, this definitely includes Israel. Indeed, Prime Minister Benjamin Netanyahu and Salman rival one another in their public enmity toward Iran.

New security alliance

Saudi Arabia’s increasing efforts to be the dominant Arab power in the Middle East are part of another trend in the region: the consolidation of states that focus on security at the expense of democratic rights.

The lesson many Arab governments seem to have drawn from 2011’s Arab Spring unrest is that dissent, and even open political expression, can mushroom into political collapse and chaos. Determined to avoid the political challenge, most Arab political systems have amplified their already strong investment in internal security and cracked down on political speech.

At the same time, many Arab societies, including Saudi Arabia and the UAE, have made efforts to be more open to social diversity. There has been modest progress in gender rights in Saudi Arabia and increased tolerance of religious pluralism in Dubai, for example.

Strong security, limited official acceptance of political dissent and social pluralism also help align electoral democracies under stress with non-democratic governments. This is a current trend evident in the closeness of leaders like Trump and more repressive rulers like Vladimir Putin of Russia or Viktor Orban of Hungary.

It is no less of a trend in the Middle East. The approach of boosting military and police power and decreasing tolerance towards political opposition brings countries like Saudi Arabia and Israel naturally together.

Indeed, if Arab governments stress security to stave off fears of political uprising, they are likely to see Palestinians with little power under direct or indirect Israeli control as a problem to sidestep, rather than a priority to resolve.

In short, the threat of Iran and the prevalence of anti-democratic politics is solidifying a long-standing political affinity, and a growing behind-the-scenes alliance, between Israel, Saudi Arabia and Saudi Arabia’s Arab allies.

Arab-Israeli increasing collaboration may be good news for some Jews wishing to be more secure as visitors or residents in Arab countries. Yet the news is likely less good for people hoping for greater political rights for Palestinians, Yemenis and other beleaguered populations in the Middle East.

(David Mednicoff is Chair, Department of Judaic and Near Eastern Studies, and Associate Professor of Middle Eastern Studies and Public Policy, University of Massachusetts Amherst) 
 
(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/why-increasing-arab-israeli-closeness-matters-119691">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

By David Mednicoff While the connection of Jews to Israel is frequently in the news, the changing nature of Jewish and Israeli links to Arab countries is a story that has shown up less frequently.

