West Asia News and Discussions (YEMEN, gulf)

[Singha]

Hassan Ridha ‏@sayed_ridha 2h2 hours ago
50 Pro-#Saudi soldiers including 8 officers were killed in a #Tochka attack on a base in #Marib province #Yemen

[Prem]

Iran wants euro payment for new and outstanding oil sales from India, others: source
https://finance.yahoo.com/news/exclusiv ... 17894.html

NEW DELHI (Reuters) - Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month's sanctions relief.A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil.Iran has also told its trading partners who owe it billions of dollars that it wants to be paid in euros rather than U.S. dollars, said the person, who has direct knowledge of the matter.Iran was allowed to recover some of the funds frozen under U.S.-led sanctions in currencies other than dollars, such as the Omani rial and UAE dhiram.Switching oil sales to euros makes sense as Europe is now one of Iran's biggest trading partners."Many European companies are rushing to Iran for business opportunities, so it makes sense to have revenue in euros," said Robin Mills, chief executive of Dubai-based Qamar Energy.."Iran shifted to the euro and cancelled trade in dollars because of political reasons," the source said.Iran's insistence on being paid in euros rather than dollars is also a sign of an uneasy truce between Tehran and Washington even after last month's lifting of most sanctions.U.S. officials estimate about $100 billion (89.2 billion euros) of Iranian assets were frozen abroad, around half of which Tehran could access as a result of sanctions relief.Last month, NIOC's director general for international affairs told Reuters that Iran "would prefer to receive (oil money owed) in some foreign currency, which for the time being is going to be euro."Indian government sources confirmed Iran is looking to be paid in euros.Tehran has asked to be paid using the exchange rates at the time the oil was delivered, along with interest for those payment delays, Indian and Iranian sources said.Indian officials are working on a mechanism that could involve local banks United Commercial Bank (UCO) and IDBI Bank for handling payments to Iran, one Indian government source said.India could also try to resume payments through Turkey's Halkbank, a channel it stopped using in 2012, or by direct transfer to Iranian banks through the global SWIFT transaction network.With Iran now again linking to international lenders through SWIFT, the NIOC source said it was easy for Tehran to be paid in any currency it wants, adding: "And we want euros."

[Falijee]

Senate Democrat Says It's Time To Cut Off Support For Saudi Arabia's War In Yemen

WASHINGTON -- Sen. Chris Murphy (D-Conn.) called for the U.S. to cease military involvement in the Saudi-led war in Yemen, doubling down on his critique last week of America's relationship with Saudi Arabia.
Murphy, a member of the Senate Foreign Relations Committee, told HuffPost's Friday podcast of "So That Happened" that he hasn't yet heard a legitimate defense of the Obama administration's policy of providing military assistance to the Saudis in their aerial war in Yemen. That war has killed thousands of civilians and deteriorated conditions in an already unstable country.

We're sort of still grounded in this world in which we just back our friends' play, no matter the consequences to the United States. The Saudis are in a fight, then we're going to be in a fight with them," said Murphy of what seems to be the prevailing logic behind U.S. support.
As Murphy sees it, the consequences of backing Saudi Arabia in this particular fight are devastating: collateral damage and chaos that has allowed extremist groups to expand their presence in Yemen.
"I just don't see any evidence right now that the Saudis are conducting that military exercise in a way that's responsible. It's just feeding the humanitarian crisis inside Yemen," the senator said.
He argued that Congress should block future sales to Saudi Arabia of weapons that likely would be used offensively in Yemen.

By Murphy's calculus, the potential to curb Iran's influence in Yemen doesn't outweigh the catastrophic reality of the Saudi war. "Even if we do forestall the growing Iranian influence in the region ... the growing footprint of al-Qaeda and ISIS inside Yemen is much more damaging to U.S. interests," he said, using one of several names for the Islamic State group. The Houthis fight against both al-Qaeda and the Islamic State.

Murphy's call for the U.S. to exit the war in Yemen is one of the first to come from Capitol Hill. Whereas lawmakers regularly slam the Obama administration for its failure to elucidate a plan to defeat the Islamic State, few publicly question the absence of a coherent strategy in Yemen.

