Saudi allows 60,000 vaccinated residents on hajj, bars foreigners again

RIYADH - Saudi Arabia announced Saturday it will allow 60,000 residents vaccinated against COVID-19 to perform this year's hajj, but Muslims from abroad will be barred for a second straight year.

The hajj -- a must for able-bodied Muslims at least once in their lives -- typically packs millions of pilgrims into congested religious sites and could be a major source of contagion amid the coronavirus pandemic.

This year it would be "open for nationals and residents of the kingdom, limited to 60,000 pilgrims", the hajj ministry said, quoted by the official Saudi Press Agency.

The pilgrimage, scheduled to be held in July, would be limited to those who have been vaccinated and are aged 18-65 with no chronic illnesses, it said.

Only up to 10,000 Muslims took part in last year's hajj, a far cry from the 2.5 million who participated in the five-day annual pilgrimage in 2019 before the pandemic.

"In light of what the whole world is witnessing with the coronavirus pandemic... and the emergence of new variants, the relevant authorities have continued to monitor the global health situation," the ministry said.

"Considering the large crowds that perform hajj, spending long periods of time in multiple and specific places... requires the highest levels of health precautions."

Saudi Arabia said those wishing to perform the hajj would have to apply online, without specifying how many foreign residents would be among the 60,000 pilgrims.

In 2020, foreigners were 70 percent of the pilgrims, while Saudis made up the rest.

The kingdom said it had informed other countries of the decision not to allow pilgrims from abroad.

"There was great understanding," deputy hajj minister, Abdulfattah bin Sulaiman Mashat, told a news conference.

"Arrangements for this were based on the kingdom's keenness on the pilgrims' health and the safety of their countries."

- Vaccination drive -

Pakistan's government said it supported the decision but there was disappointment among those hoping to make the pilgrimage.

"I am profoundly saddened... I also wanted to go for hajj last year. I was desperately hoping to make it this year and even had got myself vaccinated along with my wife," clothes merchant Zafar Ullah, 64, told AFP.

Mohammad Shakeel, a tour operator from Hajj Organisers Association of Pakistan, said the Saudi decision would "further add" to financial losses faced by his company.

Riyadh is accelerating a nationwide vaccination drive as it moves to revive tourism and host sports and entertainment events, pandemic-hit sectors that are a bedrock of the "Vision 2030" programme to diversify its oil-reliant economy.

It has approved the Pfizer/BioNTech, Moderna, Johnson & Johnson and AstraZeneca vaccines.

In May, only inoculated or immunised citizens were allowed to travel abroad, after the kingdom lifted a ban on overseas trips introduced at the start of the pandemic.

The kingdom has also said that from August 1, vaccinations would be mandatory to enter government and private establishments, including education institutions and entertainment venues, as well as to use public transport.

In a relaxation of coronavirus curbs last October, Saudi Arabia opened the Grand Mosque for prayers for the first time in seven months and partially resumed the all-year-round umrah pilgrimage.

The limit on umrah pilgrims is 20,000 a day, with a total of 60,000 worshippers allowed to perform daily prayers at the mosque.

Authorities said the umrah -- which usually attracts millions of Muslims from across the globe -- would be allowed to return to full capacity once the threat of the pandemic has abated.

The revered Black Stone in the Kaaba -- which is customary but not mandatory to touch during the pilgrimage -- remains out of reach.

- Loss of revenue -

A scaled-down hajj represents a major loss of revenue for the kingdom, already reeling from the twin shocks of the virus-induced slowdown and a plunge in oil prices.

The hajj and the year-round umrah pilgrimages together rake in some $12 billion (10.3 billion euros) annually.

Last year, the foreign press were barred from the hajj, usually a huge global media event.

Saudi Arabia has so far recorded more than 460,000 coronavirus infections, including 7,537 deaths.

It more than 15 million coronavirus vaccine doses have been administered in the country of over 34 million people.

Hosting the hajj is a matter of prestige for Saudi rulers, for whom the custodianship of Islam's holiest sites is their most powerful source of political legitimacy.

But a series of deadly disasters over the years, including a 2015 stampede that killed up to 2,300 worshippers, has prompted criticism of the kingdom's management of the pilgrimage.

Agence France-Presse

Saudi to make COVID-19 vaccinations mandatory for all workers

DUBAI - All public and private sector workers wishing to attend a workplace in Saudi Arabia will be required to have taken a COVID-19 vaccination, the human resources ministry said on Friday, without specifying when this would be implemented.

"Receiving a coronavirus vaccine will be a mandatory condition for male and female workers to attend workplaces in all sectors (public, private, non-profit)," the Ministry of Human Resources and Social Development said on Twitter.

It urged workplaces to start preparations to ensure all employees receive a vaccination.

"The ministry will soon clarify the mechanisms of the decision and its implementation date," it said.

-reuters-

Saudi, Russia reach deal on oil cuts, raising pressure for compliance

DUBAI/MOSCOW - OPEC leader Saudi Arabia and non-OPEC Russia have agreed a preliminary deal to extend existing record oil output cuts by one month while raising pressure on countries with poor compliance to deepen their cuts, OPEC+ sources told Reuters.

OPEC+ agreed to cut output by a record 9.7 million barrels per day, or about 10% of global output, in May and June to lift prices battered by plunging demand linked to lockdown measures aimed at stopping the spread of the coronavirus.

Rather than easing output cuts in July, OPEC and its allies, a group known as OPEC+, were discussing keeping those cuts beyond June.

"Saudi Arabia and Russia are aligned on the extension for one month," one OPEC source said.

"Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction," the source said.

The group also considered holding an online meeting on June 4 to discuss output policy, after Algeria, which holds the presidency of the Organization of the Petroleum Exporting Countries, proposed bringing forward a meeting planned for June 9-10.

The OPEC source said that an earlier meeting on June 4 is also conditional on compliance and that the discussions now are about implementing criteria for those countries who have not fully complied with the oil cuts and how they can compensate for their overproduction in the coming months.

OPEC members Iraq and Nigeria has shown weak compliance with its output reduction targets in May. OPEC/O

Kazakhstan also failed to fully meet its obligations under the OPEC+ oil cut pact, sources said.

Two sources also told Reuters that Gulf OPEC producers Saudi Arabia, Kuwait and the United Arab Emirates are not discussing extending their deeper voluntary oil cuts of 1.180 million bpd beyond June.

