US tells Israel settlements serious issue

The United States has raised its concern at the highest level about Israel’s continued settlement activity, its UN envoy told the Security Council as she pledged her country’s commitment to a two-state solution and the normalization of Israeli ties in the region.

“Make no mistake, the expansion of settlements undermines the geographic viability of a two-state solution, exacerbates tensions, and further harms trust between the two parties,” Linda Thomas-Greenfield said.

She spoke in the aftermath of a dramatic spike of 303% in housing starts from the first and second quarters of 2023, according to data from the Central Bureau of Statistics published this month.

From January to March of this year, ground was broken for 255 settler homes, compared to 1,028 housing starts from April to June of the year, the CBS reported.

Despite the second-quarter rise, housing starts have dropped this year by 18.7% in the first two quarters when ground was broken for 1,283 settler homes compared with the same time period last year when there were 1,580 settler starts.

All total, there were 2,568 settler housing starts in 2023.

Israel has advanced plans this year for 12,349 housing starts, according to the left-wing group Peace Now. It’s the largest such number since the group started collecting data in 2012.

“The United States strongly opposes the advancement of settlements and urges Israel to refrain from this activity.

“We take the issue very seriously, as it undermines the possibility of a future contiguous Palestinian state, and we raise it at the highest levels on a consistent basis,” she said.

Thomas-Greenfield spoke during the UNSC’s monthly meeting Wednesday on the Israeli-Palestinian conflict, which took place amid a push for an Israeli-Saudi normalization deal and in the aftermath of Prime Minister Benjamin Netanyahu’s meeting with US President Joe Biden.

The potential Saudi agreement is a subset of a deal between Washington and Riyadh that would consist mainly of a security pact. The US-Saudi deal could also include an interim agreement with the Palestinians at a time when the Israeli government does not support a Palestinian state and supports all settlement activity.

Thomas-Greenfield in her speech also took Palestinian Authority President Mahmoud Abbas to task for his speech in August blaming the Jews for the Holocaust.

 “The sharp rise in violence by extremist Israeli settlers against Palestinians is also deeply alarming.“All perpetrators of violence against civilians, whether Israeli or Palestinian, should be held accountable according to the law,” Thomas-Greenfield stated.

“Ongoing violence sets back the prospects for peace and is responsible for so much needless suffering,” she said.

The US is deeply concerned by the levels of violence in the West Bank and Gaza and it expresses condolences for those injured or killed in the past month across Israel, the West Bank, and Gaza.

She welcomed de-escalation efforts and called on all parties to refrain from actions and rhetoric that inflamed tensions – including hateful rhetoric, settlement activity, evictions, the demolition of Palestinian homes, terrorism, incitement to violence, and Palestinian Authority payments to the families of terrorists,” she said.

Thomas-Greenfield re-affirmed the US commitment to the status quo on the Temple Mount, known to Muslims as al-Haram al-Sharif.

We oppose actions that depart from the historic status quo, or otherwise disturb the sanctity” of religious sites in Jerusalem. Such action is unacceptable, she added.

Work is underway to convene the Forum of Five – Egypt, Jordan, the US, the Palestinian Authority, and Israel – which met twice this year in Sharm el-Sheikh and Aqaba.

Thomas-Greenfield also confirmed her country’s support for freedom of movement for the peacekeeper forces on the Lebanese border and affirmed the decision taken under the Trump administration to recognize Israeli sovereignty on the Golan Heights

“Our policy in this regard the status of the Golan Heights remains unchanged from 2019,” she said.

UN Special Coordinator for the Middle East Peace Process Tor Wennesland said that from June 15 to September 19, Israeli security forces demolished 238 illegal Palestinian structures, as he noted that authorizations for structures are almost impossible to obtain.

In addition, he said, shrinking grazing land and settler violence have forced Palestinians to leave their homes in Area C of the West Bank.

In describing the violence of the last three months, he said, 68 Palestinians, including 18 children, were killed by Israeli security forces during demonstrations, clashes, security operations, attacks or alleged attacks against Israelis, and other incidents.

In conjunction, there were 10 Israelis, including one woman, two children, and three Israeli security forces personnel were killed.

Wennesland said he remained gravely concerned by the intensification of violence in the occupied West Bank and Israel – at levels not seen in decades – and the use of increasingly lethal weaponry, including in densely populated areas.

Wennesland said, “I condemn all acts of violence against civilians, including acts of terror.”He added, “I am disturbed by the high levels of settler-related violence, often in the proximity of Israeli Security Forces, with perpetrators rarely held accountable. Israel must act to stop all settler violence.”

Peace must include Palestinian state with east Jerusalem as capital

Saudi Arabia has said that any solution to the Palestinian-Israeli conflict would need to include an independent Palestinian state with east Jerusalem as its capital.

The statement was made by Saudi Foreign Minister Faisal bin Farhan Al Furhan Al-Saud at the UN General Assembly on Saturday night.

He spoke the day after Prime Minister Benjamin Netanyahu gave his address, during which he touted the idea of a "New Middle East" with normalization between Israel and Saudi Arabia.

In interview that the prime minister gave in America, he hinted at the possibility of his coalition considering concessions to the Palestinians as part of their efforts to secure such a peace agreement.

The prime minister spoke to CNN and Fox News on Friday, telling reporters that if he agreed to concessions, he believed his far-right party members would follow.

"Would you be willing to blow up your coalition, essentially, to get this deal with Saudi done?" CNN's Kaitlan Collins asked Netanyahu. 

"I don't think it'll require that," he said. "You think they'll go along with it?" Collins continued. "It's whether I go along with it," Netanyahu responded, deriding statements made by Finance Minister Bezalel Smotrich that no concessions would be made. 

 

 

 

Tattered Western Order

The great power competition between the United States and China is in full swing. Both the countries are embroiled in major issues of international affairs, and none of the international issues remains immune to their influence. 

Trade war, ideational war, and forging alliances are new forms of strategies crafted by Washington and Beijing. Arguably, the world no longer solely is dominated by the West materially and ideationally. The material and ideational decline by and large is contributing to enfeebling the Western hegemony.

The democratic crises in the West and the rise of China in terms of economy, becoming the world’s largest export market, and rapid rise in technology caused a great deal of consternation for the West. The deeply embedded crisis in the Western-led liberal order, ostensibly, leaves a vacuum for China.

The old Western-led liberal order looks more troubled today than at any time since the 1930s. 

Over a decade, Western free societies endured polarization, corruption, populism, inequality, and illiberal threats to the rule of law. The former US president Donald Trump's rhetoric of “America First” was not only symptomatic of attacks on liberal internationalism but also challenged US exceptionalism.

An exclusionary approach of Trump created a deep rift in international politics. The US exit from the Trans-Pacific Partnership Agreement (TPP), withdrawal from the Paris Climate Agreement and threat of the World Health Organization (WHO) astonished many experts. 

Joseph Nye accurately assessed Trump’s self-destructive approach and argues “I am not worried by the rise of China I am more worried by the rise of Trump” His populism, reactionary nationalism, an assault on the rule of law and openness of US society badly tarnished the American image.

Anne-Marie Slaughter states “Four years of erratic, personality-driven leadership in the United States under President Donald Trump have left the liberal order in tatters”. 

To improve the tarnished image of the US, the incumbent president Joe Biden promised to “rebuild the nation, revitalizing our democracy, and winning the future for America”.