Saudi "money lobby" must be very powerful

The White House has defended its support of Saudi Arabia, saying American logistical and intelligence support helps the Saudis target militants more accurately and minimize civilian deaths. At the same time, administration officials told HuffPost that they don't make the final call when it comes to targeting decisions -- which could explain why the Saudi-led coalition has been accused of regularly bombing hospitals and schools.

Saudi "money lobby" must be very powerful

When asked about the White House's line of logic, Murphy flatly rejected it.
"The defense that your involvement is simply limiting the casualties is really no defense at all," he said. "That would be an argument for the United States to get involved in virtually every conflict on every side, if our argument was simply that U.S. targeting can more precisely kill the other side while limiting civilian casualty. You actually have to have a little bit higher bar for U.S. involvement."

Obviously, this is one guy who, it appears has not "sold himself"

[chanakyaa]

Turkish military launches large air campaign on PKK targets in northern Iraq

[UlanBatori]

Time for Gen. Vodkov to exercise some of those Su-35s I think. Splatter a few ISIS F-16s?

[Singha]

Turkish military launches large air campaign on PKK targets in northern Iraq

not surprising that the preachy EU, NATO and UN are keeping silence on this open and blatant violation of Iraq sovereignty. there are signs the shia militias are warming up to kurds and vice versa since in the end (a) they have to live in the same country (b) nobody else is really on their side.

[Singha]

The death toll from the Tochka missile strike on Friday has now reached 104, as both the Saudi and Emirati armies count their casualties inside the Mass Military Camp in the Marib Governorate. According to a Yemeni source, the Yemeni Army’s missile battalion struck a large military garrison inside the Mass Camp, resulting in a massive explosion that required several fire teams to put out the flames. This Tochka missile strike has been recorded as the largest number of dead military personnel from the Saudi-led Coalition forces inside of Yemen this year. Earlier this week, the Saudi-led Coalition forces attempted to recapture the strategic city of Rabu’ah in Saudi Arabia’s Asir province; however, they suffered heavy casualties after a failed bid to seize this border site.

http://www.almasdarnews.com/article/toc ... -in-marib/ | Al-Masdar News

[chanakyaa]

Thinking more about Err-Do-gand's renewed offensive in the south. I wonder if one of the unintended (as in plan-B or very well intended) consequence of the war, from weystern pov, in this region is rise of Curdish nation state, as one of the political settlements of Sheerian war. Slowly and steadily, 3/4th (or more) of the Sheeriya will be eventually freed from Eye-shis scum. Is following scenario playing out? Uncle's desire (and Dic Cheeneys erotic dreams) to create independent Curdish state is not new or unheard of. Being a ally and Natoo member, it would have been almost impossible for uncle to "outright" support Curds in southeastern Toorkee, as the Curdish population from that region is an absolute must for a stable Curdish nation. Now it has become relatively easier to drop arms humanitarian aid in the north-north east Sheeriya for the Toorkeesh Curds, and blame it on Ruskies. Parts of north-north east Sheeriya, north-west Eye-rac can be made available, but without southeast Toorkee, it may not happen. But it is very difficult to believe that Toorks would let go of any of their territory in the southeast, without a fight. Thus, renewed violence and crushing of Curds by Toorkeesh mil in and around Diya-bkir. Parts of southeast Toorkee litterally resembles the war torn devastation of Sheeriya. Another angle is Ruskie providing humanitarian aid to PeeKK, HDP and the likes. Err-Do-gand either seeing the writing on the wall, thus elevated offensive, or simply using the opportunity to clean the sour Curd, not sure which one it is.

[UlanBatori]

High time Erdo-gand's Air Fauj got grounded.

[chanakyaa]

Is your partner Turkey or PYD, Erdoğan asks US

[Singha]

Yemen’s army and its allies have conducted a ballistic missile attack against a Saudi military base in its southwestern Asir region. It is unknown the extent of the damage or the death toll caused by the two fired ballistic missiles.

http://www.almasdarnews.com/article/yem ... -missiles/ | Al-Masdar News

[Singha]

after nearly a year of long range missions, tanked by usaf planes, the saudi f15 and tornado fleet must be getting a bit worn out if they are flying in previous sortie rate or they have dropped sorties much less now.

