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Tag: riyadh

  • In Saudi Arabia’s green highlands, a different kingdom emerges

    From the air, Abha’s mountains emerge as a shock of emerald green rising from a sea of sand. Terra firma brings other surprises: a bracing wind that has me grabbing for a jacket — a piece of clothing all but ignored in other parts of Saudi Arabia.

    Indeed, so much of Abha, the capital of the southwestern province of Asir, seems a world away — and two dozen degrees cooler — from the scorching desert that dominates Western notions of the kingdom.

    I’m here as a tourist — and Saudi Arabia hopes for many more. The government is spending nearly $1 trillion to make attractive what, just over a decade ago, was one of the most tourist-averse countries on earth.

    If you’ve read anything about tourism in Saudi Arabia, you’ve probably seen mention of Vision 2030, the all-out diversification plan to reduce the kingdom’s reliance on oil; Neom, the sci-fi-esque desert metropolis with plans for an artificial moon and flying cars; or the Red Sea Project, which intends to turn a 92-island archipelago off the country’s pristine Red Sea coast into a network of 50 luxury hotels and about 1,000 residential units.

    Those two flagship projects were heavily featured during President Trump’s visit to Riyadh in May, which saw Saudi Crown Prince Mohammed bin Salman — Vision 2030’s architect — guide him to a hall with elaborate mock-ups of the finished product.

    A man sits in an old fort on Mt. Qais, one of the verdant areas in southwestern Saudi Arabia.

    (Tasneem Alsultan)

    Abha and Asir weren’t in the prince’s presentation, but they are nevertheless part of the tourism transformation, though for now they offer more grounded and arguably more authentic pleasures — the primary reasons why I chose to come here. (The other, less whimsical reason is that I wasn’t sure I could convince my editors to OK a $2,500-a-night private “dune villa” at the St. Regis Red Sea for “journalistic purposes.”)

    Perched at almost 7,500 feet above sea level, Abha is occasionally nicknamed by Saudis as the “Lady of the Fog” or “the Bride of the Mountain.”

    Both titles seemed apt on the day I arrived, and, as fog wafted over a nearby summit, I visited Art Street, a park with theaters, music festivals, restaurants and cafes. Lilac jacaranda trees were in full bloom. Later, I took a 20-minute drive to Al Sahab Park, a short distance outside Abha, crowded with people admiring the evening mist shrouding Jabal Soudah, the country’s highest peak at 9,892 feet.

    “People come here to touch the clouds,” said Hussein al-Lamy, a 42-year-old pharmaceutical company employee who lives two hours away. He smiled, taking in the Harley bikers parked near the cliffs and the men and women strolling nearby sporting Asir’s traditional garlands made of orange marigold, dill and artemisia, a gray-green plant similar to sage.

    “I left my kids and wife at home for a few days’ visit here,” he said. “It’s a good place to clear the mind.”

    Men in white robes and dark sandals, some wearing red headdresses, stand next to one another

    Men gather for a wedding in Abha, the capital of Saudi Arabia’s Asir province.

    (Tasneem Alsultan)

    Next morning, I took a walk through Souq Al Thulatha, a central shopping thoroughfare that despite its name (which in Arabic means Tuesday Market) is open every day of the week.

    One stall sold slices of mangoes brought in from Jazan, the fertile southern province famous for its tropical fruits, wheat and coffee; others sold raisins, spices, nuts and gourmet honey from Yemen. Traffic was still light, but vendors told me that at the height of the summer season — when many Saudis flee the fry-an-egg-on-your-hood heat of Riyadh and Jeddah to Abha — you would barely have room to stand.

    In its drive to become a must-see destination, the kingdom is ecumenical about its audience, hoping to attract not only Saudis who in the past would travel elsewhere — and who spent $27 billion on international travel in 2024, according to government figures — but also international visitors.

    There are signs it’s working: An International Monetary Fund report noted that annual tourists exceeded the Vision 2030 target of 100 million seven years ahead of schedule.

    Work is already underway on Abha’s touristic makeover. All over the city, you see signs advertising projects sponsored by the Public Investment Fund, the oil-backed sovereign wealth fund overseeing the gargantuan investments in the kingdom’s no-holds-barred metamorphosis. Construction will soon begin on upgrading the airport.

    Two women in dark robes and head coverings embrace against a backdrop of blue wings painted on a pink background

    Locals pose at a mural in one of the many parks in Abha, which has been working to attract more international tourists.

    (Tasneem Alsultan)

    Beyond the city limits, the fund is planning six tourist districts in the region’s choicest spots; they’ll leverage the area’s majestic vistas to focus on wellness spas, yoga pavilions, meditation retreats, golf courses and glamping pods, according to promotional materials.

    “We’re in a transitional phase for the moment, so there’s construction and it can be a bit inconvenient, but things are already getting better,” said Mohammad Hassan, 36, owner of a cafe in Abha called Bard wa Sahab (Cold and Clouds), near an Instagram-ready mountaintop vantage point.

    Hassan acknowledged that the spate of development was likely to increase competition and had already spurred a rise in rents. But he appeared happy about what the changes will mean for his business.

    “Before, Abha mostly got Saudi visitors or people from the [Persian] Gulf,” he said. “We’re already seeing more foreigners, but the government’s plans will make Abha known internationally.”

    Other locals grumble that the construction has made Asir’s most beautiful areas off-limits, and that the focus on luxury will change the freewheeling character of the region.

    “We would go to the mountains and camp for days. Authorities have stopped all that, and of course we won’t be able to do it when the resorts open,” said Nasser, a municipal worker who gave only his first name for privacy reasons.

    “Maybe all that the government is doing will make it better, but it’s impossible for the old way of life we had here to return,” he said.

    Another potential break with the past is possibility of allowing alcohol in the country. But crossing that Rubicon is no easy decision for authorities all too aware of the kingdom’s status as the birthplace of Islam, which bans alcohol and takes a dim view of those who drink and sell it.

    A person in dark clothes, seen from a distance, stands amid green ground cover near stone buildings

    Rijal Almaa, an ancient village about 15 miles from Abha, is a popular destination for tourists in Saudi Arabia’s Asir province.