In competition with China, the US must rebuild the social purpose of liberal democracy at home and improve the damaged image of liberal democracy abroad. The work appears to be a daunting task for the Biden administration to improve its triple crises, crisis of democracy, crisis of leadership, and crisis of multilateralism. 

The US is extremely likely to weaponize ideology in its strategic rivalry vis-à-vis China. The battle of democracy vs. autocracy will gain further momentum. Biden advises his countrymen “I predict to you your children or grandchildren are going to be doing their doctoral thesis on the issue of who succeeded, autocracy or democracy, because that is what is at stake”.

The relative rise of China in terms of economy and changing distribution of global wealth in parity between the West and East would go in favour of the East in the coming decades. The diffusion of power and transfer of global wealth will make the hegemonic decline of the West irreversible. 

The Chinese vision, a community of shared future for mankind first emerged in 2011 as a rhetorical slogan in Chinese diplomacy gained content and substance. The phrase in October 2017 after the 19th National Congress was incorporated into the Constitution of the Chinese Communist Party (CCP) and subsequently into the Chinese Constitution in March 2018.  

A community of shared future for mankind is aimed at building an inclusive, open, clean and beautiful world contributing to lasting peace, common prosperity and universal security, providing instructive answers to addressing the fragmentation and turbulence in international politics. China has actively advocated the phrase in public diplomacy. The Chinese vision was accepted in different UN resolutions as far as the peace and security of the world are concerned.

To be fair, the Chinese vision would confront innumerable challenges in a politically divided world community. Nadège Rolland terms the Chinese vision “looks more like a list of what Beijing advocates for its own needs, security, and position than an innovative contribution for the future of the world”.

Meanwhile, China initiated the Global Civilizational Initiative GCI. The initiative is believed to have been promoting diversity, plurality and dignity among nations challenging the idea's imposition and discouraging the exploitation of communities and resources that will prove instrumental for diversity, mutual understanding, and the world's economic growth.

China under GCI is trying to undermine Western democracy which is coupled with populism, polarization, racism and xenophobia. The contemporary world is going through tremendous changes, power is shifting from the West to the East. 

The Western dominance in terms of material and ideational seems to be declining. The Saudi-Iran détente brokered by China was a momentous occasion in Middle Eastern politics that caused a huge setback to the US interest. The inclusion of Saudi Arabia, UAE, Iran Egypt, Ethiopia and Argentina in BRICS would cement China’s ideational, and material strength vis-à-vis the US. 

The prevailing battle of democracy vs. autocracy will further accelerate. The United States promotes Quadrilateral Security Dialogue Quad comprised the democratic countries like the US, India, Japan and Australia in a bid to contain China.

The Ukraine crisis has brought China and Russia closer together. The US domestically and internationally faces dual challenges in the projection of democracy. Domestic crises such as populism, racism, and xenophobia pose severe threats to democracy. In the international arena, China and Russia are causing significant obstacles in the advancement of US democracy.     

 

Israel must be brought back to its original size

A little ago I have posted almost the entire text of speech of Israeli Prime Minister Benjamin Netanyahu at the United Nations. He claimed, “Israel is on the verge of creating a peace with Saudi Arabia that could transform the Middle East as long as Iran’s nuclear threat is eliminated”.

Netanyahu showed two maps of Israel so that the audience could better understand the historic transformation that was about to occur.  He first showed a map from 1948, a tiny country.

Then he showed a modern map and talked about normalization of Israeli’s ties with four of its Arab neighbors under the US-backed Abraham Accords and drew a circle around those countries.

I am sure, many Muslim countries would immediately recognize Israel, if Saudi Arab normalizes its relations with Israel. However, I request all my readers to read my blog titled “Israel must be brought back to its original size” written as back as December 01, 2012, Following are the excerpts.

I wrote this blog after Israel announced to build 3,000 new settlement homes on occupied land, a slap on the face of international community that has just recognized Palestine State, accepted the philosophy of two sovereign states, Israel and Palestine. The announcement once again proved that Israel is a usurper.

I wrote, “If the international community, particularly United States wants Palestinians to behave diligently, they must asked Israel to stop construction of settlements on occupied land and also bring Israel back to its original boundaries demarcated at the time of creation of a state for the Jews”.

A cautioned, “Israel's moves serves as a harsh reminder to Palestinians that while they now have a state on paper, most of it remains very much under Israeli control, this is a doomsday scenario”.

Israel's decision also embarrassed the United States, which was among just nine countries in the 193-member General Assembly to vote against accepting Palestine as a non-member observer state.

State Department spokeswoman Victoria Nuland criticized the Israeli announcement. "These actions are counterproductive and make it harder to resume direct negotiations or achieve a two-state solution," she said.

It may be recalled that the successive US administrations have pressured Israel not to build E-1 because it would effectively cut off east Jerusalem from the West Bank, and split the northern part of the territory from the southern part. E-1 will be the death of the two-state solution.

It is on record that Tzipi Livni, Israel's former foreign minister and chief negotiator with the Palestinians warned, "The decision to build thousands of housing units as punishment to the Palestinians only punishes Israel ... (and) only isolates Israel further."

Even at that time Netanyahu was blamed for defying the whole international community and insisting on destroying the two-state solution.

 

The UN endorsed a Palestinian state in territories Israel captured in 1967, but Netanyahu refused to use the 1967 lines as a starting point. The Palestinian demand for a settlement freeze ahead of negotiations still stands.

On the Israeli side, compromise on settlements seemed unlikely as Netanyahu was seeking re-election at the helm of a Likud party had turned more hawkish and in an electoral alliance with an ultra-nationalist pro-settler party.

 

Netanyahu’s New Middle East

Israel is on the verge of creating a peace with Saudi Arabia that could transform the Middle East as long as Iran’s nuclear threat is eliminated, Prime Minister Benjamin Netanyahu told the United Nations on Friday.

“We are at the cusp of a dramatic breakthrough, a historic peace with Saudi Arabia”, Netanyahu said as he stood before a mostly empty plenum during the high-level session that marks the opening of the 78th General Assembly.

“Such a peace will go a long way to ending the Arab-Israeli conflict. It will encourage other Arab states to normalize relations with Israel. It will enhance the prospects of peace with the Palestinians,” Netanyahu said.

On a global scale, he said, “It will encourage a broader reconciliation between Judaism and Islam between Jerusalem and Mecca between the descendants of Isaac and the descendants of Ishmael,” he added.

Netanyahu, long known for his reliance on props at the United Nations held up two maps of Israel and the region so that the audience could better understand the historic transformation that was about to occur. 

The first showed a map from 1948, the year of the creation of the state when it was attacked by all its Arab neighbors which showed how Israel was alone in the region.

“Here's Israel in 1948. It's a tiny country, isolated, surrounded by a hostile Arab world. In our first seventy years, we made peace only with Egypt and Jordan,” Netanyahu said.

Then he held up a modern map that already reflected the change that occurred in 2020 when Israel normalized ties with four of its Arab neighbors under the US-backed Abraham Accords, as well as what could occur if Saudi Arabia joined that circle. He took out a red marker and drew a circle around those countries.

“The whole Middle East changes. We tear down the walls of enmity. We bring the possibility of prosperity and peace to this entire region,” Netanyahu said.

He recalled that he had used the same red marker at the UN plenum when highlighting the danger of a nuclear Iran.

“Today, today I bring this marker to show a great blessing… of a new Middle East, between Israel, Saudi Arabia and our other neighbors. We will not only bring down barriers between Israel and our neighbors.”