Oil prices rose in recent days from the lows of April buoyed by a continuing recovery in China, the epicenter of the coronavirus outbreak, while other economies are slowly opening up after lockdowns to contain its spread.

"Overall the market is moving in the right direction with the gradual easing of the lockdown. But we still need to be cautious. There is always a risk of another wave of the coronavirus," the first OPEC source said.

"The other thing is how quickly will demand patterns recover. Inventories are still above average levels and that needs to be tackled." (Reporting by Rania El Gamal and Olesya Astakhova, editing by Louise Heavens and David Evans)

-reuters-

Saudi triples VAT, halts govt handouts in austerity drive

RIYADH- Saudi Arabia's finance minister on Monday said the kingdom would triple its Value Added Tax (VAT) and halt monthly handout payments to citizens in new austerity measures spawned by the coronavirus.

"It has been decided the cost of living allowance will be halted from June 2020 and VAT will be raised from 5 percent to 15 percent from July 1," minister Mohammed al-Jadaan said, according to the official Saudi Press Agency.

The measures come after Jadaan last week warned of "painful" and "drastic" steps as the government steps up emergency plans to slash spending amid the double shock of the novel coronavirus and record low oil prices.

Saudi Arabia, along with other Gulf states, imposed a 5 percent tax on goods and services in 2018 in a bid to generate additional revenue.

The petro-state had also introduced handouts worth billions of dollars to citizens, known as the cost of living allowance, to cushion the impact of rising costs.

Jadaan has said he expected Riyadh could lose half of its oil income, which contributes about 70 percent of public revenues, as oil prices have fallen two-thirds since the start of the year.

He said the world's leading crude exporter would borrow close to $60 billion this year to plug a huge budget deficit.

The International Monetary Fund in April projected that the Saudi economy would contract by 2.3 percent this year. 

Agence France-Presse

Saudi Arabia coronavirus cases exceed 35,000

The number of coronavirus cases in Saudi Arabia exceeded 35,000 on Friday as the kingdom struggles to get to grips with rising numbers of new infections.

Officials reported 1,701 new cases , taking the total to 35,432. The country has recorded a daily average of around 1,500 new cases over the past week.

Despite the rising number of cases, the kingdom's death toll has remained relatively low. It increased by 10 on Friday to 229.

Saudi Arabia on Thursday formed a police unit to monitor violations of its coronavirus lockdown rules and banned gatherings of more than five people, according to state news agency SPA, citing hefty fines for any violations.

Fines of up to 100,000 riyals ($27,000) will be handed down to groups larger than one family gathering in public and private spaces, including homes, construction sites and shops. The same rule applies for parties, weddings and funerals.

Saudi Arabia recorded its first COVID-19 infection on March 2, several weeks after the initial outbreak in Asia. 

-reuters-

Saudi foreign reserves fall at fastest for two decades

RIYADH/DUBAI - Saudi Arabia's central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while the kingdom slipped into a $9 billion budget deficit in the first quarter as oil revenues collapsed.

The world's largest oil exporter is suffering from historic price lows, while at the same time measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

The Saudi Arabian Monetary Authority said late on Tuesday its net foreign assets, which include securities such as U.S Treasuries and foreign deposits, fell in March to $464 billion, their lowest in 19 years.

The nearly $27 billion decline - the biggest monthly drop in at least two decades - signals the kingdom's urgent need to tap into reserves to offset economic damage from oil prices and a severe coronavirus-driven slowdown of non-oil sectors.

"We believe that the magnitude of the drop ... reflected both higher government funding to cover the budget deficit and the support packages announced in March to help counterbalance the impact of COVID-19," said Monica Malik, chief economist at Abu Dhabi Commercial Bank (ADCB).

Finance Minister Mohammed al-Jadaan said last week the kingdom would limit its drawdown to a maximum of $32 billion from reserves this year to fill a widening deficit which it plans to cover instead by increasing borrowing to nearly $60 billion.

Early on Wednesday, the finance ministry reported a first quarter budget deficit of $9 billion, mostly because of a drop in oil revenues that reversed a first quarter surplus of around $7.4 billion in 2019.

Oil revenues in the first three months of the year posted a 24% annual decline to $34 billion and pushed total revenues down 22% year on year.

Saudi Arabia, which had registered more than 20,000 coronavirus cases as of Tuesday with 152 deaths, had originally projected a $50 billion deficit this year, or 6.4% of gross domestic product (GDP), widening from around $35 billion last year.

Jadaan has said the deficit could now widen to up to 9% of GDP this year, but some analysts have predicted 22% with oil prices at $30 a barrel.

PRICE PLUNGE

International oil prices have shed around two thirds value since the start of this year and are trading around $21.

"If Finance Minister al-Jadaan's plans are for merely $32 billion of reserves drawdown then, following a $27 billion reduction in March alone, that means almost all the remainder will be covered by new sovereign debt issuance, assuming there are no further privatisations, because of market conditions," said Hasnain Malik, head of equity strategy at Tellimer.

Saudi Arabia and other large producers recently agreed to cut output by almost 10 million barrels per day (bpd), in May-June, in an attempt to balance the market, but demand kept falling nonetheless due to the global slowdown.

Jadaan said last week he expects the pandemic to cause a slump in activity in the non-oil private sector too this year and that the government could take more actions on top of $32 billion in emergency stimulus measures announced last month.

Private sector loan growth, however, was solid in March, central bank data showed, "potentially reflecting the higher borrowing requirements of corporates with COVID-19 impacting cash flows," said ADCB's Malik.

Non-oil revenues in the first quarter fell 17% compared to the same period one year earlier, with revenues from taxes on goods and services plunging, in a sign of overall slowdown.

Saudi Arabia has already cut its 2020 budget by nearly 5% and further spending curbs are likely.

In Q1, however, capex spending declined only 4%, the finance ministry said.

Riyadh last month raised its debt ceiling to 50% of GDP from 30%. It has already borrowed $12 billion in international bonds this year.

($1 = 3.7600 riyals) (Reporting By Marwa Rashad and Davide Barbuscia; Additional reporting by Ahmed Tolba; Editing by Himani Sarkar, Shri Navaratnam, Barbara Lewis and Andrew Cawthorne)

-reuters-

Saudi princess pleads for release from high-security prison

RIYADH, Saudi Arabia - A prominent Saudi princess jailed without charges made a rare public appeal to the king and crown prince on Thursday for her release from a high-security prison, citing her "deteriorating" health.

