Tag Archives: Saudi Arabia

Lebanon’s Hariri leaves Saudi Arabia for France on Friday

Lebanon's Hariri leaves Saudi Arabia for France on Friday

By Laila Bassam and Lisa Barrington

BEIRUT (Reuters) – Saad al-Hariri, who sparked a crisis by resigning as Lebanese prime minister on Nov. 4 during a visit to Saudi Arabia, is on his way to the airport, he said early on Saturday, before his flight from Riyadh to France.

Hariri’s abrupt resignation while he was in Saudi Arabia and his continued stay there caused fears over Lebanon’s stability. His visit to France with his family to meet President Emmanuel Macron is seen as part of a possible way out of the crisis.

“I am on the way to the airport,” he said in a Tweet.

However, Okab Saqr, a member of parliament for Hariri’s Future Movement, said that after Hariri’s visit to France, he would have “a small Arab tour” before traveling to Beirut.

Macron, speaking in Sweden, said Hariri “intends to return to his country in the coming days, weeks”.

The crisis has thrust Lebanon into the bitter rivalry pitting Saudi Arabia and its allies against a bloc led by Iran, which includes the heavily armed Lebanese Shi’ite Hezbollah group.

In Lebanon, Hariri has long been an ally of Riyadh. His coalition government, formed in a political deal last year to end years of paralysis, includes Hezbollah.

President Michel Aoun, a political ally of Hezbollah, has called Hariri a Saudi hostage and refused to accept his resignation unless he returns to Lebanon.

Saudi Arabia and Hariri say his movements are not restricted. On Wednesday, Macron invited Hariri to visit France along with his family, providing what French diplomats said might be a way to reduce tensions surrounding the crisis by demonstrating that Hariri could leave Saudi Arabia.

Lebanese politicians from across the political spectrum have called for Hariri to return to the country, saying it is necessary to resolve the crisis.

Foreign Minister Gebran Bassil, who heads President Aoun’s political party, said on Thursday Beirut could escalate the crisis if Hariri did not return home.

“We have adopted self-restraint so far to arrive at this result so that we don’t head towards diplomatic escalation and the other measures available to us,” he said during a European tour aimed at building pressure for a solution to the crisis.

REGIONAL CRISIS

Saudi Arabia regards Hezbollah as a conduit for Iranian interference across the Middle East, particularly in Syria, Yemen and Bahrain. It says it has no problem with Hezbollah remaining a purely political party, but has demanded it surrender its arms, which the group says are needed to defend Lebanon.

Although Riyadh has said it accepted Hariri’s decision to join a coalition with Hezbollah last year, after Hariri announced his resignation Saudi Arabia accused Lebanon of declaring war on it because of Hezbollah’s regional role.

Lebanon, where Sunni, Shi’ite, Christian and Druze groups fought a 1975-1990 civil war, maintains a governing system intended to balance sectarian groups. The prime minister is traditionally from the Sunni community, of which Hariri is the most influential leader.

On Friday, Hariri said in a tweet that his presence in Saudi Arabia was for “consultations on the future of the situation in Lebanon and its relations with the surrounding Arab region”.

His scheduled meeting with Macron in Paris on Saturday, and a lunch that his family will also attend, comes the day before Arab foreign ministers meet in Cairo to discuss Iran.

Maha Yahya, director of the Carnegie Middle East Centre in Beirut, says it appears Saudi Arabia hopes the ministers will adopt a “strongly worded statement” against Iran.

But she said not all the countries share Riyadh’s view that one way to confront Iran is to apply pressure on Lebanon.

“There is quite a widespread understanding that there is only so much Lebanon can do and it doesn’t serve anybody to turn Lebanon into your next arena for a fight between Iran and Saudi Arabia,” said.

(Reporting by Laila Bassam and Lisa Barrington; Writing by Angus McDowall; Editing by Larry King)

Hezbollah says Saudi declares war on Lebanon, detains Hariri

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

By Tom Perry and Ellen Francis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

AOUN TELLS SAUDI ENVOY HARIRI MUST RETURN

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

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

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

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

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

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

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

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

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

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

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

STUCK BETWEEN ANTAGONISTIC INTERESTS

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

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

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

Jumblatt said on Twitter there was no alternative to Hariri.

