The issue of Sinai and its jihad is increasingly important, also considering Hezbollah’s new strategy in Southern Lebanon, as well as the current deployment of Iranian, Syrian, Russian and various Sunni and jihadist forces between the Golan Heights and the Bekaa Valley, on the border between Syria and Israel.
The “sword jihad” in the Sinai peninsula, however, dates back to many years ago.
In 2011, precisely at the peak of tension both in the West and within some of the so-called “moderate” Islamic forces operating in the Maghreb region, during the various national “Arab springs”, the Ansar Bayt Al-Maqdis group (ABM) was created in the Sinai peninsula.
As was easy to foresee, unlike what CIA believed at the time, the destabilization of the old regimes had strengthened and not weakened the jihadist organizations.
ABM was the new network of exchange, training, intelligence and fundraising of the local jihad that, for the first time, played its own autonomous role.
For all the organizations of the Egyptian-Palestinian “holy war”, the opportunity of Mubarak’s fall was too fortunate to be missed.
In the void of power (and of welfare for the Sinai populations), the newly-established ABM easily succeeded in winning the local populations’ support.
It should also be noted that, albeit always careful in its approach – except in the strategic void occurred with Morsi’s government linked to the Muslim Brotherhood, which lasted from June 30, 2012 to July 3, 2013, when the coup of the Head of the military intelligence services, Al Sisi, ousted him from power – Egypt was interested only in the security of Sinai’s oil networks, not in the support of local populations.
Even currently, with the emergence of Sinai’s jihad, Egypt bears the brunt of its strategic oversight and the poor social and political analysis of the peninsular system around its canals.
Nevertheless Al Sisi-led Egypt has very little money- hence some simplicity in its analyses is quite understandable.
The activity to make the Sinai networks safe had already started as early as Mubarak’s time and has continued until the current government of Al Sisi, who knows all too well that – after the “cure” of the Muslim Brotherhood -he cannot completely trust his own police forces or his intelligence services, and hence is thinking of somehow “delegating security” for the Sinai peninsula also to third parties.
At that juncture, however, the news was spread that the Israeli forces were using precisely Palestinian elements to collect primary intelligence on the Sinai’s Isis, one of ABM current developments.
ABM was one of the first groups outside the Syrian-Iraqi system to swear allegiance to the “Caliph” Al Baghdadi.
Israel used those intelligence networks only to support Egypt in its specific local war on terror, considering that Daesh-Isis still had at least 2,000 active elements in the peninsula that, for the time being, were not specifically targeted to the Jewish State.
On January 11, 2019, for example, the Egyptian Armed Forces successfully hit and hence killed 11 terrorists, who were already making operations against the city of Bir-el-Abad in Northern Sinai.
It was even said that the Israeli intelligence had infiltrated the local Daesh-Isis. This was also confirmed by Egyptian President Al-Sisi himself who, in an interview with the American TV channel CBS on January 3, 2019, reaffirmed the existence of close cooperation between the Israeli intelligence services and the Egyptian forces in all the anti-jihadist operations in Sinai.
Clearly, the goal of ABM – which had meanwhile quickly converged into Al Baghdadi’s “Caliphate” –was the stable deterioration of relations between Egypt and Israel.
It should also be noted that the continued terrorist action against the oil and gas networks in Sinai forced Jordan to look for and buy oil and gas elsewhere.
Obviously the permanent insecurity of networks in Sinai slowed down and often blocked the prospects for expansion of the Israeli gas and oil in their connection both with Egypt and with the long Arab Pipeline network reaching Damascus and, through Turkey, the European market.
Hence, since 2013, with the successful coup staged by Al Sisi, the ABM – which was already part of the pseudo-Caliphate system – has been focusing on one goal: the fight against the Egyptian armed forces and power.
Hence Sinai’s new jihadist network is composed of Wilayat al Sinai, i.e. the pseudo-Caliphate network; some groups linked to Al Qaeda, such as Jund al Islam, a structure operating above all in Sinai’s Western desert, as well as Ansar al Islam and other groups, always active in Sinai’s Northern peninsula.
