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You are here: Home / Archives for Saudi Arabia

World leaders mourn Saudi King Abdullah as oil prices surge

January 24, 2015 by Nasheman

A file picture taken on June 3, 2009 shows US President Barack Obama, left, shaking hands with Saudi King Abdullah bin Abdul Aziz al-Saud after he was presented with the King Abdul Aziz Order of Merit during a bilateral meeting at the king's ranch in al-Janadriya in the outskirts of Riyadh. AFP/Mandel Ngan

A file picture taken on June 3, 2009 shows US President Barack Obama, left, shaking hands with Saudi King Abdullah bin Abdul Aziz al-Saud after he was presented with the King Abdul Aziz Order of Merit during a bilateral meeting at the king’s ranch in al-Janadriya in the outskirts of Riyadh. AFP/Mandel Ngan

Arab and Western leaders have mourned Saudi Arabia’s King Abdullah bin Abdulaziz, who died early Friday, while international media reported a surge in oil prices following the news.

Although official reports say King Abdullah died at age 90 or 91, cables made public by Wikileaks state that he was born in 1916, making him 98 or 99 years old.

Abdullah’s brother, King Salman, thought to be 79, has taken over as the ultimate authority in a country that faces unprecedented tumult in the region and difficult long-term domestic challenges compounded by the plunging price of oil.

In his first public address, King Salman pledged on Friday no change in the ultra-conservative kingdom’s direction.

“We will remain with God’s strength attached to the straight path that this state has walked since its establishment by King Abdul Aziz bin Saud, and by his sons after him,” Salman said in televised remarks.

King Salman has named his half-brother Muqrin, 69, as his crown prince and heir. He also appointed the kingdom’s Interior Minister Prince Mohammed bin Nayef, who led the country’s war on al-Qaeda, as second in line to the throne, according to a royal decree on Friday.

He also named one of his sons, Prince Mohammed bin Salman, as defense minister, who was also appointed as the head of the royal court and special adviser to the monarch, said a decree published by state news agency SPA. The king decided to keep other ministers, including in the foreign, oil and finance portfolios, in their positions, television reported.

For more than eight decades since the founding of the modern kingdom of Saudi Arabia in 1932, the title of king has passed along a line of brothers born to the first king, Abdulaziz ibn Saud. The al-Saud family has ruled the majority of land constituting modern Saudi Arabia since the mid-18th century.

Abdul Aziz had 45 recorded sons and Abdullah, Salman and Muqrin were all born to different mothers.

Abdullah had ruled Saudi Arabia as king since 2006, but had run the country as de facto regent for a decade before that, after his predecessor King Fahd suffered a debilitating stroke.

Salman must navigate a white-hot rivalry with Iran playing out in Iraq, Syria, Yemen, Lebanon and Bahrain, open conflict in two neighboring states, a threat from Islamist militants and bumpy relations with the United States.

Reputedly pragmatic and adept at managing the delicate balance of clerical, tribal, royal and Western interests that factor into Saudi policy making, Salman appears unlikely to change the kingdom’s approach to foreign affairs or energy sales.

During his five decades as Riyadh governor, he was reputedly adept at managing the delicate balance of clerical, tribal and princely interests that determine Saudi policy, while maintaining good relations with the West.

But Salman is believed to be suffering from serious health problems, including Alzheimer’s and dementia, which raise serious questions about his capacity to rule.

By appointing his youngest half-brother Muqrin bin Abdulaziz, as crown prince, King Salman decisively moved to end speculation about the direction of the royal succession and splits in the ruling family.

Saudi Arabia, which holds more than a fifth of the world’s crude oil, also exerts some influence over the world’s 1.6 billion Muslims through its guardianship of Mecca and Medina, Islam’s holiest sites. It has also spread its rigid Wahhabi Salafi interpretation of Islam across the world.

Abdullah played a guiding role in Saudi Arabia’s support for Egypt’s government after the military toppled President Mohammed Mursi in 2013, after having initially supported dictator Hosni Mubarak, and drove his country’s support for groups seeking to topple Syrian President Bashar al-Assad, allowing US troops to use its territory to train rebels.

Saudi Arabia’s strict Wahhabi interpretation of Islam is mirrored in the ideology of some of the jihadist groups that have emerged during the Syrian conflict, notably the al-Nusra Front and the Islamic State of Iraq and Syria (ISIS).