Princess Basmah bint Saud, a 56-year-old businesswoman and an outspoken royal family member, was detained in March last year just before she was due to travel to Switzerland for medical treatment, according to a source close to her family.

The public plea for her release is the latest sign of turmoil within the kingdom's secretive royal family following the detention last month of King Salman's brother and nephew in an apparent attempt to stamp out internal dissent.

"As you may be aware (?) I am currently being arbitrarily held at Al-Ha'ir prison without criminal, or otherwise any charges," the princess wrote in a letter published on her verified Twitter account.

"My health is deteriorating to an extent that is (severe), and that could lead to my death.

"I have not received medical care or even (a) response to the letters I dispatched from jail to the Royal Court."

Saudi authorities have not disclosed the reasons for her detention.

The princess claimed she was "thrown into prison" after being "abducted without an explanation" along with one of her daughters.

'VERY CRITICAL'

She appealed to her uncle King Salman and her cousin -- de facto ruler Crown Prince Mohammed bin Salman –- for her release as she had "done no wrong" and added that her health status was "very critical".

The princess did not specify her ailment but her letter comes as the kingdom grapples with the fast-spreading coronavirus pandemic.

The government has imposed round-the-clock curfew across much of the country to limit the spread of the virus. Saudi Arabia has reported 6,380 infections and 83 deaths from the disease so far.

It was unclear how the princess was able to tweet from inside Al-Ha'ir, a high-security prison close to Riyadh known for holding political prisoners.

Her public plea represents an unusually bold move by someone from the kingdom's sprawling royal family, comprising thousands of members, who typically refrain from publicly raising internal grievances.

It comes after the detention last month of Prince Ahmed bin Abdulaziz al-Saud, the king's brother, and the monarch's nephew Prince Mohammed bin Nayef who was previously crown prince.

The government has yet to officially comment on the crackdown, which raised fears of government instability.

But one source close to the royal court dismissed such concerns and said the detentions were meant to send a stern warning within the royal family not to oppose the crown prince.

Prince Mohammed, heir to the Arab world's most powerful throne, has pursued a broad crackdown on dissent since his meteoric rise to the position of crown prince in 2017.

Multiple women activists, clerics, bloggers and journalists have been jailed in what observers call increasing repression and authoritarianism under the prince's de facto rule as he consolidates his grip on power.

ac/lc

Agence France-Presse

Saudi says total oil curbs could reach 19.5 million barrels

RIYADH - Oil output cuts by OPEC and its allies, together with pledges from other G20 nations and purchases by strategic reserves, could remove 19.5 million barrels per day from the market, the Saudi energy minister said.

US President Donald Trump said Monday that the actual output cuts may be deeper than the headline figure of 9.7 million bpd -- with top producers considering slashing output by 20 million barrels a day under the deal.

"People are saying 10 million but we think the number they will actually hit is going to be closer to 20 million barrels a day," Trump said at a press briefing. 

He did not give details, but the figures chime with the Saudi breakdown.

The OPEC+ alliance, led by Riyadh and Moscow, agreed on Sunday to slash daily production by 9.7 million bpd over the next two months to arrest a slump triggered by the coronavirus shutdown and a price war between Saudi Arabia and Russia.

Saudi media on Tuesday quoted Energy Minister Prince Abdulaziz bin Salman as saying that G20 producers outside OPEC+ have pledged to cut 3.7 million bpd.

He also estimated purchases for countries' strategic petroleum reserves for use in emergencies at 200 million barrels over May and June, boosting the total impact to 19.5 million bpd.

Prince Abdulaziz said the kingdom could cut below its quota of 8.5 million bpd if necessary.

According to the deal, Saudi Arabia and Russia will cut 2.5 million bpd each from their production of 11 million bpd in October 2018.

But the minister was quoted by Energy Intelligence as saying that Riyadh will effectively be cutting 3.8 million bpd from current record-high output levels of 12.3 million bpd which were boosted during the price war.

Other Gulf states will be also cutting from recently increased output levels, he said.

"So, in reality, what OPEC+ will be doing effective May 1 will be a total of 12.5 million bpd," the minister said. 

The spread of the coronavirus has hit oil demand hard, with experts estimating that one-third of global demand -- which stood at 100 million bpd before the disease -- is being wiped out.

"We have to watch what is happening with demand destruction and demand improvement, depending on how things evolve," the minister said.

Agence France-Presse

Saudi Arabia extends coronavirus curfew, UAE warns on worker repatriation

RIYADH/DUBAI - Saudi Arabia indefinitely extended a curfew due to the coronavirus on Sunday amid a surge of new infections, and the United Arab Emirates warned of possible action against countries refusing to allow migrant workers to be repatriated.

Since placing the capital Riyadh and other big cities under 24-hour curfew on Monday, Saudi Arabia has reported more than 300 new cases per day. The nationwide curfew, initially set for 3 weeks, runs from 3 p.m. to 6 a.m everywhere else. For both this and the 24-hour curfew, residents may go out only for essential needs.

The interior ministry announced new permits for vital personnel to move around. Violators face fines and jail time.

Saudi Arabia has recorded 4,462 infections with 59 deaths, the highest among the 6-nation Gulf Cooperation Council, where the total neared 14,100 with 96 deaths.

It expects it could reach 200,000 cases in coming weeks. It has halted international passenger flights, suspended the year-round umrah pilgrimage, and closed most public places.

Other Gulf Arab states have taken similar precautions and have seen the virus spread among low-wage foreign workers, many living in overcrowded accommodation. Millions of migrant laborers, mainly from Asian countries, including Nepal, India and the Philippines, are among the region’s large expatriate population.

Bahrain said 45 of 47 new cases reported on Sunday were foreign workers.

The United Arab Emirates, the region's tourism and business hub, has the second highest regional load at 3,736 cases and 20 deaths.

FOREIGN WORKERS

The UAE warned it would review labor ties with countries refusing to take back citizens, including those who lost their jobs or were put on leave, and said it was considering strict quotas for work visas issued to nationals of those states.

"Several countries have not been responsive about allowing back their citizens who have applied to return home under the current circumstances," the Human Resources and Emiratisation Ministry said, without specifying which countries.