[Singha]

nuggets from themess forums:

Tochka strike damage in Al Anad in Yemen, 120 Sudanese dead out of the 145 killed & more than 250 injured

Magnus Prime
According to various twitter sources, the airbase is still burning. Saudi Arabian media is claiming that the explosion was not due to a Tockha, but because of a "powerful electric malfunction". The Houthis however released pictures of a Tockha being fired.
Having two verisions, one of them being a "powerful electric malfunction" leading to 145+ dead and 250 wounded (many will likely die), and the other a Tockha, well..
===

Seems that Houthis and Yemeni SFs are doing just fine operating as light infantry, ambushing everything the saudis throw at them, be it MBTs, IFVs, APCs.
Seems to me that reason for saudí bitterness and gratuitous bombing campaign against civilians in Sanaa comes from the fact that they are unable to finish those marauding units ((together with being unable to silence the Ballistic Missile units)).

[Lalmohan]

they must have an ISI media handler... 'electrical malfunction'... where have we heard that before...???!!!

[Lalmohan]

after nearly a year of long range missions, tanked by usaf planes, the saudi f15 and tornado fleet must be getting a bit worn out if they are flying in previous sortie rate or they have dropped sorties much less now.

they've also been dropping a lot of ordinance and killing lots and lots of civilians er i mean dangerous terroristas

their air effort cannot be anywhere near the same tempo

and what about their noble emirati birathers flying against ISIS? or not, as the case may be...

[vijaykarthik]

KSA and now UAE has given a verbal commitment for ground troops with the prerequisite being that the US should lead the campaign. Is that a signal to say that the Russian moves have them feeling that the end is near and only way to counter is to get into the muck as ground forces and make it even murkier

[Singha]

two countries which need merceneries to defend their own borders will send their finest to syria?

it will just be more of the same sudanese and somali mercs, with some colombian elite mercs to lead them. murky brit/uk types as well.

[Gyan]

I don't think Mercs can be expected to stick in and fight till death. They are only for muscle show and mass murder of civilians. As soon as things get sticky, mercs will high tail it.

[Singha]

SAA troops in deir azzor have retaliated against IS atrocities by beheading some recently, a pic was posted recently here.

[Mihaylo]

Saudi Arabian media is claiming that the explosion was not due to a Tockha, but because of a powerful electric malfunction[\b].

Whoa !! big words there.The Soothia version of "vacuum bulb explosion". Expect more of such " malfunctions".

-M

[Lalmohan]

SAA troops in deir azzor have retaliated against IS atrocities by beheading some recently, a pic was posted recently here.

green on green, let the love begin...

[member_29325]

Translated from erdoo -- a pome by poet Gadlib.

Oh, my green brother, where are thou?
Come here let me show some louw,
Show me the shade of green allah made you,
you appear to be allah's green shade no. 20,
I have louw for u aplenty,
but alas, lookit your muslim id card here,
that you are green shade no. 19 is very clear,
so sad it came to this -- but allah wants you dead,
so off with your head

[Singha]

wonder who these people are near tishreen dam. gaijin or just peshmerga?

[Singha]

[ramana]

Iran coalition needs to finish the Yemen stalemate by giving more support to Houthis.
This slow bleeding wont do and will relieve them on the Syria front.

[Prem]