By David Mednicoff While the connection of Jews to Israel is frequently in the news, the changing nature of Jewish and Israeli links to Arab countries is a story that has shown up less frequently. Yet that change is significant and noteworthy. A new synagogue recently open in Dubai, the first in decades. Jared Kushner, an observant Jew and a top adviser to his father-in-law, President Donald Trump, is close friends with the acting ruler of Saudi Arabia. The foreign minister of Bahrain, a Gulf Arab country, gave an interview to Israeli media, highlighting the important role that Israel has in the contemporary Middle East. This is a shift in official Arab postures towards Jews and Israel. Since Israeli independence in 1948, the country’s presence in the region and dominion over Palestinian Arabs have fostered four major wars with Arab neighbouring countries. Israel has only slowly achieved formal peace and diplomatic relations with Egypt, in 1979, and Jordan in 1994. Why do more Arab states suddenly seem much warmer toward Israel, and, perhaps, by extension, to Jews and Judaism more generally? There is both a simple and a complex answer here. The simple answer is Iran. The more complex one is that Israel, Arab states and the US have found increasing common priorities of national security and strong authority. A brief history of Arab-Israeli relations From the advent of Islam into the 20th century, Jewish communities existed and often thrived across the Arab world. The founding of the state of Israel changed this quickly. Viewed by most Arabs as an unjust post-colonial incursion of Europeans into a newly decolonised Middle East, Israel found itself attacked when its statehood began. It didn’t help that the emerging country’s military forces, and Arab leaders as well, pushed many Palestinian Arabs to leave their homes for other Arab states. Given Arab states’ hostility to Israel, Jews in these countries mostly fled to Europe, Israel and the U.S. The influence of strong regional Arab identity and support for Palestinian Arabs in a charged Cold War global climate encouraged further Arab-Israeli wars in 1956, 1967 and 1973. The 1967 war gave Israel direct control of Palestinian territories, further angering Arab leaders. In 1973, Arab oil producers used the “oil weapon,” stopping oil sales to the US to pressure it to decrease its consistent support of Israel. To be sure, the depth of Arab enmity towards Israel varied by country. Complex, cooperative links have nevertheless existed unofficially, such as economic ties between Arab Gulf states and Israel. Still, after Egypt signed a peace treaty with Israel in 1979, it took another 15 years until a second Arab state, Jordan, established diplomatic relations with Israel. While Israel’s peace treaties with both Egypt and Jordan have remained intact for decades, relations have been mostly chilly, and no other Arab state has followed their lead. Changing times and Saudi power Now there are growing signs of at least informal relations between Israel and many other Arab states. The driver for much of this is Saudi Arabia, and its enmity toward Iran. In recent years, the Saudi government has attempted to become the Arab world’s major power by using its economic clout, in a reaction to its own and neighbouring states’ insecurity in the wake of the 2011 uprisings around the Arab world. As part of this strategy, the Saudi government has intensified its long-term enmity toward Iran. Since its 1979 Islamic Revolution, Iran has been a vocal political force for Shi’i Islam, the major form of Islam distinct from Sunni Islam. Sunni Islam is the majority form of Islam which most Arabs embrace and the Saudis aspire to lead. Under its crown prince and actual day-to-day ruler, Prince Mohammed bin Salman, Saudi Arabia has pursued its efforts to be the dominant Sunni Arab power more aggressively. This includes its military engagement in Yemen, where it has tried with limited success to eradicate local Shi’i forces that have some ties to Iran. Forceful Saudi foreign policy under Salman has also included isolating rival Qatar, allying closely with Egypt’s military ruler Abdel Fattah el-Sisi and increasing its already huge advanced weapons purchases. All of this is meant to both cement Saudi influence and cripple Iran. But the Saudi strategy has had mixed success. The war in Yemen has bogged down, forcing Saudi ally, the United Arab Emirates, to pull back. Salman faces blowback from civil rights advocates for increasing Saudi crackdowns on political dissidents. His limited success has given Salman all the more reason to stress alliances with like-minded rulers in the region. In addition to stalwart allies the UAE and Egypt, this definitely includes Israel. Indeed, Prime Minister Benjamin Netanyahu and Salman rival one another in their public enmity toward Iran. New security alliance Saudi Arabia’s increasing efforts to be the dominant Arab power in the Middle East are part of another trend in the region: the consolidation of states that focus on security at the expense of democratic rights. The lesson many Arab governments seem to have drawn from 2011’s Arab Spring unrest is that dissent, and even open political expression, can mushroom into political collapse and chaos. Determined to avoid the political challenge, most Arab political systems have amplified their already strong investment in internal security and cracked down on political speech. At the same time, many Arab societies, including Saudi Arabia and the UAE, have made efforts to be more open to social diversity. There has been modest progress in gender rights in Saudi Arabia and increased tolerance of religious pluralism in Dubai, for example. Strong security, limited official acceptance of political dissent and social pluralism also help align electoral democracies under stress with non-democratic governments. This is a current trend evident in the closeness of leaders like Trump and more repressive rulers like Vladimir Putin of Russia or Viktor Orban of Hungary. It is no less of a trend in the Middle East. The approach of boosting military and police power and decreasing tolerance towards political opposition brings countries like Saudi Arabia and Israel naturally together. Indeed, if Arab governments stress security to stave off fears of political uprising, they are likely to see Palestinians with little power under direct or indirect Israeli control as a problem to sidestep, rather than a priority to resolve. In short, the threat of Iran and the prevalence of anti-democratic politics is solidifying a long-standing political affinity, and a growing behind-the-scenes alliance, between Israel, Saudi Arabia and Saudi Arabia’s Arab allies. Arab-Israeli increasing collaboration may be good news for some Jews wishing to be more secure as visitors or residents in Arab countries. Yet the news is likely less good for people hoping for greater political rights for Palestinians, Yemenis and other beleaguered populations in the Middle East. (David Mednicoff is Chair, Department of Judaic and Near Eastern Studies, and Associate Professor of Middle Eastern Studies and Public Policy, University of Massachusetts Amherst) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Why increasing Arab-Israeli closeness matter

Saudi Arabia's planned awarding of mandates for the management of an initial public offering (IPO) by its national oil company Aramco is likely to serve as a bell-weather for how Riyadh balances its relations with the United States and China.

In an early indication that Western financial institutions like Goldman Sachs may be losing their near-monopoly, Saudi Arabia this week invited China’s biggest state-owned banks, Industrial &amp; Commercial Bank of China Ltd (ICBC) and Bank of China Limited to pitch alongside the major US, European and other Asian underwriters for the mandate of what is expected to be the largest listing ever.

Analysts took the invitation to Chinese institutions as a sign that Saudi Arabia was considering Hong Kong in addition to London, New York and Tokyo as possible exchanges on which to list the five per cent stake in Aramco that would be on offer.