There are also militant groups that are explicitly linked to the Islamic Brotherhood, such as Hassm (the acronym of the “Army of Egypt’s Forearms”) and Liwa al Thawra, also known as “the Banner of the Revolution” which, however, operates above all in Egypt, between Alexandria, Cairo and Suez.
It should also be noted that last February both the Islamic “State” of Daesh-Isis and Al Qaeda itself uploaded a video in which Ayman Al Zawahiri harshly criticized the behaviour of the Muslim Brotherhood in Egypt and above all in Sinai.
Hence in 2014 Al Sisi militarized Sinai.
Although not much is known about it, it is a low-intensity war that has already exacted a toll of several thousand victims.
The ABM, renamed Wilayat al Sinai after its affiliation with Daesh-Isis, was still supported by much of Sinai’s population, while the economic crisis of the region worsened with the embargo imposed by Egypt, with a view to stopping oil smuggling and the widespread arms trafficking.
At that juncture, Al Sisi launched its great Comprehensive Operation Sinai 2018, a military action which began on February 9, 2018, and was organized between the Nile Delta and Northern and Central Sinai.
In fact, everything began after the attack on the Al-Rawda mosque of November 24, 2017. It should be noted that Al-Rawda is a mosque linked to the Jayiria Sufi sect, a mystic “order” widespread particularly in Sinai, especially in the Bir el-Abed area.
Thanks to the effective results of that great operation, Egypt also closed the Gaza border and the Rafah border that, however, has been recently reopened.
It is worth noting that the “great operation” had been launched shortly before the Egyptian political and presidential elections of March 2018.
Hence these are the terms of the equation: strong anti-Egyptian jihadist threat in Sinai; limited forces available to the Egyptian army and intelligence services and above all the issue of the International Monetary Fund’s loan to Egypt, which has strategic and military importance also in Sinai.
Therefore Al Sisi’s military credibility is one of the essential factors of his financial salvation.
In fact, in November 2016, the IMF granted to Egypt an Extended Fund Facility worth 12 billion US dollars.
All the applicative reviews, including the last one of February 4, 2019, have already been approved by the Fund’s board.
So far, however, the reforms implemented by Al Sisi’s regime have always been evaluated positively by the aforementioned board.
And also by many private investment banks, which could also take over from the IMF at the end of the Extended Fund Facility.
Hence macroeconomic stabilization but, first and foremost, resumption of the GDP growth.
Tourism, the primary sector of the Egyptian economy, has again started to perform very well. The same holds true for migrants’ remittances and for the product of the non-oil and manufacturing sector, which the IMF has identified as the key to Egypt’s future – a sector which is recovering and, anyway, is also growing steadily.
The social protection put in place by the Egyptian government, essential for “keeping the crowds under control” (and, often, also local jihadist terrorism) provides food for children, basic commodities and medicines, with a recent and significant increase of the liquidity available in the many smart cards already distributed to the poor people.
The takafol and karama programs, designed to support the poor families’ standard of living, already apply to over 2.2 million households, i.e. 9 million Egyptians.
Too many poor people and hence many candidates to swell the jihad ranks, with a very effective network now available, including para-Caliphates, Al Qaeda and all the rest, but especially the network of Muslim Brotherhood’s “young people”, who are refocusing on a “slow-paced”, but equally cruel, brutal and effective jihad.
Hence, without making it explicitly known to Israel, Egypt has already placed Hamas in the frontline of its low-intensity war in Sinai.
In late November 2018, the former ABM group in Sinai had also already seized a shipment of Iranian weapons, especially kornet missiles, that went from Iran to Hamas through the Gaza Strip.
For some years, however, the relations between the Palestinian Islamic jihad and Egypt have weakened, thanks to the well-known support that the Palestinian group of Gaza, also linked to the Muslim Brotherhood, has provided to the Sinai jihad. Hence currently the real strategic link lies in the structural clash between Daesh-Isis and Hamas in the Sinai peninsula.