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

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

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

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

 

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

 

Middle East tensions loom over Dubai aerospace pageant

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

By Alexander Cornwell and Tim Hepher

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

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

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

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

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

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

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

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

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

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

 

SAUDI CRACKDOWN

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

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

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

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

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

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

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

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

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

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

 

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

 

Deep in Yemen war, Saudi fight against Iran falters

Deep in Yemen war, Saudi fight against Iran falters

By Noah Browning

MARIB, Yemen (Reuters) – At a hospital in the Yemeni city of Marib, demand for artificial limbs from victims of the country’s war is so high that prosthetics are made on site in a special workshop.

A soldier with an artificial arm hitches up his robe to reveal a stump where his leg once was. He is angry that authorities have done little to help him since he was wounded.

“I was at the front and a mortar exploded near me. We fought well, but now I get no salary, no support from the government or anyone. They just left us,” said Hassan Meigan.

More than two years into a war that has already left 10,000 dead, regional power Saudi Arabia is struggling to pull together an effective local military force to defeat the Iranian-aligned Houthi movement that has seized large parts of Yemen.

The dysfunction is a reminder to Saudi Crown Prince Mohammed bin Salman that his campaign to counter arch-enemy Iran in the Middle East, including threats against Tehran’s ally Hezbollah, may be hard to implement.

During a rare visit to a large area of Yemeni territory controlled by the pro-Saudi government, journalists saw a patchwork of mutually suspicious army units, whose loyalty to disparate regions and commanders has hindered their war against Houthi fighters.

Some soldiers appeared to be hunkering down in their bases rather than joining the fight. Those who do fight say salaries go unpaid for months. The front lines have barely moved for months.

Saudi Arabia has sought to create a unified military force based in Marib, but these troops have failed to eject the Houthis from the nearby capital Sanaa, where the Saudis see the rebels as a threat to their national security.

With Saudi politics in turmoil after a wave of high-profile arrests and Iranian influence growing, Yemeni officers recognize the importance of an effective army but acknowledge that success still eludes them.

“Empowering the National Army and unifying all weapons and authority under it is our goal. This is what we’re trying to accomplish so we can end the war with a military victory,” Brigadier General Marzooq al-Seyadi, a top Yemeni commander, told Reuters.

“The difficulties until now in achieving this in the face of local and ideological factors have posed problems … but with the aid of the Arab Coalition and the United States, which provides daily advice and support to our side, we will succeed.”

A coalition spokesman, Colonel Turki al-Malki, said in September that the mission was to back Yemen “whether it’s inside the country by supporting the Yemeni National Army or defending the borders and territory of the Kingdom of Saudi Arabia”.

Sunni Saudi Arabia has led the mostly Gulf Arab coalition against the Shi’ite Houthis, since they seized the Yemeni capital and fanned out across the country.

But the Houthis’ rump state in Yemen’s Western highlands has weathered thousands of Saudi-led air strikes that have been aided by refueling and intelligence from the United States.

Denying they are a pawn of Iran, the Houthis say they are fighting to fend off a mercenary army in the thrall of the Gulf and the West.

The group launched a missile toward Riyadh’s main airport on Saturday, which Saudi Arabia said was a declaration of war by Tehran.

But after years of fighting that have ravaged the deeply poor country with hunger and disease, even some of Saudi Arabia’s staunchest allies in Yemen say they are angry at being manipulated from abroad.

“We’re fighting as proxies … (Western powers) can end the war in Yemen. They can pressure Iran and Saudi Arabia, solve their issues and their differences,” said Ali Abd-Rabbu al-Qadhi, a lawmaker and tribal leader from Marib.

“It’s Yemeni blood that’s being shed … We’re one society with common roots and one religion, but the international conflict has brought us to where we are,” said al-Qadhi, who wore a holstered pistol over his traditional Yemeni sarong.