http://www.newyorker.com/magazine/2013/ ... -commander
The Shadow Commander

Last February, some of Iran’s most influential leaders gathered at the Amir al-Momenin Mosque, in northeast Tehran, inside a gated community reserved for officers of the Revolutionary Guard. They had come to pay their last respects to a fallen comrade. Hassan Shateri, a veteran of Iran’s covert wars throughout the Middle East and South Asia, was a senior commander in a powerful, élite branch of the Revolutionary Guard called the Quds Force. The force is the sharp instrument of Iranian foreign policy, roughly analogous to a combined C.I.A. and Special Forces; its name comes from the Persian word for Jerusalem, which its fighters have promised to liberate. Since 1979, its goal has been to subvert Iran’s enemies and extend the country’s influence across the Middle East. Shateri had spent much of his career abroad, first in Afghanistan and then in Iraq, where the Quds Force helped Shiite militias kill American soldiers.Shateri had been killed two days before, on the road that runs between Damascus and Beirut. He had gone to Syria, along with thousands of other members of the Quds Force, to rescue the country’s besieged President, Bashar al-Assad, a crucial ally of Iran
Kneeling in the second row on the mosque’s carpeted floor was Major General Qassem Suleimani, the Quds Force’s leader: a small man of fifty-six, with silver hair, a close-cropped beard, and a look of intense self-containment. It was Suleimani who had sent Shateri, an old and trusted friend, to his death. “Suleimani is the single most powerful operative in the Middle East today,” John Maguire, a former C.I.A. officer in Iraq, told me, “and no one’s ever heard of him.”
If Assad fell, the Iranian regime would lose its link to Hezbollah, its forward base against Israel. In a speech, one Iranian cleric said, “If we lose Syria, we cannot keep Tehran.”” For Suleimani, saving Assad seemed a matter of pride, especially if it meant distinguishing himself from the Americans. “Suleimani told us the Iranians would do whatever was necessary,” a former Iraqi leader told me. “He said, ‘We’re not like the Americans. We don’t abandon our friends.’ ”Finally, Suleimani began flying into Damascus frequently so that he could assume personal control of the Iranian intervention. “He’s running the war himself,” an American defense official told me. He is said to be especially worried about his daughter Nargis, who lives in Malaysia. “She is deviating from the ways of Islam,” the Middle Eastern official said.
Since then, Suleimani has orchestrated attacks in places as far flung as Thailand, New Delhi, Lagos, and Nairobi—at least thirty attempts in the past two years alone. The most notorious was a scheme, in 2011, to hire a Mexican drug cartel to blow up the Saudi Ambassador to the United States as he sat down to eat at a restaurant a few miles from the White House. The cartel member approached by Suleimani’s agent turned out to be an informant for the U.S. Drug Enforcement Administration. ”
Suleimani earned a reputation for bravery and élan, especially as a result of reconnaissance missions he undertook behind Iraqi lines. He returned from several missions bearing a goat, which his soldiers slaughtered and grilled. “Even the Iraqis, our enemy, admired him for this,” a former Revolutionary Guard officer who defected to the United States told me. On Iraqi radio, Suleimani became known as “the goat thief.” In recognition of his effectiveness, Alfoneh said, he was put in charge of a brigade from Kerman, with men from the gyms where he lifted weights.
Ryan Crocker, the American Ambassador to Iraq from 2007 to 2009, got a similar feeling. During the Iraq War, Crocker sometimes dealt with Suleimani indirectly, through Iraqi leaders who shuttled in and out of Tehran. Once, he asked one of the Iraqis if Suleimani was especially religious. The answer was “Not really,” Crocker told me. “He attends mosque periodically. Religion doesn’t drive him. Nationalism drives him, and the love of the fight.” Persian self-interest was the order of the day, even if it was indistinguishable from revolutionary fervor. In those years, Suleimani worked along Iran’s eastern frontier, aiding Afghan rebels who were holding out against the Taliban. The Iranian regime regarded the Taliban with intense hostility, in large part because of their persecution of Afghanistan’s minority Shiite population. (A
