Saudi Arabia: Remittances fall to five year low

The remittance by expatriates living in Saudi Arabia fell 10.41 percent to SR9.33 billion during February 2024 from SR10.41 billion in the previous month. This shows a the decline of SR1.08 billion month-on-month basis, marking the lowest average monthly level in five years, according to a monitoring by Okaz/Saudi Gazette based on the statistical figures released by the competent authorities.

The average monthly remittance level recorded a fall in January and February to the lowest level in at least five years, as the average remittances for the two months reached about SR9.87 billion. The average value of monthly remittances of expatriates in 2019 was reported at SR10.46 billion, and then it maintained a steady increase in the two successive years.

During the year 2020, the monthly average of foreign remittance rose to SR12.47 billion and it further rose to SR12.82 billion in 2021. Then, it began to decline in 2022, bringing the average monthly remittance value to SR11.94 billion. During the year 2023, the average value of foreign remittance declined further reaching SR10.41 billion while the average value of transfers for the months of January and February was reported at SR9.87 billion.

Meanwhile, the Saudi Central Bank (SAMA) revealed that the bank’s net foreign assets recorded a decline of US$7.20 billion in February as compared to the previous month. Net foreign assets fell to SR1.545 trillion (US$411.96 billion) from SR1.572 trillion (US$419.1 billion) in January, and net foreign assets fell 4.9%YoY in February.

 

Why Shehbaz is undermining Finance Minister?

At a time Muhammad Aurangzeb, Finance Minister needs the government’s fullest backing to conclude the crucial deal and implement tough economic reforms over the next several years, it seems that some circles are trying to undermine his role in the cabinet.

Prime Minister Shehbaz Sharif has ditched Aurangzeb twice within span of a month. His decision to name Foreign Minister Ishaq Dar to the all-important Council of Common Interests (CCI) and keep Aurangzeb out of it looks like an attempt to contain his role in decision-making.

Sadly, this was not the only occasion, earlier Aurangzeb was also sidelined. The prime minister in a break from tradition, decided to chair the Economic Coordination Committee (ECC) the top policy making forum. It was only after widespread criticism that he yielded the position to the finance minister.

Similarly, Aurangzeb’s role in the privatization process was also diminished by appointing Dar as head of the Cabinet Committee on Privatization.

In the CCI’s case, what exactly is the foreign minister expected to contribute to the council’s deliberations? As against this, the presence of the finance minister in the CCI — the top constitutional forum mandated to discuss and decide on matters and disputes related to the federation and the provinces — is of utmost importance at this moment because the implementation of several IMF program goals and policy reforms hinge on the active involvement of the federating units.

There is no better forum than the CCI to enlist the buy-in of the provinces on the IMF program and reforms. It can only be hoped that sense will prevail and the prime minister will replace Dar with Aurangzeb in the CCI in the larger interest of the country.

 

Qatar: Al Udeid US Air Base

According to a CNN report the United States has quietly reached an agreement that extends its military presence at a sprawling base in Qatar for another 10 years.

The deal, which has not been announced publicly, highlights Washington’s reliance on the tiny Gulf country that has recently played a central role in mediating the release of Americans from captivity in Gaza and Venezuela.

The Al Udeid Air Base, located in the desert southwest of Doha, is the biggest US military installation in the Middle East and can house more than 10,000 American troops.

Secretary of Defense Lloyd Austin personally visited Al Udeid and thanked Qatar for their increased spending on the base.

Austin made no mention of the renewal and the Biden administration has not publicized it – at a time when Qatar has come under growing scrutiny for hosting senior Hamas leaders.

Qatari officials have countered that it was only after a US request during the Obama administration that Hamas was allowed to open a political office in Doha.

The base has been a pivotal hub for the US Central Command’s air operations in or around Afghanistan, Iran and across the Middle East. The Qatari and British Air Forces also operate from the base.

The extension comes as the US has bolstered its presence in the region amid escalating threats from Iran-backed militant groups in Iraq, Syria and Yemen.

After Hamas kidnapped some 240 hostages from Israel on October 07, 2023 Qatar has been the primary go-between with Hamas to broker the initial release of scores of the Israeli and international hostages. It continues to be central in the talks to try to revive hostage negotiations, coordinating with the CIA and Israel’s Mossad, as well as Egypt.