Obviously, the primary goal of the Israeli secret services is always to get good intelligence on the Al-Baghdadi system in the peninsula, but Hamas does not certainly remain silent.
In fact, in early January 2019, the Interior Minister of the Gaza Strip – obviously a Hamas leader – arrested as many as 54 aides of the Israeli forces who, according to Hamas, were operative of Shabak, the Israel Security Agency.
In Sinai, however, Isis still has a very close relationship with Hamas and is still the main carrier of arms smuggling in the Gaza Strip.
Currently, however, the real news is that the “Caliphate” has harshly broken with the Muslim Brotherhood’s group that rules in the Gaza Strip.
As a result, as previously said, Egypt has enlisted precisely Hamas in its fight against the so-called “Caliphate”.
Therefore also Qatar’s portentous funding granted only to Al Sisi’s regime is not useless here. This is an essential factor to understand the new strategic equation of both Qatar and present-day Egypt.
It was exactly in early January 2018, however, that the “Caliphate” openly declared war on Hamas.
Later, in March 2019, there have also been severe attacks on Israeli civilian positions, starting from the Gaza Strip.
The Israeli intelligence services have also ascertained that the specifically military wing of Hamas, namely the “Izz-ad-Din al-Qassam Brigades”, have already agreed with the Egyptian Armed Forces to fight the “Caliphate”, especially in the areas on the border with the Gaza Strip.
The Egyptian intelligence services have also notified Israel, the United States and Saudi Arabia of the fact that they know the military-financial transactions of the Egyptian regime with Qatar very well. They have also informed Russia that the agreement between Hamas and the Egyptian forces is designed to permanently “recovering” Gaza’s Palestinian group, while in October 2018 Egypt had also arranged a short agreement between Hamas and Israel to reduce tension between the two areas.
In essence, pending the forthcoming end of military activities in Syria, a new tripartite order is being created, in the Middle East, between Saudi Arabia, Egypt and the Emirates. All these three actors really want Israel to participate in the whole stabilization of the region.
This obviously implies the stable solution of the Palestinian issue, possibly with a new joint leadership –also different from the current one – and hence a new division of the areas of influence also within the Palestinian world.
Egypt wants to directly control the Gaza Strip, i.e. Hamas and the smaller local networks of Fatah and the Palestinian Jihad again in the Gaza Strip, but without forgetting the military and financial ties of these three organizations with Iran.
In the design of the new Arab tripartite agreement, Iran shall leave quickly.
Egypt is here imagining a sort of unification between the various groups of the old Palestinian resistance movement, with new organizations of political representation within the Gaza Strip and possibly also in the PNA’s Territories.
Nevertheless many problems will obviously emerge: the Palestinian National Authority, de facto expelled from the Gaza Strip, has had no news or ideas about the state of security in the Gaza Strip for at least ten years.
Egypt, however, does not want to put only in Hamas’ hands the whole issue of Sinai stability, as well as its sensitive, but fundamental relations with Israel.
Al Sisi is mainly observing – with extreme care – the role played by the number 2 leader of the PNA, Mohammed Dahlan, who has good relations with Hamas, but is still accused by Fatah of being “the one who lost the Gaza Strip in 2007”.
In any case, currently Egypt and Israel have excellent relations (Al Sisi and Netanyahu have regular phone conversations every week), while it should be recalled that it was exactly the emergence of the Sinai jihad that enabled Egypt to militarize the areas in which that had been forbidden exactly by the Peace Treaty with the Jewish State.
Another central issue is the cooperation between Israel and Egypt on energy issues.
Recently an agreement has been signed to enable Egypt to import Israeli natural gas to liquefy it.
Egypt absolutely needs the Israeli support, considering that – in this context – the struggle against Turkey was and still is an all-out struggle.