    (Tasneem Alsultan)

    Nevertheless, many believe it’s coming. Staff working on the construction designs for the Red Sea Project say hotel rooms in various resorts will be equipped with elaborate minibars. And the Four Seasons in Riyadh has opened a tonic bar — but with no booze — that asks you to “delight in a symphony of handcrafted cocktails meticulously prepared to elevate your senses.”

    Despite the hundreds of billions Saudi Arabia has spent, there are skeptics. They point to depressed oil prices that mean the government can’t balance its budget or keep up with Vision 2030’s ballooning costs. A few projects have already stalled; architects working on the resorts say that layoffs have spiked and that the scope of their work has been reduced. Other flagship projects, including the Line, have seen their once-fantastical goals grounded by the realities of physics and finance.

    Whatever the fate of Vision 2030’s grander plans, Abha’s charms await.

    Stone buildings illuminated in rainbow colors in a mountainous setting
    The Rijal Almaa heritage village, located in Asir province, is more than 900 years old.

    (Tasneem Alsultan)

    One afternoon, I decided to brave Jabal Soudah, figuring a short hike was in order. I started down a barely there path with a vague plan to soon turn back. Indeed, I was so ill-equipped (with inappropriate walking shoes, a tiny bottle of water and a massive cold) that I should have done so. But I kept going, curious to see what the next bend would bring.

    Four hours later, sunburned and more winded than I like to admit, I reached a hamlet where I later hitched a ride back to the city.

    But before I found the ride, I ignored the exhaustion and lingered for a moment in this corner of a country more known for desert than the dense forest I had crossed. Before me, the mountain range extended somewhere beyond the haze. The fog coalesced around the summits, with sunset’s final rays transforming them into a gracefully undulating landscape of golden gauze.

    Nabih Bulos

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  • 2026 Esports World Finals are coming to Los Angeles and El Segundo

    The city of Los Angeles, an epicenter of sport championship events, is adding yet another tournament to its host list: global competitive esports.

    The Global Esports Federation announced Tuesday that it had selected the city of Los Angeles to host the 2026 Global Esports World Finals Games, with the Los Angeles Times Media Group serving as a host partner.

    “The Los Angeles 2026 games will stand as a symbol of how esports is shaping the next generation, driving opportunity for building digital skills and inspiring cultural change,” said Paul Foster, CEO of the Global Esports Federation, from The Times building in El Segundo.

    The media group will embark on reinventing a warehouse adjacent to The Times building, off of Imperial Highway, which will become a virtual arena for players and spectators, said Dr. Patrick Soon-Shiong, Los Angeles Times Media Group’s executive chairman.

    “We now have a challenge where by July 2026, Los Angeles’ first and largest global esports stadium will have to be built on this campus and El Segundo Mayor Chris Pimentel has graciously given us his support,” Soon-Shiong said.

    The arena will house the weeklong competition and event celebration slated for Dec. 4, 2026.

    Los Angeles and El Segundo beat out eight other international cities prior to selection, and Los Angeles Mayor Karen Bass said the two cities were uniquely positioned to host the global event. “We are adding yet another major international event to the lineup, showing that Los Angeles is where the world comes to compete in every form, from the field to the arena to the digital stage.”

    This is the first time the esports world finals will be hosted in the United States. The relatively new global competition has been held previously in Singapore, Istanbul, Riyadh and Lima.

    The competitive video gaming event will feature a mix of team sports and individual games and an estimated 1,000 athletes representing more than 100 countries.

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  • Saudi Arabia says all NEOM megaprojects will go ahead as planned despite reports of scaling back

    Saudi Arabia says all NEOM megaprojects will go ahead as planned despite reports of scaling back

    Saudi Arabia’s economy minister rejected recent reports that the kingdom’s $1.5 trillion NEOM megaproject, a futuristic desert development on the Red Sea coast, is scaling back some of its plans.

    “All projects are moving full steam ahead,” Faisal Al Ibrahim told CNBC’s Dan Murphy on Monday at the World Economic Forum’s special meeting in Riyadh.

    “We set out to do something unprecedented and we’re doing something unprecedented, and we will deliver something that’s unprecedented.”

    In early April, reports emerged in Western media outlets that The Line project, a planned glass-walled city meant to stretch for 105 miles across the desert by 2030, would be a length of just 1.5 miles by that time — a reduction of 98.6%. Citing anonymous sources with knowledge of the matter, the initial report by Bloomberg said that the Saudi government’s original plan to have 1.5 million people living in The Line by 2030 was slashed to 300,000.

    The purported scaling back of plans, at least in the medium-term, comes amid reported concerns over finances for NEOM, which is part of the kingdom’s broader Vision 2030 initiative to diversify its economy away from oil. Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has not yet approved NEOM’s budget for 2024, according to Bloomberg’s report.

    Al Ibrahim stressed that the projects would be delivered according to plan, but with the qualification that decisions were being made for “optimal economic impact.”

    “We see feedback from the market, we see more interest from the investors and we’ll always prioritize to where we can optimize for optimal economic impact,” he said.

    “Today the economy in the kingdom is growing faster, but we don’t want to overheat it. We don’t want to deliver these projects at the cost of importing too much against our own interest. We will continue delivering these projects in a manner that meets these priorities, delivers these projects and has the optimal healthy impact for our economy and the … healthy non-oil growth within it.”

    NEOM political map of the 500 billion dollar megacity project in Saudi Arabia along the Red Sea coast. Location of the smart and tourist city with autonomous judicial system. English labeling. Vector.

    Peterhermesfurian | Istock | Getty Images

    Still, the minister emphasized that “for NEOM, the projects, the intended scale is continuing as planned. There is no change in scale.”

    “It is a long-term project that’s modular in design,” he said. “The rest of the mega projects are there to be delivered for specific impact in specific sectors.”

    Asked what kind of a message the reported timeline and scale changes would send to private investors, Al Ibrahim said that decisions would be made to suit the needs and returns of the projects, and that all the developments within NEOM are seeing growing investor interest.

    “Keep in mind that these sectors didn’t exist in the past. They’re being built from scratch. They require some investment and going all in from the government and the sovereign wealth fund,” he said.

