GCC Macro-Outlook: Great in the Mid-Term, but What about the Long Run?

Source: The Middle East Times (Read full story)

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After the GCC private sector had taken over leadership in investment in the 80s and 90s, capital formation too is now again led by government, accounting for more than half of total investment again in Saudi Arabia for the first time since the early 1980s. Some of this investment might help in generating private growth in the future, but much of it is just to satisfy the basic infrastructure and utility needs of growing populations; in some cases, just like in the 1970s, resources also go into prestige projects of questionable economic value. Most worryingly, much of private demand in GCC economies remains indirectly state-driven: Different from almost all other economies in the world, the majority of the wage share in GDP typically consists of public sector wages, meaning that most household demand for goods and services is indirectly state-financed.

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Saudi foreign minister calls for arms embargo on Syrian regime

Source: Al Arabiya (Read full story)

Saudi Foreign Minister Prince Saud al-Faisal called on Monday after meeting with U.S. Secretary of State John Kerry for imposing an arms embargo against the Syrian regime, adding that embattled President Bashar al-Assad has lost control on all of Syria.  Prince al-Faisal stressed Saudi Arabia’s support for the Syrian people right for self-defense against the brutal crackdown of the President Assad’s forces. The United States will continue to work with its “friends to empower the Syrian opposition,” Kerry told reporters. Asked about reports of arms being sent to the rebels from countries such as Qatar and Saudi Arabia, Kerry replied: “The moderate opposition has the ability to make sure that the weapons are getting to them and not to the wrong hands.”

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Gulf awaits Kerry with qualms over US policy – GCC officials ‘finding it difficult’ to trust Washington

Source: Kuwait Times (Read full story)

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Sager said the US and the GCC also had “core differences on Bahrain,” where security forces boosted by Saudi-led Gulf troops crushed Shiite-dominated protests in March 2011. “The United States sees political demands (in Bahrain) whereas GCC countries see a problem of terrorism,” said Sager. On the Israeli-Palestinian conflict, Gulf states have made no secret of their frustration at the US administration’s failure to pressure its Israeli ally into a two-state solution. For Shaikh, the Gulf monarchies, which are staunch US allies, were alarmed by “how quickly (President Barack) Obama has moved away from his old allies” in Arab Spring countries like Egypt and Tunisia.

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Talks under way to set up “Arab Court for Human Rights”

Source: Khaleej Times (Read full story)

His Majesty King Hamad bin Isa Al Khalifa of Bahrain and Nabil El Araby, Secretary-General of the Arab League, discussed in Manama last night, the King’s initiative on establishing “Arab Court for Human Rights”. King Hamad praised the Arab League’s interest to adopt the initiative that seeks to support human rights, and dignity, affirming the importance of polishing Arab people’s skills and capabilities that are the main pillar for Arab countries’ comprehensive development.

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Saudi government may drop plans for gender barrier in Shura Council

Source: The National (Read full story)

Saudi officials may consider dropping plans for a barrier separating men and the newly appointed women in the country’s top advisory body. News reports follow the swearing-in ceremony on Sunday for the first women in the ultraconservative kingdom’s Shura Council. There was no barrier during the event as the 30 women sat on one side of the chamber and the 130 men on the other.

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Atomic Kingdom: If Iran Builds the Bomb, Will Saudi Arabia Be Next?

Source: Center for New American Security (Read full story)

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We argue that the prospects of Saudi “reactive proliferation” are lower than the conventional wisdom suggests but that this should not reduce Washington’s commitment to preventing the emergence of a nuclear-armed Iran. It is widely assumed that Saudi Arabia would respond to Iran’s acquisition of nuclear weapons by embarking on a crash program to develop their own bomb or by illicitly receiving nuclear weapons from its close ally Pakistan. If these options were not available, most analysts believe that the Saudis would be successful in securing a nuclear umbrella from Islamabad, including the possible deployment of Pakistani nuclear weapons on Saudi soil.

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Secretary of State Kerry Set for Saudi Arabia Visit

Source: SUSRIS (Read full story)

U.S. Secretary of State John Kerry will embark on his first trip abroad as America’s top diplomat on a wide-ranging itinerary to Europe and the Middle East for 11 days starting Sunday, February 23rd. The trip will include a visit to Saudi Arabia where he will have discussions with Saudi leaders and meet with GCC foreign ministers. Kerry was sworn in as the 68th Secretary of State following the departure of Hillary Clinton who completed four years in the post. He resigned his seat in the U.S. Senate, where he served 28 years, and as Chairman of the Senate Foreign Relations Committee to accept the appointment by President Barack Obama.

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