With the 2018 World Cup in Russia behind it, the soccer world’s focus shifts to the 2022 tournament in Qatar. Politics and the Gulf’s internecine political and legal battles have already shaped debate about FIFA’s controversial awarding of World Cup hosting rights to Qatar. The battles highlight not only the sport’s dominance in the Middle East by autocratic leaders but also the incestuous relationship between politics and sports that is at the root of multiple scandals that have rocked the sports world for much of this decade and compromised good governance in international sports.
Three men symbolize the importance of soccer to Gulf autocrats who see the sport as a way to project their countries in a positive light on the international stage, harness its popular appeal in their cultural and public diplomacy campaigns, and leverage it as a pillar of their efforts to garner soft power: Qatari emir Sheikh Tamim bin Hamad Al Thani and his nemeses, United Arab Emirates Crown Prince Mohammed bin Zayed and Saudi sports czar, Turki al-Sheikh, one of Saudi Crown Prince Mohammed bin Salman’s closest associates.
To be sure, tension between Qatar and its Gulf detractors was spilling onto the soccer pitch long before the UAE, Saudi Arabia, Bahrain and Egypt took their opposition to Qatari policies to a new level with the imposition in June 2017 of a diplomatic and economic boycott of Qatar. Since then, debate about the Qatari World Cup has been further politicized with the Gulf crisis driving efforts to deprive Qatar of economic and soft power benefits it derives from its hosting of the tournament, if not of the right to host the mega-sports event.
The UAE-Saudi efforts took on added significance as Qatar and its detractors settled in for the long haul. Saudi Arabia, the UAE, Bahrain and Egypt will likely face difficult choices if the Gulf crisis persists when the World Cup, the first such mega-tournament to be held in the Middle East, kicks off in Doha in late 2022.
The choice would involve potential political risk. It would be between maintaining the boycott that has cut off all air, sea and land links between Qatar and its detractors at the expense of fans in a soccer-crazy part of the world in which little evokes the deep-seated emotions associated with religion and football or effectively breaching the embargo to evade political backlash and ensure that supporters have access to a sports milestone in the region’s history. The starkness of the boycotting states’ dilemma would be magnified if any one of them were to qualify for the Qatar World Cup and would be enhanced if they were to play the host country or, for example, Iran.
The issue of ability to attend is magnified by expectations that the demography of fans attending the World Cup in Qatar may very well be a different from that at past tournaments. Qatar is likely to attract a far greater number of fans from the Middle East as well as Africa and Asia. The Asian Football Confederation’s Competition Committee has already urged governments to exempt football teams from travel bans and would almost certainly do the same for fans.
As a result, the UAE-Saudi effort to undermine the Qatar World Cup is about more than seeking to deliver a body blow to Qatar. It is also about avoiding being further tied up into knots in an anti-Qatari campaign that has so far failed to break the Gulf state’s resolve, force it to concede, and garner international support. The campaign is multi-pronged and doesn’t shy away from violating laws as is evident in Saudi bootlegging to deprive beIN, the sports franchise of Qatar’s state-owned Al Jazeera television network, of the fruits of acquired rights to broadcast World Cup tournaments and European competitions at the risk of being penalized and/or taken to court by the likes of FIFA and the English Premier League. Saudi media reports that the government has launched an anti-piracy campaign, confiscating more than 4,000 illegal receivers that hacked beIN failed to put an end to the bootlegging.
Signalling the political importance that men like the crown princes and Sheikh Tamim attribute to sports, a former top UAE security official, Lt. Gen. Dhahi Khalfan, suggested that the only way to resolve the Gulf crisis would be for Qatar to surrender its World Cup hosting rights. “If the World Cup leaves Qatar, Qatar’s crisis will be over … because the crisis is created to get away from it,” Mr. Khalfan said.
Mr. Khalfan spoke at a time that leaked documents from the email account of Yousef Al-Otaiba, the UAE ambassador in Washington and a close associate of the country’s crown prince, revealed a UAE plan to undermine Qatar’s currency by manipulating the value of bonds and derivatives. If successfully executed, the plan would have allowed Qatar’s distractors to argue that the Gulf state’s financial problems called into question its ability to organize the World Cup.
