Saudi Arabia and other Gulf states can weather a global economic storm, SALT New York Conference hears

Saudi Arabia and other Gulf states can weather a global economic storm, SALT New York Conference hears
Rabia Iqbal moderates a panel consisting of Sufyan Al-Issa from IFC, CEO of Investopia Mohammed Al-Zaabi, Amer Bisat from BlackRock, and managing partner at Global Ventures Noor Sweid. (Supplied)
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Updated 15 September 2022

Saudi Arabia and other Gulf states can weather a global economic storm, SALT New York Conference hears

Saudi Arabia and other Gulf states can weather a global economic storm, SALT New York Conference hears
  • Thought leadership and networking event organized against backdrop of economic turbulence
  • Speakers say the key to surviving and thriving in the current difficult climate is to diversify

NEW YORK CITY: The Arab Gulf states are well equipped to ride out the global economic storm because they have embraced diversification by stepping away from oil dependency and exploring alternative revenue drivers, according to experts attending this week’s SALT New York fintech conference.

Speaking to Arab News on the sidelines of the event on Monday, Noor Sweid, managing partner at international venture capital firm Global Ventures, said the key to surviving and thriving in the current economic climate is to diversify.

“Diversification is always the key,” said Sweid. “They are diversifying very well in the Gulf. The governments have been for many years trying to diversify away from oil economies, and that is really translating now.”




Rabia Iqbal moderates a panel consisting of Sufyan Al-Issa from IFC, CEO of Investopia Mohammed Al-Zaabi, Amer Bisat from BlackRock, and managing partner at Global Ventures Noor Sweid. (Supplied)

Pointing to the Saudi agritech firm Red Sea Farms, Sweid said the company is flourishing, having launched in Saudi Arabia before expanding globally to address the challenges of energy management, food security, and climate change through vertical farming technology.

“They have managed to find a way to reduce the amount of power required to desalinate the water required for the purposes of vertical farming by about 90 percent,” she said.




The SALT New York conference opened on Monday against a backdrop of economic turbulence. (Supplied)

Established at the King Abdullah University of Science and Technology in Thuwal, Red Sea Farms is working to reduce the carbon and water footprint of the food sector by designing, developing and delivering sustainable agriculture technologies for harsh environments.

Sweid believes the wider Gulf region has huge potential in the domain of tech innovation owing to its “very young demographic across the region working very hard to solve problems using mass technology,” including drone deliveries, digital health, and energy management.




The CEO and chairman of Stirling Infrastructure’s investment board Michael Stirling. (Supplied)

She was not alone in highlighting the benefits of a youthful population. “Saudi Arabia has some really good fundamentals with a young population that has growing income and greater diversity,” Michael Stirling, CEO and chairman of Stirling Infrastructure’s investment board, told Arab News.

“Saudi Arabia is a country that is attracting progressively greater international attention.”

 

 

In 2016, Saudi Crown Prince Mohammed bin Salman announced Vision 2030 — a wide-ranging social reform and economic diversification agenda — aimed at branching the Kingdom’s economy out into new sectors, from leisure and tourism to financial services.

Six years on, Vision 2030 has inspired a whole generation of young entrepreneurs to explore tech-based solutions, creating high-skill jobs and raising aspirations. By diversifying its economy in this way, the Kingdom has also fortified itself against oil price shocks.

In fact, by comparison with other regions of the world, the Gulf is especially resilient to shocks and is progressing well with several high-profile mega-projects, including Saudi Arabia’s NEOM smart city and the constellation of luxury resorts taking shape on the Red Sea coast.

FASTFACTS

• SALT is a global thought leadership and networking forum encompassing finance, technology and geopolitics.

• SALT’s biannual events and technology solutions connect asset managers and entrepreneurs with owners, investment advisers and policy experts.

Setting aside the more problematic Middle Eastern countries, including his native Lebanon, Amer Bisat, managing director and head of sovereign and emerging markets investments at BlackRock, told a SALT New York session that Saudi Arabia and the UAE almost appear “boring” precisely because they have been so well managed and have been able to ride out the global economic storm.

