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Iran’s weakness: its ports 15, July 2010

Posted by davidbroberts in Iran, The Emirates.
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There’s a very interesting article written by Meir Javedanfar in The Diplomat discussing a strategic weakness of Iran. Javedanfar notes that Iran’s southern ports are not able to accommodate +100,000 ton ships. [Presumably they don't have any such ports in the north...] Any larger ships must dock in the UAE are the goods reexported. This is problematic, Javendanfar, suggests for a few reasons.

  • Given the increase in 250,000 ton ships plying the Gulf, Iran is increasingly losing out on economies of scale.
  • Relying on another country for transit of such an amount of goods is a dangerous tactic. Particularly given the UAE’s increasing proclivities towards siding with American sanctions, this could well bode ill for Iran.
  • Iran is paying hundreds of millions of dollars (perhaps billions, he suggests) to the UAE in port fees.

Alcohol consumption up in UAE and Saudi 15, July 2010

Posted by davidbroberts in Saudi Arabia, The Emirates.
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Alcohol consumption in the U.A.E. has risen some 30% in the last five years. As the article in Arabian Business notes, this is despite increasingly more difficult restrictions on alcohol sales. The same study stated that alcohol consumption in Saudi Arabia has almost doubled since 2004. This statistic obviously makes no mistakes as everyone knows that there is no alcohol in the holy Kingdom of Saudi Arabia.

Hat Tip: Sultan Al Qasseimi

Rhetoric and fishermen belay the myth of GCC unity 10, July 2010

Posted by davidbroberts in American ME Relations, Qatar, The Emirates.
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This article was published in the Daily News Egypt on 25th June 2010.

Early in May a Qatari naval vessel shot at Bahraini fishing boats which entered Qatari territorial waters. One fisherman was seriously injured and over one hundred were arrested. This occurred less than a year after a Qatari coastguard vessel rammed a fishing boat leading to the drowning of one Bahraini. This latest saga dragged on until 14th June when the Qatari Emir decreed that all those remaining in Qatari custody be freed. This is but one incident in the Gulf which explodes the myth of Arab brotherly unity, rendering impossible America’s notion of creating a united front to contain Iran.

Qatar and Bahrain’s maritime border has long been contentious. Historically, Bahrain’s ruling family, the Al Khalifah, hail from Zubarah, a small village on Qatar’s western coast. Both this village and notably the Hawar Islands, just off the coast of Qatar, were the subject of the International Court of Justice’s longest ever mediation. In 2001 the court awarded Zubarah to Qatar and the Islands to Bahrain. Both agreed to abide by the decision, though resentment and some confusion as to the exact delineation of the maritime borders remains.

Bahrain’s Information Minister at the time of this court case was Mohammed Al Mutawa who developed a reputation for forthrightly defending Bahrain’s claims to both areas in question. Earlier this year it was Bahrain’s turn to appoint the Secretary General of the Gulf Cooperation Council (GCC) and they nominated Al Mutawa. This vexed Qatar for they could not countenance someone who had so publically and stridently derided their claims represent them in their most important regional organisation. Therefore, even though Al Mutawa had been confirmed by other GCC States, Qatar refused to acquiesce to his nomination.

This particular episode of Bahraini fishing boats entering Qatari territory was used as a way to up the pressure on Manama. The shooting of the sailor was roundly condemned in Bahrain as an overreaction by Qatar who also refused to let any Bahraini medical teams visit him in hospital in Doha. Clearly, Qatar was taking a hard-line stance on the matter. In the biannual International Refining and Petrochemicals Conference and exhibition held in Manama, Qatar downgraded its representation and threatened to fully prosecute the fishermen.

Concurrently, Bahraini authorities banned Doha-based Al Jazeera from operating in the Kingdom though this is thought to be more to do with a documentary on poverty in Bahrain than the fisherman dispute. Also, towards the end of the dispute it was announced that the planned Bahrain-Qatar road and rail bridge was going to be put back yet further. Again, whilst the primary reason for this is thought to be purely economic, nevertheless, it, along with the Al Jazeera closing, highlights that the Qatar Bahrain relationship is struggling in many areas.