Nevertheless this new collocation of the military agreement between Egypt and Hamas has also put Israel in difficulty, which was not consulted, before this alliance, about the Gaza Strip.
The pact between the group of the Muslim Brotherhood in the Gaza Strip and Egypt became known to Israel only when Hamas pointed out to Egypt that there had been breaks in the “truce”, which the Israeli army still did not know in all its strategic value and relevance.
In any case, Israel has tripled the sale of electricity to the Gaza Strip, while as many as 11,000 trucks were sent from the Jewish State to support the population of the Gaza Strip.
Qatar alone provided over 15 million US dollars of aid to the political and humanitarian organizations of the Gaza Strip.
Indeed, Hamas wanted above all a refund or monetary support from Israel, but much greater than expected, at least for the funds that the PNA’s leader, Mahmoud Abbas, had decided autonomously to remove from the autonomous administration of the Gaza Strip.
As usual, the response was obviously a terrorist one, with bombs thrown at the IDF troops and the Jewish population outside the border.
Despite of the above mentioned stabilization projects, Hamas wants to make the most of the climate prevailing for the Israeli upcoming elections scheduled for next April.
Certainly the next target of the Palestinian groups will be the joint Israeli-US exercise scheduled for March 4 next.
It will be a very important military exercise: a United States European Command (USEUCOM) battery composed of Terminal High Altitude Area Defense (THAAD) missiles will be made operational, right on the border between the Gaza Strip and the Jewish State.
The THAAD system will soon be added to the Israeli defense systems, along with the Iron Dome, mainly operating against short-range missiles; the Arrow system, intercepting long-range missiles in their exo-atmospheric phase and David’s Sling to hit tactical ballistic missiles.
Both the THAAD and the Arrow systems are already included in the USEUCOM’s early warning network, using a series of radars located on a US base in the Negev desert.
A base that, however, already monitors any missile launch from Iran.
Obviously the THAAD network is a US implicit suggestion not to give in to the flatteries and blandishments of the Sunni treaty on the new areas of influence between Egypt, Saudi Arabia and Qatar – a treaty which is still written in the Sinai sand.
War in Libya: A rare instance of US-Russian cooperation
There is little that Russia and the United States agree on these days. Renegade Libyan Field Marshal Khalifa Belqasim Haftar may be a rare exception.
As Mr. Haftar’s mortars rained on the southern suburbs of the Libyan capital Tripoli and fighting between his Libyan National Army (LNA) and the United Nations-recognized government expanded to the south of the country, both Russia and the United States stopped a call for a ceasefire from being formally tabled in the UN Security Council.
Russia, which has joined US allies that include the United Arab Emirates, Saudi Arabia, Egypt and France, in supporting Mr. Haftar because of his grip on Libya’s oil resources and assertions that Islamists dominate the Tripoli government, objected to the British draft resolution because it blamed the rebel officer for the fighting.
The United States gave no reason for its objection. Yet, it shares Russia’s aversion to Islamists and clearly did not want to break ranks with some of its closest Middle Eastern allies, certainly not at a time that the UN was investigating allegations that the UAE had shipped weapons to Mr. Haftar in violation of an international arms embargo.
The significance of US-Russian agreement on Mr. Haftar’s geopolitical value goes far beyond Libya. It reveals much of how presidents Donald J. Trump and Vladimir Putin see the crafting of a new world order. It also says a great deal about Russian objectives in the Middle East and North Africa.
Messrs. Trump and Putin’s preference for a man with a questionable human rights record who, if successful, would likely rule Libya as an autocrat, reflects the two leaders’ belief that stability in the Middle East and North Africa is best guaranteed by autocratic rule or some democratic façade behind which men with military backgrounds control the levers of power.
It is a vision of the region promoted by representatives of UAE crown prince Mohammed bin Zayed who sees authoritarian stability as the best anti-dote to popular Arab revolts that swept the region in 2011 and more recently in Algeria and Sudan are proving to have a second lease on life.