ONWARD TO SANAA

Despite the lack of progress on the battlefield, some soldiers on the dusty streets of Marib appeared eager to fight.

“Onward to Sanaa, God willing!” smiled Abdullah al-Sufi, 20, whose khaki fatigues hung loose on his gangly frame.

“We know there are foreign conspiracies on Yemeni soil, there are problems, there are setbacks. But we are fighting for our country and for our homes, that’s the important thing.”

As war started in March 2015, after Saudi Prince Mohammed sent in troops, Yemen’s most powerful units had already sided with Houthi militiamen to rain rockets and tank fire on Marib, which the fledgling new army and allied tribes repelled.

In the most ambitious military adventure in their history, troops from Saudi Arabia and the United Arab Emirates took part in that fight, but were stung by scores of combat deaths.

The Arab forces have largely pulled back to a support role in bases far from the front line.

Now units trained by Saudi Arabia fight in scattered theaters with little obvious coordination, loyal to different parties and local leaders in a society awash with guns and notorious for its fickle politics.

The kingdom supports brigades adhering to Sunni Islam’s puritanical Salafi school in Western Yemen, while also backing the Muslim Brotherhood around Marib and loyalists of exiled President Abd-Rabbu Mansour Hadi in the south.

Additionally, the United Arab Emirates, – the other key Gulf power in the anti-Iran war effort in Yemen – has armed and trained formidable units across southern and eastern Yemen.

To add to the confusion, these fighters despise the Houthis as well as pro-Saudi units in northern Yemen.

YOUNG MARTYRS

Displayed on walls all over Marib, portraits of slain soldiers are captioned with poems praising them as “martyrs” and “lions.”

“My son is sixteen. He said ‘dad, give me a gun, I want to fight.’ He goes to the front now. No father is happy with this, but what can we do? This is a war, this is the situation we’re in,” said one Marib veteran.

Yemen’s government also appears to be living through difficult times.

President Hadi has been in Riyadh since being ejected from his country by the Houthis, and sources said his hosts have banned him from traveling for over a month, citing poor security in Yemen. Officials in his office denied the reports.

But the Saudi response this week to the Houthi ballistic missile – to close all ports, borders and airspace, the majority of which are nominally under Hadi’s control – appeared to deal an unprecedented rebuke to their ally.

Activist Khalid Baqlan expressed the fear of many young people and professionals that the errors of a weak government and foreign powers were hollowing out Yemeni society.

“What we’re seeing is not the building of real state institutions but the empowerment of groups with competing agendas who could fight in the future, benefiting no one,” said Baqlan, from the Saba Youth Council, a civil society group.

“There has to be a political solution, it’s the only way to save the country.”

Yemen’s stalemated war: http://tmsnrt.rs/2zshXBc

(Editing by Giles Elgood)

Saudi Arabia makes fresh arrests in anti-graft crackdown: sources

Saudi Arabia makes fresh arrests in anti-graft crackdown: sources

By Stephen Kalin and Katie Paul

RIYADH (Reuters) – Saudi Arabian authorities have made further arrests and frozen more bank accounts in an expanding anti-corruption crackdown on the kingdom’s political and business elite, sources familiar with the matter said on Wednesday

Dozens of royal family members, officials and business executives have already been held in the purge announced on Saturday. They face allegations of money laundering, bribery, extortion and exploiting public office for personal gain.

But the sources, speaking on Wednesday, said a number of other individuals suspected of wrongdoing were detained in an expansion of the crackdown, widely seen as an initiative of the powerful heir to the throne, Crown Prince Mohammed bin Salman.

Others under scrutiny are being telephoned by investigators about their finances but appear to remain at liberty, one of the sources said, adding that the number of people targeted by the crackdown was expected eventually to rise into the hundreds.

The number of domestic bank accounts frozen as a result of the purge is over 1,700 and rising, up from 1,200 reported on Tuesday, banking sources said.

A number of those held most recently include individuals with links to the immediate family of the late Crown Prince and Defence Minister Prince Sultan bin Abdulaziz who died in 2011, the sources said.