As the weeks passed, Qatar allowed a few prisoners to buy their release though it still insisted that the majority would face trial. It took the intervention of Saudi Arabia to persuade Bahrain to back down and drop Al Mutawa as their nominee. Qatar reciprocated several days later and the Emir decreed that all fishermen be released in name of their “deep-rooted and cordial relations.”

Much of this incident was highly predictable: from the aggressive statements of both sides to the Saudi intervention to the backing down of Bahrain and especially the bland and meaningless rhetoric about ‘deep-rooted and fraternal’ relations. The problem is that similar incidents with analogous results and exactly the same kind of empty rhetoric crop up frequently.

In addition to Al Jazeera, which constantly causes diplomatic spats (including precipitating the removal of Saudi’s Ambassador from Doha for four years), in March this year there was a minor naval altercation between Abu Dhabi and Saudi Arabia. Gunfire was exchanged, one Saudi sailor was injured and others were taken into custody in Abu Dhabi only to be released some days later.

Whilst one incident must not be given too much weight, that fact that two close allies such as Abu Dhabi and Saudi Arabia would enter into a fire-fight over – at most – a minor territorial incursion, hints that deep issues among GCC members remain.

Moreover, even in the face of Iran and its purported nuclear weapon programme, something that Saudi Arabia and Abu Dhabi are wholly aligned against with America; still this does not stay the hand of those involved. Whilst this incident could clearly have been down to injudicious and impetuous captains in the boats, they nevertheless operate in a climate set by their government. It is practically impossible, for example, to imagine a British and French naval skirmish in the English Channel because, aside from borders being properly delineated, the tenor of the relationship is friendly in practice, rhetoric and reality.

The idea of America forging a containing Arab anti-Iranian coalition is, therefore, based on questionable foundations. Even if America could coral together some kind of GCC unity or at least iron-out their local issues, Qatar and to a lesser degree Dubai have their very own Iran policies.

Qatar emphatically does not want to see Iran isolated. It shares the world’s largest gas field with Iran and fears what a cornered and angry Iran looking for retribution might do. Indeed, disrupting Qatar’s exploitation of the field or claiming that its borders are wrongly apportioned would be easy and cost free for Iran but potentially massively costly for Qatar. Despite underlying concerns and even antipathy in Qatar towards Iran, they continually maintain publically ‘excellent fraternal relations’ based on ‘long historical understanding’ including numerous agreements and frequent top-level visits to ‘establish stability and lasting regional security’.

Dubai is Iran’s major local trading partner. The Iranian Business Council estimates that there are around 8,000 Iranian businesses and some 1,200 trading companies in Dubai whilst Bloomberg estimates that Dubai-Iran bilateral trade rose to some $12 billion in 2009.

In addition to replacing Iran’s $12 billion, it will take considerable pressure domestically and internationally for Dubai to relinquish its Iran trade. Forcing Qatar to do likewise is near impossible for the kinds of guarantees that Qatar would demand are not possible to give.

In short, frequent incidents and the persistent retreat by Gulf leaders to simple, appealing but wholly meaningless rhetorical compliments and odes to purported deep neighbourly relations are, in reality, a sign of the deeper divisions.

More Gulf fishing issues 5, July 2010

Posted by davidbroberts in Iran, Saudi Arabia, The Emirates.
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The trials and tribulations of fisherman in the Gulf continue. Eleven Asian fisherman from Saudi Arabia crossed mistakenly into Emirati waters and were arrested. They maintain that they did this mistakenly. It is not known whether they had GPS or not.

Whilst is seems likely that they crossed accidentally, smuggling cannot be ruled out.  In January this year, for example, two Iranians were caught smuggling two others into Ras Al Khaimah in the UAE.

UAE refuses to refuel Iranian planes 5, July 2010

Posted by davidbroberts in Iran, The Emirates.
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A few reports have emerged stating that all Emirati airports have joined Germany and the U.K. in refusing to refuel any Iranian passenger aircraft.

This is a part of the recent U.S. sanctions package against Iran. It highlights (if it needed to be highlighted) Abu Dhabi’s control over U.A.E. policy to the detriment of Iran-friendly Dubai.

UPDATE

Somewhat unsurprisingly a raft of reports have emerged this morning stating that Iranian planes are in fact being refueled in the U.A.E.