Underlying the Trump-Putin understanding is a tacit agreement among the world’s illiberal, authoritarian and autocratic leaders on the values that would underwrite a new world order. It is an agreement that in cases like Libya reduces rivalry among world powers to a fight about the divvying up of the pie rather than the concepts such as human and minority rights that should undergird the new order.
Moscow’s support for Mr. Haftar serves Russia’s broader vision of the Middle East and North Africa as an arena in which Russia can successfully challenge the United States even if Messrs. Trump and Putin agree on what side to support in a Libyan civil war that is aggravated by the interference of foreign powers.
Russia national security scholar Stephen Blank argues that Mr. Putin’s strategy is rooted in the thinking of Yevgeny Primakov, a Russian Middle East expert, linguist and former spymaster, foreign minister and deputy prime minister.
Mr. Primakov saw the Middle East as a key arena for countering the United States that would enable Russia, weakened by the demise of the Soviet Union and economic problems, to regain its status as a global and regional power and ensure that it would be one pole in a multi-polar world.
“In order to reassert Russia’s greatness, Primakov and Putin aimed ultimately at strategic denial, denying Washington sole possession of a dominant role in the Middle East from where US influence could expand to the Commonwealth of Independent States (CIS)” established in the wake of the demise of the Soviet Union to group post-Soviet states, Mr. Blank said.
Messrs. Primakov and Putin believed that if Russia succeeded it would force the United States to concede multi-polarity and grant Russia the recognition it deserves. That, in turn, would allow Mr. Putin to demonstrate to the Russian elite his ability to restore great power status.
Syria offered Russia the opportunity to display its military prowess without the United States challenging the move. At the same time, Russia leveraged its political and economic clout to forge an alliance with Turkey and partner with Iran. The approach served to defang Turkish and Iranian influence in the Caucasus and Central Asia, Mr. Blank argued.
Similarly, Russia after brutally repressing religiously inspired Chechen rebels in the 1990s and despite the lingering memory of the Soviet invasion of Afghanistan, has in line with UAE precepts, proven to be far defter than either China or the United States at promoting politically pacifist or apolitical loyalist Islam in a complex game of playing both sides against the middle.
Russian engagement runs the gamut from engaging with militants to cooperating with Muslim autocrats to encouraging condemnation of activist strands of ultra-conservative Islam to hedging its bets by keeping its lines open to the Tripoli-based Government of National Accord (GNA).
Even if Russia may be walking a tightrope in balancing its relationships with Mr. Haftar and GNA Prime Minister Fayez al-Sarraj, like in Syria, it is positioning itself with the backing of the UAE, Saudi Arabia and Egypt as the potential mediator that maintains ties to both sides of the divide.
Said Russian foreign minister Sergei Lavrov: “We believe that Libya’s future must be determined by the Libyans themselves. We are convinced that there is no alternative to an inclusive intra-Libyan dialogue… Our work on this track proceeds in this spirit and the belief that there is no alternative to preserving the sovereignty and territorial integrity of Libya.”
Battling for the Future: Arab Protests 2.0
Momentous developments across Arab North and East Africa suggest the long-drawn-out process of political transition in the region as well as the greater Middle East is still in its infancy.
So does popular discontent in Syria despite eight years of devastating civil war and Egypt notwithstanding a 2013 military coup that rolled back the advances of protests in 2011 that toppled Hosni Mubarak and brought one of the country’s most repressive regimes to power.
What developments across northern Africa and the Middle East demonstrate is that the drivers of the 2011 popular revolts that swept the region and forced the leaders of Egypt, Tunisia, Libya and Yemen to resign not only still exist but constitute black swans that can upset the apple cart at any moment.
The developments also suggest that the regional struggle between forces of change and ancien regimes and militaries backed by the United Arab Emirates and Saudi Arabia is far from decided.