Netanyahu addressed his vision of a new peace to an almost empty plenum, while outside activists rallied against his judicial reform program.

It was the end of a week of intense diplomatic activity that marked his first trip to the United States since taking office at the end of December 2022.

He arrived as US efforts were underway to forge a quadrilateral deal that would center on an agreement between Washington and Riyadh that would include a normalization deal between that Kingdom and Israel. In exchange, Israel would be expected to make concessions to the Palestinians.

Bloomberg has also reported that the US is considering a security pact with Israel as part of the deal. 

The Saudi deal has been a major focus of Netanyahu’s trip, including his conversation on Wednesday with US President Joe Biden.   

In an interview with Fox News, Saudi Crown Prince Mohammed bin Salman said that his country and Israel were closer than ever to a deal and that the engagement on the matter was serious.

In his UN address, Netanyahu said “I believe we can achieve peace with Saudi Arabia with the leadership of President Biden.”

He added, “Working together with the leadership of Crown Prince Muhammed Bin Salman, we can shape a future of great blessings for all our peoples.”  

Netanyahu’s belief that the normalization of Israeli-Arab ties should occur as the first step toward a resolution of the Israeli-Palestinian conflict has long stood at odds with the internationally accepted understanding that a two-state solution must be a pre-requisite to regional relations.

“For years, my approach to peace was rejected by the so-called experts,” Netanyahu said, adding that, “Well, they were wrong.”

“Under their approach, we didn’t forge a single peace treaty for a quarter century” until the 2020 Abraham Accords, Netanyahu said.

Prior to those accords, peacemaking efforts were based on the false premise that unless we first concluded a peace agreement with the Palestinians, no other Arab state would normalize its relations with Israel, Netanyahu explained.

“I’ve long sought to make peace with the Palestinians. But I also believe that we must not give the Palestinians a veto over new peace treaties with Arab states. The Palestinians could greatly benefit from a broader peace. They should be part of the process, but they should not have a veto over the process,” Netanyahu stated.

“When the Palestinians see that most of the Arab world has reconciled itself to the Jewish state, they too will be more likely to abandon the fantasy of destroying Israel and finally embrace a path of genuine peace with it,” Netanyahu said. 

“A new Palestinian-Israeli relationship, however, cannot be based on lies and on the endless vilification of the Jewish people,” Netanyahu said.

He pointed specifically to statements Palestinian Authority President Mahmoud Abbas made in August in which he said that Hitler killed the Jews during World War II because of their history with money lending and not because of anti-Semitism.

“Palestinian leader Mahmoud Abbas must stop spreading the horrible anti-Semitic conspiracies against the Jewish people and the Jewish state. He recently said that Hitler wasn’t an anti-Semite. You can't make this up. But he did. He said that.”

Netanyahu also took issue with the Palestinian Authority’s policy of providing monthly financial stipends to terrorists with blood on their hands as well as to their family members.  

“The Palestinian Authority must stop glorifying terrorists. They must stop its ghoulish pay-to-slay policy of giving money to Palestinian terrorists for the murder of Jews. This is all outrageous,” Netanyahu said.

“For peace to prevail the Palestinians must stop spewing Jew-hatred and finally reconciliation themselves to the Jewish state. 

“By that I mean not only to the existence of the Jewish state but to the right of the Jewish people to have a state of their own in their historic homeland, the Land of Israel,” Netanyahu added. 

In addition to anti-Semitism, Iran’s pursuit of nuclear weapons and its support of global terrorism is the fly in the ointment when it comes to regional peace, Netanyahu said.

“Rest assured, the fanatics ruling Iran will do everything they can to thwart this historic peace,” Netanyahu stated.

At home Iran has killed and arrested thousands of its own citizens and abroad it has used armed drones and its missile program to threaten its neighbors and has provided weapons to Russia for use against Ukraine, Netanyahu explained.   

“Yet the regime’s aggression is largely met by indifference in the international community,” Netanyahu emphasized.

The international community must do more to support the brave women and men of Iran who despise this regime and yearn for freedom, who've gone out bravely on the sidewalks of Tehran and Iran's other cities and face death,” Netanyahu said.

In light of Iran’s enrichment of uranium, he called for the international community to reimpose crippling sanctions against Iran as promised under the terms of the largely defunct 2015 Iran deal. 

“Eight years ago, the Western powers promised that if Iran violated the nuclear deal, the sanctions would be snapped back,” Netanyahu stated.

“Well, Iran is violating the deal. But the sanctions have not been snapped back,” he explained, adding,“To stop its nuclear ambitions, this policy must change.”

“Sanctions must be snapped back and above all, Iran must face a credible military threat,” Netanyahu said.

He pledged that “As long as I am prime minister of Israel, I will do everything in my power to prevent Iran from getting nuclear weapons.”

Saudi Arabia celebrates 93 years of progress and unity

Today, Saturday September 23, 2023, marks the 93rd National Day of Saudi Arabia, a day of pride and celebration for both its citizens and residents. Under the visionary leadership that prioritizes the well-being and prosperity of the people, this joyous occasion reflects upon the nation's remarkable journey toward a promising future.

The Saudi Press Agency (SPA) takes the world on a reflective journey through the life of a true statesman, King Abdulaziz bin Abdulrahman Al-Faisal Al Saud. On September 23, 1932, he achieved the monumental task of unifying the disparate tribes and scattered regions of the Arabian Peninsula, establishing the Kingdom of Saudi Arabia. This Islamic state, with Riyadh as its capital, adopted the Holy Qur'an and the Prophet's Sunnah as its constitution.

King Abdulaziz's remarkable journey began in Riyadh in 1293 Hijri. At the tender age of seven, he began learning to read and write, and at ten, his father, Imam Abdulrahman Al-Faisal, gathered scholars and tutors to instill in him the fundamentals of Islam and equestrian skills. His upbringing was greatly influenced by his courageous father and wise mother, Princess Sarah Al-Sudairi. King Abdulaziz shared a close bond with his siblings, including his sister, Princess Noura.

Throughout his life, King Abdulaziz encountered numerous challenges that shaped his character and instilled in him qualities of patience, strength, and statesmanship. One of the most trying moments was his forced departure from Riyadh in 1308 Hijri when he and his family settled in various locations, including the Yabrin oasis, Bahrain, and Kuwait. Despite these hardships, his determination to reclaim Riyadh, a city with deep historical significance for his family, remained unwavering.

In his twenties, King Abdulaziz embarked on a journey back to Riyadh, leading an army. His arrival in Al-Shaqib district marked the beginning of a pivotal chapter. Following a brief but intense battle, he restored order, ushering in a period of political stability that laid the foundation for Riyadh's growth and prosperity.

In 1320 Hijri, the people and notables of Riyadh pledged allegiance to him as Emir of Najd and Imam of its people. This victory brought much-needed stability after years of turmoil, setting the stage for Riyadh's transformation.

King Abdulaziz's tireless efforts to unite the nation, restore security, and combat the chaos of the Arabian Peninsula culminated in him becoming the revered leader of a newly constructed nation, securing a respected place for it on the world stage.

On September 23, 1932, King Abdulaziz issued a royal decree, renaming the state from the Kingdom of Hejaz and Najd and its annexes as the Kingdom of Saudi Arabia.

With the nation-building process well underway, King Abdulaziz turned his attention to expanding the Two Holy Mosques to serve pilgrims and establishing schools, hospitals, villages, and irrigation systems to support agriculture. These ambitious endeavors required substantial funding.