Serving national interests
Mr. Al-Sheikh, the chairman of the kingdom’s General Sport Authority, makes no bones about harnessing sports to serve the kingdom’s interests. With a career in security rather than sports, he was unequivocal in his assertion on the eve of Saudi Arabia’s debut in the 2018 World Cup in Russia that he made decisions based on what he deemed “Saudi Arabia’s best interest,” reaffirming the inextricable relationship between sports and politics.
Barely 24 hours before the World Cup’s opening match, Saudi Arabia made good on Mr. Al-Sheikh’s assertion that the kingdom’s international sports policy would be driven by former US President George W. Bush’s post 9/11 principle of “you are either with us or against us.”
With Morocco’s bid for the 2026 World Cup in mind, Mr. Al-Sheikh had warned that “to be in the grey area is no longer acceptable to us. There are those who were mistaken in their direction … If you want support, it’ll be in Riyadh. What you’re doing is a waste of time…,” Mr. Al-Sheikh said. Mr. Al-Sheikh was referring to Morocco’s refusal to join the anti-Qatari campaign. Adopting a Saudi Arabia First approach, Mr. Al-Sheikh noted that the United States “is our biggest and strongest ally.” He recalled that when the World Cup was played in 1994 in nine American cities, the US “was one of our favourites. The fans were numerous, and the Saudi team achieved good results.”
Mr. Al-Sheikh was manoeuvring at the same time to ensure that the kingdom has greater say in international soccer governance, including issues such as the fate of the Qatari World Cup and a push to extend international isolation of Iran to the realm of sports. To do so, Saudi Arabia backed a proposal to speed up the expansion of the World Cup to 48 teams from 32, which is scheduled to kick off in 2026, by making it already applicable to the 2022 World Cup. Saudi Arabia hopes that the expansion would significantly complicate Qatari preparations for the event. Implementing the expansion in 2022 would strengthen UAE and Saudi efforts to petition FIFA to force Qatar to agree to co-hosting of the World Cup by other Gulf states, a proposal that was incorporated in the UAE plan to undermine Qatar’s currency.
In an indication of things to come, the Asian Football Confederation (AFC) in early 2018 thwarted a UAE-Saudi attempt to get Asian tournament matches that were scheduled to be hosted by Qatar moved to a neutral venue. The AFC warned the two countries that they would be penalized if they failed to play in Doha or host Qatari teams.
Mr. Al-Sheikh’s moves were part of a two-pronged Saudi-UAE effort. Global tech investor Softbank, which counts Saudi Arabia and the UAE among its largest investors, is believed to be behind a $25 billion proposal embraced by FIFA president Gianni Infantino to revamp the FIFA Club World Cup and launch of a Global Nations League tournament. If approved, the proposal would give Saudi Arabia a significant voice in global soccer governance.
Complimenting the Saudi FIFA bid is an effort to expand the kingdom’s influence in the 47-nation AFC, the largest of the world soccer body’s constituent regional elements. To do so, Saudi Arabia unsuccessfully tried to create a new regional bloc, the South West Asian Football Federation (SWAFF), a potential violation of FIFA and AFC rules. The federation would have been made up of members of both the AFC and the Amman-based West Asian Football Federation (WAFF) that groups all Middle Eastern nations except for Israel and is headed by Jordanian Prince Ali Bin Al-Hussein, a prominent advocate of soccer governance reform.
The initiative fell apart when the Asian members of SWAFF walked out in October 2018 in the wake of the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. The killing could also jeopardize Saudi efforts to gain control of the AFC with the Al-Sheikh-backed candidacy of Saudi Football Federation chief Adel Ezzat, who resigned in August 2018 to run for the office..
Benefits outstrip reputational risk
Mr. Al-Sheikh and his boss, Prince Mohammed, share with the crown prince’s UAE counterpart and namesake, a belief that the public diplomacy and soft power fruits of harnessing sports outstrip reputational risks. Simon Pearce, Abu Dhabi’s director of strategic communications and a director of Manchester City, the British club bought by UAE Crown Prince Mohammed’s brother but controlled by the de facto Emirati ruler’s men, said as much in leaked emails to Mr. Al-Otaiba, the UAE ambassador in Washington.