    “And we’re seeing increased investor interest on all of these projects. These projects will be delivered to their scale and in a manner that in terms of priorities suits the needs of the projects, the returns of these projects, and the economic impact. It’s like minimizing any leakage, minimizing any overheating risks as well.”

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  • Exclusive-On edge over Red Sea attacks, Riyadh seeks to contain fall-out

    Exclusive-On edge over Red Sea attacks, Riyadh seeks to contain fall-out

    By Aziz El Yaakoubi and Parisa Hafezi

    RIYADH/DUBAI (Reuters) – Saudi Arabia has asked the United States to show restraint in responding to attacks by Yemen’s Houthis against ships in the Red Sea, two sources familiar with Saudi thinking said, as Riyadh seeks to contain spillover from the Hamas-Israel war.

    The Iran-aligned Houthis have waded into the conflict that has spread around the Middle East since war erupted on Oct. 7, attacking vessels in vital shipping lanes and firing drones and missiles at Israel itself.

    The group which rules much of Yemen says its attacks are a show of support for the Palestinians and has vowed they will continue until Israel stops its offensive on the Gaza Strip – more than 1,000 miles from their seat of power in Sanaa.

    The Houthis are one of several groups in the Iran-aligned “Axis of Resistance” which have been attacking Israeli and U.S. targets since the start of the conflict on Oct. 7, when their Palestinian ally Hamas sparked the war by attacking Israel.

    Their role has added to the conflict’s regional risks, threatening sea lanes through which much of the world’s oil shipped, and worrying states on the Red Sea as Houthi rockets and drones fly towards Israel.

    Riyadh, the world’s top oil exporter, has watched with alarm as Houthi missiles have been fired over its territory.

    With the Houthis stepping up attacks on shipping over the past weeks, two sources familiar with Saudi thinking said Riyadh’s message of restraint to Washington aimed to avoid further escalation. Riyadh was so far pleased with the way the United States was handling the situation, the sources added.

    “They pressed the Americans about this and why the Gaza conflict should stop,” one of the sources said.

    The White House declined to comment.

    The Saudi government did not respond to an emailed request for a comment on the discussions.

    As Saudi Arabia presses for a ceasefire to halt what it has called a “barbaric war” in Gaza, its diplomacy reflects a wider policy aimed at promoting regional stability after years of confrontation with Iran and its allies.

    Focused on expanding and diversifying the Saudi economy, Riyadh this year normalised ties with Tehran and is seeking to exit the war it has been waging with the Houthis in Yemen for nearly nine years.

    The sources said Saudi Arabia was seeking to advance the Yemen peace process even as war rages in Gaza, worrying it could be derailed. Yemen has enjoyed more than a year of relative calm amid direct peace talks between Saudi and Houthi officials.

    The Houthi attacks during the Hamas-Israel war have elevated their profile in the Iran-aligned camp which also includes Hamas, Lebanon’s Hezbollah and Iran-backed militias in Iraq.

    The Houthis have emerged as a major military force in the Arabian Peninsula, with tens of thousands of fighters and a huge arsenal of ballistic missiles and armed drones.

    Senior sources in the Iran-aligned camp told Reuters the Houthi attacks were part of an effort to put pressure on Washington to get Israel to halt the Gaza offensive, a goal that Iran shares with Saudi Arabia and other countries in the region.

    One of the sources, who is based in Tehran, said Houthi representatives had discussed their attacks with Iranian officials during a meeting in Tehran in November, agreeing to carry out actions in a “controlled” way that would help force an end to the Gaza war. The source was briefed on the matter.

    Another of the sources said Tehran did not seek “all-out war in the region” that would risk drawing it in directly.

    A Houthi spokesperson did not respond to a request for comment. Iran has denied being involved in the attacks. Iranian officials did not respond to a request for comment on the Houthi attacks.

    DESTROYER DOWNS DRONES

    The United States and Britain have condemned the attacks on shipping, blaming Iran for its role in supporting the Houthis. Tehran says its allies make their decisions independently.

    In one of the latest incidents, three commercial vessels came under attack in international waters on Sunday. The Houthis said they had fired at what they said were two Israeli vessels. Israel denied any link to the ships.

    A U.S. Navy destroyer, the Carney, shot down three drones as it answered distress calls from the vessels, which the U.S. military said were connected to 14 separate nations.

    The Pentagon said on Monday the Carney had taken action as a drone was headed in its direction, but that it could not assess if the warship was the intended target.

    Pentagon spokesperson Sabrina Singh stopped short of using language that could suggest any imminent U.S. retaliation against the Houthis. Asked if the United States might retaliate, Singh said: “If we decide to take action against the Houthis, it will of course be at a time and place of our choosing.”

    An Iranian diplomat said Tehran and Washington had exchanged messages through intermediaries about Houthi attacks since the start of the Hamas-Israel war. The diplomat, who was involved in exchanging the messages, said both called for restraint.

    Iran on Tuesday denied any role in attacks or actions against U.S. forces.

    (Additional reporting by Steve Holland in Washington; Writing by Tom Perry; Editing by Alison Williams)

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  • Saudi Arabia to extend voluntary cut of 1 million barrels per day until the end of the year

    Saudi Arabia to extend voluntary cut of 1 million barrels per day until the end of the year

    Oil prices eased in Asian as concerns over slow demand from top crude importer China grew after bearish trade and inflation data, outweighing fears over tighter supply arising from output cuts by Saudi Arabia and Russia.

    David Mcnew | Getty Images News | Getty Images

    Saudi Arabia on Tuesday extended its 1-million-barrels-per-day voluntary crude oil production cut until the end of the year, according to the state-owned Saudi Press Agency.

    The reduction will put Saudi crude output near 9 million barrels per day over October, November and December and will be reviewed on a monthly basis.

    Riyadh first applied the 1 million-barrels-per-day reduction in July and has since extended it on a monthly basis. The cut adds to 1.66 million barrels per day of other voluntary crude output declines that some members of the Organization of the Petroleum Exporting Countries have put in place until the end of 2024.