STOCKS FALL

Others appear to be lower-level managers and officials, one of the sources said.

Many Saudis have cheered the purge as an attack on the theft of state funds by the rich, and U.S. President Donald Trump said those arrested had been “‘milking’ their country for years”.

But some Western officials expressed apprehension at the possible ramifications for the secretive tribal and royal politics of the world’s largest oil exporter.

Saudi Arabia’s stock market continued to fall in early trade on Wednesday because of concern about the economic impact of its anti-corruption purge. The Saudi index .TASI was 1.0 percent lower after half an hour of trade. Shares in companies linked to people detained in the investigation slid further.

Late on Tuesday, Crown Prince Mohammed bin Salman and the Saudi central bank sought to ease worries about the crackdown.

They said that while individuals were being targeted and having their bank accounts frozen, national and multinational companies – including those wholly or partly owned by individuals under investigation – would not be disrupted.

Anti-corruption authorities have also frozen the bank accounts of Prince Mohammed bin Nayef, one of the most senior members of the ruling Al Saud, and some of his immediate family members, the sources added.

Prince Mohammed, or MbN as he is known, was ousted as Crown Prince in June when King Salman replaced him with the then Deputy Crown Prince Mohammed bin Salman.

Since Sunday, the central bank has been expanding the list of accounts it is requiring lenders to freeze on an almost hourly basis, one regional banker said, declining to be named because he was not authorized to speak to media.

RIGHTS CONCERNS

MbN made his first confirmed public appearance since his ousting at the funeral on Tuesday for Prince Mansour bin Muqrin, deputy governor of Asir province, who was killed in a helicopter crash on Sunday. No cause has been given for the crash.

Among business executives detained in the probe so far are billionaire Prince Alwaleed bin Talal, chairman of investment firm Kingdom Holding <4280.SE>; Nasser bin Aqeel al-Tayyar, founder of Al Tayyar Travel <1810.SE>; and Amr al-Dabbagh, chairman of builder Red Sea International <4230.SE>.

The U.S. State Department said on Tuesday it had urged Saudi Arabia to carry out any prosecution of officials detained in a “fair and transparent” manner.

Commenting on the purge, Human Rights Watch called on Saudi authorities to “immediately reveal the legal and evidentiary basis for each person’s detention and make certain that each person detained can exercise their due process rights”.

“It’s great that Saudi authorities are declaring that they want to take on the scourge of corruption, but the right way to do that is through diligent judicial investigations against actual wrongdoing, not sensationalistic mass arrests to a luxury hotel,” Right Watch official Sarah Leah Whitson in a statement.

(Reporting by Samia Nakhoul, Stephen Kalin, Katie Paul, Reem Shamseddine and Andrew Torchia; Additional reporting by Tom Arnold in Dubai; Writing by William Maclean; Editing by Matthew Mpoke Bigg)

White House condemns missile attacks on Saudi by Yemen’s Houthis

White House condemns missile attacks on Saudi by Yemen's Houthis

BEIJING (Reuters) – The White House on Wednesday condemned missile attacks by Yemen’s Houthi militias on Saudi Arabia, saying they threatened the region’s security and undermined efforts to halt the conflict.

Saudi Arabia said its air defense forces intercepted a ballistic missile fired from warring Yemen over the capital Riyadh on Saturday. The rocket was brought down near King Khaled Airport on the northern outskirts of the capital.

Saudi Arabia’s Crown Prince Mohammed bin Salman said Iran’s supply of rockets to militias in Yemen was an act of “direct military aggression” that could be an act of war.

“Houthi missile attacks against Saudi Arabia, enabled by Iran’s Islamic Revolutionary Guard Corps, threaten regional security and undermine UN efforts to negotiate an end to the conflict,” the White House said in a statement as U.S. President Donald Trump began a visit to the Chinese capital.

“These missile systems were not present in Yemen before the conflict, and we call upon the United Nations to conduct a thorough examination of evidence that the Iranian regime is perpetuating the war in Yemen to advance its regional ambitions,” the statement added.