In the chaotic days after the attacks of September 11th, Ryan Crocker, then a senior State Department official, flew discreetly to Geneva to meet a group of Iranian diplomats. “I’d fly out on a Friday and then back on Sunday, so nobody in the office knew where I’d been,” Crocker told me. “We’d stay up all night in those meetings.” It seemed clear to Crocker that the Iranians were answering to Suleimani, whom they referred to as “Haji Qassem,” and that they were eager to help the United States destroy their mutual enemy, the Taliban. Although the United States and Iran broke off diplomatic relations in 1980, after American diplomats in Tehran were taken hostage, Crocker wasn’t surprised to find that Suleimani was flexible. “You don’t live through eight years of brutal war without being pretty pragmatic,” he said. Sometimes Suleimani passed messages to Crocker, but he avoided putting anything in writing. “Haji Qassem’s way too smart for that,” Crocker said. “He’s not going to leave paper trails for the Americans.”Before the bombing began, Crocker sensed that the Iranians were growing impatient with the Bush Administration, thinking that it was taking too long to attack the Taliban. At a meeting in early October, 2001, the lead Iranian negotiator stood up and slammed a sheaf of papers on the table. “If you guys don’t stop building these fairy-tale governments in the sky, and actually start doing some shooting on the ground, none of this is ever going to happen!” he shouted. “When you’re ready to talk about serious fighting, you know where to find me.” He stomped out of the room. “It was a great moment,” Crocker said.
The good will didn’t last. In January, 2002, Crocker, who was by then the deputy chief of the American Embassy in Kabul, was awakened one night by aides, who told him that President George W. Bush, in his State of the Union Address, had named Iran as part of an “Axis of Evil.” Like many senior diplomats, Crocker was caught off guard. He saw the negotiator the next day at the U.N. compound in Kabul, and he was furious. “You completely damaged me,” Crocker recalled him saying. “Suleimani is in a tearing rage. He feels compromised.” The negotiator told Crocker that, at great political risk, Suleimani had been contemplating a complete reëvaluation of the United States, saying, “Maybe it’s time to rethink our relationship with the Americans.” The Axis of Evil speech brought the meetings to an end. Reformers inside the government, who had advocated a rapprochement with the United States, were put on the defensive. Recalling that time, Crocker shook his head. “We were just that close,” he said. “One word in one speech changed history.”
In 2004, the Quds Force began flooding Iraq with lethal roadside bombs that the Americans referred to as E.F.P.s, for “explosively formed projectiles.” The E.F.P.s, which fire a molten copper slug able to penetrate armor, began to wreak havoc on American troops, accounting for nearly twenty per cent of combat deaths. E.F.P.s could be made only by skilled technicians, and they were often triggered by sophisticated motion sensors. “There was zero question where they were coming from,” General Stanley McChrystal, who at the time was the head of the Joint Special Operations Command, told me. “We knew where all the factories were in Iran. The E.F.P.s killed hundreds of Americans.”
A senior intelligence officer in Baghdad recalled visiting Talabani at his house during a trip to northern Iraq. When he walked in, Qassem Suleimani was sitting there, wearing a black shirt and black jacket. The two men looked each other up and down. “He knew who I was; I knew who he was. We shook hands, didn’t say anything,” the officer said. “I’ve never seen Talabani so deferential to anyone. He was terrified.”
McChrystal’s men tracked the convoy as it drove a hundred miles into Iraq, to the Kurdish city of Erbil, and stopped at a nondescript building, which had a small sign that read “Consulate.” No one knew that such a consulate existed, but the fact that it did meant that the men inside were operating under diplomatic cover. The Americans moved in anyway, and took five Iranians into custody. All were carrying diplomatic passports, and all, according to McChrystal, were Quds Force members. Neither Suleimani nor Jafari was there; they had evidently broken off from the convoy at the last minute and taken refuge in a safe house controlled by the Kurdish leader Massoud Barzani. “Suleimani was lucky,” Dagan, the former Mossad chief, told me, referring to the raid. “It’s important to be lucky.”
Last December, when Assad’s regime appeared close to collapse, American officials spotted Syrian technicians preparing bombs carrying the nerve agent sarin to be loaded onto aircraft. All indications were that they were plotting an enormous chemical attack. Frantic, the Americans called leaders in Russia, who called their counterparts in Tehran. According to the American defense official, Suleimani appeared to be instrumental in persuading Assad to refrain from using the weapons.