    Fellow heavyweight oil producer Russia — which leads the contingent that joins OPEC nations in the OPEC+ coalition — also pledged to voluntarily reduce exports by 500,000 barrels per day in August and by 300,000 barrels per day in September. Russian Deputy Prime Minister Alexander Novak on Tuesday said that it will extend its 300,000 barrels-per-day reduction of exports until the end of December 2023 and will likewise review the measure on a monthly basis, according to the Kremlin.

    The cuts are described as voluntary because they are outside of OPEC+’s official policy, which commits every non-exempt member to a share of production quotas. OPEC Secretary-General Haitham al-Ghais has previously said that resorting to voluntary reductions outside of OPEC+ decisions does not suggest divisions in policy views among alliance members.

    The Ice Brent futures contract with November delivery was up $1.07 per barrel to $90.07 per barrel at 2:13 p.m. London time, with WTI futures higher by $1.40 per barrel to $86.95 per barrel.

    Saudi stakes

    Saudi Arabia faces a difficult juggling act between implementing oil production cuts and the blow to its crude-reliant economy. Losses incurred by trimming production — and, indirectly, marketing volumes — could be partially offset by increases in Riyadh’s sale prices and in the global oil prices that underpin them.

    After languishing below $75 per barrel for the better part of the first half of the year, global futures prices shot up by more than $10 per barrel over the summer, most recently boosted by security risks in OPEC member Gabon and the threat of disruption in the Gulf of Mexico, in the wake of Hurricane Idalia.

    The Paris-based International Energy Agency expects increasing supply tightness in the second half of 2023 as demand recovers in China, the world’s largest crude importer.

    Saudi Arabia depends on oil revenues to support several so-called “giga-projects” designed to diversify its economy. Crude output cuts and a fall in oil prices earlier this year led to a slowdown in Riyadh’s GDP, which expanded by an annual 1.1% in the second quarter, down from 3.8% in the previous quarter and 11.2% in the same period of 2022

    Saudi state-controlled Aramco typically sells crude supplies through annual contracts that often state minimal volumes to be made available to clients. While Aramco and its customers can mutually agree to forego this requirement, customers can insist on receiving their contracted volumes — which would push Saudi Arabia to either withdraw from its dwindling stocks or increase production.

    At stake is also the prospect of conceding market share to Russia and Iran which produce similar-quality crude to Saudi Arabia and have primarily directed their exports to China, offering heavily discounted prices.

    Iran’s oil minister Javad Owji in the middle of August said in Google-translated comments reported by state news agency IRNA that his country was producing as much as 3.19 million barrels per day, despite ongoing U.S. sanctions that have deprived Tehran of European and most Asian buyers.

    CNBC’S Dan Murphy contributed to this report

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  • Saudi Arabia frees American imprisoned over critical tweets

    Saudi Arabia frees American imprisoned over critical tweets

    WASHINGTON (AP) — A 72-year-old American imprisoned more than a year in Saudi Arabia over tweets critical of the Saudi crown prince was back with family members in Riyadh on Tuesday, but it remained unclear whether the kingdom would drop a travel ban to allow him to return home to Florida.

    Saudi Arabia on Monday freed Saad Almadi, a dual U.S.-Saudi citizen who had been a retiree living in Florida until Saudis detained him when he arrived for a 2021 family visit to the kingdom. Saudi courts subsequently sentenced Almadi to 19 years in prison over his years of past posts on social media.

    A State Department spokesman, Vedant Patel, on Tuesday welcomed the news of Almadi’s release, but would not comment on the ban Saudi Arabia had imposed earlier to keep the Florida man from returning home after he finished his prison sentence for the tweets. “Each country is going to have its own sovereign laws and each case is different, so I’m not going to speak about this,” Patel said.

    Almadi is now at home with family members who live in Riyadh, the Saudi capital, said his son, Ibrahim Almadi. Saudi officials dropped all charges against the elder Almadi, Ibrahim Almadi and advocates familiar with the case said.

    The Florida man’s imprisonment over tweets had been one of several alleged human rights abuses that had soured relations between Crown Prince Mohammed bin Salman and President Joe Biden. That included Saudi officials’ killing of a U.S.-based journalist Jamal Khashoggi inside a Saudi consulate in Istanbul in 2018, and prison sentences and travel bans that Saudi Arabia under the crown prince’s tenure has given Saudi rights advocates and perceived rivals and critics of the powerful crown prince.

    Both Prince Mohammed and the Biden administration recently have taken steps toward restoring better relations. The two countries are partners in a decades-old security arrangement in which the U.S. provides security for Saudi Arabia and the oil-rich kingdom keeps global markets supplied with oil.

    Saudi Arabia had sentenced Almadi last year to 16 years in prison, saying his critical tweets about how the kingdom was being governed amounted to terrorist acts against it.

    As U.S. officials worked to win his release, and after Biden traveled to Saudi Arabia last summer in an attempt to improve relations with the oil-rich nation, a Saudi appeals court tacked an additional three years on to his sentence.

    Ibrahim Almadi had campaigned hard and publicly for his father’s freedom. The son had pushed the Biden administration to formally declare his father as wrongfully detained by the kingdom, and had accused U.S. officials of holding back on criticism in the case in the interest of mending relations with the oil giant.

    “Now we have to fight travel ban,” he added.

    Saudi Arabia did not acknowledge Almadi’s release. However, the kingdom routinely pardons prisoners ahead of the holy Muslim fasting month of Ramadan, which could begin as soon as Tuesday night.

    A retired project manager in the United States, Almadi was arrested in 2021 when he arrived for what was to have been a two-week visit to see family in the kingdom. Once in custody, he was confronted by Saudi authorities with tweets he had posted over several years from his home in Florida, his son says.

    Almadi’s tweets included one noting Prince Salman’s consolidation of power in the kingdom and another that spoke of Khashoggi’s killing. U.S. intelligence officials earlier concluded the crown prince authorized the hit team that killed Khashoggi inside a Saudi consulate in Istanbul.

    “We are relieved that Saad Almadi has been released, but he should have never spent a day behind bars for innocuous tweets,” said Abdullah Alaoudh, Saudi director for the Freedom Initiative, a U.S.-based group that advocates for those it considers unjustly detained in the Middle East.