India's ambassador to the UAE said on Saturday the country cannot repatriate large numbers of nationals while trying to combat the virus at home.

"Once the lockdown in India is lifted, we will certainly help them get back to their hometowns and their families," Pavan Kapoor told the Gulf News daily.

Pakistan's ambassador said the embassy was waiting for permission from Islamabad for repatriation flights and was hoping for "positive news soon".

"We are very keen to bring Pakistanis back but we need to finalize our treatment and quarantine facilities," Ghulam Dastgir told Reuters.

Aiming to contain the spread among foreign workers, Qatar has locked down a large section of an industrial area, Dubai sealed off two commercial districts and Oman closed off its Muscat governorate, which includes the capital.

Kuwait said late on Saturday airlines could operate outbound flights to repatriate foreigners.

The Saudi Food and Drug Authority approved conducting internationally refereed clinical trials at 5 hospitals to determine the effectiveness of treating the coronavirus with antivirals including those used for malaria and HIV. 

-reuters-

Saudi implements dusk-to-dawn curfew over coronavirus

RIYADH - Streets in Riyadh were deserted Monday as Saudi Arabia implemented a nationwide dusk-to-dawn curfew to limit the spread of the new coronavirus, the latest in a series of restrictions as infections soar.

Police cars warned people over loudspeakers to stay off the streets after the 11-hour curfew went into effect at 7 p.m. (1600 GMT) following a royal order from King Salman.

The curfew, which state media said would be imposed for 21 days, comes as Saudi Arabia declared 562 coronavirus infections -- the highest in the Gulf. No deaths have been reported so far. 

The Saudi royal guard, an elite internal security force, said it was working with other security agencies to implement the curfew as it released images on Twitter of a convoy of military trucks driving through the streets at dusk.

Bathed in amber light, Riyadh's main thoroughfares and public highways -- typically packed with cars -- were largely empty, though Saudis posted on social media videos of some young men who tried to breach the curfew. 

The interior ministry has warned that transgressors will be fined 10,000 Saudi riyals ($2,663) and could face jail for repeated breaches.

Health sector employees as well as security and military officials will be exempt from the curfew restrictions, according to the royal order.

King Salman warned on Thursday of a "more difficult" fight ahead against the virus, as the kingdom faces the double blow of virus-led shutdowns and crashing oil prices.

Following Saudi Arabia's calls last week for a "virtual" G20 summit, the French presidency on Monday said Paris and Beijing agreed on the need for emergency talks to coordinate an international response to the coronavirus crisis.

Saudi Arabia, which currently presides over the group, said G20 finance Ministers and central bank governors met virtually on Monday to ramp up economic efforts to address the pandemic.

The Arab world's biggest economy has closed down cinemas, malls and restaurants, halted flights and suspended the year-round umrah pilgrimage as it steps up efforts to contain the deadly virus.

Last week, the kingdom unveiled stimulus measures amounting to 120 billion riyals ($32 billion) to support businesses and said it plans to raise borrowing to 50 percent of GDP.

Saudi Arabia has also suspended prayers inside all its mosques except the holiest two sites in Islam in Mecca and Medina, a sensitive move in the deeply conservative Muslim kingdom.

The world's top crude exporter faces plunging oil prices, the mainstay of government revenue, which have slipped to around $25 a barrel to touch multi-year lows on the back of sagging demand due to the virus and a price war with Russia.

More than 1,300 coronavirus infections have been detected in the Gulf region, with most cases initially identified among travelers returning from Iran -- one of the world's worst affected countries.

Agence France-Presse

Oil crash piles pressure on virus-hit Saudi economy

RIYADH - From empty hotels to shuttered beauty salons, oil-dependent Saudi Arabia is bracing for a coronavirus-led economic slump on top of possible austerity measures as crude prices go into free fall.

Huge losses are expected after the Arab world's biggest economy shut down cinemas, malls and restaurants, halted flights, suspended the year-round umrah pilgrimage and locked down eastern Qatif region -- home to around 500,000 -- in a bid to contain the deadly virus.

The top crude exporter also faces plummeting oil prices, which slipped below $30 a barrel this week for the first time in four years, on the back of sagging demand and a price war with Russia.

The shock of this liquidity sapping cocktail of events has necessitated austerity measures which are likely to imperil grandiose diversification projects.

Adding to the chain of events are the recent arrests of King Salman's brother and nephew, which triggered speculation of political instability amid the government's public silence on the royal purge.

"It's crisis time," said a Saudi government employee, explaining why he had begun converting part of his salary into US dollars and gold coins.

"Everything is unpredictable and we should be ready for the worst."

The central bank has shrugged off fears that plunging oil prices were straining the kingdom's currency, pegged for decades to the US dollar.

A jeweller in Riyadh told AFP he had fielded a number of enquiries to convert "substantial amounts of cash" into gold bars and coins.

SPENDING CUTS

Many government workers fear cuts to state allowances are coming despite rising living costs.

Some Saudis also worry that recruitment in the public and private sectors will freeze, just as unemployment was already high. 

Meanwhile, Saudi students are worried that government scholarships for overseas education will take a hit.

The finance ministry has instructed government bodies to submit proposals to slash this year's spending by 20 to 30 percent, the economic consultancy Nasser Saidi and Associates said in a research note.

"This will likely take the shape of postponed projects and delays in awarding contracts" among other economizing measures, the note said.

The kingdom is now preparing budget scenarios in which crude prices could drop as low as $12 to $20 per barrel, according to the Energy Intelligence Group.

"Public confidence depends on government spending and oil sentiment -— both are down," said a consultant advising a Saudi ministry on a major project.

"We don't know if we will have our jobs tomorrow."

The once free-spending OPEC kingpin has instructed Saudi ministries that they need to account for "every penny" they spend, the consultant added.

Saudi authorities did not respond to requests for comment.

Several Riyadh hotels —- many of them empty amid falling tourist numbers —- have been forced to send their staff on unpaid leave.

But providing some support, the health ministry has booked multiple Riyadh hotels to quarantine people after the coronavirus scare, according to several staff and guests who were forced to empty the properties at short notice.

'SURVIVAL OF FITTEST'

The oil crash follows the crude exporter's decision to hike production from April and offer the biggest price cuts in two decades, in retaliation for Russia's refusal to tighten supply as the virus saps demand.