It said the United States would continue working with other “like-minded” partners to respond to such attacks and expose what it called Iran’s destabilizing activities in the region.

Iran denied it was behind the missile launch. On Wednesday, Iranian President Hassan Rouhani said missile attacks from Yemen were a reaction to what he called Saudi aggression.

In reaction to the missile, the Saudi-led coalition closed all air, land and sea ports to the impoverished country. It also intensified air strikes on areas controlled by the Houthis including the capital Sanaa.

The war has killed more than 10,000 people and triggered one of the worst man-made humanitarian disasters in recent history.

The United Nations on Tuesday called on the coalition to re-open an aid lifeline into Yemen, saying food and medicine imports were vital for 7 million people facing famine.

(Reporting by Ben Blanchard, writing by Aziz El Yaakoubi, Editing by William Macldan)

Saudi mass arrests jolt markets, play to ire over corruption

Saudi mass arrests jolt markets, play to ire over corruption

By Katie Paul and Stephen Kalin

RIYADH (Reuters) – Most major Gulf stock markets slid early on Tuesday on jitters about Saudi Arabia’s sweeping anti-graft purge, a campaign seen by critics as a populist power grab but by ordinary Saudis as an overdue attack on the sleaze of a moneyed ultra-elite.

U.S. President Donald Trump endorsed the crackdown, saying some of those arrested “have been ‘milking’ their country for years”, but some Western officials expressed unease about the possible reaction in Riyadh’s opaque tribal and royal politics.

Authorities detained dozens of top Saudis including billionaire Prince Alwaleed bin Talal in a move widely seen as an attempt by Crown Prince Mohammed bin Salman to neuter any opposition to his lightening ascent to the pinnacle of power.

Admirers see it as an assault on the endemic theft of public funds in the world’s top oil exporter, an absolute monarchy.

“Corruption should have been fought a long time ago, because it’s corruption that delays society’s development,” Riyadh resident Hussein al-Dosari told Reuters.

“God willing, everything that happened … is only the beginning of what is planned,” said Faisal bin Ali, adding he wanted to see “correcting mistakes, correcting ministries and correcting any injustices against the general population.”

But some analysts see the arrests as the latest in a string of moves shifting power from a consensus-based system dispersing authority among the ruling Al Saud to a governing structure centered around 32-year-old Prince Mohammed himself.

Investors worry that his campaign against corruption — involving the arrests of the kingdom’s most internationally-well known businessmen — could see the ownership of businesses and assets become vulnerable to unpredictable policy shifts.

INVESTOR NERVES

The Saudi stock index .TASI was down 1.6 percent after 75 minutes of trade. Shares linked to people detained in the investigation led falls. [L5N1ND2CR]

Among them, Prince Alwaleed’s Kingdom Holding plunged by its 10 percent daily limit, bringing its losses in the three days since the investigation was announced to 21 percent.

In Dubai, where Saudis have been significant investors, the index slipped 0.6 percent. The index in Abu Dhabi, less exposed to Saudi money, inched up 0.1 percent. But Kuwait continued to slide, with its index losing 3.8 percent.

The show of investor nerves coincided with sharply heightened strains between Riyadh and Tehran, reflected in a fresh denunciation of adversary Iran by Prince Mohammed over its role in Yemen, and by continuing mutual acrimony over political turmoil in Lebanon, another cockpit of Iranian-Saudi rivalry.

Displaying an apparently undimmed taste for navigating several challenges simultaneously, Prince Mohammed said Iran’s supply of rockets to militias in Yemen is an act of “direct military aggression” that could be an act of war.

He was speaking in a phone call with British Foreign Minister Boris Johnson after Saudi air defense forces intercepted a ballistic missile they said was fired toward Riyadh on Saturday by the Houthis.

Saudi-led forces, which back the internationally-recognized government, have been targeting the Houthis in a war which has killed more than 10,000 people and triggered a humanitarian disaster in one of the region’s poorest countries.

Iran has denied it was behind the missile launch, rejecting the Saudi and U.S. statements condemning Tehran as “destructive and provocative” and “slanders”.