[UlanBatori]

The Eyerainians cannot afford to put in the effort needed to WIN in Yemen. If they escalate seriously, the COuW will bomb the pakistan out of their forces - they cannot get air or naval superiority around Yemen. So it is much better for them to keep Yemen simmering, tying the Saudis down, and eventually cracking their monolith and turning their forces inwards in disgust and desperation at the thousand cuts and bums from Yemen. The Yemen war keeps both the Saudis and the Gelf air faujes tied down, and prevents them from getting any ideas in Syria. Unfortunately for the Yemenis/Houthis, no one can really help them win, except themselves, though the Russians and Iranians are clearly upping the ante with advanced missiles. Ships, Airbases, getting blasted. After seeing the carnage at the airbase (second one now?) I can believe that those missiles can blow ships apart.

[Singha]

Reports of #UAE negotiated with [illegitimate] prez. Hadi & VP/PM Bahah to give #Socotra island away to Abu Dhabi for 99 years.

[ramana]

Folks please stick to thread title. Its about Yemen and GCC area in this thread.
Thanks,

ramana

[Shanu]

A few tidbits about the current economic challenges coming the Saudi way.

https://www.rt.com/business/332039-saud ... nts-delay/

Construction companies in Saudi Arabia are delaying paying staff as a result of the growing pressure on the country’s economy hit by sliding oil prices, Reuters reported.
The Saudi Ministry of Labor said this week that workers at a “major institution” had complained about not being paid for months. The ministry found out that the complaints were true.

Also from a haraam link.

With its budget under enormous pressure, Saudi Arabia is having to cut back the generous scholarship program that supported 200,000 students abroad in 2015.The government has been forced to tighten the rules of the $6 billion King Abdullah Scholarship Fund, limiting it to those attending one of the top 100 universities globally, or studying a program rated in the top 50 in its field.
The government did not specify the scale of the cuts, but said the new conditions are part of its efforts to save money. It is cutting overall spending on education by 12% this year.

Considering the dangerous impact of the Saudi oil dollars, this can all be good news

[ramana]

Above scholarship was main vehicle to export trouble makers abroad.

[Prem]

May Allah grant us long life to see the end of his game in ME/WA. Saudi/ Arab plotted & Allah Plotted and now end is Neigh for Khai(Sand Dirt)

[Vipul]

As India seeks to build strategic reserves, UAE’s Adnoc agrees to store crude.

In a first of its kind deal, the UAE’s national oil company, Adnoc, has agreed to store crude oil in India’s maiden strategic storage and give two-third of the oil to it for free.

India, which imports 79 per cent of its crude oil needs, is building underground storages at Visakhapatnam in Andhra Pradesh and Mangaluru and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions.

The Abu Dhabi National Oil Company (ADNOC) is keen on taking half of the 1.5 million tonnes in the Mangaluru facility, Oil Minister Dharmendra Pradhan said on Wednesday.

It will stock 0.75 million tonnes or 6 million barrels of oil in one compartment of the Mangalore facility. Of this, 0.5 million tons will belong to India and it can use it in emergencies. Adnoc will use the facility as a warehouse to trade its oil.

The 1.33-million-tonne Visakhapatnam storage and 2.5-million-tonne Padur stockpile together with the 1.5 million tonnes in Mangaluru will be enough to meet the nation’s oil requirements for about 10 days. After talks with visiting UAE Minister for Energy Suhail Mohammed Al Mazrouei, Pradhan said tax issues remain to be sorted out before Adnoc can begin storing oil in Mangalore. The Congress-ruled Karnataka government has not yet agreed on waiving VAT on the crude oil imported for the strategic storage, which the UAE wants to use to stock oil when prices are low and supply to its customers when rates are good.

“This will be beginning of our strategic ties,” he said, adding that Prime Minister Narendra Modi’s visit to the UAE last August laid the foundation for closer cooperation.

UAE had then committed to invest $75 billion in India, and Pradhan showcased opportunities for that investment to Mazrouei on Wednesday. “We have offered them refinery projects, petrochemical plans, pipelines and LNG terminals for investment,” he said.

On offer was a 26 per cent stake for $700 million in ONGC’s about-to-be-commissioned petrochemical project in Dahej, Gujarat, and 24 per cent equity for $200 million in an expansion being planned by BPCL of its subsidiary Bina refinery in Madhya Pradesh.

[ramana]

WOW. Those three oil storage areas (5.33 Million Tonnes) can be used by India and its clients as smart storages. Totally disrupt the supply chain fluctuations.

