Friday, 27 November 2020

#SaudiArabia seeks to resolve #Qatar crisis as ‘gift’ to Joe Biden | Financial Times

Saudi Arabia seeks to resolve Qatar crisis as ‘gift’ to Joe Biden | Financial Times

Saudi Arabia has stepped up its efforts to resolve its more than three-year dispute with Qatar after US president Donald Trump’s election defeat, according to people briefed on the talks. 

The move to end the Gulf states’ blockade of their gas-rich neighbour is being perceived as an attempt by Crown Prince Mohammed bin Salman to curry favour with the incoming Biden administration and deliver a parting present to Mr Trump. 

Prince Mohammed, the kingdom’s de facto leader, forged close ties with the Trump White House and the president stood by the crown prince as Riyadh grappled with its worst diplomatic crisis in decades after Saudi agents murdered Jamal Khashoggi two years ago. But the incoming administration of president-elect Joe Biden is expected to be far cooler towards the young royal who has drawn widespread criticism from Democrats over the killing of Khashoggi, Saudi Arabia’s war in Yemen and the detention of scores of activists, businessmen and senior royals. 

“This is a gift for Biden,” said an adviser to Saudi Arabia and the United Arab Emirates. He added that Prince Mohammed “feels like he’s in the line of fire” after Mr Biden’s election victory and wants a deal with Qatar to “signal he is willing and ready to take steps”. 

Ali Shihabi, a Saudi analyst close to the royal court, said the Saudi leadership had for months been “open to put this issue to bed”. “For some time, they have been working on closing many hot files and clearly this is one,” he said. 

The Qatar dispute is thought to be one of the more tractable issues for Prince Mohammed to resolve. 

Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic and transport links with Qatar in June 2017, alleging that Doha sponsored Islamist groups and was too close to Iran. 

Qatar, the world’s richest nation in per capita terms, denied the allegations and all sides have until now refused to make concessions, resisting Washington’s pressure to resolve the crisis. The Trump administration has been concerned that the dispute weakens the Arab alliance it has sought to forge against the Iran and is frustrated that Tehran benefits financially as the embargo has meant flights to and from Qatar are forced to use Iranian airspace. 

The latest talks were being mediated by the US and Kuwait with the aim of laying the foundations for direct negotiations between Riyadh and Doha, said a diplomat briefed on the talks. 

Qatar wants to ensure there are preconditions before any bilateral talks. These could include a “confidence building” measure such as the lifting of the air embargo, the diplomat said. Another possibility would be to allow free movement of Qatari citizens to the countries that imposed the embargo, although Doha would want guarantees about their welfare. 

Robert O’Brien, the US’s national security adviser, said this month that he hoped to see Qatar Airways being able to fly over boycotting Arab countries “in the next 70 days” before the end of Mr Trump’s presidency. 

The adviser to Riyadh and Abu Dhabi said the Saudi and Emirati leaderships wanted Qatar to “tone down” Al Jazeera television network’s Arabic language channel, which critics accuse of being a propaganda tool for Doha, and to end its criticism of Saudi Arabia. Riyadh did not immediately respond to a request for comment. 

After imposing the embargo, Riyadh and Abu Dhabi presented Doha with an extraordinary list of 13 demands that included closing Al Jazeera, curbing Doha’s relations with Iran and closing a Turkish military base. But the adviser said Kuwaiti mediators had secured a new deal to replace the 13 terms to “pave way for a kiss and make up”. 

A thawing of relations between Qatar, the world’s biggest exporter of liquefied natural gas, and its Gulf neighbours could also include the shipment of LNG to Bahrain, according to people with knowledge of the negotiations. 

However, a person briefed on Doha’s position said that no details of confidence-building measures had been discussed. Gulf officials cautioned against any significant breakthrough in the near term. There are also questions about Abu Dhabi’s stance. 

Last week, Yousef al-Otaiba, the UAE’s influential ambassador in Washington, said that ending the dispute was not a priority, pointing to outstanding differences between the two countries over the future direction of the Middle East. But western officials and regional analysts said the UAE would likely fall behind its larger ally Saudi Arabia.