“Even if these countries’ economies do drop, they are much better equipped to cope with any downturns,” he said.

The SALT New York conference opened on Monday against a backdrop of economic turbulence — a byproduct of the COVID-19 pandemic and its associated lockdowns and supply chain disruptions, not to mention the damage caused by the war in Ukraine.

The virtual economy in particular has experienced a monumental drop, with cryptocurrencies plummeting in value and investors losing millions on a market that offers no tangible goods.




Managing director and head of sovereign and emerging markets investments at BlackRock Amer Bisat. (Supplied)

Analysts say most of the factors behind this drop are “macro,” which means they relate to the economy as a whole rather than any flaws in the crypto market. Record-high inflation, rising interest rates, and a loss of confidence have all contributed to the crypto crash.

 

 

In his opening remarks to the conference, Anthony Scaramucci, founder and managing partner of investment management company SkyBridge, reflected on the difficult business environment investors have had to contend with since the pandemic, but said he is nonetheless continuing to invest.

“I am already seeing my investment improve in value,” Scaramucci later told Arab News on the sidelines. “I think we all have to recognize that we are going through a cyclical bear (down) market.” Nevertheless, he acknowledged “we have got things that we really haven’t seen since the 1970s.”




The founder and managing partner of investment management company SkyBridge Anthony Scaramucci. (Supplied)

Part of the problem is inflation, fueled by a drop in supply, labor shortages, and demands for higher salaries to help workers cope with rising prices. Asked when he expects the global economy to rebound, Scaramucci told Arab News: “I think this time next year we will see a very aggressive recovery.”

 

 

Despite the downturn in the market, there was nevertheless an upbeat mood on the opening day of the conference. Addressing attendees by video link, Sam Bankman-Fried, CEO of FTX, one of the world’s largest crypto-trading platforms, said he remains optimistic about digital assets because “more regulatory clarity is coming.”

He said this will help “unlock the asset class” for a number of institutions that want to get involved in the sector.




Sam Bankman-Fried, CEO of FTX, addresses attendees by video link. (Supplied)

Frank Chaparro, editor-at-large at The Block, a website dedicated to cryptocurrency news, said he believes crypto’s “winter has thawed and that spring is upon us.”

“We don’t know how long this winter is going to last,” he told Arab News, but insisted people should not focus on the present value of cryptocurrencies and should instead acknowledge the signs of hope on the horizon.

“It’s hopeful because it is a unique dynamic space,” he said. “So if anything this is a great time to build because we are not getting distracted by price and we can focus on doing the work.

“We have to think about what we have just got out of. We have got out of a massive price decline. We saw liquidity sucked out of the system, we saw leverage sucked out of the system. This was a dramatic collapse.”




Editor-at-large at The Block, a website dedicated to cryptocurrency news, Frank Chaparro. (Supplied)

Referring to the collapse of the Terra (LUNA) crypto token in May this year, which wiped billions of dollars off the market, Chaparro said: “LUNA was a dramatic collapse, the likes of which we have never really seen — a coin going from $50 billion market cap to zero effectively.”

Although people should not expect a “v-shaped rebound,” Chaparro said “patience is warranted.

“Optimism, just as in life, is always important.”

SALT is a global thought leadership and networking forum encompassing finance, technology and geopolitics. Its biannual events and technology solutions connect leading asset managers and entrepreneurs with top asset owners, investment advisors and policy experts.

Founded in 2009 by SkyBridge, SALT brings together 2,000 of the world’s foremost investors and thinkers for three days of high-level collaboration and networking.




The UAE’s Minister of Economy Abdulla bin Touq Al-Marri. (Supplied)

During a conference session on Monday, it was announced that Abu Dhabi will host Investopia, one of the biggest financial events in the MENA region, in March next year.

The announcement was made during a session in which Abdulla bin Touq Al-Marri, the UAE’s minister of economy, and Mohamed Al-Shorafa, chairman of the Abu Dhabi Department of Economic Development, set out how the country had refocused its economy away from oil and gas by embracing industries like fintech.