If anything, protesters in Algeria and Sudan have learnt at least one lesson from the failed 2011 results: don’t trust militaries even if they seemingly align themselves with demonstrators and don’t surrender the street until protesters’ demands have been fully met.
Distrust of the military has prompted an increasing number of Sudanese protesters to question whether chanting “the people and the army are one” is still appropriate. Slogans such as “freedom, freedom” and “revolution, revolution” alongside calls on the military to protect the protesters have become more frequent.
The protests in Algeria and Sudan have entered a critical phase in which protesters and militaries worried that they could be held accountable for decades of economic mismanagement, corruption and repression are tapping in the dark.
With protesters emboldened by their initial successes in forcing leaders to resign, both the demonstrators and the militaries, including officers with close ties to Saudi Arabia and the UAE, are internally divided about how to proceed.
Moreover, neither side has any real experience in managing the crossroads at which they find themselves while it is dawning on the militaries that their tired playbooks are not producing results.
In a telling sign, Sudan’s interim leader Abdel Fattah Abdelrahman Burhan praised his country’s “special relationship” with Saudi Arabia and the UAE as he met this week with a Saudi-Emirati delegation at the military compound in Khartoum, a focal point of the protests.
Saudi Arabia has expressed support for the protests in what many suspect is part of an effort to ensure that Sudan does not become a symbol of the power of popular sovereignty and its ability to defeat autocracy.
The ultimate outcome of the dramatic developments in Algeria and Sudan and how the parties manoeuvre is likely to have far-reaching consequences in a region pockmarked by powder kegs ready to explode.
Mounting anger as fuel shortages caused by Western sanctions against Syria and Iran bring life to a halt in major Syrian cities have sparked rare and widespread public criticism of president Bashar al-Assad’s government.
The anger is fuelled by reports that government officials cut in line at petrol stations to fill up their tanks and buy rationed cooking gas and take more than is allowed.
Syria is Here, an anonymous Facebook page that reports on economics in government-controlled areas took officials to task after state-run television showed oil minister Suleiman al-Abbas touring petrol stations that showed no signs of shortage.
“Is it so difficult to be transparent and forward? Would that undermine anyone’s prestige? We are a country facing sanctions and boycotted. The public knows and is aware,” the Facebook page charged.
The manager of Hashtag Syria, another Facebook page, was arrested when the site demanded that the oil ministry respond to reports of anticipated price hikes with comments rather than threats. The site charged that the ministry was punishing the manager “instead of dealing with the real problem.”
Said Syrian journalist Danny Makki: “It (Syria) is a pressure cooker.”
Similarly, authorities in Egypt, despite blocking its website, have been unable to stop an online petition against proposed constitutional amendments that could extend the rule of President Abdel Fattah el-Sisi until 2034 from attracting more than 320,000 signatures as of this writing.
The petition, entitled Batel or Void, is, according to Netblocks, a group that maps web freedom, one of an estimated 34,000 websites blocked by Egyptian internet service providers in a bid to stymie opposition to the amendments.
Mr. El-Sisi is a reminder of how far Arab militaries and their Gulf backers are potentially willing to go in defense of their vested interests and willingness to oppose popular sovereignty.
Libyan renegade Field Marshall Khalifa Belqasim Haftar is another, Mr. Haftar’s Libyan National Army (LNA) is attacking the capital Tripoli, the seat of the United Nations recognized Libyan government that he and his Emirati, Saudi, and Egyptian backers accuse of being dominated by Islamist terrorists.
The three Arab states’ military and financial support of Mr. Haftar is but the tip of the iceberg. Mr. Haftar has modelled his control of much of Libya on Mr. El-Sisi’s example of a military that not only dominates politics but also the economy.
As a result, the LNA is engaged in businesses ranging from waste management, metal scrap and waste export, and agricultural mega projects to the registration of migrant labour workers and control of ports, airports and other infrastructure. The LNA is also eyeing a role in the reconstruction of Benghazi and other war-devastated or underdeveloped regions.