World leaders react

Foreign leaders gathered in a cavernous mosque in the Saudi Arabian capital on Friday for Abdullah’s funeral.

Turkish President Recep Tayyip Erdogan, Pakistani Prime Minister Nawaz Sharif and the leaders of Sudan and Ethiopia joined Gulf rulers for the funeral prayer at Riyadh’s Imam Turki bin Abdullah mosque.

They prayed alongside Salman.

Television pictures showed Abdullah’s covered body borne on a simple litter carried by members of the royal family following prayers. Prince Miteb bin Abdullah, the National Guard minister and a son of the late king, was among the litter-bearers.

The body was quickly moved to nearby al-Ud public cemetery.

In keeping with the kingdom’s strict traditions, he was to be buried in an unmarked grave as was his predecessor King Fahd, who died in 2005.

Bahrain’s King Hamad, Qatari Emir Sheikh Tamim Bin Hamad al-Thani, a high-level delegation from the United Arab Emirates, and Kuwait’s Emir Sheikh Sabah al-Ahmad al-Sabah were among other leaders at the funeral.

Under Abdullah, Saudi Arabia has been a key ally of Washington in the Arab world, most recently joining the so-called US-led coalition carrying out airstrikes against ISIS.

US President Barack Obama paid tribute to late Abdullah, describing him “as a leader” who “was always candid and had the courage of his convictions.”

“As our countries worked together to confront many challenges, I always valued King Abdullah’s perspective and appreciated our genuine and warm friendship,” said Obama.

“The closeness and strength of the partnership between our two countries is part of King Abdullah’s legacy.”

During Abdullah’s nearly decade-long reign — which spanned the 2011 uprisings in the region and multiple wars that roiled the Middle East — Saudi Arabia and the United States remained staunch allies.

Obama praised Abdullah’s “steadfast and passionate belief in the importance of the US-Saudi relationship.”

The 41st US president George H. W. Bush hailed a “dear friend and partner” whom he described as a “wise and reliable ally.”

Abdullah will be buried Friday following afternoon prayers, according to the Saudi government.

Obama also praised Abdullah’s efforts to foster peace between Palestinians and Israelis.

“He took bold steps in advancing the Arab Peace Initiative, an endeavor that will outlive him as an enduring contribution to the search for peace in the region.”

At home, Obama said the king was “dedicated to the education of his people and to greater engagement with the world.”

US Secretary of State John Kerry paid tribute to Abdullah saying “the world has lost a revered leader.”

“He was so proud of the Kingdom’s journey, a brave partner in fighting violent extremism who proved just as important as a proponent of peace,” Kerry said in a statement.

Members of the US Congress also paid tribute.

Republican Senator John McCain described Abdullah as an “important voice for reform in Saudi Arabia.”

“He pushed for the modernization of the education system, curbed the authority of the religious police, and extended women the right to vote and run in municipal elections.”

Saudi women were officially told in 2011 that they would be given the right to vote in municipal elections, which have been postponed until 2015.

Israeli President Reuven Rivlin said the late king “was an example of grounded, considered and responsible leadership.”

“His wise policies contributed greatly to our region and to the stability of the Middle East,” Rivlin said in a statement.

Israel’s former president Shimon Peres said Abdullah’s death was “a real loss for the peace of the Middle East”.

“He was an experienced leader and a wise king. He had the courage … to stand up and introduce a peace program for the Middle East,” Peres said on Friday, referring to the 2002 Arab Peace Initiative.

“I’m not sure that we could have accepted all the items in the peace process but the spirit, the strength and the wisdom invested in it” led to a process that serves still as “a powerful base for making peace,” the former Israeli president told reporters on the sidelines of the World Economic Forum in Davos.

The peace initiative put forward by Abdullah offered Israel blanket recognition from 22 Arab states in return for a Palestinian state alongside a Zionist Israeli state. Many pro-Palestine activists have criticized the two-state solution, which they see as unlikely to solve the economic and security issues faced by Palestinians.

Iran offered condolences Friday to the people and government of Saudi Arabia, and said Foreign Minister Mohammed Javad Zarif would travel to Riyadh.

In a statement on its foreign ministry website, Iran said Zarif “will take part in an official ceremony” in the Saudi capital on Saturday, without giving further details.

Iran and Saudi, seen as the region’s foremost Shia and Sunni powers, have had long-standing troubled relations.

Turkish President Recep Tayyip Erdogan said he has postponed Friday’s planned trip to Somalia to attend the funeral of Saudi Arabia’s King Abdullah, a day after a bomb targeted a Turkish delegation in the capital Mogadishu.