Al-Marri said the UAE had introduced some of the world’s first regulations for cryptocurrency as part of its road map to modernizing its economy.




The chairman of the Abu Dhabi Department of Economic Development Mohamed Al-Shorafa. (Supplied)

“Last year we announced our vision for the next 50 years. We are a country of visions, and our leaders are visionaries,” said Al-Marri.

The country has enacted a slew of new laws, including the decriminalization of bouncing cheques and the 100-percent-ownership law, which allows onshore control of companies by non-Emiratis, to create a more favorable business environment for foreign investors.

Al-Marri said the UAE’s aim is to develop the economy from a regional player to being truly global.

 


Watchdog blames Syria’s air force for deadly chlorine attack

Watchdog blames Syria’s air force for deadly chlorine attack
Updated 58 min 6 sec ago

Watchdog blames Syria’s air force for deadly chlorine attack

Watchdog blames Syria’s air force for deadly chlorine attack
  • A report published Friday by a team from the Organization for the Prohibition of Chemical Weapons offered the latest confirmation that the regime of Syrian President Bashar Assad used chemical weapons

THE HAGUE: An investigation by the global chemical weapons watchdog established there are “reasonable grounds to believe” Syria’s air force dropped two cylinders containing chlorine gas on the city of Douma in April 2018, killing 43 people.
A report published Friday by a team from the Organization for the Prohibition of Chemical Weapons offered the latest confirmation that the regime of Syrian President Bashar Assad used chemical weapons during his country’s grinding civil war.
“The use of chemical weapons in Douma – and anywhere – is unacceptable and a breach of international law,” OPCW Director-General Fernando Arias said.
The organization said that “reasonable grounds to believe” is the standard of proof consistently adopted by international fact-finding bodies and commissions of inquiry.
Syria, which joined the OPCW in 2013 under pressure from the international community after being blamed for another deadly chemical weapon attack, does not recognize the investigation team’s authority and has repeatedly denied using chemical weapons.
Despite the latest findings, bringing perpetrators in Syria to justice remains a long way off. Syria’s ally Russia has, in the past, blocked efforts by the UN Security Council to order an International Criminal Court investigation in Syria.
“The world now knows the facts – it is up to the international community to take action, at the OPCW and beyond,” Arias, a veteran Spanish diplomat, said.
The report said there are “reasonable grounds to believe” that during a government military offensive to recapture Douma, at least one Syrian air force Mi8/17 helicopter dropped two yellow cylinders on the city.
One of the cylinders hit the roof of a three-story residential building and ruptured, “rapidly released toxic gas, chlorine, in very high concentrations, which rapidly dispersed within the building killing 43 named individuals and affecting dozens more,” according to the report.
A second cylinder burst through the roof of another building into an apartment below and only partially ruptured, “mildly affecting those who first arrived at the scene,” the report added.
Syrian authorities refused the investigation team access to the sites of the chlorine attacks. The country had its OPCW voting rights suspended in 2021 as punishment for the repeated use of toxic gas, the first such sanction imposed on a member nation.
The painstaking investigation by the organization’s team, was set up to identify perpetrators of chemical weapon attacks in Syria, built on earlier findings by an OPCW fact-finding mission that chlorine was used as a weapon in Douma.
The investigators also interviewed dozens of witnesses and studied the blood and urine of survivors as well as samples of soil and building materials, according to the watchdog agency.
The investigators also carefully assessed and rejected alternative theories for what happened, including Syria’s claim that the attack was staged and that bodies of people killed elsewhere in Syria were taken to Douma to look like victims of a gas attack.
The report found that the two cylinders carrying chlorine were modified and filled at the Dumayr air base and the helicopter or helicopters that dropped them were under control of the Syrian military’s elite Tiger Force.
The OPCW team “considered a range of possible scenarios and tested their validity against the evidence they gathered and analyzed to reach their conclusion: that the Syrian Arab Air Forces are the perpetrators of this attack,” the organization said in a statement.
The ongoing conflict that started in Syria more than a decade ago has killed hundreds of thousands and displaced half the country’s prewar population of 23 million.


