UAE, Turkey deepen economic ties with investment deals

The investment deals were agreed during a visit to Ankara for discussions with President Tayyip Erdogan by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan. (Reuters)
The investment deals were agreed during a visit to Ankara for discussions with President Tayyip Erdogan by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan. (Reuters)
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Updated 28 November 2021

UAE, Turkey deepen economic ties with investment deals

The investment deals were agreed during a visit to Ankara for discussions with President Tayyip Erdogan by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan. (Reuters)
  • Foreign Minister Mevlut Cavusoglu’s Abu Dhabi visit in mid-December is a significant step, analyst tells Arab News

ANKARA: Turkey welcomed Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan, the UAE’s de facto ruler, on Nov. 24, marking the highest-level visit to Ankara since a nearly decade-long disagreement between the two countries.

The visit represents a new page in Turkey-UAE economic relations with the signature of several investment accords that will be supported with a $10 billion fund.

The agreements concentrated on strategic sectors such as energy, ports and logistics, petrochemicals, technology, food and health care, as well as some cooperation deals between stock exchanges and central banks with a potential swap agreement on the horizon.

Dr. Robert C. Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, said that Turkey was a big market that the UAE could not afford to ignore if it wanted to get the most out of economic engagement with the broader Middle East and North Africa region.

“Turkey likewise wants to shore up stable trade and investment partners given the volatility and uncertainty plaguing its domestic economy,” Mogielnicki told Arab News.

Considering the huge potential of the accords, especially in times of economic hardship for Turkey with its lira plumbing new lows this week, to what extent this economic rapprochement that unlocked billions of dollars will be supported by political contacts remains to be seen.

Simultaneously, the Emirati economy minister Abdulla bin Touq Al-Mari held a meeting with Turkish Trade Minister Mehmet Mus, just after the Turkey-UAE Joint Economic Commission meeting in Dubai.

“Today, we are starting a new era in sustainable economic partnership between the two countries,” Al-Mari said.

Sovereign wealth funds of the UAE have already made huge investments in Turkish online grocer Getir and e-commerce giant Trendyol.

Soner Cagaptay, director of the Turkish program at the Washington Institute, thinks that the UAE signaling that Abu Dhabi is willing to invest 10 billion dollars in Turkey could be a shot in the arm for the Turkish economy, coupled with sound economic policies in Ankara.

“It will be not for complete recovery of the Turkish economy but will just help to prevent further deterioration nowadays,” he told Arab News.

However, Mogielnicki thinks that the Emirati-Turkish rapprochement is unlikely to have a major impact on Turkey’s currency crisis, which is more closely related to political dynamics surrounding the central bank and US interest rates.

“But an economic vote of confidence from the Emiratis won’t hurt,” he said.

Turkish Foreign Minister Mevlut Cavusoglu will visit Abu Dhabi in mid-December when hopes are pinned on mutual steps for initiating political rapprochement.

Melahat Kemal, an Istanbul-based researcher on Turkey-MENA relations, said that Turkey and the UAE had to settle some of their key political disputes to sustain the economic benefits of this latest wave of agreements.

“As a first step, they need to develop a consensus over their policies in the Syrian and Libyan conflict and gas exploration in the Eastern Mediterranean,” she told Arab News.

“There is still no political statement from the leaders regarding these hot topics. Turkish authorities rather prefer to compartmentalize their rapprochement by focusing merely on the monetary side of the relations.”

The trade volume of the two countries increased by 21 percent last year compared to 2019, and doubled in the first half of 2021 compared to the same period the previous year.

Both sides are working to diversify non-oil trade as Turkey is a key market for Emirati products to reach Asia and Europe, while the UAE helps Turkish goods opening up to the Middle Eastern and African markets.

According to Kemal, the political rapprochement requires confidence-building measures on a mutual basis, and in the short term relations are likely to proceed merely on economic fronts that could contribute to stability in the region.

“The visit of Cavusoglu in December is a significant step toward this direction,” she said.

Cagaptay agreed but said that there was a long way to go as both countries did not see eye-to-eye on a number of issues.

“In three war zones they have different views, with the UAE moving forward to normalize ties with Syria’s Assad regime while Turkey is still remaining hostile to him,” he said.

“In the Libyan and Yemeni civil wars, they also have opposing interests,” he said.

According to Cagaptay, the Muslim Brotherhood issue will be a litmus test for political normalization.

“Turkey also should end its support for Hamas and the Muslim Brotherhood that is seen by the UAE as the greatest security threat both domestically and internationally,” he said.

With the US shifting pivot from the Middle East to the Pacific, Arab countries are trying to de-escalate tensions in the region and pursue normalization efforts.

Ankara has also taken some steps to restrict the activities of Hamas and the Muslim Brotherhood on Turkish soil — an incentive for the Gulf countries to reconcile with Turkey.

According to Mogielnicki, since early 2021 there has been a broad realization that diplomatic tensions and conflicts in the region have reached a point of diminishing returns.

“Lingering conflicts have the potential to hamper the all-important economic recovery efforts in the region. Gulf states like the UAE want to ensure that its foreign policy decisions going forward are good for business,” he said.