The coincidence of heightened Saudi-Iranian tensions and Saudi domestic political upheaval has stirred unease among some Western governments and analysts about the emergence of an impromptu policy-making style under Prince Mohammed.

“He seems to be pushing the creation of a personalized system of rule without the checks and balances that have typically characterized the Saudi system of governance,” wrote Marc Lynch, professor of political science and international affairs at George Washington University, in the Washington Post.

“In both domestic and foreign affairs, he has consistently undertaken sudden and wide-ranging campaigns for unclear reasons which shatter prevailing norms.”

PIVOTAL POWER BASE

Among those held in the anti-graft purge was Prince Miteb bin Abdullah, who was replaced as minister of the National Guard, a pivotal power base rooted in the kingdom’s tribes. That recalled a palace coup in June that ousted Mohammed bin Nayef as heir to the throne.

A former senior U.S. intelligence official cautioned that given the National Guard’s loyalties, Prince Mohammed, widely known as MbS, could face a backlash.

“I find it difficult to believe that it (National Guard) will simply roll over and accept the imposition of new leadership in such an arbitrary fashion.”

But the crackdown may go some way to soothing public disgust over financial abuses by the powerful, some Saudis say.

“There is no doubt that it (the detentions) soothes the anger of the regular citizen who felt that such names and senior leaders who appeared in the list were immune from legal accountability,” said a Saudi-based political analyst Mansour al-Ameer.

“Its spread to the general population is evidence that no one is excluded from legal accountability, and this will eventually benefit the citizen and (national) development.”

(Reporting by Gulf team, Writing by William Maclean,Editing by Jon Boyle)

U.N. calls for Saudi-led coalition to re-open aid lifeline to Yemen

U.N. calls for Saudi-led coalition to re-open aid lifeline to Yemen

By Stephanie Nebehay

GENEVA (Reuters) – The United Nations urged the Saudi-led coalition fighting in Yemen to re-open an aid lifeline to bring imported food and medicine into Yemen, whose 7 million people are facing famine in a country that is already the world’s worst humanitarian crisis.

The Saudi-led coalition fighting the Houthi movement in Yemen said on Monday it would close all air, land and sea ports to the Arabian Peninsula country to stem the flow of arms from Iran.

The Saudis and their allies say the Houthis get weapons from their arch-foe, Iran. Iran denies the charges and blames the conflict in Yemen on Riyadh.

Humanitarian operations – including U.N. aid flights – are currently “blocked” because air and sea ports in Yemen are closed, Jens Laerke of the U.N. Office for the Coordination for Humanitarian Affairs (OCHA) told a news briefing on Tuesday.

The Saudi-led coalition has told the world body to “inform all commercial vessels at Hodeidah and Saleef ports to leave”, he said, referring to Red Sea ports controlled by the Houthis.

“We call for all air and sea ports to remain open to ensure food, fuel and medicines can enter the country,” Laerke said.

“The situation is catastrophic in Yemen, it is the worst food crisis we are looking at in the world today, 7 million people are on the brink of famine, millions of people being kept alive by our humanitarian operations,” he said.

The price of fuel jumped 60 percent “overnight” in Yemen and the price of cooking gas doubled, as long lines of cars are reported forming at petrol stations, he added.

“We hear reports this morning of prices of cooking gas and petrol for cars and so on is already spiraling out of control,” he said. “So this is an access problem of colossal dimensions right now.”

Rupert Colville, U.N. human rights spokesman, said the office would study whether the blockade amounted to “collective punishment”, banned under international law but hoped that it would be temporary.

The U.N. human rights office was deeply concerned at a series of attacks in Yemen over the past week that have killed dozens of civilians, including children, at markets and homes, he said.

These included at least nine air strikes on the Houthi-held city of Sanaa since Saturday, when a missile was fired from Yemen toward the Saudi capital of Riyadh, he said.