In the fall of 1933, oil exploration efforts began, initially yielding no results. However, persistence paid off when oil was discovered 5,000 feet underground in the "Ain Jet" area in 1939. This discovery marked a turning point, opening the doors to major state projects.

King Abdulaziz's interest extended beyond domestic affairs; he maintained diplomatic relations with countries worldwide, prioritizing the Kingdom's independence, while fostering relations irrespective of religious, cultural, or civilizational differences. His approach garnered admiration from world leaders and media alike.

In Muharram 1373 Hijri, King Abdulaziz fell seriously ill in Taif, and he passed away on November 9, 1953. He was laid to rest in Al-Oud Cemetery, Riyadh.

As he built his nation, King Abdulaziz's commitment to education was unwavering. He avidly read Arabic books on various sciences, printing and distributing them freely. He sought the counsel of his citizens, guided by Islamic principles, fostering cooperation between the ruler and the governed.

King Abdulaziz's righteous approach, continued by his sons, laid the groundwork for the Kingdom's remarkable development, characterized by collaboration between the leadership and the people.

In a historic gathering on Muharram 25, 1355 Hijri, King Abdulaziz emphasized his desire for close ties with the people, stating, "My door is always open to anyone who wants to talk."

Under his leadership, Saudi Arabia forged strong relationships with Arab and Muslim nations and engaged the international community with transparency and pragmatism.

King Abdulaziz's legacy was the culmination of a rich history. The First Saudi State, founded by Imam Mohammed bin Saud in 1139 Hijri, laid the foundation for the nation's development. The Second Saudi State, initiated by Turki bin Abdullah bin Mohammed bin Saud, continued this legacy for approximately 68 years.

However, the true turning point came on the fifth day of Shawwal, 1319 Hijri, when King Abdulaziz reclaimed Riyadh with valor, establishing a state grounded in the principles of the Holy Qur'an and Prophet Mohammad's Sunnah.

Subsequent leaders, including King Saud, King Faisal, King Khalid, King Fahd, and King Abdullah, each contributed to the nation's progress and development, with a focus on education, healthcare, industry, and economic growth.

Today, under the wise leadership of Custodian of the Two Holy Mosques King Salman, Saudi Arabia continues its journey of growth, development, and global influence. The Kingdom boasts a strong economy that ranks among the world's top 20.

As Saudis celebrate the National Day, it is a reflection on the nation's remarkable accomplishments, secure in the knowledge that its legacy of progress and unity will continue to thrive under the leadership of King Salman. Saudi Arabia stands as a testament to what can be achieved with vision, determination, and the unwavering commitment to the welfare of its people.

Iranian trade center starts activity in Jeddah

The Director of Commercial Attachés Office of Iranian Trade Promotion Organization (TPO) announced that license was issued to establish a trade center in Saudi Arabia, and the center started its activity in Jeddah.

Mohammad Rajab-Nejad announced, “We currently have 46 active trade centers in other countries, and licenses have been issued for the establishment of trade centers in Kirgizstan, Malaysia, and Indonesia.”

During a meeting between Iranian Finance and Economic Affairs Minister Ehsan Khandouzi and Saudi Finance Minister Mohammed Al-Jadaan, in mid-May, the two sides discussed the ways to expand economic cooperation and remove the barriers in the way of trade between the two countries.

In the meeting, which was held on the sidelines of the annual meeting of the Board of Executive Directors of the Islamic Development Bank (IsDB) in Jeddah, the Saudi Arabian minister expressed satisfaction with the re-establishment of relations between Iran and Saudi Arabia and said, “We hope that quick steps will be taken in relations with Iran.”

“In this regard, it is necessary to remove the economic and trade barriers against the two countries”, he stressed.

The Iranian minister welcomed the progress of economic relations between the two countries and stated that the development of relations is important not only for Iran and Saudi Arabia but also for all countries in the region.

Stating that it is the duty of governments to facilitate economic ties, Khandouzi said these bilateral relations are very important not only from an economic point of view but also in the political and security fields.

Explaining Iran's program in the field of economic relations with Saudi Arabia, Khandouzi said, “At the government level, Iran and Saudi Arabia have not finalized any basic agreement in the field of investment, customs, and trade. In this regard, it is necessary to draw up and sign MoUs between the parties.”

The Saudi Arabian side, while agreeing to cooperate in the three fields of customs, trade, and investment, expressed hope that with the assistance of his country’s ministries, cooperation in the mentioned fields will be followed up.

Also, in an interview with the French newspaper Le Figaro published in late May, the Iranian foreign minister said the reconciliation between Iran and Saudi Arabia is more than just a tactical agreement, and both nations have decided to advance their economic and commercial ties.

Hossein Amir Abdollahian also mentioned that the Saudi government has prioritized investment in Iran.

“I talked about economic issues during my recent meeting with my Saudi counterpart,” the top diplomat said, adding, “We both agreed to develop our economic and commercial relations in the months and years to come.”

He continued by saying that the Saudi government now prioritizes the completion of economic initiatives.

In early July, the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) held a seminar titled "Economic cooperation between Iran and Saudi Arabia; Private sector perspective".

With the strong presence of the TCCIMA members and representatives of the private sector, the seminar was held at the place of TCCIMA, where the speakers pointed to the capacities, challenges and future of Iran-Saudi Arabia relations and emphasized that the private sector can help advance political relations between the two countries and further cooperation in international forums by developing economic relations.

At the beginning of this seminar, Ferial Mostofi, the head of the Investment Services Center of TCCIMA, referred to the agreement between the political authorities of Iran and Saudi Arabia to restore relations and said, “In its economic diplomacy, Saudi Arabia smartly focuses on connecting to global value chains, paying attention to domestic and foreign investment; and developing trade, and economic cooperation with Saudi Arabia can be viewed from these three perspectives.”

Saudi Arabia is also taking steps to strengthen international trade by simplifying customs procedures, low import tariffs, and introducing new instruments to promote exports to open new markets for the products and services of Saudi companies, she added.

In Iran, especially in the private sector, there are many capabilities and experiences in the field of downstream oil and gas industries, mining and mineral industries, health, construction, technical and engineering services, chemical industries, construction and light industries, food and agriculture industries, etc. Many of these capabilities have been the result of the private sector’s efforts. In this regard, the Chamber of Commerce can be a window of effective communication between the private sectors of the two countries and thus help to expand the relations between the two countries, Mostofi stated.

Addressing the same seminar, Bahman Eshqi, the secretary-general of TCCIMA, referred to the high capacities of Iran and Saudi Arabia as two large and influential countries in West Asia, and said that the private sectors should play a role instead of governments in the development of economic relations between the two countries.

 

Saudi Arabia to cooperate with Iran in petrochemicals

Saudi Arabian Ambassador to Tehran emphasized the existence of common fields for cooperation between the petrochemical industries of Iran and the kingdom and said. He said, “We are ready to expand cooperation with the petrochemical industry of Iran.”

Abdullah bin Saud al-Anzi made these remarks on Monday on the sidelines of a visit to the 17th International Exhibition of Plastic, Rubber, Machinery, and Equipment (IRAN PLAST 2023), Shana reported.

During his visit to the booth of the National Petrochemical Company (NPC) at the exhibition, he held talks with the NPC managers.

He said, “There are common areas of cooperation between SABIC (Saudi Arabia's Basic Industries Corporation is a Saudi chemical manufacturing company) and Iranian petrochemical companies, and we hope to see meetings held soon with the coordination of the National Petrochemical Company.”