The emails discussed the UAE’s registration of a new soccer club, New York City Football Club, as the United States’ Major League Soccer newest franchise. Mr. Pearce argued that Abu Dhabi’s interests in the US political environment are best served by associating New York City FC with City Football Group, the Abu Dhabi government’s soccer investment vehicle, rather than the government itself to evade criticism stemming from the Emirates’ criminalization of homosexuality, its less than stellar record on women’s rights and its refusal to formally recognize Israel despite maintaining close security and commercial relations with the Jewish state.
The UAE’s sports-related investments, guided by the crown prince, much like the acquisition of important Qatari sports stakes on the behest of Sheikh Tamim also give Gulf states political leverage and create additional commercial opportunity. The investments constitute the flip side of large amounts of Gulf money being channelled to influential think tanks, particularly in Washington. In a series of notes in 2012, Mr. Pearce advised Prince Mohammed, a man obsessed with perceived threats posed by any form of political Islam and a driving force in the campaign against Qatar, to tempt than British prime minister David Cameron to counter what he described as Islamist infiltration of the BBC’s Arabic service in exchange for lucrative arms and oil deals.
To illustrate the UAE and Qatar’s sway in European soccer, Nicholas McGeehan, an independent researcher and former Human Rights Watch executive focussed on the region, looked at recent bookies odds for the Champions League. Abu Dhabi-owned Manchester City was the favourite followed by Qatar’s Paris Saint-Germain. Third up was Bayern Munich, whose shirts are sponsored by Qatar, fourth was Barcelona, which recently ended a seven-year sponsorship deal with Qatar, and fifth Real Madrid that sold the naming rights to its new stadium to Abu Dhabi.
Saudi and UAE public relations efforts to generate public pressure for a deprival of Qatari hosting rights were at times mired in controversy. The launch in May of the Foundation for Sports Integrity by Jamie Fuller, a prominent Australian campaigner for a clean-up of global soccer governance, backfired amid allegations of Saudi and UAE financial backing and Mr. Fuller’s refusal to disclose his source of funding.
Saudi and UAE media together with UK tabloid The Sun heralded the launch in a poche London hotel that involved a reiteration of assertions of Qatari wrongdoing in its successful World Cup bid. Media like Abu Dhabi’s The National and Saudi Arabia’s Al Arabiya projected the launch as pressure on FIFA to deprive Qatar of its hosting rights. “It is no secret that football’s governing body is rotten to the core. (FIFA) will rightly come under renewed pressure to strip Qatar of the competition and carry out an internal investigation in the wake of the most recent allegations. The millions of fans eagerly anticipating 2022’s festival of football deserve better,” The National said. Saudi-owned Ash-Sharq Al Awsat newspaper reported that a June 2018 FIFA Congress would hold a re-vote of the Qatari hosting. The Congress didn’t.
Qatar remains vulnerable
Despite so far successfully having defeated efforts to deprive it of its hosting rights, Qatar remains vulnerable when it comes to the integrity of its winning bid. The bid’s integrity and Sheikh Tamim’s emphasis on sports as a pillar of Qatari soft power is at stake in legal proceedings in New York and Zurich involving corruption in FIFA and potential wrongdoing in the awarding of past World Cups. Qatar has suffered reputational damage as a result of the question marks even if the Gulf crisis has allowed it to enhance its image as an underdog being bullied by the big boys on the block.
To Qatar’s credit, it has introduced reforms of its controversial kafala or labour sponsorship system that could become a model for the region. In doing so, it cemented the 2022 World Cup as one of the few mega-events with a real potential of leaving a legacy of change. Qatar started laying the foundations for that change by early on becoming the first and only Gulf state to engage with its critics, international human rights groups and trade unions.
Even so, Qatar initially suffered reputational damage on the labour front because it was relatively slow in embracing and implementing the reforms. Qatar’s handling of the Gulf crisis suggests that it has learnt from the failure of its initial response to criticism of its winning 2022 bid when it acted like an ostrich that puts its head in the sand, hoping that the storm will pass only to find that by the time it rears its head the wound has festered, and it has lost strategic advantage.