Their part in the months of negotiations over Americans detained by Venezuela was less public but came to light after President Nicolas Maduro released 10 Americans last month in exchange for a close ally accused by the US of laundering hundreds of millions of dollars.

Qatar’s involvement in both sets of negotiations has been seen as an extension of the mediating role the country has taken on with other US enemies, including Iran and the Taliban. 

Its vast oil and natural gas wealth, coupled with ability to act as a facilitator, allow Qatar to punch above its weight.

While their hosting of Hamas leadership was no secret, the brutality of the October 7 massacre in Israel has ignited criticism of Qatar and calls for them to expel Hamas.

President Joe Biden has spoken about his conversations with Qatar’s emir but at times hasn’t given them the credit they feel they deserve.

Biden did not mention Qatar in a November op-ed in The Washington Post, while Egypt and other Middle East allies were referenced. Nor did Biden highlight Qatar’s part in the release of the detainees in Venezuela in his official statement.

Thousands of Afghans were flown from Kabul to Al Udeid during the chaotic American withdrawal from Afghanistan in 2021. US military personnel struggled to provide for the massive influx of refugees from what Biden called “one of the largest, most difficult airlifts in history.”

Qatar has committed billions of its own funds upgrade the facilities for US Airmen at the base. Al Udeid became CENTCOM’s main air base in 2003, shifting forces and assets from the Prince Sultan Air Base in Saudi Arabia, where the presence of a large number of American military personnel was more sensitive and controversial.

“We’ll do this through Qatar’s commitment to contribute significant resources to increase capabilities here at Al Udeid Air Base, and that will support both of our forces for years to come,” Austin added.

 

 

QatarEnergy to charter 19 new LNG vessels

According to a Reuters report, QatarEnergy, CEO Saad Al Kaabi announced on Sunday that the company has finalized a number of charter contracts with several Asian ship owners to bolster its shipping fleet by 19 LNG vessels ahead of a massive expansion in LNG output.

In a ceremony at its Doha headquarters state-owned QatarEnergy signed contracts to charter six vessels from CMES LNG Carrier Investment, six vessels from Shandong Marine Energy and three vessels from MISC Berhad. Those 15 vessels will be built at South Korea's Samsung Heavy Industries.

An additional four vessels will be operated by a joint venture of Kawasaki Kisen Kaisha and Hyundai Glovis and are being built by South Korea's Hanwha Ocean shipbuilders.

The agreements signed on Sunday bring the total number of ships QatarEnergy has contracted to 104, the company said, 43 of which will be chartered by affiliate QatarEnergy Trading.

The 19 new LNG vessels announced on Sunday will each have a capacity of 174,000 cubic meters.

QatarEnergy's North Field expansion will boost its position as the world's top LNG exporter. It includes eight LNG trains that will ramp up Qatar's liquefaction capacity from 77 million tons per annum (mtpa) to 142 mtpa by 2030, an 85% increase in production.

Turkey: Opposition heads for victory

According to a BBC report, Turkey's main opposition party is closing in on victory in the main cities of Istanbul and Ankara, in high-stakes local elections.

Istanbul's opposition mayor Ekrem Imamoglu, who won the city in 2019, said that he was "very happy" so far.

A year after Recep Tayyip Erdogan secured a third term as president, he had made it his goal to win back the city where he grew up and became mayor. But the night belonged to the opposition as it closed in on victory.

With 80% the vote counted in Istanbul, Imamoglu was almost 10 points ahead of his rival from Erdogan's AK Party.

In the capital Ankara, his colleague in the secular opposition CHP, Mansur Yavas, was so far ahead of his rival that he declared victory when less than half the votes were in.

President Erdogan, 70, had led his party's election campaign in Istanbul, vowing a new era in Turkey's biggest city. The outcome was being as a significant blow for the man who has led Turkey for the past 21 years.

Significantly, the opposition CHP was also leading in many of Turkey's other big cities, including Izmir and Bursa, and the resort of Antalya.

Crowds in Istanbul, a megacity of almost 16 million people, gathered outside one of the main town halls. They waved Turkish flags and banners showing Imamoglu's picture alongside Turkey's founding father Kemal Ataturk.

"I can say that our citizens' trust and faith in us has been rewarded," said Imamoglu.

Both he and Mansur Yavas are seen as potential candidates to run for the presidency in 2028.

"Everything is going to be great," Imamoglu supporters chanted as they danced to drums and clarinets in Sarachane, one of Istanbul's oldest districts.