Israel's Beitar Jerusalem says #AbuDhabi ruling family member looks to buy stake | Reuters

Israel's Beitar Jerusalem says Abu Dhabi ruling family member looks to buy stake | Reuters

A member of Abu Dhabi’s ruling family is looking to buy a roughly 50% stake of Israeli Premier League soccer club Beitar Jerusalem, the club’s owner said on Friday.

Beitar said in September it was negotiating a possible investment by a group in the United Arab Emirates (UAE) in a statement that followed the announcement that Israel and the UAE had agreed to normalize ties.

Beitar owner Moshe Hogeg said in a phone call with Reuters he had received a non-binding letter of intent from Sheikh Hamad Bin Khalifa Al Nahyan to buy a stake of about 50% in the club.

Al Nahyan could not immediately be reached for comment.

#SaudiArabia Broadens Central Bank’s Mandate to Promote Growth - Bloomberg

Saudi Arabia Broadens Central Bank’s Mandate to Promote Growth - Bloomberg

The Saudi Central Bank updated its mandate to include supporting economic growth as one of its prime objectives, formally changing its fundamental operating principles for the first time in more than 60 years, Vice-Governor Ayman Alsayari said.

“Including support of economic growth as an explicit element in the central bank’s mandate is meant to cover evolving variables such as financial innovation, which has the potential to foster economic growth if steered in the appropriate direction,” Alsayari said in a written response to questions from Bloomberg on Thursday.

The central bank’s new charter also reflects “changes in the financial sector and new types of risk,” he said. The bank now reports directly to the king under the new charter, a move intended to “make its independent status clearer and more explicit,” he said.

Saudi Arabia’s central bank has been one of the key vehicles for providing stimulus to the economy this year as the coronavirus pandemic ravaged the private sector, and as authorities refrained from providing a significant fiscal response. The monetary authority has provided over 100 billion riyals ($22.4 billion) to local banks in liquidity injections and to cover the costs of loan deferrals for small businesses hit by the pandemic.



OPEC+ Calls Last-Minute Talks to Prepare for Oil-Cuts Decision - Bloomberg

OPEC+ Calls Last-Minute Talks to Prepare for Oil-Cuts Decision - Bloomberg

Saudi Arabia and Russia summoned OPEC+ ministers who oversee their oil production cuts for last-minute talks on Saturday, as the cartel prepares for a decision on whether to delay January’s output increase.

A clear majority of OPEC+ watchers expect the group to maintain their supply curbs at current levels for a few months longer due to lingering uncertainty about the strength of demand. However, the decision is by no means certain amid public complaints from Iraq and Nigeria, and private discord with the United Arab Emirates.

The two leading members of Organization of Petroleum Exporting Countries and its allies, Russia’s Deputy Prime Minister Alexander Novak and Saudi Energy Minister Abdulaziz bin Salman, requested an informal video conference with their counterparts from the Joint Ministerial Monitoring Committee, which includes Algeria, Kazakhstan, Iraq, Nigeria and the UAE, according to a letter seen by Bloomberg.

The unscheduled gathering comes just two days before a full OPEC ministerial meeting on Nov. 30, which will be followed by OPEC+ talks on Dec. 1. The JMMC met online as recently as Nov. 17, but that ended without any kind of recommendation about delaying the January supply increase.

Oil drops as supply concerns, vaccine doubts sap rally | Reuters

Oil drops as supply concerns, vaccine doubts sap rally | Reuters

Oil prices were lower on Friday in quiet trade due to the U.S. Thanksgiving holiday, dropping amid concerns about oversupply and doubts about a vaccine to end the coronavirus pandemic.

Brent crude was down by 31 cents, or 0.7%, at $47.49 by 0758 GMT, having fallen 1.7% overnight. West Texas Intermediate was down by $1.02, or 2.2%, at $44.69. U.S. crude prices did not settle on Thursday due to the holiday.

Both benchmarks have risen about 6% this week after AstraZeneca said that its COVID-19 vaccine could be up to 90% effective, adding to successful trial results of two others under development in the fight to end the pandemic.

But questions have been raised over the “vaccine for the world”, with several scientists sounding doubts over how robust the results of the trials were.

“With much of oil’s rally in November built on expectation, sentiment and speculative fast money, some sort of correction was long overdue,” said Jeffrey Halley, senior market analyst at OANDA.