The integrity issue remains Qatar’s weak point. For activist critics of the awarding of hosting rights to Qatar, there are two questions. One is, who do they want to get in bed with? Qatar’s detractors, the United Arab Emirates and Saudi Arabia hardly have stellar human and labour rights records. If anything, their records are worse than that of Qatar, which admittedly does not glow.
The second question critics have to ask themselves is how best to leverage the World Cup, irrespective of whether the Qatari bid was compromised or not. On the assumption that it may have been compromised, the question is less how to exact retribution for a wrong doing that was common practice in global football governance. Leveraging should focus on how to achieve a fundamental reform of global sports governance that has yet to emerge eight years into a crisis that was in part sparked by the Qatar World Cup. This goes to the heart of the fact that untouched in efforts to address the governance crisis is the corrupting, ungoverned, and incestuous relationship between sports and politics.
Siamese twins: sports and politics
The future of the Qatar World Cup and the Gulf crisis speaks to the pervasiveness of politics in sports. The World Cup is political by definition. Retaining Qatar’s hosting rights or depriving the Gulf state of the right to host the tournament is ultimately a choice with political consequences. As long as the crisis continues, retaining rights is a testimony to Qatar’s resilience, deprival would be a victory for its detractors.
As a result, the real yardstick in the debate about the Qatari World Cup should be how the sport and the integrity of the sport benefit most. And even then, politics is never far from what the outcome of that debate is. Obviously, instinctively, the optics of no retribution raises the question of how that benefits integrity. The answer is that the potential legacy of social and economic change that is already evident with the Qatar World Cup is more important than the feel-good effect of having done the right thing with retribution or the notion of setting an example. Add to that the fact that in current circumstances, a withdrawal of hosting rights would likely be interpreted as a victory of one side over the other, further divide the Arab and Muslim world, and enhance a sense among many Muslims of being on the defensive and under attack.
The silver lining in the Gulf crisis may be the fact that it has showed up the fiction of a separation of sports and politics. FIFA, the AFC, and the Confederation of African Football (CAF), seeking to police the ban on a mixing of sports and politics, have discovered that it amounts to banging their heads against a wall. Despite their attempts to halt politics from subverting Asian tournaments, domestic and regional politics seeped into the game via different avenues.
As a result, FIFA and its regional confederations have been tying themselves up in knots. In a bizarre and contradictory sequence of events at the outset of the Gulf crisis, FIFA president Infantino rejected involving the group in the dispute by saying that “the essential role of FIFA, as I understand it, is to deal with football and not to interfere in geopolitics.” Yet, on the same day that he made his statement, Mr. Infantino waded into the crisis by removing a Qatari referee from a 2018 World Cup qualifier at the request of the UAE. FIFA, beyond declaring that the decision was taken “in view of the current geopolitical situation,” appeared to be saying by implication that a Qatari by definition of his nationality could not be an honest arbiter of a soccer match involving one of his country’s detractors. In FIFA’s decision, politics trumped professionalism, no pun intended.
Similarly, the AFC was less principled in its stand towards matches pitting Saudi Arabia and Iran against one another. Iranian club Traktor Sazi was forced in February to play its home match against Al Ahli of Jeddah in Oman. It wasn’t clear why the AFC did not uphold the principle it imposed on Qatar, the UAE and Saudi Arabia in the case of Iran. “Saudi teams have been able to select host stadiums and cities, and Saudi teams will host two Iranian football representatives in the UAE and Kuwait. In return, Iranian football representatives should be able to use their own rights to choose neutral venues,” said Mohammad Reza Saket, the head of the Islamic Republic of Iran’s Football Federation in a letter to the AFC.
Soccer governance bodies have long struggled to maintain the fiction of a separation in a trade-off that gave regulators greater autonomy and created the breeding ground for widespread corruption while allowing governments and politicians to manipulate the sport to their advantage as long as they were not too blatant about it. The limits of that deal are currently being defined in the Middle East, a region wracked by conflict where virtually everything is politicized.
Israel-China Relations: Staring Into the Abyss of US-Chinese Decoupling
Israel knew the drill even before US Secretary of State Mike Pompeo boarded his flight to Tel Aviv earlier this month four days after the death of his father. It was Mr. Pompeo’s first and only overseas trip since March.