Iran becomes 3rd top oil producer among OPEC members

Iran continued to increase its oil production in August to reach three million barrels per day (bpd) and stand at the third place among OPEC top producers, according to figures released in the organization’s latest monthly report.

OPEC data shows that Iran’s oil output increased by 143,000 bpd or 5% in August as compared to production figures reported in July, Shana reported.

The figures showed that Iran had regained its position as the third largest oil producer in OPEC in August after Saudi Arabia and Iraq.

Iran posted the largest increase in oil production in OPEC last month, as the country is exempt from output cuts introduced by the alliance to help boost international oil prices.

Iranian heavy oil prices rose to US$87.58 per barrel in August from US$81.48 reported in July, OPEC data showed.

The figures prove earlier reports suggesting Iranian oil production and exports had reached multi-year record levels in August despite US sanctions that restrict the country’s ability to engage in normal trade of oil products.

Estimates by international energy firms published earlier this month had suggested that Iran’s oil exports were nearly 3.15 million bpd in August as oil exports from the country reached over 2 million bpd.

Private refiners in China accounted for a bulk of oil purchases from Iran last month as shipments rose to an all-time record of 1.5 million bpd.

Iran’s Oil Minister Javad Oji said earlier that Iran’s oil production will reach 3.4 million bpd by late September.

 

Prospects of Saudi Arabia joining Abraham Accords getting bleaker

At present international attention is heavily focused on the prospects of a megadeal among Israel, Saudi Arabia, and the United States.

The prime objectives of the deal include access to US security commitments, advanced weaponry, and civilian nuclear facilities for the Saudis, full diplomatic relations with the most important Muslim country for Israel.

For the United States, the agreement would strengthen its regional security framework and provide new evidence of US political and diplomatic heft — a fitting riposte to those who perceive Chinese or Russian regional ascendency.

A question arises, will Saudi-Israeli normalization bring about a fundamental realignment of regional relationships?

As the original Abraham Accords signatories — Israel, the United Arab Emirates, and Bahrain — observe the third anniversary of their September 2020 agreement, there is a sufficient basis to evaluate whether the Abraham Accords are real, hype, or something in between.

On the occasion of the Accords’ anniversary, the results are mixed. The rise of a far-right extremist government in Jerusalem, deepening violence between Israelis and Palestinians, and deteriorating conditions for Palestinians in the West Bank, Gaza, and Jerusalem have set back relations, frozen the Negev Forum, as well as triggered a sharp decline in Arab popular opinion toward normalization.

The hardening of Arab popular opposition to normalization is likely to complicate the process going forward.

At present, the Biden administration’s attention is on adding more members to the Accords to lay a foundation for enhanced cooperation among the parties in the security arena and offer at least the potential to expand bilateral trade and investment opportunities.

It is necessary to keep in mind that the agreements do not operate in a vacuum and cannot be sustained in the absence of advancing on other issues of governmental and popular concern.

One of the opinions is that the Abraham Accords were about preventing annexation. However, at present Israeli settlement expansion and annexation is once again being widely bruited.

There are many reasons to be skeptical about the prospects for a successful conclusion to the current Saudi-Israel-US negotiations. The key issue for Saudi Arabia as the leader of the Arab-Muslim world is, will Israel preserve the two-state option?

Saudis are sufficiently determined to demand such an agreement, is the current Israeli government capable of making a deal with the Saudis and abide by it? That is far from certain.

Saudi Crown Prince announces economic corridor linking India, Middle East and Europe

According to Saudi Gazette, Saudi Crown Prince and Prime Minister Mohammed Bin Salman announced the signing of a memorandum of understanding (MoU) for an economic corridor project connecting India with the Middle East and Europe.

The project aims to enhance economic connectivity, develop and upgrade infrastructure, and boost trade between the involved parties.

Speaking at the occasion of the launch of the corridor on the sidelines of the G20 Leaders' Summit in Delhi on Saturday, the Crown Prince said, “I am pleased today that we are gathered in this friendly country to sign an MoU for an economic corridor project connecting India with the Middle East and Europe.”

“This project is the culmination of our joint efforts over the past few months.

“It is built on principles that serve the common interests of our countries by enhancing economic connectivity and positively impacting our partners in other countries and the global economy as a whole.”

He added, “This project will contribute to the development and upgrading of infrastructure, including railways, port connections, and increased flow of goods and services, thus enhancing trade between the parties involved.

“It will also extend pipelines for the export and import of electricity and hydrogen to enhance global energy supply security, in addition to high-efficiency, reliable cross-border data transmission cables.”

The Crown Prince highlighted that the MoU also supports clean energy development efforts and will create new, high-quality employment opportunities along the corridors for all parties.

"To achieve what we have agreed upon in this memorandum, it requires the continuation of our collective efforts and the immediate commencement of developing the necessary mechanisms for its implementation within the agreed-upon timeframe," he said.

He also expressed profound gratitude to all those who worked together to take these foundational steps towards establishing this significant economic corridor.

Indian Prime Minister Narendra Modi announced the launch of the India-Middle East-Europe connectivity corridor, which is the first of its kind initiative on cooperation on connectivity and infrastructure involving India, UAE, Saudi Arabia, EU, France, Italy, Germany, and the United States.

The governments of Saudi Arabia and United States announced that they had signed a memorandum of understanding (MoU) between the two countries. The bilateral MoU provides a framework for developing a protocol for establishing intercontinental green transit corridors through the Kingdom to connect the continent of Asia with the continent of Europe.

This project aims to facilitate the transit of renewable electricity and clean hydrogen via transmission cables and pipelines as well as constructing rail linkages.

It is also intended to enhance energy security, support efforts for the development of clean energy, promote digital economy through digital connectivity and transmission of data via fiber cables, and promote trade and transport of goods by rail and through ports.

Saudi Arabia welcomed the role of the United States to facilitate and support the negotiation, establishment, and implementation of the green corridors transit protocol with the relevant countries.

Bank of China opens branch in Saudi Arabia

China’s most internationalized state bank on Tuesday opened its first branch in Saudi Arabia in a move to expand the use of yuan amid a growing number of economic deals between the two countries.

Bank of China (BOC), one of China’s four biggest state-owned banks, opened its branch in Riyadh, the capital city of the oil-rich Middle Eastern country, more than two years after being given approval by the Saudi Arabian government.

The branch has more than 20 staff, with a majority hired locally – a condition requested by local authorities.

It is the second Chinese bank to open a branch in Saudi Arabia after the Industrial and Commercial Bank of China (ICBC) opened its first branch in Riyadh in 2015. ICBC also opened a branch in Jeddah in May.

China’s ambassador to Saudi Arabia, Chen Weiqing, said the opening of the branch was a result of positive developments in the bilateral relations between the two countries, and new stage of financial cooperation.

“It also shows that China highly recognizes the financial regulations, investment environment, and geographical advantages of Saudi Arabia,” Chen said, as he attended the opening ceremony with Bank of China president Liu Jin.

Saudi Central Bank governor Ayman al-Sayari and Saudi Arabia’s deputy investment minister, Saleh Ali Khabti, also attended the opening ceremony along with 250 guests.

The Saudi-listed ACWA Power, Saudi Arabia’s Ministry of Investment, Ajlan & Bros Holding Group and Zhejiang Rongsheng Holding Group signed memorandums of understanding involving internationalizing the yuan and green financing with BOC during the opening ceremony, the statement added.