ICBC, the world’s largest lender by assets, is the only major Chinese state-owned bank to have a commercial banking presence in the kingdom. Bank of China’s London branch was a co-manager on Aramco’s $12 billion bond sale in April.

The invitation to the two Chinese banks came as US investment bank and financial services giant Goldman Sachs was believed to have significantly enhanced its chances as the result of a sustained high-level lobbying effort.

Goldman had failed to secure a prominent role in 2017 when Aramco initially nominated major Western firms to manage the IPO. The offering was ultimately postponed after Crown Prince Mohammed bin Salman failed to persuade the market to adopt his $2 trillion valuation of Aramco.

The success of the bond sale, months after the killing of journalist Jamal Khashoggi, that attracted more than $100 billion of investor orders persuaded Prince Mohammed that he might be able to pull off the Aramco offering. Goldman Sachs was the bond’s bookrunner.

Chinese state-owned oil companies PetroChina and Sinopec offered to buy the stake when the kingdom first announced that it wanted to sell five per cent of Aramco in the hope of raising $100 billion.

The sovereign funds of Russia, Japan and South Korea also signalled an interest in becoming cornerstone investors.

Granting a Chinese bank a leading role in the IPO would further cement the kingdom’s pivot towards Asia.

It would undermine Saudi Arabia’s ever-greater economic interdependence with Asia that it needs to balance with its increasingly uncertain security relationship with the United States and Europe and reliance on Washington in its struggle against Iran.

The kingdom’s relations with its onetime main ally have changed as the United States becomes less dependent on energy imports on the back of shale oil and renewables.

On the flip side, Saudi Arabia last year accounted for some 12 per cent of Chinese oil imports and its share has since almost doubled. The US-China trade war has prompted Chinese buyers to reduce oil purchases from the United States and look elsewhere.

China and Saudi Arabia earlier this year inked deals worth $28 billion, including a Saudi commitment to build a $10 billion petrochemical complex in China that will refine and process Saudi oil. Saudi Arabia has also invested in energy assets in the United States.

Talk of Saudi energy investments in China first emerged two years ago at the time that a possible direct Chinese investment in Aramco was being touted.

Meanwhile, Saudi relations with the US are troubled by a growing sense that the United States will over time reduce its security commitment to the Gulf and mounting questioning in the US Congress of the alliance with the kingdom as a result of its disastrous four-year-long war in Yemen and the killing of Khashoggi.

Some analysts suggest that the kingdom’s revival of the prospects of an Aramco IPO is a political ploy rather than a serious effort to sell a stake in an asset that generates the bulk of the state’s revenue. The revival coincided with Saudi plans to accelerate privatisation of other state assets.

The IPO “is wheeled out to investors the same way an ailing, elderly Arab ruler is put on display — to remind subjects of the immense power of patronage, and the threat of retribution for disloyalty. But it is also sad and tiresome, a farce that everyone knows is a representation of the past and not where things are headed. The Aramco IPO has become a regular reminder to those in the finance world who depend on the Saudi government for fees, for access to deals and for that slim possibility that the offering goes through. The message is clear — stay loyal, just in case,” said Gulf scholar Karen Young, writing in Al-Monitor.

Young argued that Aramco’s ambition to diversify into refining, gas and petrochemicals neatly aligns itself with Prince Mohammed’s effort to diversify and streamline the Saudi economy. She notes that expanding the company’s shareholder base could complicate the oil company’s ability to execute its plans.

Said Young: “Any discussion of the Aramco IPO always ends on the same note. It is a political decision, which the company will have to be prepared to accept. Oil prices are not helping, as they continue to be depressed, despite rising political tensions in the Persian Gulf. If the government wants to keep its Aramco prize and be able to use its energy resources to wield political influence, it is better off making a deal with China to buy a small stake in the company.”

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Saudi Arabia's planned awarding of mandates for the management of an initial public offering (IPO) by its national oil company Aramco is likely to serve as a bell-weather for how Riyadh balances its relations with the United States and China.