Echoing a US warning two decades ago that Israeli dealings with China jeopardized the country’s relationship with the United States, Mr. Pompeo’s trip solidified Israel’s position at the cusp of the widening US-Chinese divide.
Two decades ago the issue was the potential sale to China of Israeli Phalcon airborne warning and control systems (AWACS). Israel backed out of the deal after the US threatened withdrawal of American support for the Jewish state.
This month the immediate issue was a Chinese bid for construction of the world’s largest desalination plant and on the horizon a larger US-Chinese battle for a dominating presence in Eastern Mediterranean ports.
Within days of his visit, Mr. Pompeo scored a China-related success even if the main focus of his talks with Prime Minister Benyamin Netanyahu was believed to be Iran and Israeli plans to annex portions of the West Bank, occupied by Israel since 1967.
Israel signalled that it had heard the secretary’s message by awarding the contract for the Sorek-2 desalination plant to an Israeli rather than a Chinese company.
The tender, however, is only the tip of the iceberg.
China’s interest in Israel is strategic given the fact that the Jewish state is one of the world’s foremost commercial, food and security technology powerhouses and one of the few foreign countries to command significant grassroots support in the United States.
If there is one thing Israel cannot afford, it is a rupture in its bonds to the United States. That is no truer than at a time in which the United States is the only power supportive of Israeli annexation plans on the West Bank.
The question is whether Israel can develop a formula that convinces the United States that US interests will delineate Israeli dealings with China and reassure China that it can still benefit from Israeli assets within those boundaries.
“Right now, without taking the right steps, we are looking at being put in the situation in which the US is telling us we need to cut or limit our relations with China. The problem is that Israel wants freedom of relations with China but is not showing it really understands US concerns. Sorek-2 was a good result. It shows the Americans we get it.” said Carice Witte, executive director of Sino-Israel Global Network and Academic Leadership (SIGNAL) that seeks to advance Israeli-Chinese relations.
Analysts, including Ms. Witte, believe that there is a silver lining in Israel’s refusal to award the desalination plant to a Chinese company that would allow it to steer a middle course between the United States and China.
“China understands that by giving the Americans this win, China-Israel relations can continue. It gives them breathing room,” Ms. Witte said in an interview.
It will, however, be up to Israel to develop criteria and policies that accommodate the United States and make clear to China what Israel can and cannot do.
“In order for Israel to have what it wants… it’s going to need to show the Americans that it takes Washington’s strategic perceptions into consideration and not only that, that it’s two steps ahead on strategic thinking with respect to China. The question is how.” Ms. Witte said.
Ports and technology are likely to be focal points.
China is set to next year takeover the management of Haifa port where it has already built its own pier and is constructing a new port in Ashdod.
One way of attempting to address US concerns would be to include technology companies in the purview of a still relatively toothless board created under US pressure in the wake of the Haifa deal to review foreign investment in Israel. It would build in a safeguard against giving China access to dual civilian-military use technology.
That, however, may not be enough to shield Israel against increased US pressure to reduce Chinese involvement in Israeli ports.
“The parallels between the desalination plant and the port are just too close to ignore. We can’t have another infrastructure divide,” Ms. Witte said.
The two Israeli ports will add to what is becoming a Chinese string of pearls in the Eastern Mediterranean.
China already manages the Greek port of Piraeus.
China Harbour Engineering Company Ltd (CHEC) is looking at upgrading Lebanon’s deep seaport of Tripoli to allow it to accommodate larger vessels.
Qingdao Haixi Heavy-Duty Machinery Co. has sold Tripoli port two 28-storey container cranes capable of lifting and transporting more than 700 containers a day, while a container vessel belonging to Chinese state-owned shipping company COSCO docked in Tripoli in December 2018, inaugurating a new maritime route between China and the Mediterranean.
Major Chinese construction companies are also looking at building a railroad that would connect Beirut and Tripoli in Lebanon to Homs and Aleppo in Syria. China has further suggested that Tripoli could become a special economic zone within the Belt and Road Initiative (BRI) and serve as an important trans-shipment point between the People’s Republic and Europe.
BRI is a massive infrastructure, telecommunications and energy-driven effort to connect the Eurasian landmass to China.