“We’ve decided to go (to Riyadh) and are heading there now. But we are also going to continue our program and go to Djibouti and Somalia,” Erdogan told reporters in comments broadcast live by state television TRT.

Erdogan said he will travel to Djibouti after the funeral, and sources in his office said the Turkish leader is expected to go to Somalia on Sunday.

Meanwhile, Arab leaders also mourned the late Saudi king.

Lebanese former Prime Minister Saad Hariri called on fellow Lebanese to mourn the death of Saudi Arabia King Abdullah “who has continually offered support for Lebanon.”

“The Arab and Muslim nations have lost in the absence of King Abdullah Bin Abdul-Aziz a brilliant leader and an exceptional figure that printed the history of the Saudi Arabia kingdom and the region with great achievements and initiatives, which will remain the benchmarks for political interaction and economic and social growth to the Kingdom and its Arab environs,” Hariri said in a statement.

Hariri called on the Lebanese people “who had a special place in the heart of Abdullah bin Abdul-Aziz at the level of father-son relationship” to declare a day of mourning in all areas “in an expression of popular loyalty to the man who never failed to support Lebanon and to stand by its side in the toughest conditions.”

Lebanon’s Prime Minister Tammam Salam announced three official days of mourning for King Abdullah, the National News Agency, with flags flying at half-mast.

Bahrain’s King Hamad bin Issa al-Khalifa, meanwhile, declared a 40-day official mourning, during which government institutions will be closed for three days and the flag flown at half-mast.

“The Kingdom of Bahrain, the Arab and Islamic nations have lost, with the death of Custodian of the Two Holy Mosques, a wise leader who dedicated his life to serving his people, nation, religion and humanity,” the Bahraini Royal Court said.

The United Arab Emirate’s Khalifa bin Zayed al-Nahyan has also ordered an official mourning for three days starting Friday, during which the flag will be flown at half-mast.

“We mourn one of the most prominent leaders of the Arab and Muslim nations who dedicated himself to serving Islam and the Arab cause,” Nahyan said in a statement broadcast by the official Emirati news agency.

Jordan’s King Abdullah pulled out of the World Economic Forum in Davos, Switzerland, early following the death of Saudi Arabia’s King Abdullah.

Other Arab delegates also left Davos prematurely to head of the funeral of the Saudi king. The early departure of Jordan’s king forced the forum to change a session at which he was due to speak on Friday about Middle East security.

Egyptian President Abdel-Fattah al-Sisi also mourned the Saudi monarch.

“The Egyptian people will never forget King Abdullah’s historic stances towards them, which reflected his wisdom and faith in the importance of Arab cooperation,” the Egyptian presidency said.

A source told Anadolu news agency that Sisi will cut down a current visit to Switzerland, in which he had taken part in Davos international economic forum, to attend King Abdullah’s funeral.

Meanwhile, the Cairo-based al-Azhar — Sunni Islam’s highest seat of learning — also mourned the deceased king and praised his efforts in developing the Two Holy Mosques, at which millions of Muslims perform pilgrimage every year.

Al-Azhar also hailed King Abdullah’s “huge financial contributions allocated to the reconstruction of the Gaza Strip and aiding the people of Syria and Iraq.”

Surge in Oil Prices

In a country where the big ministries are dominated by royals, successive kings have kept the oil portfolio reserved for commoners and insisted on maintaining substantial spare output capacity to help reduce market volatility.

Oil prices jumped on Friday as news of the death Abdullah added uncertainty in energy markets already facing some of the biggest shifts in decades.

Brent crude futures rose to $49.70 a barrel by 0808 GMT, up from $1.18 a barrel. US WTI crude futures were at $47.31, up one dollar.

“This little spike in prices is understandable. But this is a selling opportunity in our view. It should be sold off quickly and it won’t last long at all,” said Mark Keenan of French bank Societe Generale.

After seeing strong volatility and price falls earlier in January, oil markets have moved little this week, with Brent prices range-bound between $47.78 and $50.45 a barrel.

The new king is expected to continue an OPEC policy of keeping oil output steady to protect the cartel’s market share from rival producers.

“When King Salman was still crown prince, he very recently spoke on behalf of the king, and we see no change in energy policy whatsoever,” Keenan said.

Analysts said almost equally as important as the royal succession to energy markets would be whether Saudi oil minister Ali al-Naimi, in office since 1995, might step down.