What for now makes 2019 different from 2011 is that both sides of the divide realize that success depends on commitment to be in it for the long haul. Protesters, moreover, understand that trust in military assertions of support for the people can be self-defeating. They further grasp that they are up against a regional counterrevolution that has no scruples.
All of that gives today’s protesters a leg up on their 2011 counterparts. The jury is out on whether that will prove sufficient to succeed where protesters eight years ago failed.
As Marsha Lazareva languishes in jail, foreign businesses will “think twice” before investing in Kuwait
IF THERE IS one thing to glean from the case of Marsha Lazareva, it’s that foreign businesses must now think very carefully before investing in Kuwait.
For more than a year, Lazareva, who has a five-year-old son and is one of Russia’s most successful female investors in the Gulf, has been held in the Soulabaiya prison by Kuwaiti authorities. Those authorities claim she ‘stole’ half a billion dollars, a claim she strenuously denies.
Human rights groups and prominent officials, including the former FBI director, Louis Freeh, and Jim Nicholson, former Chairman of the Republican Party and former US Ambassador to the Vatican, have called for her release and expressed concerns about the apparent absence of due process in a country where Lazareva has worked for over 13 years. Both Freeh and Nicholson visited Kuwait in recent weeks with Neil Bush, son of the late President George H. W. Bush. Bush has said Lazareva’s incarceration ‘threatens to darken relations between the U.S. and Kuwait, two countries that have enjoyed a long and prosperous relationship.’
Russian officials have been equally concerned. Vladimir Platonov, the President of the Moscow Chamber of Commerce and Industry, confirmed that a single witness gave testimony in Kuwaiti court, and only for the prosecution. ‘I myself worked in prosecution for more than eight years, and I cannot imagine any judge signing off on an indictment like this,’ he said. ‘One fact of particular note is that Maria was given 1,800 pages of untranslated documents in Arabic.’
Serious questions surrounding the safety and future viability of investing in Kuwait are now being raised. Through The Port Fund, a private investment company managed by KGL Investment, Lazareva has contributed hundreds of millions of dollars to local infrastructure and economic development projects during her time in the country. Until 2017, when a Dubai bank froze $496 million without cause, she had worked largely unobstructed.
But as things stand, more foreign investment is unlikely to be forthcoming. Jim Nicholson has said that the ‘imprisonment and harassment’ of Lazareva ‘threatens’ U.S. support. adding that the ‘willingness of the U.S. to do business with Kuwait’ is based on ‘its record as a nation that respects human rights and the rule of law’. Mark Williams, the investment director of The Port Fund and a colleague of Lazareva’s, has called on international investors to ‘think twice before doing business in this country’.
These comments will surely concern the Kuwaiti government, who said last year that FDI was ‘very crucial’ to the success of its Kuwait Vision 2035 road map. In September 2018, the FTreported that the government planned to reverse its traditional position as an investor in order to diversify its economy, carrying out a series of reforms designed to facilitate foreign investment and assist investors.
But despite these changes, which have propelled Kuwait to 96th—higher than the Middle East average—in the World Bank’s ‘Ease of Doing Business’ report, investors may be unwilling to take the risk so long as Lazareva remains in jail. Lazareva’s lawyers have accused Kuwait of violating international law by breaching a long-standing bilateral investment treaty with Russia. Lord Carlile of Berriew, QC has brought the case to the attention of the British public and the EU, writing in The Times that ‘there is no evidential basis to justify any claim of dishonesty, corruption or any other criminal wrong’. He added: ’Anyone thinking of doing business in Kuwait should read on with mounting concern.’
What’s worth remembering is that Kuwait is an important, long-standing ally of the UK, and a country generally seen as stable and fair. It is equally a major non-NATO ally of the United States, where there are more than 5,000 international students of Kuwaiti origin in higher education. But these relationships, and the investment to which they have historically led, have been cast into doubt. And it now seems certain that relations will continue to sour so long as Marsha Lazareva languishes in Soulabaiya.
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