Potential Chinese involvement in reconstruction of post-war Syria would likely give it access to the ports of Latakia and Tartous.
Taken together, China is looking at dominating the Eastern Mediterranean with six ports in four countries, Israel, Greece, Lebanon, and Syria that would create an alternative to the Suez Canal.
All that is missing are Turkish, Cypriot and Egyptian ports.
The Chinese build- up threatens to complicate US and NATO’s ability to manoeuvre in the region.
The Trump administration has already warned Israel that Chinese involvement in Haifa could jeopardize continued use of the port by the US fifth fleet.
“The writing is on the wall. Israel needs to carve out a degree of wiggle room. That however will only come at a price. There is little doubt that Haifa will move into the firing line,” said a long-time observer of Israeli-Chinese relations.
Will Gulf States Learn From Their Success in Handling the Pandemic?
The economic fallout of the coronavirus pandemic for Gulf states has done far more than play havoc with their revenue base and fiscal household. It has propelled massive structural change to the top of their agenda in ways that economic diversification plans had not accounted for.
Leave aside whether Gulf states can continue to focus on high-profile, attention-grabbing projects like Neom, Saudi Arabia’s $500 billion USD 21st century futuristic city on the Red Sea.
Gulf rulers’ to do list, if they want to get things right, is long and expensive without the burden of trophy projects. It involves economic as well as social and ultimately political change.
Transparency and accurate and detailed public reporting go to the core of these changes.
They also are key to decisions by investors, economists, and credit rating companies at a time when Gulf states’ economic outlook is in question. Many complain that delays in GDP reporting and lack of easy access to statistics complicates their decision-making.
Nonetheless, if there is one thing autocratic Gulf governments have going for themselves, beyond substantial financial reserves, it is public confidence in the way they handled the pandemic, despite the fact that they failed to initially recognize crowded living circumstances of migrant workers as a super spreader.
Most governments acted early and decisively with lockdowns and curfews, testing, border closures, repatriation of nationals abroad, and, in Saudi Arabia, suspension of pilgrimages.
To be sure, Gulf countries, and particularly Saudi Arabia that receives millions of Muslim pilgrims from across the globe each year, have a long-standing history of dealing with epidemics. Like Singapore, South Korea, and Taiwan, they were better prepared than Western nations.
History persuaded the kingdom to ban the umrah, the lesser Muslim pilgrimage to Mecca, in late February, days before the first case of a Covid-19 infection emerged on Saudi soil.
Beyond public health concerns, Saudi Arabia had an additional reason to get the pandemic right. It offered the kingdom not only an opportunity to globally polish its image, badly tarnished by human rights abuses, power grabs, and the killing of journalist Jamal Khashoggi, but also to retain religious influence despite the interruption in the flow of pilgrims to the kingdom.
“Saudi Arabia is still a reference for many Muslim communities around the world,” said Yasmine Farouk, a scholar of Saudi Arabia at the Carnegie Endowment for International Peace.
It also allowed Saudi Arabia to set the record straight following criticism of its handling of the Middle East Respiratory Syndrome (MERS) in 2012 when the kingdom became the epidemic’s epicenter and in 2009 when it was hit by the H1N1 virus.
Saudi Arabia is also blamed for contributing to a public health catastrophe in Yemen with its frequent indiscriminate bombings.
A country in ruins as a result of the military intervention, Yemen has grappled for the past four years with a cholera epidemic on the kingdom’s borders.
Trust in Gulf states’ handling of the current pandemic was bolstered by degrees of transparency on the development of the disease in daily updates in the number of casualties and fatalities.
It was further boosted by a speech by King Salman as soon as the pandemic hit the kingdom in which he announced a raft of measures to counter the disease and support the economy as well as assurances by agriculture minister Abdulrahman al-Fadli that the crisis would not affect food supplies.
Ms. Farouk suggested that government instructions during the pandemic were followed because of “trust in the government, the expertise and the experience of the government [and] trust in the religious establishment, which actually was following the technical decisions of the government.”
To be sure, Ms. Farouk acknowledged, the regime’s coercive nature gave the public little choice.
The limits of government transparency were evident in the fact that authorities were less forthcoming with details of public spending on the pandemic and insight into available medical equipment like ventilators and other supplies such as testing kits.