Saudi Arabia's planned awarding of mandates for the management of an initial public offering (IPO) by its national oil company Aramco is likely to serve as a bell-weather for how Riyadh balances its relations with the United States and China. In an early indication that Western financial institutions like Goldman Sachs may be losing their near-monopoly, Saudi Arabia this week invited China’s biggest state-owned banks, Industrial & Commercial Bank of China Ltd (ICBC) and Bank of China Limited to pitch alongside the major US, European and other Asian underwriters for the mandate of what is expected to be the largest listing ever. Analysts took the invitation to Chinese institutions as a sign that Saudi Arabia was considering Hong Kong in addition to London, New York and Tokyo as possible exchanges on which to list the five per cent stake in Aramco that would be on offer. ICBC, the world’s largest lender by assets, is the only major Chinese state-owned bank to have a commercial banking presence in the kingdom. Bank of China’s London branch was a co-manager on Aramco’s $12 billion bond sale in April. The invitation to the two Chinese banks came as US investment bank and financial services giant Goldman Sachs was believed to have significantly enhanced its chances as the result of a sustained high-level lobbying effort. Goldman had failed to secure a prominent role in 2017 when Aramco initially nominated major Western firms to manage the IPO. The offering was ultimately postponed after Crown Prince Mohammed bin Salman failed to persuade the market to adopt his $2 trillion valuation of Aramco. The success of the bond sale, months after the killing of journalist Jamal Khashoggi, that attracted more than $100 billion of investor orders persuaded Prince Mohammed that he might be able to pull off the Aramco offering. Goldman Sachs was the bond’s bookrunner. Chinese state-owned oil companies PetroChina and Sinopec offered to buy the stake when the kingdom first announced that it wanted to sell five per cent of Aramco in the hope of raising $100 billion. The sovereign funds of Russia, Japan and South Korea also signalled an interest in becoming cornerstone investors. Granting a Chinese bank a leading role in the IPO would further cement the kingdom’s pivot towards Asia. It would undermine Saudi Arabia’s ever-greater economic interdependence with Asia that it needs to balance with its increasingly uncertain security relationship with the United States and Europe and reliance on Washington in its struggle against Iran. The kingdom’s relations with its onetime main ally have changed as the United States becomes less dependent on energy imports on the back of shale oil and renewables. On the flip side, Saudi Arabia last year accounted for some 12 per cent of Chinese oil imports and its share has since almost doubled. The US-China trade war has prompted Chinese buyers to reduce oil purchases from the United States and look elsewhere. China and Saudi Arabia earlier this year inked deals worth $28 billion, including a Saudi commitment to build a $10 billion petrochemical complex in China that will refine and process Saudi oil. Saudi Arabia has also invested in energy assets in the United States. Talk of Saudi energy investments in China first emerged two years ago at the time that a possible direct Chinese investment in Aramco was being touted. Meanwhile, Saudi relations with the US are troubled by a growing sense that the United States will over time reduce its security commitment to the Gulf and mounting questioning in the US Congress of the alliance with the kingdom as a result of its disastrous four-year-long war in Yemen and the killing of Khashoggi. Some analysts suggest that the kingdom’s revival of the prospects of an Aramco IPO is a political ploy rather than a serious effort to sell a stake in an asset that generates the bulk of the state’s revenue. The revival coincided with Saudi plans to accelerate privatisation of other state assets. The IPO “is wheeled out to investors the same way an ailing, elderly Arab ruler is put on display — to remind subjects of the immense power of patronage, and the threat of retribution for disloyalty. But it is also sad and tiresome, a farce that everyone knows is a representation of the past and not where things are headed. The Aramco IPO has become a regular reminder to those in the finance world who depend on the Saudi government for fees, for access to deals and for that slim possibility that the offering goes through. The message is clear — stay loyal, just in case,” said Gulf scholar Karen Young, writing in Al-Monitor. Young argued that Aramco’s ambition to diversify into refining, gas and petrochemicals neatly aligns itself with Prince Mohammed’s effort to diversify and streamline the Saudi economy. She notes that expanding the company’s shareholder base could complicate the oil company’s ability to execute its plans. Said Young: “Any discussion of the Aramco IPO always ends on the same note. It is a political decision, which the company will have to be prepared to accept. Oil prices are not helping, as they continue to be depressed, despite rising political tensions in the Persian Gulf. If the government wants to keep its Aramco prize and be able to use its energy resources to wield political influence, it is better off making a deal with China to buy a small stake in the company.” (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Aramco IPO: Saudi Arabia caught between United States and China

The launch on Saturday of a historic transition to civilian rule in Sudan comes eight months after the start of popular protests, in which more than 250 were killed.