Tear gas in Sudan as thousands protest coup: AFP

Tear gas in Sudan as thousands protest coup: AFP
Updated 13 sec ago

Tear gas in Sudan as thousands protest coup: AFP

Tear gas in Sudan as thousands protest coup: AFP
KHARTOUM Thousands in Sudan took to the streets Monday to protest a military coup nearly three months ago, and were quickly met by tear gas fired by security forces, according to an AFP correspondent.
Security officers had deployed in large numbers as the demonstrators carrying the Sudanese flag gathered in the capital, Khartoum, as well as other cities.

Three killed in Abu Dhabi petrol tanker blast, early reports suggest debris found possibly from drones

Three killed in Abu Dhabi petrol tanker blast, early reports suggest debris found possibly from drones
Updated 8 min 47 sec ago

Three killed in Abu Dhabi petrol tanker blast, early reports suggest debris found possibly from drones

Three killed in Abu Dhabi petrol tanker blast, early reports suggest debris found possibly from drones

DUBAI: Three people – one Pakistani and two Indian - were killed and six others injured after when three fuel tankers exploded in the industrial area of Musaffah ICAD 3 near an ADNOC storage unit in Abu Dhabi, state news agency WAM reported.

According to reports by the Abu Dhabi police force another minor fire occurred at a construction site at Abu Dhabi International Airport.

Investigations indicate that fragments, possibly belonging to drones, that fell into both locations may have caused the explosion and fire.

Yemen’s Iran-aligned Houthi movement later said it had carried out an attack on the UAE, Reuters reported.

The Saudi-lead Coalition also said several booby-trapped drones were launched from Sana’a International Airport in Yemen.

Authorities have launched investigations into both incidents.


Iranian Supreme Leader, Ayatollah Khamenei’s niece arrested in Tehran

Iranian Supreme Leader, Ayatollah Khamenei’s niece arrested in Tehran
Updated 17 January 2022

Iranian Supreme Leader, Ayatollah Khamenei’s niece arrested in Tehran

Iranian Supreme Leader, Ayatollah Khamenei’s niece arrested in Tehran
  • Farideh Moradkhani was arrested on Thursday

DUBAI: The niece of Iran’s supreme leader, Ayatollah Khamenei was arrested Thursday, Jan. 16 as she was making her way home in Tehran, Al Arabiya reported on Monday.

Farideh Moradkhani’s brother, Mahmoud, who lives in exile in France, confirmed the news in an interview with UK-based media organization Iran International.

Mahmoud Moradkhani said the Iranian regime was oppressive.

He said in the interview: “She wasn’t a political activist. There is no freedom to become a political activist in Iran in the first place. She was a human rights defender who participated in charity work and peaceful demonstrations.”

He added: “Of course, my uncle Ali Khamenei is aware of our opposition to the regime since it was first established decades ago.”

And he said his family “would not be silenced.”

Speaking with her family on the phone on Friday, Farideh said she was being moved to Evin prison.

She had been previously called by Iranian intelligence for her criticism of the regime. Farideh campaigns for the abolition of the death penalty and for the rights of prisoners.

No news on the cause of her arrest was provided.


Fears grow over Iran influence in Lebanon after Hezbollah, Amal Cabinet decision

Fears grow over Iran influence in Lebanon after Hezbollah, Amal Cabinet decision
Updated 16 January 2022

Fears grow over Iran influence in Lebanon after Hezbollah, Amal Cabinet decision

Fears grow over Iran influence in Lebanon after Hezbollah, Amal Cabinet decision
  • Ending of 3-month boycott serves an “external agenda,” analysts warn
  • Mikati said he would convene a Cabinet meeting as soon as Finance Ministry had sent through a draft budget

BEIRUT: A decision by Hezbollah and the Amal Movement to end a boycott of Lebanon’s Cabinet has led to speculation that Iran is making moves to control Lebanon’s political system.

Lebanese Forces MP Ziad Hawat said: “The order came from Tehran, so the ‘disruption duo’ decided to set the Cabinet meetings free. These are the repercussions of external negotiations.”

He added: “The ‘disruption duo’ pawned the country to the outside will. But the parliamentary elections are coming and the hour of reckoning is upon us.”

The two parties said on Saturday that they would take part in Cabinet meetings after a three-month boycott.

The decision came as a surprise to many, and positively impacted the currency rate on Sunday.

Reacting to the announcement, Prime Minister Najib Mikati said that he would convene a Cabinet meeting as soon as the Finance Ministry had sent through a draft budget.

He added that the decision “aligns with his personal repeated calls for everyone to participate in assuming the national responsibility in a way that preserves the national pact, especially during these critical times the country is going through.”

Mikati’s office noted the need “to set a recovery plan to launch the negotiation process with the International Monetary Fund.”

Some political observers said that the two parties are facing a political stalemate and popular pressure accusing them of escalating crises.

Parliamentary elections are around the corner and the two parties “want to absorb people’s resentment before the date of the said elections next May.”

Other observers linked the decision by the two parties to “regional developments regarding the Vienna talks.”