Some Gulf states have started publishing the daily and total number of swabs but have yet to clarify whether these figures include multiple swabbings of the same person.
“It is likely that publics in the Middle East will look back at who was it that gave them reliable information, who was it who was there for them,” said political scientist Nathan Brown.
The question is whether governments will conclude that transparency will be needed to maintain public confidence as they are forced to rewrite social contracts that were rooted in concepts of a cradle-to-grave welfare state but will have to involve greater burden sharing.
Gulf governments have so far said little about burden sharing being allocated equitably across social classes nor has there been transparency on what drives investment decisions by sovereign wealth funds in a time of crisis and changing economic outlook.
Speaking to the Financial Times, a Gulf banker warned that the Saudi Crown Prince Mohammed bin Salman “needs to be careful what he spends on . . . Joe Public will be watching.”
Headed by Prince Mohammed, the kingdom’s sovereign wealth fund has gone on a $7.7 billion USD shopping spree buying stakes in major Western blue chips, including four oil majors: Boeing, Citigroup, Disney, and Facebook. The Public Investment Fund is also funding a bid for English soccer club Newcastle United.
The banker suggested that Saudi nationals would not appreciate “millionaire footballer salaries being paid for by VAT (value added tax) on groceries.” He was referring to this month’s hiking of sales taxes in the kingdom from five to 15 percent.
The fragility and fickleness of public trust was on display for the world to see in Britain’s uproar about Dominic Cummings, a close aide to Prime Minister Boris Johnson, who violated lockdown instructions for personal reasons. Mr. Johnson is struggling to fight off demands for Mr Cummings’ dismissal.
To be sure, senior government officials and business executives in the Gulf have cautioned of hard times to come.
A recent Dubai Chamber of Commerce and Industry survey of CEOs predicted that 70 percent of the United Arab Emirates’ companies would go out of business in the next six months, including half of its restaurants and hotels and three-quarters of its travel and tourism companies.
Saudi Finance Minister Mohammed Al-Jadaan warned earlier this month that the kingdom would need to take “painful” measures and look for deep spending cuts as a result of the collapse of oil prices and significantly reduced demand for oil.
Aware of sensitivities, Mr. Al-Jadaan stressed that “as long as we do not touch the basic needs of the people, all options are open.”
There was little transparency in Mr. Al-Jadaan’s statements on what the impact would be on employment-seeking Saudi nationals in a labor market where fewer migrant workers would be available for jobs that Saudis have long been unwilling to accept.
It was a missed opportunity considering the 286 percent increase in the number of Saudis flocking to work for delivery services.
The increase was fueled by an offer by Hadaf, the Saudi Human Resources Development Fund, to pay drivers $800 USD a month, as well as a newly-found embrace of volunteerism across the Gulf.
The surge offered authorities building blocks to frame expectations at a time when the kingdom’s official unemployment rate of 12 percent is likely to rise.
It suggested a public acknowledgement of the fact that well-paying, cushy government positions may no longer be as available as they were in the past as well as the fact that lesser jobs are no less honorable forms of employment.
That may be the silver lining as Gulf states feel the pressure to reinvent themselves in a world emerging from a pandemic that potentially will redraw social, economic, and political maps.
Author’s note: This story was first published in Inside Arabia
Foreign intervention in Libya
Since the ouster of Muammar Gaddafi in 2011, Tripoli has transformed into an appalling sight of consistent injustice, rising fundamentalism and morbid law and order situation. Amidst the whirlwind of fractured institutions and failed socio political system in Libya, foreign countries have also found a suitable battleground for fighting their proxy wars. Currently, there are two governments operating in libya, each claiming to reflect the genuine mandate of Libyan people. The United Nations backed government of National Accord, under the leadership of President Fayaz al serraj is being supported by Turkey, Qatar, Italy and publically by all western democracies. Whereas, a shadow government, is being maneuvered from the eastern city of Tobruk. It enjoys the support of Saudi Arabia, Egypt, France and the United Arab Emirates.