The UAE’s curious relations with Pacific Islands 4, July 2010

Posted by davidbroberts in The Emirates.
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In a spectacularly random article in The National, Peter Hellyer discusses the UAE’s emerging relations with practically microscopic Pacific Islands thousands of miles from the Gulf.

Aside from setting up links with the Marshall Islands, Abu Dhabi sponsored a conference  recently attended by foreign ministers of 14 of these small island states under the aegis of the Pacific Small Islands Developing States group. This meeting followed on from the UAE Foreign Minister’s visit to the Pacific Islands in February.

The UAE pledged to contribute $50 million to a Pacific Islands Partnership Programme to invest across sectors, notably in the areas of renewable energy and education. Such a sum on money – given the tiny populations – will go a long way.

Heller offered two reasons for this initiative.

  • It followed logically from Sheikh Zayed’s stated vision of using the UAE’s largesse to help less fortunate countries around the world.
  • Both countries are threatened by climate change…

A couple of other reasons leap to mind too.

  • I would be surprised if some Emirati Sheikh did not buy an atoll soon.
  • As Israel has discovered, having support in such Island states can be useful. They have, after all, a vote in the UN. Who knows when such good will when come in useful?

As small island-states, the Pacific islands can comprehend – in a way that other, larger, countries cannot – how important our three islands of Abu Musa and the Tunbs are to us. The Marshall Islands, still suffering from the impact of those US nuclear tests over 50 years ago, can certainly understand our concerns about a proliferation of nuclear weapons in our region.

I hope that other Arab countries will follow the UAE’s lead in paying attention to these far-off micro-states. The UAE’s initiative is one of which we should all be proud.

UAE GDP per Emirate and tax 29, June 2010

Posted by davidbroberts in The Emirates.
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Once every six months or so there is an article in the Gulf press – no doubt studiously ignored by the rulers – which calls for some kind of tax imposition. The latest article is more interesting than most as it comes with some figures on each Emirate’s contribution to the UAE’s overall GDP.

2008 UAE GDP: $254 billion

Abu Dhabi: $141 billion

Dubai: $82 billion

Sharjah: $19.6 billion

Ras Al Khaimah: $4.3 billion

Ajman: $3 billion

Fujairah: $2.7 billion

Umm Al Qaiwain: $1 billion

Jail for Dubai DJ with cannabis in his blood 29, June 2010

Posted by davidbroberts in The Emirates.
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A British DJ has been sent to jail in Dubai for 4 years for having traces of cannabis in his blood. No cannabis was found in his possession.

The Emirate is well-known for its absurd harsh anti-drugs policy. Though Dubai’s police aren’t good enough to catch over thirty Mossad agents sauntering through Dubai and killing a Hamas commander, they have arrested and prosecuted other visitors for carrying 2.16g and 0.0002g of cannabis as well as 0.5g of hashish and 2 poppy seeds. Nice to see they have their priorities in the right place.

Clearly the government and police need to pursue such a draconian policy to act as a moral counterweight to all of Dubai’s debauchery. With a silent minority/majority of Emiratees unhappy at Dubai’s ‘westernisation’ replete with legions of prostitutes and drinking culture, these kinds of petty symbolic efforts are there – like the proverbial finger in a Dike – to appease locals and for officials to save face.

A Rentier Coup in a Rentier State 28, June 2010

Posted by davidbroberts in American ME Relations, The Emirates.
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The following article was published in the Daily News Egypt.

The quickly declining health of Ras Al Khaimah’s ruler is precipitating a round of intrigue and succession stories in the northernmost Emirate of the UAE. Sheikh Saqr Al Qasimi, 92, one of the longest ruling leaders in the world having ascended to the throne in 1948, has been in hospital for at least the past month.

His son and Crown Prince, Sheikh Saud, has been in charge of the Emirate for some time but his official assumption of the throne faces a serious challenge from the former Crown Prince Sheikh Khalid who was deposed in 2003. The reasons for his removal from power are not wholly clear. It is believed that Khalid was forced into exile by his half-brother Saud for his staunch anti-Iranian rhetoric in addition to leading anti-Iraq war protests during which an American flag was apparently burned. It is even alleged that his ‘pro-woman’ attitude in the conservative emirate contributed to his downfall. Either which way, when he was deposed the UAE central government needed to send tanks to RAK to restore order after protests erupted. Saud has lived in exile since in Oman and London.