One killed in shooting at Azerbaijan’s embassy in Iran

One killed in shooting at Azerbaijan’s embassy in Iran
Updated 27 January 2023

One killed in shooting at Azerbaijan’s embassy in Iran

One killed in shooting at Azerbaijan’s embassy in Iran
  • The attack led to the death of the head of the security team and injured others

DUBAI: A man armed with a Kalashnikov-style rifle stormed the Azerbaijan Embassy in Iran’s capital Friday, killing the head of security at the diplomatic post and wounding two guards, authorities said.
Tehran’s police chief, Gen. Hossein Rahimi, blamed the attack on “personal and family problems,” according to Iranian state television. However, the assault comes as tensions have been high for months between neighboring Azerbaijan and Iran.
Video purportedly from the scene of the attack showed an empty diplomatic police post just near the embassy, with one man apparently wounded in an SUV parked outside. Inside the embassy past a metal detector, paramedics stood over what appeared to be a lifeless body in a small office as blood pooled on the floor beneath.
A statement from Azerbaijan’s Foreign Ministry said that “an investigation is currently underway into this treacherous attack.” The ministry also described the attacker as destroying a guard post with assault rifle fire before being stopped by the wounded guards, whom authorities described as being in a “satisfactory” condition after being shot.
Iranian state TV quoted Rahimi as saying the gunman had entered the embassy with his two children during the attack. However, surveillance footage from inside the embassy released in Azerbaijan, which matched details of the other video of the aftermath and bore a timestamp matching the Azerbaijan Foreign Ministry’s statement, showed the gunmen burst through the embassy’s doors alone.
Those inside tried to push through metal detector to take cover. The man opens fire with the rifle, its muzzle flashing, as he chases after the men into the small side office. Another man bursts from a side door and fights the gunman for the rifle as the footage ends.
Iranian prosecutor Mohammad Shahriari reportedly said that the gunman’s wife had disappeared in April after a visit to the embassy. The Iranian judiciary’s Mizan news agency quoted Shahriari as saying the gunman believed his wife was still in the embassy at the time of the attack — even though it was some eight months later.
Azerbaijan borders Iran’s northwest. There have been tensions between the two countries as Azerbaijan and Armenia have fought over the Nagorno-Karabakh region.
Iran in October launched a military exercise near the Azerbaijan border, flexing its martial might amid the nationwide protests rocking the Islamic Republic. Azerbaijan also maintains close ties to Israel, which Tehran views as its top regional enemy. The Islamic Republic and Israel are locked in an ongoing shadow war as Iran’s nuclear program rapidly enriches uranium closer than ever to weapons-grade levels.
Turkiye, which has close ties to Azerbaijan, condemned the attack, called for the perpetrators to be brought to justice and for measures to be put in place to prevent similar attacks in the future. Turkiye has backed Azerbaijan against Armenia over Nagorno-Karabakh.
“Turkiye, which has been subjected to similar attacks in the past, deeply shares the pain of the Azerbaijani people,” a Turkish Foreign Ministry statement said. “Brotherly Azerbaijan is not alone. Our support to Azerbaijan will continue without interruption, as it always has.”


Israel, Gaza fighters trade fire after deadly West Bank raid

Israel, Gaza fighters trade fire after deadly West Bank raid
Updated 27 January 2023