Saudi Arabia has shrugged off criticism that the move could bankrupt its oil-producing rivals, indicating it was no longer willing to play the role of "swing producer" that bears the burden of stabilizing the markets.

"The days of Saudi Arabia absorbing oil market shocks on behalf of the global economy and other producers are probably over," said Saudi expert and author Ali Shihabi. 

"The energy game... is now a survival of the fittest."

The deep-pocketed kingdom, with fiscal reserves of around $500 billion, has reiterated it is an ultra low-cost producer of crude and can withstand low prices for years.

But Riyadh has posted a budget deficit every year since the last oil price rout in 2014. It has borrowed over $100 billion and drawn from its reserves to plug the deficit.

Crown Prince Mohammed bin Salman's multi-billion dollar projects to wean the economy away from oil remain vulnerable, and Saudi Arabia needs a crude price of about $80 a barrel to balance its budget.

As economic challenges rise, the detention of royal princes Ahmed bin Abdulaziz al-Saud and Mohammed bin Nayef has fueled fears of instability.

One source close to the royal court dismissed such concerns and said the detentions were meant to send a stern warning within the royal family not to oppose the crown prince.

Yet "the threat to Prince Mohammed isn't coming from his royal rivals," said Kristin Diwan of the Arab Gulf States Institute in Washington.

"It's from the collapse of oil revenues and with them his ambitious economic plans."

source: news.abs-cbn.com

Oil subdued after heavy falls on price war

SINGAPORE — Oil prices were subdued in early Asian trade Thursday following sharp falls overnight, after Saudi Arabia and the UAE escalated a price war by vowing to pump millions more barrels of crude.

Both main contracts fluctuated between small gains and losses. West Texas Intermediate was trading at around $33 a barrel while Brent crude was at about $36 a barrel. 

Crude markets suffered their biggest 1-day drop in a generation on Monday after top exporter Riyadh began a price war following a refusal by Moscow to reduce output to combat the coronavirus impact.

Prices have swung wildly since and fell heavily again Wednesday, mirroring falls on global stock markets, after Saudi Arabia and Gulf partner UAE said they would open the oil taps further.

They said they will together boost production by at least 3.5 million barrels per day (bpd), to 16.3 million bpd, from April.

Investors were also waiting for an address by US President Donald Trump, who is set to explain his plan for tackling the virus outbreak -- which has now been declared a pandemic by global health officials -- and economic assistance. 

The collapse of oil prices came after OPEC kingpin Saudi Arabia had led a push to reduce output further to shore up prices amid slumping demand.

But the move was blocked by Moscow, the world's second-biggest oil producer, prompting Riyadh to slash prices.

Analysts see no end in sight to the turmoil.

"We suspect that Russia and Saudi Arabia may not be interested in a de-escalation for the time being," said investment firm DWS in a note.

Agence France-Presse 

Saudi risks fallout with coronavirus curbs on holy sites

RIYADH — Saudi Arabia is treading a tightrope as it bars Muslim pilgrims from Islam's holiest sites to contain the coronavirus, rolling out restrictions that while essential could prove both expensive and politically perilous.

The kingdom has suspended the "umrah" year-round pilgrimage over fears of the disease spreading to Mecca and Medina, raising uncertainty over the upcoming hajj -- a key pillar of Islam.

The pilgrimages, which pack millions of people into relative small religious sites, could be a major source of contagion and the move mirrors a precautionary approach across the Gulf to cancel mass gatherings -- from concerts to sporting events.

But the issue is still a potential powder keg in a volatile region where it risks riling fringe hardliners for whom religion trumps health considerations.

And some devout Muslims view the pilgrimages as an important rite of passage, whatever the risks.

Already reeling from slumping oil prices, the kingdom also risks losing billions of dollars it earns annually from religious tourism as it tightens access to the sites.

Its management of the crisis also shines a spotlight on the Saudi role as the custodian of the holy sites -- a pillar of its political legitimacy.

The coronavirus turmoil gives its critics and regional rivals fresh ammunition to "raise questions about Saudi control over Islam's holiest sites," said Middle East expert Yasmine Farouk from the Carnegie Endowment for International Peace.

State media has published a series of endorsements by Islamic bodies -- from the grand mufti of New Zealand to Malaysia and beyond -- which suggest "a concern in Riyadh that such a move might be politicized and used against it," Farouk told AFP.

Pro-Saudi observers have sought to deflect the focus onto the kingdom's rivals, with some on social media provoking ridicule after they called the virus "the work of Qatar" or a conspiracy by Iran.

Authorities in Saudi Arabia, which has so far reported five cases of the virus, did not respond to requests for comment.

Its measures stand in contrast to that of its regional nemesis Iran, which has struggled to contain the spread of coronavirus from its own Shiite holy sites as pilgrims and clerics appeared to defy health warnings.

"Saudi Arabia is trying to project itself as more responsible than Iran," Umar Karim, a visiting fellow at the Royal United Services Institute in London, told AFP.

"But there is apprehension that its decision could reignite the political debate in the Muslim world about whether it should be the sole authority on the hajj and the 2 holy cities."

'BIGGER IMPACT'

The kingdom already appears wary of a potential conservative backlash from a liberalization drive by Saudi rulers that has allowed what was once deemed un-Islamic -- cinemas, concerts and mixed-gender parties.

Saudi Arabia has said its umrah restrictions are temporary but they have not gone down well with many pilgrims who endure years-long waiting lists and invest their life savings to make the trip.

One foreign pilgrim in Mecca told AFP last week that he would happily die a "martyr" if he got infected, rather than skip the pilgrimage.

The Indonesian embassy in Riyadh said it was appealing to Saudi authorities to permit its nationals to press ahead with their plans, after many voiced disappointment over the decision.

Religious tourism, vital to Saudi finances amid efforts to pivot away from oil, adds $12 billion to the economy every year, according to government figures.

Capital Economics said the effects of curtailing the pilgrimage will be "substantial", especially around the holy Ramadan period starting in April, seen as an auspicious period to undertake umrah.

"Perhaps the bigger impact would be felt if the restrictions are extended to the end of the July when the hajj -- which accounts for around a quarter of total annual foreign pilgrims -- begins," the consultancy said.

The once free-spending petro-state is feeling the pinch of what one source close to the government called a "budgetary squeeze" as falling crude prices make it difficult to fund its ambitious economic diversification plan.