The launch on Saturday of a historic transition to civilian rule in Sudan comes eight months after the start of popular protests, in which more than 250 were killed. A timeline: Bread price Protests erupted on December 19, 2018, against a government decision to triple bread prices. They quickly spread in the form of weekly demonstrations, and morph into demands for President Omar al-Bashir to quit after three decades of iron-fisted rule. In the capital Khartoum on December 20, demonstrators take to the streets chanting "freedom, peace, justice". On April 6, 2019, thousands gather outside army headquarters in Khartoum, staying there for six days to plead for the military's support. On April 11, military authorities announce they have removed Bashir from power and that a transitional military council will govern for two years. Defying a month-long curfew, thousands of demonstrators remain camped in front of army headquarters as the protest movement demands power to be handed to a civilian government. Talks between ruling generals and protest leaders end abruptly on May 20 without an accord on the make-up of a joint civilian-military council to govern during a transition. Thousands of public and private sector workers strike on May 28 and 29 to pressure the military leaders. In late May, military council chief Abdel Fattah al-Burhan visits Saudi Arabia, Egypt, and the United Arab Emirates, countries wary of popular uprisings in the region. Bloody crackdown On June 3, armed men in military fatigues move in on the protest camp outside army headquarters and disperse thousands still gathered there. It is the start of a crackdown that lasts several days, in which 127 people are killed, according to doctors close to the demonstrators. The Rapid Support Forces (RSF), a feared paramilitary that sprang from the notorious Janjaweed militia accused by rights groups of committing war crimes in Darfur, is blamed for the violence. The military rulers announce a probe. The military scraps all previous agreements with protest leaders for a transition and calls for elections within nine months. Protesters denounce a putsch. On June 9, protest leaders launch a nationwide campaign of civil disobedience that paralyses the country for two days, hitting the economy hard. After both sides signal, they are ready to talk again, Ethiopia and African Union mediators in late June present new proposals for a transition. On June 30, tens of thousands of protesters again rally. Security forces are deployed en masse and police fire tears gas at crowds. Several are killed. Power deal agreed On July 5, after two days of negotiations, the two sides agree in principle on an accord providing for power-sharing before the transition to civilian rule. Crowds take to the streets of Khartoum to celebrate. On July 29, six demonstrators, including four school students, are shot dead during a rally in the central town of Al-Obeid against shortages of bread and fuel. Negotiations are suspended, before resuming on August 1. On August 4, the military and protest leaders sign a declaration, under which a joint civilian-military ruling body will govern for a 39-month transition period, overseeing the formation of a civilian government and parliament. On August 15, veteran economist Abdalla Hamdok is nominated as prime minister of the future transition government. The next day, Qatari broadcaster Al-Jazeera says it has been allowed to reopen its Khartoum office, which had been shut down in May.

Sudan: From demonstrations to transition accord

Oil prices fell on Tuesday on lingering concerns over global demand and rising US production, though expectations for major producers to further curtail output offered support.

Oil prices fell on Tuesday on lingering concerns over global demand and rising US production, though expectations for major producers to further curtail output offered support. Brent crude futures were down 20 cents or 0.3 per cent from the previous settlement at $58.29 a barrel by 0643 GMT. The international benchmark has lost over 20 per cent since hitting its 2019 high in April. US West Texas Intermediate (WTI) futures were at $54.69 per barrel, down 24 cents or 0.4 per cent. A deepening trade war between the United States and China, the world's two largest economies and energy consumers, has weighed heavily on oil prices in recent months. China's central bank lowered its official yuan midpoint for the ninth straight day to a fresh 11-year low on Tuesday. A weaker yuan raises the cost of dollar-denominated oil imports into China, the world's biggest crude oil importer. Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said last week it plans to keep its crude exports below 7 million barrels a day in August and September to help drain global oil inventories. The kingdom's plans to float its national oil company Saudi Aramco in what could be the world's largest initial public offering (IPO) give it further impetus to boost prices. "With Saudi Aramco reportedly eyeing an IPO once again, there is some support to the idea that Saudi Arabia has a heightened interest in strong crude prices and will cut its output accordingly," Vienna-based consultancy JBC Energy said. OPEC and its allies, known as OPEC+, have agreed to cut 1.2 million barrels per day (BPD) of production since January 1. But booming US shale oil output continues to chip away at efforts to limit the global supply overhang, weighing on prices. US oil output from seven major shale formations is expected to rise by 85,000 barrels per day (BPD) in September to a record 8.77 million BPD, the Energy Information Administration forecast in a report. The start-up of a major pipeline between the Permian shale basin and the Gulf Coast means that more crude can be exported, adding to global supplies. "The swift reaction from Saudi Arabia will likely stabilise oil prices, but the oil price probably won't move much above $60 per barrel until there is evidence of progress in US-China trade negotiations," Stephen Innes, managing partner at VM Markets Pte Ltd, said in a note.

Oil prices fall on demand concerns, rising US output

Of late, there has been increased international scrutiny of women’s status in Saudi Arabia.in recent months, several young women have fled the country and made public pleas for help in seeking asylum from their family and the government..but, the country’s crown prince and de facto ruler -- Mohammed bin Salman -- has sought to present himself as a modernist reformer since being appointed heir to the throne in 2017.

The West Asia Post: Winds of Change in Saudi Arabia

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