None of this, however, is anything new. Succession challenges are the norm in Gulf States. Overall, the majority of transitions of power in the past two centuries have involved some violence in the form of a coup or, at the very least, the successor has been challenged for the title.

What is different in this case is the 21st century manner in which Khalid has gone about resuming his place in line to the throne. Much like the Emirates’ economy is described as a ‘rentier’ in nature with their income (or rent) largely derived from oil and gas with an exceedingly heavy reliance of foreign workers, this appears to be a rentier coup. Specifically, Khalid hired Californian Strategies, an American public relations firm to devise a plan to return him to power. Some members of the PR staff even reportedly get a $250,000 bonus if they succeed.

Cognisant of exactly what will grab the attention of America and the world at large, the PR agency — paid some $3.7 million to date according to The Guardian — began to formulate an image of Khalid as a Western-orientated, modern, pragmatic, facebook and twitter-friendly leader. They even arranged meetings and photo opportunities with, for example, US Secretary of State Hillary Clinton. Saud, in stark contrast, was depicted as either fostering or at least harbouring terrorist elements including Al Qaeda. The decision of the America’s Cup yachting team not to stop off in RAK due to alleged terrorist concerns was one strand of this ploy. Moreover, RAK’s close links to Iran and their Revolutionary Guards (IRGC) were highlighted. RAK was portrayed as an offshore sanctions-busting Mecca for Iran; a ‘rogue state’ within the UAE.

The PR agency collated these charges into a report (with similar visual similarities to official US Congressional Research Service reports) which opens with the line “Closest to Iran and furthest from UAE central authority is the Emirate of Ras Al Khaimah, which lies some 60 miles from the Iranian port of Bandar Abbas and enjoys excellent deep-water ports.” From the very beginning, therefore, insinuation and nefarious implications abound.

The true extent of these charges is not clear. Certainly, RAK is a conservative Emirate but evidence of their harbouring terrorists is sparse and unconvincing. There was an alleged plot against the Khalifah Tower in Dubai, but this centred more on the Emirate of Ajman not RAK. As for their Iran links, these must be understood in the Emirati context. Dubai, for example, according to a recent Bloomberg article, has 8,000 Iranian businesses, at least 1,200 trading companies, 400,000 Iranians living there and trade rose to $12 billion in 2009. In short, it would be miraculous if RAK, the closest Emirate to Iran, did not have significant trade with Iran.

The success of this quasi-coup depends on Abu Dhabi. The most powerful of the Emirates, their ruler and Emirati President, Khalifah bin Zayad Al Nayhan, will have a significant say in the decision. He has a vested interest in assuring stability in RAK; any security concerns could quickly end up 80km down the road in Dubai or 120km further on in Abu Dhabi. Installing the (now) clearly pro-American Khalid in power would not only please the Americans but fit in more with Abu Dhabi’s harsher anti-Iranian stance as compared to, for example, Dubai. Nevertheless, interfering in succession issues is always a dangerous business, even more so if there is the suggestion that it was done under foreign (American) pressure. Lastly, if Saud is ousted and Iranian trade does consequently dip, as it surely would under Khalid’s premiership, then the Iranian sized hold in RAK’s economy will have to be filled — quickly — by Abu Dhabi lest they wreck the fragile rentier bargain.

UAE press censorship 17, June 2010

Posted by davidbroberts in Censorship, Media in the ME, The Emirates.
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Here is a perfect example of press censorship in the UAE.

This is the opening line from an article in the Wall Street Journal.

Ras Al Khaimah wants to avoid the financial problems of fellow sheikdom Dubai and reduce its 5 billion U.A.E. dirhams ($1.36 billion) of debt after funding a development splurge with Islamic bonds, a senior official said.

This article was reproduced in Gulf News. But here’s their first line.

Ras Al Khaimah wants to reduce its Dh5 billion ($1.36 billion) of debt after funding development with Islamic bonds, a senior official said.

Surely there are laws about taking such content and changing it? If not there really ought to be.

An excellent hat tip to Sultan Al Qassemi.