Israel, Gaza fighters trade fire after deadly West Bank raid

Israel, Gaza fighters trade fire after deadly West Bank raid

JERUSALEM: Gaza militants fired rockets and Israel carried out airstrikes early Friday as tensions soared following an Israeli raid in the occupied West Bank that killed nine Palestinians, including at least seven militants and a 61-year-old woman.
It was the deadliest single raid in the territory in over two decades. The flare-up in violence poses an early test for Israeli Prime Minister Benjamin Netanyahu’s far-right government and casts a shadow on US Secretary of State Antony Blinken’s expected trip to the region next week.
Palestinian militants fired five rockets at Israel, the military said. Three were intercepted, one fell in an open area and another fell short inside Gaza. Israel carried out a series of airstrikes at what it said were militant targets. There were no immediate reports of casualties.
Thursday’s deadly raid in the Jenin refugee camp was likely to reverberate on Friday as Palestinians gather for weekly Muslim prayers that are often followed by protests. Hamas, the Islamic militant group that controls Gaza, had earlier threatened revenge for the raid.
Raising the stakes, the Palestinian Authority said it would halt the ties that its security forces maintain with Israel in a shared effort to contain Islamic militants. Previous threats have been short-lived, in part because of the benefits the authority enjoys from the relationship and also due to US and Israeli pressure to maintain it.
The Palestinian Authority already has limited control over scattered enclaves in the West Bank, and almost none over militant strongholds like the Jenin camp. But the announcement could pave the way for Israel to step up operations it says are needed to prevent attacks.
The Israeli strikes early Friday targeted training sites for Palestinian militant groups, the military said. Witnesses and local media reported that Israeli drones fired two missiles at a Hamas militant base before fighter jets struck it, causing four large explosions.
Air raid sirens went off in southern Israel as the initial two rockets were fired and then again after the airstrikes, when the militants fired the other three rockets.
On Thursday, Israeli forces went on heightened alert as Palestinians filled the streets across the West Bank, chanting in solidarity with Jenin. President Mahmoud Abbas declared three days of mourning, and in the refugee camp, residents dug a mass grave for the dead.
Palestinian Authority spokesman Nabil Abu Rudeineh said Abbas had decided to cut security coordination in “light of the repeated aggression against our people.” He also said the Palestinians planned to file complaints with the UN Security Council, International Criminal Court and other international bodies.
Barbara Leaf, the top US diplomat for the Middle East, said the Biden administration was deeply concerned about the situation and that civilian casualties reported in Jenin were “quite regrettable.” But she also said the Palestinian announcement to suspend security ties and to pursue the matter at international organizations was a mistake.
Thursday’s gunbattle that left nine dead and 20 wounded erupted when Israel’s military conducted a rare daytime operation in the Jenin camp that it said was meant to prevent an imminent attack on Israelis. The camp, where the Palestinian Islamic Jihad militant group has a major foothold, has been a focus of near-nightly Israeli arrest raids.
Hamas’ armed wing claimed four of the dead as members, while Islamic Jihad claimed three others. An earlier statement from the Al-Aqsa Martyrs’ Brigade, a militia loosely affiliated with Abbas’ secular Fatah party, claimed one of the dead was a fighter named Izz Al-Din Salahat, but it was unclear if he was among those seven militants.
The Palestinian Health Ministry identified the 61-year-old woman killed as Magda Obaid, and the Israeli military said it was looking into reports of her death.
The Israeli military circulated aerial video it said was taken during the battle, showing what appeared to be Palestinians on rooftops hurling stones and firebombs on Israeli forces below. At least one Palestinian can be seen opening fire from a rooftop.
Later in the day, Israeli forces fatally shot a 22-year-old and wounded two others, the Palestinian Health Ministry said, as Palestinians confronted Israeli troops north of Jerusalem to protest Thursday’s raid. Israel’s paramilitary Border Police said they opened fire on Palestinians who launched fireworks at them from close range.
Tensions have soared since Israel stepped up raids in the West Bank last spring, following a series of Palestinian attacks.
Israel’s new national security minister, far-right politician Itamar Ben-Gvir, who seeks to grant legal immunity to Israeli soldiers who shoot Palestinians, posted a video of himself beaming triumphantly and congratulating security forces.
The raid left a trail of destruction in Jenin. A two-story building, apparently the operation’s target, was a charred wreck. The military said it entered the building to detonate explosives.
Palestinian Health Minister May Al-Kaila said paramedics struggled to reach the wounded during the fighting, while Akram Rajoub, the governor of Jenin, said the military prevented emergency workers from evacuating them.
Both accused the military of firing tear gas at the pediatric ward of a hospital, causing children to choke. Video at the hospital showed women carrying children into a corridor.
The military said forces closed roads to aid the operation, which may have complicated rescue efforts, and that tear gas had likely wafted into the hospital from nearby clashes.
The Israeli rights group B’Tselem said Thursday marked the single bloodiest West Bank incursion since 2002, at the height of an intense wave of violence known as the Second Intifada, or Palestinian uprising, which left scars still visible in Jenin.
UN Middle East envoy Tor Wennesland said he was “deeply alarmed and saddened” by the violence. Condemnations came from the Organization of Islamic Cooperation and Turkiye, which recently reestablished full diplomatic ties with Israel. Neighboring Jordan, as well as Saudi Arabia and other Gulf countries also condemned the Israeli raid.
The Islamic Jihad branch in Gaza has repeatedly fought against Israel, most recently in a fierce three-day clash last summer that killed dozens of Palestinians and disrupted the lives of hundreds of thousands of Israelis. Hamas, which seized power from the Palestinian Authority in Gaza in 2007, has fought four wars and several smaller skirmishes with Israel.
Nearly 150 Palestinians were killed in the West Bank and east Jerusalem last year, making 2022 the deadliest in those territories since 2004, according to B’Tselem. So far this year, 30 Palestinians have been killed.
Israel says most of the dead were militants. But youths protesting the incursions and others not involved in the confrontations also have been killed. So far this year, not including Thursday, one-third of the Palestinians killed by Israeli troops or civilians had ties to armed groups.
Last year, 30 people were killed in Palestinian attacks against Israelis.
Israel says its raids are meant to dismantle militant networks and thwart attacks. The Palestinians say they further entrench Israel’s 55-year, open-ended occupation of the West Bank, which Israel captured along with east Jerusalem and the Gaza Strip in the 1967 Mideast war. The Palestinians claim those territories for their hoped-for state.
Israel has established dozens of settlements in the West Bank that now house 500,000 people. The Palestinians and much of the international community view settlements as illegal and an obstacle to peace, even as talks to end the conflict have been moribund for over a decade.