    Alaoudh urged the U.S. to continue to press for the release of all rights advocates and others detained in Saudi Arabia.

    Freedom Initiative says at least four U.S. citizens and one legal permanent resident already were detained in Saudi Arabia under travel bans, and that at least one other older U.S. citizen remains imprisoned. Many of the travel bans targeted dual citizens advocating for greater rights in the kingdom, such as Saudi women’s right to drive.

    Ibrahim Almadi said his father had lost extensive weight in prison and that his health had worsened drastically.

    ——

    Jon Gambrell contributed from Dubai and AP Diplomatic Writer Matthew Lee from Washington.

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  • Saudi National Bank loses over $1 billion on Credit Suisse investment

    Saudi National Bank loses over $1 billion on Credit Suisse investment

    Signage for Credit Suisse Group AG outside a building, which houses the company’s branch, in Tokyo, Japan, on Monday, March 20, 2023. UBS Group AG agreed to buy Credit Suisse Group in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.

    Kosuke Okahara | Bloomberg | Getty Images

    Saudi National Bank is nursing major losses in the wake of Credit Suisse’s failure after a deal was reached for UBS to buy the embattled Swiss lender for $3.2 billion.

    Saudi National Bank — Credit Suisse’s largest shareholder — confirmed to CNBC Monday that it had suffered a loss of around 80% on its investment.

    The Riyadh-based bank holds a roughly 10% stake in Credit Suisse, having invested 1.4 billion Swiss francs ($1.5 billion) in the Swiss lender in November of last year, at 3.82 Swiss francs per share.

    Under the terms of the rescue deal, UBS is paying Credit Suisse shareholders 0.76 Swiss francs per share

    The significant discount comes as regulators try to shore up the global banking system. The scramble for a rescue follows a tumultuous few weeks which saw the collapses of U.S.-based Silicon Valley Bank and First Republic bank as well as major stock price downturns across the banking sector internationally.

    Shares of UBS, Switzerland’s largest bank, traded down 11% at 8:55 a.m., while Europe’s banking sector was around 2.8% lower.

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  • China has shattered the assumption of US dominance in the Middle East | CNN

    China has shattered the assumption of US dominance in the Middle East | CNN



    CNN
     — 

    With a grandiose diplomatic flourish China brokered a rapprochement between Saudi Arabia and Iran, in the process upending US calculus in the Gulf and beyond.

    While the United States has angered its Gulf allies by apparently dithering over morality, curbing arms supplies and chilling relations, Saudi Arabia’s King-in-waiting Crown Prince Mohammed bin Salman, known as MBS, has found a kindred spirit in China’s leader Xi Jinping.

    Both are bold, assertive, willing to take risks and seemingly share unsated ambition.

    Friday’s announcement that Riyadh and Tehran had renewed diplomatic ties was unexpected, but it shouldn’t have been. It is the logical accumulation of America’s diplomatic limitations and China’s growing quest to shape the world in its orbit.

    Beijing’s claim that “China pursues no selfish interest whatsoever in the Middle East,” rings hollow. It buys more oil from Saudi Arabia than any other country in the world.

    Xi needs energy to grow China’s economy, ensure stability at home and fuel its rise as a global power.

    His other main supplier, Russia, is at war, its supplies therefore in question. By de-escalating tensions between Saudi and Iran, Xi is not only shoring up his energy alternatives but, in a climate of growing tension with the US, also heading off potential curbs on his access to Gulf oil.

    Xi’s motivation appears fueled by wider interests, but even so the US State Department welcomed the surprise move, spokesman Ned Price saying, “we support anything that would serve to deescalate tensions in the region, and potentially help to prevent conflict.”

    Iran has buy-in because China has economic leverage. In 2021 the pair signed a trade deal reportedly worth up to $400 billion of Chinese investment over 25 years, in exchange for a steady supply of Iranian oil.

    Tehran is isolated by international sanctions and Beijing is providing a glimmer of financial relief.

    And, in the words of Iran’s Supreme leader Ayatollah Ali Khamenei last year, there’s also the hope of more to come as he sees geopolitical power shifting east.

    “Asia will become the center of knowledge, the center of economics, as well as the center of political power, and the center of military power,” Khamenei said.

    Saudi has buy-in because war with Iran would wreck its economy and ruin MBS’s play for regional dominance. His bold visions for the country’s post fossil-fuel future and domestic stability depend on inwardly investing robust oil and gas revenues.

    US State Department spokesman Ned Price pictured in July 2022.

    It may sound simple, but the fact the US couldn’t pull it off speaks to the complexities and nuance of everything that’s been brewing over the past two decades.

    America’s wars in Iraq and Afghanistan have burned through a good part of its diplomatic capital in the Middle East.

    Many in the Gulf see the development of the war in Ukraine as an unnecessary and dangerous American adventure, and some of Russian President Vladimir Putin’s territorial claims over Ukraine not without merit.

    Chinese and Saudi flags in Riyadh in December 2022.

    What the global West sees as a fight for democratic values lacks resonance among the Gulf autocracies, and the conflict doesn’t consume them in the same way as it does leaders in European capitals.

    Saudi Arabia, and MBS in particular, have become particularly frustrated with America’s flip-flop diplomacy: dialling back relations over the Crown Prince’s role in the murder of Washington Post columnist Jamal Khashoggi (which MBS denies); then calling on him to cut oil production swiftly followed by requests to increase it.

    These inconsistencies have led the Saudis to hew policy to their national interests and less to America’s needs.

    During his visit to Saudi last July, US President Joe Biden said: “We will not walk away and leave a vacuum to be filled by China, Russia, or Iran.” It seems now that the others are walking away from him.

    On Beijing’s part, China’s Gulf intervention signals its own needs, and the opportunity to act arrived in a single serving.

    Xi helped himself because he can. The Chinese leader is a risk taker.

    His abrupt ending of austere Covid-19 pandemic restrictions at home is just one example, but this is a more complex roll of the dice.

    Mediation in the Middle East can be a poisoned chalice, but as big as the potential gains are for China, the wider implications for the regional, and even global order, are quantifiably bigger and will resonate for years.