The move came as part of a growing series of economic activities between China and Saudi Arabia, with their bilateral relations described as being at the best stage ever following President Xi Jinping’s state visit in December 2022, with both countries facing souring relations with the West.

During the trip at the end of last year, Xi pledged to work towards widening the use of yuan in oil and gas trade in the region, amid a push to establish the currency internationally and weaken the US dollar’s grip on world trade.

Saudi Arabia is China’s largest source of crude oil imports, with 87.5 million metric tons (641 million barrels) shipped in 2022.

Amid efforts by state banks to tap potential in the Middle East, BOC’s new branch has been licensed to provide basic commercial banking services to individual consumers and small- to medium-sized businesses, ranging from deposit accounts and loans to mortgages and yuan transactions.

At the weekend, BOC president Liu also met Khaled Mohamed Salem Balama Al Tameemi, the governor of the central bank of the United Arab Emirates, to court more support for its yuan clearing in the region and potential cooperation with the nation’s sovereign wealth funds.

In an interview with local media in June, BOC said the new branch aimed to offer the yuan to the wider Middle East region to assist commercial and financial trade between China, Saudi Arabia and beyond.

As there are many Chinese companies entering the market in the region, being able to trade and make financial transactions using the yuan would encourage Chinese companies to invest in the area.

The Saudi Arabian government first agreed to allow BOC to open its branch in January 2020. At the time, Saudi Arabia had only 14 foreign banks, including ICBC.

BOC also has existing branches in Abu Dhabi and Dubai in the UAE, as well as Bahrain, Turkey and Qatar.

Li Tong, president of the bank’s investment banking unit, Bank of China International, said in June during the Arab-China Business Conference in Riyadh that the new branch in Riyadh would push for financial cooperation, and further boost economic cooperation between the two countries.

The bank has also been in discussion with local counterparts to offer panda bonds – yuan-denominated bonds sold by overseas entities in China’s onshore bond market to raise investments in China.

A number of other banking sector collaborations have also been announced this year.

In March, the Export-Import Bank of China announced a first loan cooperation with Saudi National Bank, Saudi Arabia’s largest bank, in yuan.

Hong Kong has also been named as a major hub for financial cooperation between China and Saudi Arabia.

In July, the Hong Kong Monetary Authority, the city’s de facto central bank, signed a memorandum of understanding with the Saudi Central Bank, pledging initiatives in financial infrastructure development, open market operations, market connectivity and sustainable development.

 

 

Crude oil prices take a dip despite supply cut by Saudi Arabia and Russia

Oil prices reversed course on Wednesday after rising over 1one percent in the previous session, on a firmer dollar and as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia.

"The reason the market gave back half of the gains and is listless this morning, is because within the language of the joint announcement there is a caveat that these cuts will be reviewed on a monthly basis," said John Evans of oil broker PVM.

"This flexibility add-in allows for wiggle room, but the market smells a taper," he said, citing conditions like anti-inflation battles in the United States and other countries, whether crude prices near US$100 a barrel, or the effect on Saudi oil revenues.

Saudi Arabia and Russia on Tuesday extended their voluntary oil cuts to the end of the year 2023. While Saudi Arabia relinquished one million barrels per day (bpd), Russia agreed to cut 300,000 bpd. These are on top of the April cut agreed by several OPEC Plus members till end 2024.

Both countries will review their decisions monthly to consider deepening cuts or raising output depending on market conditions.

The rising oil prices could be restrained when crude demand dips as US refineries enter their September-October maintenance period, said Sugandha Sachdeva of Acme Investment Advisors.

Iranian crude supply rises could also hobble price gains. "Iran is producing close to 3.1 million bpd and plans to pump around 3.4 million bpd," ING Economics analysts noted.

 

Saudi Arabia, Russia extend production cuts

According to Reuters, Oil prices surged about 2% on Tuesday to their highest since November last year, after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year 2023, worrying investors about potential shortages during peak winter demand.

Brent crude futures rose by US$1.32, or about 1.5%, to US$90.32 a barrel by 1739 GMT. The global benchmark, used to price over three-quarters of the world's traded oil, rose to US$91.15 per barrel earlier in the session, its highest since November 17, 2022.

US West Texas Intermediate crude (WTI) futures rose US$1.49, or about 1.7%, to US$87.04 a barrel, after also hitting a 10-month high of US$88.07 earlier in the session.

Investors had expected Saudi Arabia and Russia to extend voluntary cuts into October, but the three-month extension was unexpected.

"Certainly the market was caught off-guard by the aggressiveness of their stance," said John Kilduff, partner at Again Capital LLC in New York.

Both Saudi Arabia and Russia said they would review the supply cuts monthly, and could modify them depending on market conditions.

"With the production cut extended, we anticipate a market deficit of more than 1.5 million barrels per day in 4Q23," UBS analyst Giovanni Staunovo wrote in a note to clients. UBS now expects Brent crude to rise to US$95 a barrel by end 2023.

Reflecting concerns about the short-term market supply, front month Brent and WTI contracts were also trading at their steepest premium since November 2022 to later-dated prices. This structure, called backwardation, indicates tightening supply for prompt deliveries.

Also supporting oil prices on Tuesday, Goldman Sachs said it now sees the probability of a US recession starting in the next 12 months at 15%, down from an earlier forecast of 20%.

Along with the Saudi supply cuts, which began in July, prospects of the US economy avoiding a hard recession have helped lift oil demand and prices in recent months.

Both Brent and WTI futures have gained more than 20% since the end of June this year.

 

 

Expansion of BRICS: What are the economic implications?

In late August it was announced that from 2024, the BRICS—a political grouping that currently comprises Brazil, Russia, India, China and South Africa—will admit six new members: Iran, Saudi Arabia, Egypt, Argentina, the UAE and Ethiopia.

The eleven countries combined represent around 45% of the planet’s population, over 40% of world oil production and roughly a third of global GDP. The BRICS average economic growth rate is likely to be notably above the global average. That said, the G7’s GDP is still substantially larger at market prices, and should remain so over the medium term.

The group’s key economic institution, the New Development Bank (NDB), is still tiny in comparison to other multilateral lenders. The Bank has financed projects worth around US$33 billion since 2015; in contrast, the World Bank alone committed around US$50 billion each year over the same period.

Other overarching economic structures are lacking, and a BRICS trade deal seems difficult to fathom given members’ vastly different stages of development and policy priorities.

Internal geopolitical disputes could further complicate economic rapprochement between members: Egypt and Ethiopia are at loggerheads over a dam on the Nile River, relations between Iran and its Gulf neighbors are still strained, and there are tensions between India and China over their shared Himalayan border and Indian restrictions on Chinese imports and technology.

The expansion of the BRICS could encourage greater political overtures and financial generosity from the G7 towards emerging markets going forward; the G20 summit later this year will be key to watch, with the UN calling on US$500 billion of annual financing from wealthy nations.

More countries are likely to join the BRICS in the coming years, as current members—particularly China and Russia—look to bolster an alternative to the G7-led world order.

BRICS members will increasingly conduct intra-member trade in local currencies to reduce dependence on the dollar, with the yuan and rupee set to be major beneficiaries.

That said, the US dollar will remain the global reserve currency for the foreseeable future - incumbency, dollar liquidity, the strength of the US economy, and the reliability of the US government as a debt issuer are key advantages. As for the BRICS grouping as a whole, it is likely to remain more of a political than an economic force.