“The real question is if there is a new oil minister soon,” asked FGE analyst Tushar Bansal, adding that Naimi had reportedly wanted to step down but been convinced by King Abdullah to stay on.

Abdullah’s death comes amid some of the biggest shifts in oil markets in decades.

Oil prices have more than halved since peaking last June as soaring supplies clash with cooling demand.

Booming US shale production has turned the United States from the world’s biggest oil importer into one of the top producers, pumping out over 9 million barrels per day.

Data from the Energy Information Administration on Thursday showed the biggest build in US crude inventory in at least 14 years, driving Brent and WTI prices apart.

To combat soaring output and falling prices, many oil exporters, such as Venezuela, wanted the 12-member Organization of the Petroleum Exporting Countries (OPEC) to cut output in order to support prices and revenues.

Yet, led by Saudi Arabia, OPEC announced last November it would keep output steady at 30 million barrels per day.

In the long term Saudi rulers have to manage the needs of a rapidly growing population plagued by structural unemployment, an economy that remains overly dependent on oil revenue and undermined by lavish subsidies, and growing demands for more freedoms and rights.

Social Media and Human Rights

Many Saudis took to the Internet to praise the deceased monarch, but some, including campaigners for free speech and women’s right to drive, were less flattering.

Abdullah was “loved by the Saudi people and the entire Muslim population. We did not lose a king today, we all lost a father,” Ameera al-Taweel said in one of thousands of Twitter messages.

Saudi Army News, an official account, expressed condolences and said: “This Twitter account will stop tweeting for three days in mourning of King Abdullah bin Abdulaziz al-Saud, may God rest his soul.”

Some talked of the development Abdullah fostered in the kingdom.

“Spending was generous and golden projects in all regions,” wrote Naif al-Qarni.

In a country where official media are tightly controlled, the Internet offers more freedom for Saudis to communicate.

The kingdom’s abysmal record on free speech was highlighted multiple times during Abdullah’s rule by the case of opposition leader Sheikh Nimr al-Nimr, who was sentenced to death for demanding reforms and more rights for Saudi Arabia’s Shia minority, and Raif Badawi, a blogger sentenced to 1,000 lashes and 10 years in jail.

Badawi’s Twitter account retweeted a comment on Abdullah’s death saying: “God forgive him and have mercy on him.”

Rights group Amnesty International said on Thursday that Saudi Arabia had postponed Badawi’s flogging for a second time on medical grounds, which had been due to resume on Friday. He has already received 50 lashes.

Meanwhile, campaigners for women’s right to drive referred only in passing to the king’s death, saying on their Twitter account: “For all creatures whether big or small — nothing remains but your deeds and your grave — and only God lasts forever.”

They posted a picture of the king but then followed it with photographs of Loujain Hathloul and Maysaa Alamoudi, two women’s rights activists detained since early December.

Saudi Arabia, with a population of about 29 million including around 20 million Saudis, is the only country in the world where women are not allowed to drive.

Saudi women have taken to social media in protest of the ban on female driving.

Activists say women’s driving is not actually against the law, and the ban is linked to tradition and custom ultra-conservative Wahhabi nation, and not backed by Islamic text or judicial ruling.

In October, dozens posted images online of themselves behind the wheel as part of an online campaign supporting the right to drive.

In response, the Ministry of Interior said it would “strictly implement” measures against anyone undermining “the social cohesion.”

Abdullah pushed cautious changes in the conservative Islamic kingdom including superficial advances for women’s rights and economic deregulation, but made no moves towards democracy.

Some of those posting comments were unimpressed by his accomplishments.

He was “neither a reformer nor leader,” Usamah Mohammad said in a tweet

Human Rights Watch said that analysis of trials of a number of human rights workers, peaceful dissidents, activists and critics of the Saudi regime revealed “serious due process concerns” such as “broadly framed charges,” “denial of access to lawyers,” and “quick dismissal of allegations of torture without investigation.”

Riyadh has taken a zero tolerance approach to all attempts at protest or dissent in the kingdom, including by liberal rights activists, Islamists, and members of the Shia minority.

“We condemn the Saudi government’s repressive policies towards dissidents who are increasingly using the Internet,” Reporters Without Borders (RSF) deputy program director Virginie Dangles said late last year.

The watchdog urged authorities to “release all the citizens and human rights activists who are being denied their right to freedom of expression and information, and to abandon all judicial proceedings against them.”