    US President Joe Biden (center-left) and Saudi Crown Prince Mohammed bin Salman (center) in Jeddah in July 2022.

    Yet harbingers of this shake-up and the scale of its impact have been in plain sight for months. Xi’s high-profile, red-carpet reception in Riyadh last December for his first overseas visit after abandoning his domestic “zero-Covid” policy stirred the waters.

    During that trip Saudi and Chinese officials signed scores of deals worth tens of billions of dollars.

    China’s Foreign Ministry trumpeted Xi’s visit, paying particular attention to one particular infrastructure project: “China will deepen industrial and infrastructure cooperation with Saudi Arabia (and) advance the development of the China-Saudi Arabia (Jizan) Industrial Park.”

    The Jizan project, part of China’s belt and road initiative, heralds huge investment around the ancient Red Sea port, currently Saudi’s third largest.

    Jizan lies close to the border with Yemen, the scene of a bloody civil war and proxy battle between Riyadh and Tehran since 2014, sparking what the United Nations has described as the world’s worst humanitarian crisis.

    Significantly since Xi’s visit, episodic attacks by the Iran-backed Houthi rebels on Jizan have abated.

    There are other effects too: the plans to upscale Jizan’s container handling puts Saudi in greater competition with the UAE’s container ports and potentially strains another regional rivalry, as MBS drives to become the dominant regional power, usurping UAE’s role as regional hub for global businesses.

    Xi will have an interest seeing both Saudi Arabia and the UAE prosper, but Saudi is by far the bigger partner with higher potential global economic heft and, importantly, massive religious clout in the Islamic world.

    Where the UAE and Saudi align strongly is eschewing direct conflict with Tehran.

    A deadly drone attack in Abu Dhabi late last year was claimed by the Houthis, before the rebels quickly rescinded it. But no one publicly blamed the Houthis’ sponsors in Tehran.

    A once shaky ceasefire in Yemen now also seems to be moving toward peace talks, perhaps yet another indication of the potential of China’s influence in the region.

    Beijing is acutely aware of what a continued war over the Persian Gulf could cost its commercial interests – another reason why a Saudi/Iran rapprochement makes sense to Xi.

    Iran blames Saudi for stoking the massive street protests through its towns and cities since September.

    Saudi denies that accusation, but when Iran moved drones and long-range missiles close to its Gulf coast and Saudi, Riyadh called on its friends to ask Tehran to de-escalate. Russia and China did, the threat dissipated.

    Tehran, despite US diplomatic efforts, is also closing in on nuclear weapons capability and Saudi’s MBS is on record saying he’ll ensure parity, “if Iran developed a nuclear bomb, we will follow suit as soon as possible.”

    Late last week US officials said Saudi was seeking US security guarantees and help developing a civilian nuclear program as part of a deal to normalize relations with Israel, an avowed enemy of Iran’s Ayatollahs.

    Indeed, when US Secretary of State Antony Blinken visited Israel late January, concerned over a rising Palestinian death toll in a violent year in the region, potential settlement expansions and controversial changes to Israel’s judiciary Prime Minister Benjamin Netanyahu spoke to Blinken about “expanding the circle of peace,” and improving relations with Arab neighbours, including Saudi Arabia.

    US Secretary of State Antony Blinken (left) with Israeli Prime Minister Benjamin Netanyahu in May 2021.

    But as Saudi seems to shift closer to Tehran, Netanyahu’s mission just got harder. While both Saudi and Israel strongly oppose a nuclear-armed Iran, only Netanyahu seems ready to confront Tehran.

    “My policy is to do everything within Israel’s power to prevent Iran from acquiring nuclear weapons,” the Israeli leader told Blinken.

    Riyadh favors diplomacy. As recently as last week the Saudi foreign minister said: “It’s absolutely critical … that we find and an alternative pathway to ensuring an (Iranian) civilian nuclear program.”

    By improving ties with Tehran, he said, “we can make it quite clear to the Iranians that this is not just a concerns of distant countries but it’s also a concern of its neighbors.”

    For years this is what America did, such as brokering the Iran nuclear deal, or JCPOA, in 2015.

    Xi backed that deal, the Saudis didn’t want it, Iran never trusted it, Biden’s predecessor Donald Trump’s withdrawal confirmed Iran’s fears and sealed its fate, despite the ongoing proximity talks to get American diplomats seated at the table again.

    Iran has raced ahead in the meantime, massively over-running the bounds of the JCPOA limits on uranium enrichment and producing almost weapons-grade material.

    What’s worse for Washington is that Trump’s JCPOA withdrawal legacy tainted international perceptions of US commitment, continuity and diplomacy. All these circumstances perhaps signaled to Xi that his time to seize the lead on global diplomacy was coming.

    Yet the Chinese leader seems to accept what Netanyahu won’t and what US diplomacy is unable to prevent: that sooner, rather than later, Iran will have a nuclear weapon. As such, Xi may be fostering Saudi-Iran rapprochement as a hedge against that day.

    So Netanyahu looks increasingly isolated and the Israeli leader, already under huge domestic pressure from spiking tensions with Palestinians and huge Israeli protests over his proposed judicial reforms, now faces a massive re-think on regional security.

    The working assumption of American diplomatic regional primacy is broken, and Netanyahu’s biggest ally is now not as hegemonic as he needs. But by how much is still far from clear.

    It’s not a knockout, but a gut blow, to Washington. How Xi calculates the situation isn’t clear either. The US is not finished, far from it, but it is diminished, and both powers are coexisting in a different way now.

    Earlier this month, the Chinese leader made unusually direct comments accusing the US of leading a campaign against China and causing serious domestic woes.

    “Western countries led by the United States have contained and suppressed us in an all-round way, which has brought unprecedented severe challenges to our development,” Xi told a group of government advisers representing private businesses on the sidelines of an annual legislative meeting in Beijing.

    Meanwhile, Biden has defined the future US-China relationship as “competition not confrontation,” and he has built his foreign policy around the tenets of standing up for democracy.

    It is striking that neither Xi, nor Khamenei, nor MBS are troubled by the moral dilemmas that circumscribe Biden. This is the big challenge the US president warned about, and now it’s here. An alternative world order, irrespective of what happens in Ukraine.