France, Iraq sign comprehensive strategic partnership agreement — Elysee

France, Iraq sign comprehensive strategic partnership agreement — Elysee
Updated 27 January 2023

France, Iraq sign comprehensive strategic partnership agreement — Elysee

France, Iraq sign comprehensive strategic partnership agreement — Elysee

French President Emmanuel Macron met with Iraq Prime Minister Mohammed Shia Al-Sudani on Thursday, the French presidency said, signing a set of strategic agreements meant to boost Iraq’s economic cooperation with the European country.
In the meeting, France and Iraq signed a treaty that seeks to strengthen bilateral relations in anti-corruption, security, renewable energy and culture, the Elysee Palace said on Friday.


S. Sudan’s displaced hope pope’s visit will bring peace

S. Sudan’s displaced hope pope’s visit will bring peace
Updated 26 January 2023

S. Sudan’s displaced hope pope’s visit will bring peace

S. Sudan’s displaced hope pope’s visit will bring peace
  • Pope Francis is due to go to Congo from Jan. 31 to Feb. 3 and then spend two days in South Sudan

JUBA: After spending nearly a decade in a camp for the displaced in South Sudan’s Juba, Mayen Galuak hopes that Pope Francis’ visit to the capital city next week will inspire political leaders to finally restore peace, allowing him to go home.

The 44-year-old entered the UN camp, just a few kilometers from his residence, in search of safety three days after conflict broke out in 2013.

In the ensuing years, he has watched as South Sudan’s leaders forged peace deals and broke them; as militias carried out and denied ethnic massacres; and as relentless conflict pushed parts of the country into famine.

Pope Francis is due to go to Congo from Jan. 31 to Feb. 3 and then spend two days in South Sudan. 

The pope has wanted to visit South Sudan for years but plans were postponed due to the instability there and a scheduled trip last June was canceled due to the pope’s knee ailment.

The Vatican’s envoy to the Democratic Republic of Congo has said the trip will remind the world not to ignore decades-long conflicts.

“We are in a bad situation ... since 2013, we have not seen any good peace,” said Galuak, who says he can’t travel to his birth home in the country’s north because of the risk of attack. Sporadic clashes continue to kill civilians throughout the country.

South Sudan gained independence in 2011.