In 2012, less than a year after NATO intervention, Libyans turned to polls, in the pursuit of voting for an efficient leadership. As a result of elections, the General National Congress or GNC came into power. It was tasked with devising a constitution within the next eighteen months. Despite, it’s full capacity, the government failed to deliver on time due to evident disorganization and post-gaddafi mayhem, which was still at large. However, Libyans again went to vote in 2014, electing a House of Representatives or HoR in power, this time. These elections were repudiated and their result was declared illegitimate by GNC, on the claims of low voter turnout and series of violence which engulfed the entire electoral process, across the country. Rejection to form government, forced HoR to flee Tripoli and establish itself in Tobruk, where they aligned themselves, with Libya’s strong man, commander Khalifa Haftar and his Libyan National Forces.
Haftar had remained a part of Libya’s political arena for as long as Muammar Gaddafi had, he joined the military in 1961 and served in its ranks until, the Chad misadventure of 1987, which not only made him fall out with Gaddafi, but also enforced him into exile in the United States. Nonetheless, Haftar returned to Libya after the war and started rebuilding his former network of loyalists who worked with him decades ago, and ended up establishing the Libyan National Forces. His forces launched “Operation Dignity”in 2014, with the official intentions of relieving Libya from local militias, radical nationalism and religious fundamentalism.
Amidst the chaos of political deterioration and significant power vacuum, foreign countries started to manipulate the Libyan crisis for their own interests. Turkey is a regional player, and is severely concerned about their maritime trade route. For, being surrounded by hostile neighbors, Turkey finds it hard to trade through any other channel smoothly, except Mediterranean which it shares with Libya. Thus, it is actively vouching for a friendly government in Tripoli. Turkey’s parliament has recently passed the controversial law that has permitted the deployment of Turkish troops on Libyan soil, in order to support al Serraj’s government. Meanwhile, states like Italy and France are interested in Libya’s oil resources, and are also supporting respective governments as per their interests. International oil companies such as Italian Eni, French Total and Russian Taftnet, along with British Petroleum are on and off, getting exploration and management contracts to tap oil resources, with the Libyan National oil corporation. Where Russian mercenaries are fighting on ground with Haftar’s forces, France has also provided covert logistical support to his forces, each interested in their own share of resources.
Furthermore, the United Arab Emirates, Cairo and Kingdom of Saudi Arabia are eagerly backing Haftar’s LNA for the sake of preventing another wave of Arab spring, to reach their borders. UAE has conducted airstrikes on Benghazi in 2014, from an Egyptian base in Libya, in order to support Haftar’s operation Dignity. They have also recently established their own base in eastern province of Al-Khadir, to support further LNA’s advances. Kingdom of Saudi Arabia has also pledged it support to Haftar under the crown prince, Muhammad Bin Salman. As, just before Haftar’s Tripoli offensive, Riyadh promised him millions to buy tribal leader’s loyalties and to financially support the fighters in LNA.
Another reason behind Arab countries ardent sponsorship is, the question of muslim brotherhood. LNA has vowed to eliminate all the elements of religious extremism, including the muslim brotherhood. Cairo, UAE and KSA are known for their crack down on the brotherhood, while Turkey and Qatar are assumed to support the political activities of organization. Such difference in approaches has also led these countries into a state of perennial proxy war with each other.
Recent Moscow talks and Berlin conference, in the beginning of this year, has indeed provided an opportunity for all the parties in conflict to come on the negotiating table, and draw out strategies for adherently following the Libyan arms embargo of 2011, for effective ceasefire. Yet, without a proper policy in place, which can prevent foreign interventions in Libyan domestic crisis. It will create a potential environment for Tripoli to transcend into a turmoil similar to Syria and Yemen. War in Libya, has already incited an endless cycle of unnecessary fighting, uncountable deaths and a vicious void of ills like; human trafficking and smuggling. From, exponential worth of 53.2 billion dollars in 2012 to 4.6 billion dollars in 2016, Libya’s natural revenues have shrunken conspicuously over the last decade. In addition to that, with global coronavirus pandemic still out and loose, conflicts like one in Libya have a higher potential of turning into a major confrontation. It’s a textbook example of how precarious the situation might get, if not taken sensibly, by international community.
 Anderson, Jon Lee. “The unravelling.” The New Yorker 23 (2015).
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