"Saudi ministries have been told they need to account for every penny they spend," the source told AFP.

Agence France-Presse

Saudi Arabia suspends Umrah pilgrimage for Saudi citizens, residents

Saudi Arabia suspended Umrah pilgrimages to the two holy cities of Mecca and Medina for Saudi citizens and the kingdom's other residents due to coronavirus concerns, state news agency SPA reported on Wednesday.

Saudi Arabia reported its first case of the new coronavirus on Monday from an individual who had not disclosed his visit to Iran when entering Saudi Arabia.

"Based on the recommendations of the committee appointed to monitor coronavirus...it has been decided to suspend Umrah for citizens and residents in the kingdom," SPA said, citing an official source in the Saudi interior ministry.

The decision will be reviewed regularly and reversed when the situation changes, it added.

Saudi Arabia last week halted Umrah visas for foreigners and banned Gulf citizens from visiting the two cities because of the virus.

It also banned tourists from at least 25 countries where the virus has been found, and on Tuesday it limited arrivals of travelers from the Gulf Cooperation Council (GCC) countries.

Pilgrimage is big business for Saudi Arabia and is the backbone of plans to develop tourism under Crown Prince Mohammed bin Salman's ambitious economic reform agenda.

Visits by pilgrims accelerate during the holy fasting month of Ramadan, beginning this year in late April. In late July, some 2 million pilgrims are expected for the week-long haj, the world's largest annual gathering of Muslims, which has a separate visa regime.

source: news.abs-cbn.com

Saudi involved in hacking of Amazon boss Bezos' phone, UN report will say

SAN FRANCISCO/CAIRO - Two UN officials will report on Wednesday that there is enough evidence suggesting that Saudi Arabia had hacked Amazon.com Inc founder Jeff Bezos' phone and both the kingdom and the United States should investigate, a person familiar with the matter said.

The United Nations' officials plan a public statement asserting that they found credible a forensic report commissioned by Bezos' security team which concluded that his phone probably had been hacked with a tainted video sent from a WhatsApp account belonging to Saudi's crown prince Mohammed bin Salman.

The report by FTI Consulting concluded that massive amounts of data began leaving Bezos’ phone about a month after the video was shared in mid-2018, the person said, declining to be identified due to the sensitivity of the subject.

Outside experts consulted by the UN agreed that while the case was not airtight, the evidence was strong enough to warrant a fuller investigation.

The report is set to worsen relations between the world's richest man and the kingdom which had soured following the murder of Saudi journalist Jamal Khashoggi in 2018, who was also a columnist for the Bezos' owned Washington Post.

The Guardian first reported the crown prince's alleged involvement. It said the encrypted message from the number used by the crown prince is believed to have included a malicious file that infiltrated the phone Bezos had used and extracted large amounts of data.

Saudi Arabia's US embassy dismissed the report.

"Recent media reports that suggest the Kingdom is behind a hacking of Mr. Jeff Bezos' phone are absurd. We call for an investigation on these claims so that we can have all the facts out," it said in a message posted on Twitter.

The UN statement will come from Agnes Callemard, special rapporteur for extra-judicial killings, and David Kaye, special rapporteur for free expression.

They are building toward a fuller report they expect to give to the UN in June, the person said. They said in Twitter posts that they will be releasing a statement on Wednesday addressing the Guardian report.

Amazon declined to comment.

The relationship between the Amazon chief executive and the Saudi government had soured since early last year after he alluded to Saudi Arabia's displeasure at the Washington Post's coverage of the murder of Khashoggi.

Bezos' security chief said at the time that Saudi had access to his phone and gained private information from it involving text messages between him and a former television anchor, who the National Enquirer tabloid newspaper said Bezos was dating.

Saudi had said it had nothing to do with the reporting. 

source: news.abs-cbn.com

Saudi court sentences 5 to death over Khashoggi murder

RIYADH — Five people were sentenced to death Monday over Saudi journalist Jamal Khashoggi's murder, but 2 top aides to the powerful crown prince were exonerated in a verdict that sparked international condemnation.

Khashoggi, a Washington Post contributor, was murdered in October last year in Saudi Arabia's Istanbul consulate, tipping it into one of its worst diplomatic crises and tarnishing the reputation of de facto ruler Crown Prince Mohammed bin Salman.

Out of 11 individuals indicted in the case -- most of whom remain unnamed -- 5 were sentenced to death, 3 face jail terms totaling 24 years and the others were acquitted, the public prosecutor said.

The verdict, which was lambasted by Turkey and rights groups as a travesty of justice, underscores Saudi efforts to draw a line under the crisis as it seeks to reboot its international image ahead of next year's G20 summit in Riyadh.

"The public prosecution's investigation showed that the killing was not premeditated at the start of this mission", but rather that it occurred in the heat of the moment, Saudi deputy prosecutor Shalaan al-Shalaan told a press conference.

The verdict can be appealed.

Riyadh has described the murder as a "rogue" operation, but both the CIA and a United Nations special envoy have directly linked Prince Mohammed to the killing, a charge the kingdom vehemently denies.

Khashoggi, a 59-year-old Saudi insider-turned-critic, was strangled and his body cut into pieces by a 15-man Saudi squad inside the consulate, according to Turkish officials. His remains have not been found.

Saudi prosecutors had said deputy intelligence chief Ahmed al-Assiri oversaw Khashoggi's killing and the US Treasury had claimed the royal court's media czar Saud al-Qahtani was "part of the planning and execution" of the operation that led to the murder.

Qahtani was investigated but not indicted "due to insufficient evidence" and Assiri was charged, but eventually acquitted on the same grounds, Shalaan added.

Both aides were part of Prince Mohammed's tight-knit inner circle and were formally sacked over the killing, but only Assiri appeared in the court hearings, according to Western sources.

'IMPORTANT STEP': US 

A US State Department official welcomed the verdicts as "an important step in holding those responsible for this terrible crime accountable".

"We're pressing them (Saudi Arabia) for more transparency and for holding everybody accountable," the official added.

Others took a stronger position.

Agnes Callamard, the UN special rapporteur on extrajudicial, summary or arbitrary executions, condemned the verdict as a "mockery".

"Bottom line: the hit-men are guilty, sentenced to death," she said on Twitter.

"The masterminds not only walk free. They have barely been touched by the investigation and the trial."

