Qatar defies US and sides with Turkey with $15bn investment pledge amid Lira crisis

Turkish President Erdogan meets with Emir of Qatar Sheikh Tamim in Ankara. (Presidential Palace/Handout)
Updated 16 August 2018
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Qatar defies US and sides with Turkey with $15bn investment pledge amid Lira crisis

  • Emir's support for Erdogan comes amid trade, diplomatic spat with US
  • The Turkish currency has lost nearly 40 percent against the dollar this year

JEDDAH: Qatar defied US President Donald Trump on Wednesday and promised to plough $15 billion into Turkish financial markets and banks, amid a collapse in the value of the lira and a looming trade war between Turkey and the United States.

The bail-out followed talks in Ankara between the emir of Qatar, Sheikh Tamim bin Hamad Al-Thani, and Turkey’s President Recep Tayyip Erdogan. 

The lira has lost nearly 40 percent of its value against the dollar this year, driven by worries over Erdogan’s growing influence on the economy and his refusal to raise interest rates despite high inflation.

Last week the US doubled tariffs on aluminium and steel imports from Turkey, during a dispute over Turkey’s detention of an American pastor on security charges that the US views as baseless.

In response, Erdogan launched a boycott of US electrical products and sharply raised tariffs on other US imports.

Turkey and Qatar have become close economic and political partners. Doha has $20 billion worth of investments in Turkey, and Ankara is one of the top exporters to the emirate. Sheikh Tamim was the first foreign leader to call Erdogan after the aborted coup in Turkey in 2016, and Turkey — along with Iran — is one of the few countries to support Qatar against the boycott by the Saudi-led Anti-Terror Quartet over Doha’s financing of terrorism. 

Although Qatar has now pledged $15 billion it has not actually paid anything, and it may not be enough to solve Turkey’s economic problems.

Analysts also said the political cost of the investment remained to be seen, given that Qatar is also a US ally and dependent on Washington for both military and political protection.

“This is what happens when you choose to run with the hare and hunt with the hounds,” Dr. Hamdan Al-Shehri, a Saudi political analyst and international relations scholar, told Arab News. “The Americans have their base at Al-Udeid in Qatar so naturally they will expect Qatar to toe their line.

“Qatar has gravitated toward Turkey because of the Muslim Brotherhood link and the Iranian connection so now it finds itself in an unenviable situation. If they side with Turkey, they run the risk of antagonizing US President Donald Trump. If they back the American position on Turkey tariff penalties, then they lose Turkey.”

Al-Shehri said Ankara appeared to have blackmailed Qatar into supporting it. “They said they came to Qatar’s support during Doha’s row with its Arab neighbors, and now it was Qatar’s turn to pay back the favor.”


Egypt court upholds corruption conviction of Mubarak, sons

Updated 22 September 2018
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Egypt court upholds corruption conviction of Mubarak, sons

  • Saturday’s ruling by the Court of Cessation dashed any hope that Gamal Mubarak could run for public office.
  • Mubarak’s two sons are currently on trial for insider trading.

CAIRO: Egypt's highest appeals court on Saturday rejected a motion by former president Hosni Mubarak and his two sons to overturn their conviction on corruption charges.
The ruling by the Court of Cessation, Egypt's final recourse for appeals in criminal cases, dashed any hope that Gamal, Mubarak's younger son and one-time heir apparent, could run for public office. A senior newspaper editor and confidant of Egypt's current president had recently suggested that banker-turned-politician Gamal may have been contemplating the move.
The Mubarak trio was sentenced to three years each for embezzling funds meant for maintenance of presidential palaces but which they spent on upgrading or building private residences. The sons were released in 2015 for time served, while their father was freed last year. They repaid the funds, a total of 125 million pounds (about $7 million).
Mubarak's sons are currently on trial for insider trading. They are free on bail after a judge on Thursday overturned a surprise Sept. 15 ruling to detain them. The case's next hearing is on Oct. 20.
The rejection of their appeal Saturday and Gamal Mubarak's subsequent ineligibility to run for office came in the wake of recent comments by the chief editor of state-run Al-Akhbar publications, Yasser Rizq, who suggested that frequent public appearances by the younger Mubarak could be a prelude to a future presidential run.
Rizq first warned Gamal Mubarak against harboring presidential ambitions in an article published in May. He repeated the warning in a television interview aired earlier this week.
"His real crime is insulting the dignity of the Egyptian people," Rizq said, alluding to Gamal's one-time intention to succeed his father. It violated the constitution and amounted to the toppling of republican rule, he explained. He said it was not improbable that he would strike a political deal with the outlawed Muslim Brotherhood to secure the group's return to politics in exchange for its support in a presidential bid in 2022, when President Abdel-Fattah El-Sissi's second term ends.
Preventing Gamal from succeeding his father was among the main drivers of a 2011 uprising that ended Mubarak's 29-year rule, as well as the military's support for it. The years that followed saw Mubarak regime heavyweights tried on corruption or abuse of power charges. Most have since walked free, while second-string regime loyalists found their way back to public life under El-Sissi.