They believe that “the decision to disrupt the Cabinet meetings served an external agenda, specifically an Iranian one, and that perhaps they ended their boycott to demonstrate flexibility in the complicated negotiations.”

The two parties said in their joint statement on Saturday: “We announce our agreement to participate in Cabinet meetings to approve the national budget and discuss the economic rescue plan, and all that concerns improving the living conditions of the Lebanese.”

They claimed that the decision came “following the acceleration of events and the escalation of the internal political and economic crisis to an unprecedented level, with the collapse of the Lebanese pound’s exchange rate, the decline of the public sector and the collapse of citizen income and purchasing power.”

Hezbollah and Amal also mentioned in their mutual statement that their boycott was due to “the unconstitutional steps undertaken by Judge Tarek Bitar in the Beirut Port blast case — the gross legal infringements, flagrant politicization, lack of justice and lack of respect for standardization.”

Instead of Bitar presiding over the case, the two parties have requested that a parliamentary panel should look into the matter.

This requirement, however, has not been executed yet, as the prime minister has refused to “interfere with judicial operations,” with his party firmly backing Bitar.

Phalanges Party MP Samy Gemayel said that Hezbollah and Amal “think they owe us a favor by ending the boycott.”

He added: “They paralyzed the country for a year to form the government they wanted and they boycotted it to prevent justice from prevailing in the ‘crime of the century.’

“The Lebanese people are the ones paying the price. There’s no work, no electricity, no heating, no bread and no medicine,” said Gemayel.

He added: “Accountability for humiliating people will be achieved through the elections.”

In his Sunday sermon, Maronite Patriarch Bechara Al-Rahi commented on the latest development regarding Cabinet sessions.

“In the democratic system, the procedural authority shall operate according to the powers conferred upon it by the constitution, without being subject to any illegal pressure or condition,” he said.

He warned against “resorting to the disruption of parliamentary and presidential elections — scheduled for next October — for suspicious personal objectives.

“The Cabinet disruption, the political escalation, the continued provocation, the use of justice to undermine the opponents and the inversion of priorities reassure neither the Lebanese people nor Lebanon’s brothers and friends.”

Internet services were disrupted in Lebanon on Sunday because of diesel shortages, adding another essential service to the list of casualties of the country’s economic crisis.

The Energy Ministry, however, categorically denied an Israeli Channel 12 report entitled “Washington approves an agreement to supply Lebanon with Israeli gas.”

The ministry said that “the gas supply agreement between the Lebanese government and the Egyptian government clearly states that the gas must come from Egypt, which owns large gas quantities.

“This gas will pass through Jordan, and then into Syria, which will in turn benefit from it.”


Jeers as Iran officials blame Asadabad blasts on thunderstorms

Jeers as Iran officials blame Asadabad blasts on thunderstorms
Updated 17 January 2022

Jeers as Iran officials blame Asadabad blasts on thunderstorms

Jeers as Iran officials blame Asadabad blasts on thunderstorms
  • The governor of Asadabad had ruled out the possibility of thunderstorms as the source of the blasts
  • Over the past two years, numerous mysterious explosions and fires have occurred at military, nuclear and industrial sites in Iran

JEDDAH/DUBAI: Iranian authorities invited widespread ridicule on Sunday by insisting that large explosions in several areas in the west of the country were caused by thunderstorms.

Majid Mirahmadi, an official at the Interior Ministry, insisted: “After liaising with the relevant security and military agencies, it was determined that the sounds were caused by thunder and lightning and no special incident occurred.

However, the governor of the western town of Asadabad ruled out the possibility of thunderstorms as the source of reported loud blasts heard in several Iranian cities and towns.

One blast in the town of Asadabad caused panic among residents. “The intensity of the sound in some places was such that doors and windows of houses shook and people left their homes,” the Rokna news website said on its Telegram channel.

FASTFACT

Over the past two years, numerous mysterious explosions and fires have occurred at military, nuclear and industrial sites in Iran.

After several similar explosions in recent months, authorities said the Iranian military was holding unannounced air defense drills amid rising tensions with Israel and the US over Iran’s nuclear program.

Over the past two years, numerous mysterious explosions and fires have occurred at military, nuclear and industrial sites in Iran.

Two explosions at the Natanz uranium enrichment facility were clearly the result of sabotage.

Other explosions have taken place at missile sites, petrochemical plants, power stations and medical clinics. Previous explanations by the Tehran regime have included faulty safety procedures, human error, and, in one case, an earthquake.

Nevertheless, many analysts believe Iran is the target of a campaign of sabotage attacks by Israel as part of a “shadow war” between the two countries linked to Tehran’s nuclear program.

Most recently, in late 2021, there was a major explosion on an Iranian vessel docked at Latakia port in Syria, a fire broke out at an Iranian petrochemical factory on Khark Island in the Gulf, three people were injured in a fire at an Islamic Revolutionary Guard Corps research center west of Tehran, and a cyberattack crippled gas stations across Iran.

Israel has long threatened military action against Iran if indirect talks with Washington and Tehran fail to salvage a 2015 nuclear pact that then-US President Donald Trump abandoned in 2018 and reimposed sanctions on Tehran.

(With Reuters)