Turkey also blasted the "scandalous" verdict, saying those who dispatched the killers had been granted "impunity". 

The Washington Post's publisher Fred Ryan denounced the "sham trial", adding that "those ultimately responsible" in the Saudi leadership had escaped responsibility.

"If the court ruling is meant to put the Khashoggi affair to rest, it is unlikely to succeed," H.A. Hellyer, senior associate fellow at the Royal United Services Institute, told AFP.

"There is a strong belief among much of the international community that the senior Saudi establishment was behind the killing and this verdict does not inspire confidence that accountability has been achieved."

But Salah Khashoggi, the murdered journalist's son who resides in the kingdom and denies reports of a financial settlement with the government, welcomed the verdict, saying justice had been served.

RINGLEADER? 

Qahtani, who led fiery social media campaigns against critics of the kingdom, has not appeared publicly since the murder and his whereabouts are a subject of fevered speculation.

Maher Mutreb, an intelligence operative who frequently traveled with the crown prince on foreign tours, forensic expert Salah al-Tubaigy and Fahad al-Balawi, a member of the Saudi royal guard, were among the 11 on trial, sources have told AFP.

It was unclear if they were among those sentenced to death.

The sources said that many of those accused defended themselves in court by saying they were carrying out Assiri's orders, describing him as the "ringleader" of the operation.

The Riyadh court hearing the case held a total of nine sessions attended by representatives of the international community as well as Khashoggi's family, Shalaan said.

Agence France-Presse

Saudi Aramco eclipses Alibaba for world's largest IPO

NEW YORK -- Saudi Arabia's state oil company Aramco launched its initial stock offering on Thursday, pricing at the high end of the target range and raising $25.6 billion, two sources told AFP.

The sum raised by the oil giant surpasses the $25 billion garnered by the Chinese online trading group Alibaba in 2014 when it entered Wall Street.

The market debut also puts the Saudi oil behemoth's value at $1.7 trillion, far ahead of other corporate giants in the trillion-dollar club: Apple ($1.2 trillion), Microsoft and Alibaba ($1.1 trillion).

Aramco is expected to begin trading Dec. 12 on the Tadawul exchange in Riyadh at 32 riyals, or $8.53, the sources said.

That is on the upper end of the range of 30-32 riyals the company set last month even though major banks advising it called for caution to reduce volatility in the first days of trading.

The IPO has been underwritten mainly by the Saudis themselves, as major foreign investors raised questions about corporate governance, the company's ability to protect its oil installations and its profit outlook as global climate policies become stricter.

Aramco's market debut is intended to help diversify Saudi Arabia's economy away from its overwhelming reliance on petroleum.

The company expects to sell 1.5 percent of its capital during the initial public offering.

Agence France-Presse

Saudi Aramco pursues war cover after attacks -sources

LONDON/RIYADH - Saudi Aramco is looking to buy insurance against war and terror attacks after a damaging drone and missile attack on some of its oil facilities in September, two sources told Reuters.

Aramco, the world's largest oil company, has been looking for cover from insurers including those based at Lloyd's of London and elsewhere in the London market, they added.

The firm is seeking cover for facilities in Saudi Arabia's Eastern Province, its oil heartland, where it suffered the September attacks, one of the sources said.

Aramco said in the prospectus of this month's planned listing that it did not insure against all risks and its cover may not protect it from terrorism or acts of war.

At the launch of the IPO, which could be the world's biggest and raise up to $25.6 billion, Aramco said that it did not expect the Sept. 14 attack to have a material impact on its finances and operations.

Aramco declined to comment.

Available insurance options range from cover against a terror attack or sabotage through to full coverage, which includes war or civil war, along with compensation for the cost of business interruption.

An initial loss estimate from the strikes on Aramco's plants was 2 billion riyals ($533 million), a third source said.

Aramco insures much of its property itself through a so-called captive insurer, Bermuda-based Stellar Insurance.

Although one of the sources said Aramco also has an "excess of loss" cover with international insurers for any property damage above $200 million, this does not cover war or terror attacks, or revenue losses due to business interruption.

Aramco, which said in October it had fully restored oil output after the September attacks on its facilities, did have war cover around five years ago, the source added.

'WAKING UP'

Companies have become nervous about attacks on their property in Saudi Arabia, the world’s top crude exporter, after the strikes which temporarily shut down 5.7 million barrels per day (bpd) of Aramco's output, more than 5% of global oil supply.

As well as Aramco, a Saudi petrochemical company is also looking for terror and war insurance in Eastern Province where the attacks took place, a fourth source said.

"We have received more enquiries," said Scott Bolton, director, crisis management at insurance broker Aon, adding that both domestic and international companies were checking whether they were covered for such attacks.

Saudi Basic Industries Corp (SABIC), which Aramco agreed to buy in a $69.1 billion deal this year, already has war insurance, one of the sources said.

SABIC did not immediately respond to a request for comment, but said in its 2018 annual report that it "kept a close eye on emerging geopolitical interruption risks" and had added cyber insurance to its global insurance programme.

Riyadh and Washington have blamed the September strikes on Iran, which denies involvement. The United States has sent troops to Saudi Arabia, which it says is aimed at deterring further attacks amid heightened regional tensions.

The cost of war and terror policies in Saudi Arabia has risen by "multiples" since the attacks, one of the sources said without giving more detail on pricing. Another added that companies in the region were "waking up" to the idea.

Aramco's captive insurer, Stellar, offers energy onshore and offshore property, general liability and associated business interruption cover, insurance ratings agency AM Best said.

AM Best confirmed Stellar's financial strength rating of A (excellent) with a stable outlook in October, adding that the insurer had indicated its property programme had "no exposure" to the strikes.

The captive has a "diversified panel of financially strong reinsurers", AM Best said.

Global reinsurers Hannover Re, Munich Re and Swiss Re, which help insurers cover large risks, declined to comment, while Aon said it did not have "visibility" into whether Aramco was seeking insurance. 

source: news.abs-cbn.com

US, France vie to bolster Gulf security after Saudi oil attack

MANAMA, Bahrain - The United States and France are boosting Saudi Arabia's radar systems following crippling drone and cruise missile attacks on Saudi oil infrastructure in September, which Washington blames on Iran.

The chief of the US Central Command and France's defense minister, whose countries have taken divergent approaches to Iran, also touted rival versions of maritime missions to protect Gulf waters at a Bahrain security forum on Saturday.