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  • Jake Paul takes first ring defeat by split decision to Fury

    Jake Paul takes first ring defeat by split decision to Fury

    RIYADH, Saudi Arabia (AP) — YouTube star Jake Paul took the first defeat of his professional boxing career Sunday night, losing a split decision to Tommy Fury.

    Paul (6-1) knocked down Fury with a short left hand early in the final round of their cruiserweight bout, but the younger half-brother of heavyweight champion Tyson Fury controlled long stretches of the eight-round meeting at Diriyah Arena.

    Two judges scored the bout 76-73 for Fury (9-0, 4 KOs), while the third favored Paul, 75-74.

    “I’ve already won every single way in life,” Paul said. “I made it farther than I ever thought I would, and beyond. This is a humbling experience. I’ll take it on the chin and come back.”

    Fury is the first actual professional boxer fought by Paul, who built his lucrative second career by taking on mixed martial artists and a fellow YouTuber in boxing bouts that generated huge social media attention despite featuring more enthusiasm than skill.

    Fury also is much better known as a celebrity sibling — and much more accomplished as a reality television star — than as a boxer, leading to a relatively even matchup with Paul. Fury’s unbeaten record entering this bout was built against a series of wildly overmatched opponents with a combined record of 24-176-5.

    “In my first main event, 23 years old, I had the world on my shoulders, and I came through,” Fury said. “This, to me, is a world title fight. I trained so hard for this. This was my destiny.”

    Both fighters had good moments in the first four rounds in front of a star-studded crowd in Saudi Arabia, but Fury landed more significant shots behind a consistent jab that allowed him to keep Paul at a distance.

    Paul appeared to stun Fury with an accurate left hook early in the fifth round, but he also lost a point when the referee penalized him, apparently for pushing down on Fury’s head in a clinch. The referee then took a point from Fury in the sixth, apparently for excessive clinching.

    Fury had a strong seventh round despite a cut near his left eye from a clash of heads, repeatedly tagging Paul with combinations. But Paul abruptly reversed the momentum with a perfectly timed left that wobbled Fury, who put his left glove on the canvas to steady himself and bounced up immediately.

    Fury finished strong and claimed the decision.

    Fury and Paul were slated to meet two times previously, but Fury was unavailable for both showdowns. He injured a rib before their scheduled bout in December 2021, and he was denied entry to the U.S. last summer ahead of a planned meeting in August.

    Paul used the postponements to taunt Fury, and the emotions built into a contentious weigh-in earlier this week in Saudi Arabia, which jumped at the chance to underwrite this boxing spectacle and social media event.

    “All the way through these 2 1/2 years, I had a dream, I had a vision that I would win this fight,” Fury said. “No one believed me. Now I can stand up, and everyone can take note.”

    The crowd in the arena outside Riyadh included Al Nassr forward Cristiano Ronaldo, comedian Kevin Hart and a collection of boxers including Mike Tyson, Deontay Wilder, Devin Haney and Tyson Fury, who had publicly urged his younger sibling to interrupt Paul’s career with a knockout.

    ___

    AP boxing: https://apnews.com/hub/boxing and https://twitter.com/AP_Sports

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  • Official: 8 killed in attack by gunmen on an Iraqi village

    Official: 8 killed in attack by gunmen on an Iraqi village

    Eight people were killed and three injured Monday in an attack by gunmen on an Iraqi village previously held by the Islamic State extremist group, officials said.

    The attack took place in the village of Albu Bali northwest of Fallujah in Iraq.

    Uday al-Khadran, commissioner of the al-Khalis district where the attack occurred said “a group of terrorists riding motorcycles” had attacked the village at around 8:30 p.m. and that dozens of residents, some of them unarmed, had rushed to confront the attackers, the official Iraqi News Agency reported.

    Security forces are searching for those responsible, he said.

    The violence came a day after an explosive device went off in northern Iraq, killing at least nine members of the Iraqi federal police force who were on patrol. No one immediately claimed responsibility for the attack in the village of Ali al-Sultan in the Riyadh district of the province of Kirkuk.

    On Wednesday, three Iraqi soldiers were killed when a bomb exploded during a security operation in the Tarmiyah district, north of Baghdad. Among the dead was the commander of the 59th Infantry Brigade.

    No one claimed responsibility for that attack either, but remnants of the militant Islamic State group are active in the area and have claimed similar attacks in Iraq in the past.

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  • 5 key takeaways from Xi’s trip to Saudi Arabia | CNN

    5 key takeaways from Xi’s trip to Saudi Arabia | CNN

    Editor’s Note: A version of this story appears in CNN’s Meanwhile in today’s Middle East newsletter, a three-times-a-week look inside the region’s biggest stories. Sign up here.


    Abu Dhabi
    CNN
     — 

    Years of progressing ties between oil-wealthy Saudi Arabia and China, an economic giant in the east, this week culminated in a multiple-day state visit by Chinese President Xi Jinping to Riyadh, where a number of agreements and summits heralded a “new era” of Chinese-Arab partnership.

    Xi, who landed on Wednesday and departed Friday, was keen to show his Arab counterparts China’s value as the world’s largest oil consumer, and how it can contribute to the region’s growth, including within fields of energy, security and defense.

    The trip was widely viewed as yet another snub to Washington, which holds grievances toward both states over a number of issues.

    The United States, which has for more than eight decades prized its strategic alliance with Saudi Arabia, today finds its old partner in search of new friends – particularly with China, which the US worries is expanding its sphere of influence around the world.

    While Saudi Arabia was keen to reject notions of polarization or “taking sides,” it also showed that with China it can develop deep partnerships without the criticism or “interference” for which it has long resented its Western counterparts.

    Here are five key takeaways from Xi’s visit to Saudi Arabia.

    During Xi’s visit, Saudi Arabia and China released a nearly 4,000-word joint statement outlining their alignment on a swathe of political issues, and promising deeper cooperation on scores of others. From space research, digital economy and infrastructure to Iran’s nuclear program, the Yemen war and Russia’s war on Ukraine, Riyadh and Beijing were keen to show they are in agreement on most key policies.