[Shanu]

Now the Saudi version of educational institution shootings.. only this time a teacher is the one holding the gun.

http://timesofindia.indiatimes.com/worl ... 948992.cms

[Bhurishrava]

http://www.newindianexpress.com/nation/ ... 72319.ece1

India has rolled out the red carpet for UAE crown prince. The ties are really taking off. Good to see India making breakthrough and taking advantages somewhere.

[Shanu]

A good article summing up the major economic challenges coming the way of Saudi population. Highlighted the important parts.

http://www.theglobeandmail.com/report-o ... e28702109/

it’s true that there is a multitude of issues that have generated serious doubts about the kingdom’s present and future. Pressure is building on a host of fronts, severely taxing Riyadh in more ways than one.

Security is one of them. The kingdom had to increase its military and security spending by about US$5.3-billion in 2015, according to Economy and Planning Minister Adel Fakieh. He attributed that figure to participation in Operation Decisive Storm, the ongoing Saudi-led coalition war on Yemen. Then there is the war in Syria to be accounted for.

There’s also the Islamic State, which declared war on Saudi Arabia late last year and has claimed responsibility for a spate of recent suicide bombings in the kingdom. Related security measures went up all around, at a cost.

The timing of all this couldn’t be worse, with oil prices having plummeted more than 70 per cent in 18 months. Oil’s contribution to the state coffers declined from an average of 90 per cent in the past decade to 73 per cent in 2015.

The consequences of this pressure are plainly evident. Saudi Arabia’s fiscal reserves dropped to a four-year low last year, Jadwa reported, dropping to $612-billion at the end of 2015, their lowest since 2011 and down from $732-billion in 2014. Reserves could fall to about $500-billion by the end of 2016, the report added.

In 2015, the kingdom posted a record budget deficit of $98-billion. And although the budget projects an $87-billion deficit this year, it could get as bad as $107-billion, according to Jadwa.

Officials have been quoted as saying that Saudi public debt, which was about 1.6 per cent of gross domestic product (less than $12-billion) at the end of 2014, could hit 50 per cent of GDP by 2020.

In order to plug the budgetary gap, the kingdom has issued bonds worth $30-billion – its first domestic currency bonds sold since 2007. And now, dollar-denominated debt is also being planned. Despite official denials, there is speculation about letting go of the Saudi riyal’s peg to the U.S. dollar.

In the meantime, Standard & Poor’s has reduced Saudi Arabia’s credit rating from double A-minus to single A-plus. meaning higher interest rates on the sovereign bonds The cost of insuring existing Saudi Arabian local currency debt against default has doubled in the past year. The International Monetary Fund has also revised Saudi GDP growth downward to a mere 1.2 per cent for 2016, its lowest since 2009. GDP grew 3.4 per cent in 2015.

Inflation is rising. Jadwa expects inflation to soar this year to 3.9 per cent, from 2.2 per cent last year. At the beginning of the year, Riyadh announced the raising of domestic fuel prices by 40 per cent. Water and electricity prices have also gone up. Plans are also in the air to raise charges on public services and institute a value-added tax on all purchases.

A leaked memo cited in the international press, dated Sept. 28, purportedly from King Salman to Finance Minister Ibrahim al-Assaf, instructs all ministries to stop new projects and stop buying cars, furniture and equipment.

New projects are on hold. Payments to contractors are getting delayed. The Finance Ministry has reportedly amended the advance payment facility for construction firms working on government projects. These companies can now receive no more than 5 per cent of the contract value as an advance, instead of the 20 per cent they were previously entitled to.

Against this backdrop, meeting expenses is becoming a challenge. Government hospitals are feeling the pinch. Budgets are under scrutiny. Patients are finding it hard to receive all the medications they used to get from government hospitals. The hospitals are even reportedly having trouble keeping stationery in stock.

Question is - how long will the population tolerate?

[habal]

sleeping saudis ambushed .. if ur into that kind of *****.
from 2:30 onwards.
everything happens very quickly.

[Singha]

even a pack of boy scouts camping out would generally post 1 sentry to keep an eye on things.

and this pack will fight IS....

[UlanBatori]

and this pack will fight IS....

I wonder if those guys were already dead b4 the "ambush" occurred? Why the video otherwise?