More than two months after the biggest assault on Saudi oil facilities, Riyadh and Washington have yet to provide concrete proof linking Iran to the attack while Saudi Arabia has provided few details about how it is addressing gaps in its air defenses.

Tehran denies involvement in the strikes that initially halved the crude output of the world's top oil exporter and led the United States to send thousands of troops and military hardware to the kingdom.

"We continue to refine information on the attack against (Saudi state oil firm) Aramco and that will be released principally through the Saudis," said General Kenneth McKenzie, who oversees operations in the Middle East and South Asia.

"We are working with the Saudis to increase the networking of their systems. That will make them better able to defend against this type of threats," he told reporters.

McKenzie said boosting the US military presence at Prince Sultan Air Base south of Riyadh, in addition to large bases in Qatar and Bahrain, would "complicate an adversary's ability to target you".

French Defense Minister Florence Parly said Paris was separately sending Riyadh "a robust package of advanced warning", including radars, to confront low-altitude attacks.

"It will be in Saudi Arabia in the coming days so it will be operational very, very rapidly. But there is an analysis to be done in order to better identify how to fill the gap," she later told reporters.

"COOLING TEMPERS"

The Sept. 14 strikes heightened regional tensions following attacks on tankers in Gulf waters and other Saudi energy assets in the summer that Washington also blamed on Iran, a charge Tehran denies.

Saudi Minister of State for Foreign Affairs Adel al-Jubeir told the IISS Manama Dialogue that Riyadh was consulting with its allies about what measures would be taken against Iran after the investigation concluded. He gave no timeframe.

The event focused mostly on the Iranian threat but included no representatives from Tehran. It underscored differences between Western allies over how to deal with Iran since the United States quit a 2015 international nuclear pact.

France wants to salvage the agreement, which Saudi Arabia and other US-allied Gulf states oppose for failing to address Iran's ballistic missiles program and regional interference.

"We have seen a deliberate, gradual US disengagement," Parly said, citing also US inaction over a 2013 chemical attack in Syria and this year's downing of an American drone by Iran.

She said it was time to "reinvent deterrence", mentioning France's efforts to form a European-led maritime mission, unassociated with the US maximum pressure campaign on Iran, to help "cool down tempers".

Parly told reporters the initiative could start early next year and around 10 European and non-European governments would join pending parliamentary approval.

Only Albania, Australia, Bahrain, Saudi Arabia, the United Arab Emirates and the United Kingdom have so far joined the US-led International Maritime Security Construct (IMSC), which McKenzie said would "shine a spotlight on nefarious activity".

source: news.abs-cbn.com

First Saudi woman driver to race car in kingdom

DIRIYAH, Saudi Arabia—Sliding behind the wheel of a sleek electric SUV, Reema Juffali is set to blaze a trail in male-dominated motor sports as the first Saudi woman to race in the kingdom.

Such adrenaline rushes were unimaginable for women in the ultra-conservative Islamic kingdom until June last year, when it overturned the world's only ban on female motorists as part of Crown Prince Mohammed bin Salman's wide-ranging liberalization drive.

Juffali, a 27-year-old who made her motoring debut just months after the decades-old ban ended, will compete Friday and Saturday in the Jaguar I-PACE eTROPHY, an all-electric race in Diriyah, close to the capital Riyadh.

"The ban was lifted last year and I never expected to race professionally," said Juffali, sitting in her black-and-green Jaguar I-Pace, an electric sports utility vehicle.

"The fact that I am doing it... is amazing," Juffali, clad in a racing suit, told AFP in an interview close to the racing circuit in Diriyah.

Juffali, who hails from the western city of Jeddah and was educated in the United States, will participate as what organizers call a "VIP" guest driver, becoming the first Saudi woman to race on home soil.

Prince Abdulaziz bin Turki al-Faisal, Saudi Arabia's sports authority chief, has touted it as a "watershed" moment for the kingdom.

"Reema will have thousands cheering her on, as a professional racing driver," the prince told AFP.

Juffali, who made one of her first appearances in competitive racing at the F4 British Championship at Brands Hatch in April, has only about a year of professional racing experience under her belt.

But she has had a passion for fast cars since her teenage years and grew up watching Formula One.

She passed her driving test after she moved to the United States to study some years ago, and is now one of only a handful of Saudi woman to have obtained a "racing licence" in her home country, a mandatory requirement to race professionally.

Even outside the Kingdom, only a few Saudi women have raced professionally.

"For a lot of women who haven't had the opportunity to learn how to drive, to get behind the wheel is definitely something scary," explained Juffali.

"For a lot of women in Saudi it's something so far away."

Juffali said her dream is to one day race at Le Mans—a 24 hour competition in France that is one of the world's most prestigious and gruelling competitions.

In Riyadh she will be racing against the season's veterans but will not score any points.

THRILL OF SPEED

Prince Mohammed has sought to shake off his country's ultra-conservative image by allowing greater freedoms for women, including easing so-called "guardianship" rules that give men arbitrary authority over female relatives.

But alongside reforms he has also overseen a sweeping crackdown on dissent.

Around a dozen women activists who long campaigned for the right to drive are on trial after being arrested last year, sparking widespread condemnation.

Some allege they were tortured and sexually harassed by interrogators; Saudi authorities deny the allegations.

The driving reform has been transformative for many Saudi women, freeing them from dependence on private chauffeurs or male relatives.

Newly mobile Saudi women are now embracing what was previously deemed a male entitlement—fast cars.

Many are defying the perception that only dainty cars in bright colors are popular with women drivers.

Auto showrooms tapping women clients have rolled out a line-up of cherry red Mini Coopers, but sales professionals say many exhibit an appetite for muscle cars like the Chevrolet Camaro or the Mustang convertible.

Some women are taking up drifting—oversteering the car to slip and skid or even spin, and other high-speed daredevilry—which is illegal in public but tolerated in the controlled environment of some theme parks.

Clad in skinny jeans and Harley-Davidson T-shirts, some women are also training to ride motorbikes at a Riyadh driving school, a scene that is still a stunning anomaly in the conservative petro-state.

"Many (people) are surprised by all the changes happening in Saudi," said Juffali.

"Seeing me in a car, racing... For a lot of people it's a surprise, but I am happy to surprise people."

source: news.abs-cbn.com