Tax in GCC ‘by 2013′ 27, April 2010
Posted by davidbroberts in Kuwait, The Gulf.Tags: Income tax, Kuwait tax, Tax, Tax in Persian Gulf, Tax in the Gulf
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The Arab Times reports that a ‘reliable source‘ in Kuwait’s Ministry of Finance stated that all GCC countries will introduce a range of individual and company taxes by 2013.
Whilst this is an obvious long-term necessity, getting GCC nationals to see things this way is another matter. Kuwait in particular with its über populist Parliament more used to pushing through £4 billion of debt relief for their already inordinately rich population than discussing tax will have severe issues, I expect, even broaching the topic. One senior Kuwaiti and high-profile businessman told me that the T word is just ignored as it will prove to be such an incendiary topic.
In short, I just cannot see, for example, a Kuwaiti paying personal income tax in the coming decade. Here’s hoping I’m wrong.
Dubai bans then allows alcohol in food preparation 21, April 2010
Posted by davidbroberts in The Emirates, The Gulf.Tags: Alcohol banned in Dubai's food, Alcohol in Dubai, Arab Bureaucracy, Dubai, Dubai alcohol, Dubai's restaurants
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On the 20th March Dubai’s authorities announced that they were unequivocally banning the use of alcohol in food preparation in the Emirates.
The letter, a copy of which has been seen by Arabian Business, states the use of alcohol in the preparation and cooking of food, and the display and sale of food containing alcohol was “strictly prohibited”.
This caused varying degrees of outrage from hoteliers and restauranteurs fearful that this would take a significant chunk out of their profits. The stink created was so bad that only a few days later Dubai changed their minds.
‘It’s all just a little mistake’ they tried to say. ‘All we wanted was to make the segregation clearer on menus,’ someone probably added in a desperate attempt not to look like a complete idiot.
Does this remind anyone of anything?
Once again we have a clear example of ‘a’ Shiekh wielding his power and making a drastic decision regardless of consequences of planning or an able bureaucracy to temper, evaluate or implement the decision. Once again, some time later, after vested powers have used their own wasta to go above the head of this Sheik, the decision is rescinded.
Being as I write this from France, I’ll finish with a ponsey Frenchism:
Plus ça change, plus ça reste la même chose
Law to protect Arabic 21, April 2010
Posted by davidbroberts in The Gulf.Tags: Arabic, Arabic in the Gulf, Arabic language, Arabic problems in the Gulf
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Plans are afoot in the Emirates to protect the Arabic language. The perceived loss of ground of Arabic to English stems from several factors.
- The language of international commerce, trade etc is English. The Gulf’s headfirst dive into the very heart of these worlds in recent years, has therefore, forced Gulf countries to improve their English to the point where it is the language of the vast majority of business.
- Emiratees are a minority in their own country. The lingua franca for all – Europeans, Arabs, Asians and even Americans – is, therefore, English.
- Also, because the Emirates need so many foreigners, their systems, companies etc need to accommodate the English language in order for skilled Westerners to do the necessary jobs.
- English is generally taught better in schools than Arabic. Arabic teaching is taught through rote learning and memorization. English language teaching, however, has advanced and is far more interactive.
- Countless interviews and conversations in the Gulf tell me that English is fast becoming the language of choice of the younger generation to the severe detriment of Arabic. Access to Western culture and Western travel are two precipitants of this.
Feel free to add to (or argue with) the list…
Saudi to enter Gulf aviation industry 18, April 2010
Posted by davidbroberts in Saudi Arabia, The Gulf.Tags: Emirates, Etihad Airways, GCC airlines, GCC aviation, Gulf Air, Qatar airways, Saudi Arabian airlines
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As if Middle Eastern skies were not full enough, Saudi Arabia has announced plans to become a “major international aviation hub by 2035″. These kinds of slightly bombastic statements have been heard before with the various launches and relaunches of Gulf Air, Emirates Airlines, Qatar Airways and with Etihad Airways.
Some interesting points to note:
- Even though Saudi may well be undertaking a “comprehensive overhaul” it is a decade behind the regional curve. The afore mentioned airlines will be hundreds of aircraft, tens of billions of dollars worth of investments and numerous world-class airports ahead of Saudi Arabia. Saudi will not only not have the luxury of a relatively free international aviation market to grow into, but instead they will be seeking to grow as Emirates, Qatar and Etihad are maturing into ever more competitive, world-spanning airlines.
- However, MEED sagely notes that Saudi will base their growth not as much on the frightfully competitive international market per se, but on domestic aviation (something no other GCC states can do) and on religious pilgrims.
- This unique market will have to do for Saudi Arabia. I can not foresee how they could possibly compete with the established GCC and other carriers on Europe to Asia flights, barring an unsustainable and epically costly slashing of ticket prices. Without a positive aviation reputation and certainly without alcohol, such markets will prove, I believe, outwith their reach.
- Saudi hopes that King Abdulaziz International in Jeddah will be one of the largest airports in the world handling 80 million passengers a year by 2035.
Saudi & Abu Dhabi in naval skirmish 27, March 2010
Posted by davidbroberts in Iran, Saudi Arabia, The Emirates, The Gulf.Tags: Abu Dhabi navy battle, Emirati navy, Saudi Abu Dhabi Navy skirmish, Saudi border dispute, Saudi navy, Saudi UAE border dispute, Saudi UAE naval fight, The National independence, UAE navy
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In a worrying development for regional security, naval forces of Saudi Arabia and Abu Dhabi have been involved in an exchange of gunfire in disputed waters. Reports indicate that Abu Dhabi naval forces opened fire on a small Saudi naval vessel which had strayed into what they considered to be Emirati waters injuring two Saudi sailors and forcing their surrender. Captured Saudis were handed back to KSA authorities earlier this week.