On the BRICS’ prospects, EIU analysts said, “The BRICS group will not become a solid construction, regardless of how many bricks are added to the wall, and it will continue to face internal tensions and divisions. However, the expansion will bolster its geopolitical significance and its combined economic power, and the organization will continue to evolve. The relatively trouble-free and productive BRICS summit will enhance South Africa’s standing without damaging its relations with key Western partners.”

On the future of the dollar, ING analysts said, “Until international issuers and investors are happy to issue and hold international debt in non-dollar currencies – and the take-up of CNY Panda bonds has been very slow indeed – we suspect this will be a decade-long progression to a multi-polar world, a world in which perhaps the dollar, the euro and the renminbi become the dominant currencies in the Americas, Europe and Asia respectively.”

Courtesy: Focus Economics

Saudi Arabia launches plan to become global logistics hub

Saudi Crown Prince and Prime Minister Mohammed bin Salman, who is also chairman of the Supreme Committee for Transport and Logistics, has launched the master plan for logistics centers to make Saudi Arabia a global logistics hub.

The master plan aims to develop the infrastructure of the Kingdom’s logistic sector, as well as to diversify the local economy, and enhance the status of the Kingdom as a leading investment destination and a global logistics hub, the Saudi Press Agency reported.

The Crown Prince stressed that the plan is part of a package of ongoing initiatives set as targets by the National Transport and Logistics Strategy (NTLS) with the aim of developing the logistical sector to support the economy, as well as to increase the local, regional and international connections of the international trade networks and global supply chains. It also aims to boost the partnership with the private sector, and thus increase the opportunity to generate jobs, and make Saudi Arabia a global logistics hub, given its geographical location among three important continents: Asia, Europe and Africa.

The master plan for logistics centers stipulates 59 centers with a total area of more than 100 million square meters, including 12 in Riyadh region; 12 in Makkah region; 17 in the Eastern Province, and 18 distributed in the rest of the Kingdom. There are currently 21 centers under various phases of implementation and all centers will be completed by 2030.

The centers will also enable local industries to export Saudi products with high efficiency, support e-commerce by facilitating a rapid link between logistics centers and distribution centers in the Kingdom’s various regions, cities and governorates, as well as to provide high traceability and facilitate the issuance of licenses to practice logistic activity. This is especially after the launch of the unified logistics license and the licensing of more than 1,500 local, regional and international logistics companies, and the launch of the Fasah initiative, which is an e-system integrated in Saudi customs, in cooperation with the concerned government agencies.

The logistics services sector represents one of the promising pillars of economic diversification and development in the Kingdom. It is currently witnessing many important initiatives and major developments aimed at developing the sector and expanding its economic and developmental contributions. The Ministry of Transport and Logistics seeks to develop the logistics industry, enhance the export strategy, expand investment opportunities, and seal partnerships with the private sector.

 

Iran's BRICS membership a nail in the coffin of United States sanctions

Vahid Jalalzadeh, Chairman of the Parliament’s National Security and Foreign Policy Committee, said, “Iran’s membership in BRICS is a nail in the coffin of the unilateral sanctions of the United States.”

“One of the main features of the new world order is the strengthening and expansion of the front of resistance against the domination system, the decline of America and the transfer of knowledge and wealth from the West to the East,” he told state news agency IRNA. 

Jalalzadeh added, “BRICS and the Shanghai Cooperation Organization (SCO) are definitely a front against the excesses of the domination system, particularly America.”

Jalalzadeh emphasized that BRICS, Shanghai, and Eurasia are the code names for the failure of Western sanctions.

“The neutralization of sanctions in the era of the formation of the new global geometry means the era of entering regional and international agreements, coalitions and unions. And this means the end of unilateralism,” he continued.

Hossein Qaribi, Iranian Ambassador to Brazil, has also said that Iran’s BRICS membership was the result of months of intense diplomatic efforts by the Ebrahim Raisi administration.

“Iran's membership in the BRICS group is a happy event that is the result of months of efforts and intensive diplomatic measures by the 13th government, the Ministry of Foreign Affairs and the Iranian embassies in five member countries of that group,” Qaribi said in remarks to IRNA. 

He added, “Practically, the policy of strengthening multilateralism in the international system is better realized by advancing the goals of BRICS. In addition, it should be noted that the capacities that exist in the Islamic Republic of Iran will also be available to this group, and with development-oriented planning, it will lead to an increase in business interactions among its members.”

Foreign Minister Hossein Amir Abdollahian has lauded the bloc for deciding to move towards expansion. “In addition to strengthening multilateralism, the great success of accepting Iran’s membership in BRICS can provide the basis for the pursuit of goals and the development of other macro strategies of the government in the implementation of dynamic diplomacy,” the top diplomat wrote on X.

During a BRICS summit held in Johannesburg, South African President Cyril Ramaphosa announced the BRICS member states have agreed to admit Iran, Argentina, Egypt, Ethiopia, the UAE and Saudi Arabia as full members. That means the bloc currently consisting of Brazil, Russia, India, China and South Africa, will double in the number of members as of the beginning of next year.

Iranian President Ebrahim Raisi who had traveled to South Africa to attend the summit called the advantages of Iran's membership in the bloc “history-making”. 

“Strategic cooperation between Iran and BRICS members in the fields of transit, energy, and trade, will support the BRICS global agenda. The Islamic Republic of Iran strongly supports the successful efforts of BRICS in the path of de-dollarization of economic relations between members, the use of national currencies, as well as the strengthening of BRICS mechanisms for payment and financial settlement,” Raisi told the BRICS summit.

 

Saudi foreign trade grows to US$172 billion

Saudi Minister of Commerce and Chairman of the Board of Directors of the General Authority of Foreign Trade, Dr. Majid Al-Qasabi, said that the Kingdom's foreign trade in a year amounted to US$172 billion.

He made these remarks at the G20 Trade and Investment Ministers' meeting, which was held on 24-25 August 2023 in Jaipur, India.

During the session on "Trade for Growth and Prosperity, and WTO Reforms," he reviewed the impact of reforms on the Saudi economy in light of the Kingdom's Vision 2030, which offers significant initiatives to increase the integration of the Saudi economy regionally and globally.

He said that the volume of non-oil exports grew by 40% between 2018-2022 to US$28.7 billion, while the value of loans provided by the Saudi Export-Import Bank were reported at US$4.6 billion.

The minister added that the total number of small and medium enterprises in the Kingdom has reached 1.2 million, providing 80% of the jobs, and the annual growth of e-commerce reached 33% during 2016-2022.

Dr. Al-Qasabi stressed that the Kingdom made major gains as a result of the reforms it has undertaken during the past years, reflected in enhancing its competitiveness, as it ranked second among the G20 countries in digital competitiveness, as per the Digital Riser 2021 report and ranked sixth among 50 emerging countries in the "Agility" index for emerging markets for the year 2022.

The minister also said that the Kingdom ranked 17th among 64 countries in the World Competitiveness Yearbook (IMD) report for 2023 and 38th out of 138 per the Logistics Performance Index for 2023.

This year's G20 meetings are hosted in India under the theme "One Earth, One Family, One Future" to build a strong and developed global economy.

BRICS getting bigger to reshuffle world order

Major emerging market nations invited top oil exporter Saudi Arabia, along with Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates, to join their bloc in an ambitious push to expand global influence. The new BRICS members bring together several of the largest energy producers with the developing world’s biggest consumers, suddenly giving the bloc outsized economic clout. With most of the world’s energy trade taking place in dollars, the expansion could also enhance its ability to push more trade to alternative currencies.