The World Health Organization (WHO) also called for medical aid to be allowed to enter Yemen to combat a cholera epidemic which has caused 908,702 suspected cases and 2,194 deaths since the outbreak began in April, WHO spokeswoman Fadela Chaib said.

(Reporting by Stephanie Nebehay,; editing by Larry King)

Saudi crown prince calls Iran supply of rockets ‘military aggression’

Saudi crown prince calls Iran supply of rockets 'military aggression'

DUBAI (Reuters) – Saudi Arabia’s crown prince said Iran’s supply of rockets to militias in Yemen is an act of “direct military aggression” that could be an act of war, state media reported on Tuesday.

Prince Mohammed bin Salman’s comments were published after Saudi air defense forces intercepted a ballistic missile that Saudi Arabia said was fired toward Riyadh on Saturday by the Iran-allied Houthi militia, which controls large parts of neighboring Yemen.

Saudi-led forces, which back the internationally-recognized government, have been targeting the Houthis in a war which has killed more than 10,000 people and triggered a humanitarian disaster in one of the region’s poorest countries.

The supply of rockets to the Houthi movement could “constitute an act of war against the kingdom,” state news agency SPA on Tuesday quoted Prince Salman as saying in a call with British Foreign Minister Boris Johnson.

Iran has denied it was behind the missile launch, rejecting the Saudi and U.S. statements condemning Tehran as “destructive and provocative” and “slanders”.

In reaction to the missile, the Saudi-led military coalition said on Monday it would close all air, land and sea ports to the Arabian Peninsula country.

The United Nations on Tuesday called on the coalition to re-open an aid lifeline into Yemen, saying food and medicine imports were vital for 7 million people facing famine.

“The situation is catastrophic in Yemen, it is the worst food crisis we are looking at today,” Jens Laerke of the U.N. Office for the Coordination for Humanitarian Affairs (OCHA) told a briefing in Geneva.

The missile launch was “most likely a war crime” Human Rights Watch said on Tuesday but also urged Saudi Arabia against restricting aid access to Yemen, where the United Nations estimates nearly 900,000 people are infected with cholera.

“This unlawful attack is no justification for Saudi Arabia to exacerbate Yemen’s humanitarian catastrophe by further restricting aid and access to the country,” it said.

The coalition said aid workers and humanitarian supplies would continue to be able to access and exit Yemen despite the temporary closure of ports but the United Nations said it was not given approval for two scheduled humanitarian flights on Monday.

The United Nations and international aid organizations have repeatedly criticized the coalition for blocking aid access, especially to northern Yemen, which is held by the Houthis.

The Saudi-led coalition has been targeting the Houthis since they seized parts of Yemen in 2015, including the capital Sanaa, forcing President Abd-Rabbu Mansour Hadi to flee and seek help from neighboring Saudi Arabia.

In an interview with CNN television on Monday, Saudi Foreign Minister Adel al-Jubeir accused the armed Lebanese Hezbollah group of firing the missile at Riyadh from Houthi-held territory.

“With regards to the missile…that was launched on Saudi territory, it was an Iranian missile launched by Hezbollah from territory occupied by the Houthis in Yemen.”

He said the missile was similar to one launched in July at Yanbu in Saudi Arabia and was manufactured in Iran, disassembled and smuggled into Yemen, then reassembled by the operatives of the Iranian Revolutionary Guards and Hezbollah, “then it was launched into Saudi Arabia.”

(Reporting by Sylvia Westall and Rania El Gamal in Dubai and Tom Perry in Beirut and Stephanie Nebehay in Geneva, Writing By Maha El Dahan; Editing by Matthew Mpoke Bigg/William Maclean)

Purge of Saudi princes, businessmen widens, travel curbs imposed

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

By Stephen Kalin and Reem Shamseddine

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

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

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

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

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

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

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

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

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

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

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

 

ACCOUNTS FROZEN

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

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

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

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

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

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

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

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

 

“THE NOOSE TIGHTENS”

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

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

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

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

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

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

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

 

“OVERKILL”

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

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

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

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

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

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

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

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

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

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

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

 

(Reporting By Stephen Kalin, Editing by William Maclean)