Istanbul's incumbent mayor had first used the slogan when he won the city from Erdogan's party five years ago. Some of the banners in Sarachane used his current slogan, "Full speed ahead".

"They're only local elections but the opposition's victory in big cities is a significant show of force against the ruling party," Imamoglu supporter Yesim Albayrak, 25, told the BBC.

I am now hoping the country will become a more secular country, respecting human rights, women's rights and children’s rights.

Mehmet Bankaci, 27, told the BBC there was a need for change in Turkey, "If Imamoglu or Mansur Yavas had been the CHP candidate in last year's presidential election, they definitely would have won."

Five years ago, Imamoglu overturned years of AK Party rule in Istanbul with the backing of a unified six-party opposition. But that fell apart in the wake of last year's presidential election defeat and the AK Party had high hopes of overturning his 2019 victory.

Ahead of Sunday's election in Istanbul, the vote was seen as too close to call, with the incumbent mayor facing a strong challenge from AK Party candidate Murat Kurum.

But the ruling party has been unable to shake off an economic crisis that has seen inflation rates of 67% and interest rates at 50%.

Erdogan's AK Party has had more success in areas of the south-east devastated by the February 2023 double earthquake. It is leading in the cities of Kahramanmaras and Gaziantep.

About 61 million Turkish voters were eligible to take part in Sunday's election and turnout was estimated at more than 76% across the country's 81 provinces.

Tankers Haul Russian Diesel to Brazil

According to Bloomberg tankers laden with millions of barrels of Russian diesel are floating off the coast of Brazil — with more on the way.

Ships holding at least 3.2 million barrels of diesel-type fuel from Russian ports are idling in waters off the world’s fifth largest country.

It’s not clear why the cargoes are getting held up. However, the glut is the latest sign of snarls in the delivery of petroleum from Russia at a time when US and UK sanctions are tightening.

Diesel cargoes are also being held in tankers in the Mediterranean and Gulf of Guinea, while crude is backing up outside Indian ports.

While the glut is notable — 3.2 million barrels would meet about two weeks of the Latin American country’s imports — there doesn’t appear to be a complete halt in the discharge of cargoes from Russia in Brazil. Of the vessels off the nation’s coast, at least two are Sovcomflot PJSC tankers.

There are also at least 3.3 million barrels of diesel currently being transported toward Brazil, much of it across the Atlantic. It seems unlikely traders would continue sending the cargoes if they weren’t able to unload.

Other vessels are signaling Brazil, but their movements suggest they may not be heading to the country anytime soon. The nation has also imported diesel-type fuel from the UAE and Kuwait this month.

 

Bowman demands removal of Netanyahu from office

Congressman Jamaal Bowman had choice words for Israeli Prime Minister Benjamin Netanyahu in Saturday comments, calling him a maniac who needs to be removed from office. 

The progressive Democrat initially discussed the Biden administration transferring 1,800 MK84 2,000-pound bombs, 500 MK82 500-pound bombs and 25 F-35A fighter jets to Israel without notifying lawmakers, an arms package reported exclusively by the Washington Post on Friday. 

Bowman said that Congress should have absolutely been notified. 

He then criticized Israel’s handling of the war and the number of civilian casualties in Gaza, and slammed Israel’s leader for being a barrier to getting peace in the Israel-Hamas war.

“The majority of Gaza has already been destroyed through acts of collective punishment by this maniac, Benjamin Netanyahu,” Bowman told MSNBC’s Alex Witt on Saturday. 

“I’m 100% with Senator Schumer. He needs to be removed. He is a blockade to a pathway to peace. And we need a ceasefire right now. That’s what we should be focused on humanitarian aid, not weapons.” 

Bowman, during his response, referenced Senate Majority Leader Chuck Schumer’s remarks from two weeks ago when he called for new elections in Israel and criticized Netanyahu over his handling of the Israel-Hamas war. 

The progressive Democrat renewed calls for a ceasefire, increased delivery of aid and said the ongoing situation in Gaza is a humanitarian crisis. 

“We have hundreds of thousands of children starving to death in Gaza right now, as we speak, the majority of the American people support a permanent ceasefire,” Bowman said.

“The majority of my district supports a permanent ceasefire. We need a permanent ceasefire. We need to bring in hundreds of trucks that are five miles away from Gaza right now of aid, to save as many lives as possible. There’s a humanitarian crisis.”