    “There is very much an alignment on key issues,” Saudi author and analyst Ali Shihabi told CNN. “Remember this relationship has been building up dramatically over the last six years so this visit was simply a culmination of that journey.”

    The two countries also agreed to cooperate on peaceful uses of nuclear energy, to work together on developing modern technologies such as artificial intelligence and innovate the energy sector.

    “I think what they are doing is saying that on most issues that they consider relevant, or important to themselves domestically and regionally, they see each other as really, really close important partners,” said Jonathan Fulton, a nonresident senior fellow at the Atlantic Council think tank.

    “Do they align on every issue? Probably not, but [they are] as close as anybody could be,” he said.

    Xi Jinping, who landed on Wednesday and departed Friday, was keen to show his Arab counterparts China's value as the world's largest oil consumer.

    An unwritten agreement between Saudi Arabia and the US has traditionally been an understanding that the kingdom provides oil, whereas the US provides military security and backs the kingdom in its fight against regional foes, namely Iran and its armed proxies.

    The kingdom has recently been keen to move away from this traditional agreement, saying that diversification is essential to Riyadh’s current vision.

    During a summit between China and countries of the Gulf Cooperation Council (GCC) in Riyadh, Xi said China wants to build on current GCC-China energy cooperation. The Chinese leader said the republic will continue to “import crude oil in a consistent manner and in large quantities from the GCC, as well as increase its natural gas imports” from the region.

    China is the world’s biggest buyer of oil, with Saudi Arabia being its top supplier.

    And on Friday, the Saudi national oil giant Aramco and Shandong Energy Group said they are exploring collaboration on integrated refining and petrochemical opportunities in China, reported the Saudi Press Agency (SPA).

    The statements come amid global shortages of energy, as well as repeated pleas by the West for oil producers to raise output.

    The kingdom this year already made one of its largest investments in China with Aramco’s $10 billion investment into a refinery and petrochemical complex in China’s northeast.

    China is also keen to cooperate with Saudi Arabia on security and defense, an important field once reserved for the kingdom’s American ally.

    Disturbed by what they see as growing threats from Iran and waning US security presence in the region, Saudi Arabia and its Gulf neighbors have recently looked eastward when purchasing arms.

    Chinese leader Xi Jinping and Arab counterparts pose for a group photo during the China-Arab summit in Riyadh on December 9, 2022.

    One of the most sacred concepts cherished by China is the principle of “non-interference in mutual affairs,” which since the 1950s has been one of the republic’s key ideals.

    What began as the Five Principles of Peaceful Coexistence between China, India and Myanmar in 1954 was later adopted by a number of countries that did not wish to choose between the US and the Soviet Union during the Cold War.

    Today, Saudi Arabia is keen to adopt the concept into its political rhetoric as it walks a tightrope between its traditional Western allies, the eastern bloc and Russia.

    Not interfering in one another’s internal affairs presumably means not commenting on domestic policy or criticizing human rights records.

    One of the key hurdles complicating Saudi Arabia’s relationship with the US and other Western powers was the repeated criticism over domestic and foreign policy. This was most notable over the killing of Washington Post columnist Jamal Khashoggi, the Yemen war and the kingdom’s oil policy – which US politicians accused Riyadh of weaponizing to side with Russia in its war on Ukraine.

    China has had similar resentments toward the West amid international concerns over Taiwan, a democratically governed island of 24 million people that Beijing claims as its territory, as well as human rights abuses against Uyghurs and other ethnic groups in China’s western Xinjiang region (which Beijing has denied).

    The agreed principle of non-interference, says Shihabi, also means that, when needed, internal affairs “can be discussed privately but not postured upon publicly like Western politicians have a habit of doing for domestic political purposes.”

    For both China and Saudi Arabia, not interfering in one another's internal affairs presumably means not commenting on domestic policy or criticizing human rights records.

    During his visit, Xi urged his GCC counterparts to “make full use of the Shanghai Petrol and Gas Exchange as a platform to conduct oil and gas sales using Chinese currency.”

    The move would bring China closer to its goal of internationally strengthening its currency, and would greatly weaken the US dollar and potentially impact the American economy.

    While many awaited decisions on the rumored shift from the US dollar to the Chinese yuan with regards to oil trading, no announcements were made on that front. Beijing and Riyadh have not confirmed rumors that the two sides are discussing abandoning the petrodollar.

    Analysts see the decision as a logical development in China and Saudi Arabia’s energy relationship, but say it will probably take more time.

    “That [abandonment of the petrodollar] is ultimately inevitable since China as the Kingdom’s largest customer has considerable leverage,” said Shihabi, “Although I do not expect it to happen in the near future.”

    John Kirby, Coordinator for Strategic Communications at the National Security Council in the White House, said the US is

    The US has been fairly quiet in its response to Xi’s visit. While comments were minimal, some speculate that there is heightened anxiety behind closed doors.

    John Kirby, the strategic communications coordinator at the US National Security Council, at the onset of the visit said it was “not a surprise” that Xi is traveling around the world and to the Middle East, and that the US is “mindful of the influence that China is trying to grow around the world.”

    “This visit may not substantively expand China’s influence but signal the continuing decline of American influence in the region,” Shaojin Chai, an assistant professor at the University of Sharjah in the United Arab Emirates, told CNN.

    Saudi Arabia was, however, keen to reject notions of polarization, deeming it unhelpful.

    Speaking at a press conference on Friday, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud stressed that the kingdom is “focused on cooperation with all parties.”

    “Competition is a good thing,” he added, “And I think we are in a competitive marketplace.”

    Part of that drive for competitiveness, he said, comes with “cooperation with as many parties as possible.”

    The kingdom feels it is important that it is fully engaged with its traditional partner, the US, as well as other rising economies like China, added the foreign minister.

    “The Americans are probably aware that their messaging has been very ineffective on this issue,” said Fulton, normally “lecturing” partners about working with China “rather than putting together a coherent strategy working with its allies and partners.”

    “There seems to be a big disconnect between how a lot of countries see China and how the US does. And to Washington’s credit, I think they are starting to realize that.”

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