In deciding in favour of an expansion - the bloc's first in 13 years - BRICS leaders left the door open to future enlargement as dozens more countries voiced interest in joining a grouping they hope can level the global playing field.

The expansion adds economic heft to BRICS, whose current members are China, Brazil, Russia, India and South Africa. It could also amplify its declared ambition to become a champion of the Global South.

The long-standing tensions could linger between members who want to forge the grouping into a counterweight to the West - notably China, Russia and now Iran - and those that continue to nurture close ties to the United States and Europe.

"This membership expansion is historic," Chinese President Xi Jinping, the bloc's most stalwart proponent of enlargement, said. "It shows the determination of BRICS countries for unity and cooperation with the broader developing countries."

Originally an acronym coined by Goldman Sachs chief economist Jim O'Neill in 2001, the bloc was founded as an informal four-nation club in 2009 and added South Africa a year later in its only previous expansion.

The six new candidates will formally become members on January 01, 2024, South African President Cyril Ramaphosa said when he named the countries during a three-day leaders' summit he is hosting in Johannesburg.

"BRICS has embarked on a new chapter in its effort to build a world that is fair, a world that is just, a world that is also inclusive and prosperous," Ramaphosa said.

"We have consensus on the first phase of this expansion process and other phases will follow."

The countries invited to join reflect individual BRICS members' desires to bring allies into the club.

Brazilian President Luiz Inacio Lula da Silva had vocally lobbied for neighbour Argentina's inclusion while Egypt has close commercial ties with Russia and India.

The entry of oil powers Saudi Arabia and UAE highlights their drift away from the United States' orbit and ambition to become global heavyweights in their own right.

Russia and Iran have found common cause in their shared struggle against US-led sanctions and diplomatic isolation, with their economic ties deepening in the wake of Moscow's invasion of Ukraine.

"BRICS is not competing with anyone," Russia's Vladimir Putin, who is attending the summit remotely due to an international warrant for alleged war crimes, said on Thursday.

"But it's also obvious that this process of the emerging of a new world order still has fierce opponents."

Iran's President Ebrahim Raisi celebrated his country's BRICS invitation with a swipe at Washington, saying on Iranian television network Al Alam that the expansion shows that the unilateral approach is on the way to decay.

Beijing is close to Ethiopia and the country's inclusion also speaks to South Africa's desire to amplify Africa's voice in global affairs.

United Nations Secretary-General Antonio Guterres attended Thursday's expansion announcement, reflecting the bloc's growing influence. He echoed BRICS' longstanding calls for reforms of the UN Security Council, International Monetary Fund and World Bank.

"Today's global governance structures reflect yesterday's world," he said. "For multilateral institutions to remain truly universal, they must reform to reflect today's power and economic realities."

BRICS countries have economies that are vastly different in scale and governments with often divergent foreign policy goals, a complicating factor for the bloc's consensus decision-making model.

Though home to about 40% of the world's population and a quarter of global gross domestic product, internal divisions have long hobbled BRICS ambitions of becoming a major player on the world stage. It has long been criticized for failing to live up to its grand ambitions.

The regularly repeated desire of its member states to wean themselves off the dollar has never materialized. Its most concrete achievement, the New Development Bank, is now struggling in the face of sanctions against founding shareholder Russia.

Bloc heavyweight China has long called for an expansion of BRICS as it seeks to challenge Western dominance, a strategy shared by Russia.

Other BRICS members support fostering the creation of a multi-polar global order. But Brazil and India have both also been forging closer ties with the West.

Brazil's Lula has rejected the idea that the bloc should seek to rival the United States and Group of Seven wealthy economies. However, as he departed South Africa on Thursday, he said he saw no contradiction in bringing in Iran - a historical arch-foe of Washington - if it advanced the cause of the developing world.

"We can't deny the geopolitical importance of Iran and other countries that will join BRICS. ... What matters is not the person who governs but the importance of the country."

 

BRICS no rival to G7 and G20, says Lula

Brazilian President Luiz Inacio Lula da Silva said on Tuesday that the BRICS bloc of nations aims to organize the developing Global South and is not meant to rival the United States and the Group of Seven (G7) wealthy economies.

His comments point to a divergence of vision as leaders of the bloc - Brazil, Russia, India, China and South Africa - arrived in Johannesburg for a summit that will weigh expanding the group as some members push to forge it into a counterweight to the West.

Heightened global tensions provoked by the Ukraine war and Beijing's growing rivalry with the United States have pushed China and Russia - whose President Vladimir Putin will attend the meeting virtually - to seek to strengthen the BRICS bloc.

Their vision of an expanded BRICS capable of rivaling US and European global dominance has, however, been met with skepticism by some members. And the outcome of the debate over enlargement could determine the future of a bloc long criticized for a lack of cohesion.

"We do not want to be a counterpoint to the G7, G20 or the United States," Brazil's Lula said on Tuesday during a social media broadcast from Johannesburg. "We just want to organize ourselves."

Summit host South Africa welcomed China's Xi Jinping, the leading proponent of enlarging BRICS, for a state visit on Tuesday morning ahead of meetings with the grouping's other leaders planned for later in the day.

"I am confident that the upcoming summit will be an important milestone in the development of the BRICS mechanism," Xi said shortly after his arrival in South Africa.

South African President Cyril Ramaphosa said during a bilateral meeting with Xi that their two countries had similar views regarding expansion.

"We share your view, President Xi, that BRICS is a vitally important forum which plays an important role in the reform of global governance and in the promotion of multilateralism and cooperation throughout the world," he said.

Indian Prime Minister Narendra Modi is also attending the August 22 to 24 summit.

Putin, who is wanted under an international arrest warrant for alleged war crimes in Ukraine, will not travel to South Africa.

Beyond the enlargement question, boosting the use of member states' local currencies is also on the summit agenda. South African organizers, however, say there will be no discussions of a BRICS currency, an idea floated by Brazil earlier this year as an alternative to dollar-dependence.

BRICS remains a disparate group, ranging from China, the world's second biggest economy now grappling with a slowdown, to South Africa, an economic minnow facing a power crisis that's led to daily blackouts.

Russia is being hammered by sanctions over its war in Ukraine is keen to show the West it still has friends.

India, however, has increasingly reached out to the West, as has Brazil under its new leader.

Two members - India and China - have periodically clashed along their disputed border, adding to the challenge of decision-making in a group that relies on consensus.

Expansion has long been a goal of China, which hopes that broader membership will lend clout to a grouping already home to some 40% of the world's population and a quarter of global GDP.

The leaders will hold a mini-retreat and dinner on Tuesday evening where they are likely to discuss a framework and criteria for admitting new countries.

India, which is wary of Chinese dominance and has warned against rushing expansion, has positive intent and an open mind, Foreign Secretary Vinay Kwatra said on Monday.

Brazil, meanwhile, is concerned that expanding BRICS will dilute its influence, though Lula reiterated on Tuesday his desire to see neighbour Argentina join the bloc.

While a potential BRICS enlargement remains up in the air, the grouping's pledge to become a champion of the developing world and offer an alternative to a world order dominated by wealthy Western nations is already finding resonance.

Over 40 countries have expressed interest in joining BRICS, say South African officials. Of them, nearly two dozen have formally asked to be admitted, with some expected to send delegations to Johannesburg.