Given that this was seemingly such a minor incident and the Saudis were handed back relatively quickly, it is tempting to assume that this was simply a quasi-game of harassment gone awry (just like with the RAF and Russian bombers that I reported earlier this week).
This incident has caught many by surprise. Whilst boundary disputes between the UAE and KSA are well-known, there have been no such clashes in recent memory. Saudi unsuccessfully sought to block Qatar building their Dolphin pipeline to the Emirates claiming that their agreement was needed as it passed through Saudi territory. Even though Abu Dhabi is essentially the richest city on earth and Saudi easily has the world’s largest oil reserves, neither side wants to forgo the potential oil under the disputed territory.
America will be displeased to see such an obvious clash between two key members of its putative coalition establishing a united front against Iran. Particularly so given that Doha hosts a conference on maritime defense early next week including speeches by Saudi and Emirati naval commanders.
The Gulf has an unfortunate combination of latent and overt tensions combined with – as far as defense is concerned – seemingly unlimited liquidity. It is, therefore, unsurprising to find that 5 Gulf countries are in the top 10 of world defense spending as a percentage of GDP. The Emirates are only behind India and China as world’s largest weapons importers. Furthermore, both countries receive some of the most up to date military hardware from the US, with the Emirates being the first country in the world agreeing in principle to purchase America’s THAAD defence system. More generally, America agrees to the massive build up of arms by Saudi and the UAE thinking that they will bolster their defense, their deterrence and balance the power of Iran regionally, not so they can take pot-shots at each other, much to the amusement, no doubt, of Tehran.
It is also interesting to note that this incident appears to have been largely hushed up. This is unsurprising. Despite this incident, KSA and Abu Dhabi are generally cooperative allies and are united in their mutual antipathy and suspicion of Iran. I very much look forward to seeing whether Abu Dhabi’s The National newspaper covers this story, for it is clearly newsworthy, yet clearly a sensitive topic. This is, in short, a perfect test for their level of independence, or lack thereof.
Update:
I’ve changed a few words of this article. I misunderstood a few facts such as about the number of Saudi’s injured.
Iran sign regional non aggression pacts 7, March 2010
Posted by davidbroberts in Iran, The Gulf.Tags: Gulf relations, Iran, Iran Arab relations, Iran defence agreements, Military agreements in Gulf
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The Iranian defence minister confirmed that Iran has signed bilateral mutual defence agreements with Qatar, Oman and Kuwait. These agreements apparently specify that neither territory will be used to attack or harm the other.
Recently, Iran has been making strident efforts – notably with Qatar – to visibly show and project and image of good, neighbourly relations. Perhaps Iran has finally realised that the more they threaten these states, the further and deeper they drive them into the arms of the US. Instead, the only way that they can even begin to seek to eject the US from the Gulf is by acting as a good, utterly non-threatening neighbour for their Arab allies. I doubt, however, that the leadership in Iran has the temperament for this long term plan. They seem to be unable to stop blustering on about their influence, weapons, plans, missiles and support. In short, US forces are not going anywhere anytime soon.
Iran: ‘Persian Gulf’ or we’ll impound your planes 23, February 2010
Posted by davidbroberts in Iran, The Gulf.Tags: Arabian Gulf, Gulf naming, Persian Gulf
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(That’s not a coffee cup, by the way)
As if I haven’t covered this enough recently x x x x, Iran is having another hissy-fit over the Arabian Gulf/Persian Gulf naming controversy. This time around it stems from a Greek steward on a Kish Airlines internal flight who started arguing with a passenger about the ‘real’ name of the Gulf.
The story started on Al Arabiyya but has [why I'm surprised, I just don't know] ended up splashed across the media with the Iranian Government now *sigh* threatening to make all incoming flights display the phrase Persian Gulf on their in-flight maps, lest their planes are grounded. If you want to read more on this issue, please use the links in the first sentence, I don’t have the will to rewrite the same stuff again…
This kind of reaction is similar to that after the Chinese-Israeli orange importing incident last year, not to mention the Chinese jeans fiasco. If I were in an uncharitable mood, I’d say Iranian politicians were professional overactors.
Patriot and Aegis in Gulf to pressure Iran 22, February 2010
Posted by davidbroberts in American ME Relations, Iran, The Gulf.Tags: Obama, missile defence, Patriot Missile System, Aegis Cruisers, Patriot facts, Iran threat
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UPI reports that the Obama Administration has accelerated the deployment of anti-missile defenses to friendly Gulf States to counter the Iranian missile threat. Patriot Systems and Aegis Cruisers are the key plinths of this deployment, though General Petraeus did not specifically name the countries that hosted the Patriot Systems. This is somewhat curious as the Guardian reported at the end of January that the Patriot System would be installed in Qatar, the UAE and Bahrain, with Kuwait and KSA having their existing systems upgraded. The widespread leaking of this move is seen as a mechanism to heap pressure on Iran.
Patriot Missile Facts
- Production began in 1980
- Currently at least 17 countries operate the system
- In the first Gulf War their success rate was 70% in KSA and 40% in Israel
- Each missile can weigh up to 1000kg, has a range of 100 miles, is more than 6m long, costs around $9 million and carries 90kg of explosives
- It automatically finds its target by radar






