In February, RSF said that Gulf monarchies, fearful of unrest, have stepped up efforts to monitor and control the media, particularly online.

Saudi Arabia, which is on the group’s “Enemies of the Internet” list, has been particularly aggressive in policing the Internet, including by arresting those who post critical articles or comments, RSF said.

Scores of Saudis have been arrested over the years for posting content critical of the Wahhabi regime on Twitter and other social media outlets.

Besides political activism, rape, murder, apostasy, armed robbery and drug trafficking are punishable by death in Saudi Arabia, which has executed 12 people so far in 2015, 87 people last year, and 78 in 2013, according to an AFP tally. The Western-backed kingdom has faced international criticism for its frequent use of the death penalty.

(Reuters, Al-Akhbar, AFP)

Filed Under: Muslim World Tagged With: Abdullah bin Abdel Aziz, King Abdullah, King Salman, Saudi Arabia

Saudi King Abdullah is dead

January 23, 2015 by Nasheman

This April 25, 2005 file photo shows US President George W. Bush, left, holding hands with then Saudi Arabian Crown Prince Abdullah as they walk past blue bonnets at Bush's ranch in Crawford, Texas. AFP/Jim Watson

This April 25, 2005 file photo shows US President George W. Bush, left, holding hands with then Saudi Arabian Crown Prince Abdullah as they walk past blue bonnets at Bush’s ranch in Crawford, Texas. AFP/Jim Watson

Saudi Arabia’s King Abdullah died early on Friday and his brother Salman became king, the royal court in the world’s top oil exporter said in a statement carried by state television.

King Salman, thought to be 79, has named his half-brother Muqrin, 69, as his crown prince and heir.

“His Highness Salman bin Abdulaziz Al Saud and all members of the family and the nation mourn the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz, who passed away at exactly 1:00 am this morning,” said the statement.

Abdullah, thought to have been born in 1923, had ruled Saudi Arabia as king since 2006, but had run the country as de facto regent for a decade before that, after his predecessor King Fahd suffered a debilitating stroke.

At stake with the appointment of Salman as king is the future direction of the United States’ most important Arab ally and self-appointed champion of Sunni Islam at a moment of turmoil across the Middle East.

Abdullah played a guiding role in Saudi Arabia’s support for Egypt’s government after the military toppled President Mohammed Mursi in 2012 after having initially supported dictator Hosni Mubarak, and drove his country’s support for the uprising against Syrian President Bashar al-Assad.

King Salman has been crown prince and defense minister since 2012. He was governor of Riyadh province for five decades before that.

By immediately appointing Muqrin as his heir, subject to the approval of a family Allegiance Council, Salman has moved to avert widespread speculation about the immediate path of the royal succession in the world’s top oil exporter.

Abdullah pushed cautious changes in the conservative Islamic kingdom including superficial advances for women’s rights and economic deregulation, but made no moves towards democracy and was a hawk on policy towards rival Iran.

King Salman has been part of the ruling clique of princes for decades and is thought likely to continue the main thrusts of Saudi strategic policy, including maintaining the alliance with the United States and working towards energy market stability.

During his five decades as Riyadh governor, he was reputedly adept at managing the delicate balance of clerical, tribal and princely interests that determine Saudi policy, while maintaining good relations with the West.

In the long term Saudi rulers have to manage the needs of a rapidly growing population plagued by structural unemployment, an economy that remains overly dependent on oil revenue and undermined by lavish subsidies, and growing demands for more freedoms and rights.

Saudi Arabia, which holds more than a fifth of the world’s crude oil, also exerts some influence over the world’s 1.6 billion Muslims through its guardianship of Mecca and Medina, Islam’s holiest sites. It has also spread its rigid Wahhabi Salafi interpretation of Islam across the world.

Most senior members of the ruling al-Saud family are thought to favor similar positions on foreign and energy policy, but incoming kings have traditionally chosen to appoint new ministers to head top ministries like oil and finance.

In a country where the big ministries are dominated by royals, successive kings have kept the oil portfolio reserved for commoners and insisted on maintaining substantial spare output capacity to help reduce market volatility.

(Reuters, Al-Akhbar)

Filed Under: Muslim World Tagged With: King Abdullah, Saudi Arabia

Saudi Arabia flogs blogger in public for "insulting Islam"

January 9, 2015 by Nasheman

Raif Badawi

by Al-Akhbar

US-ally Saudi Arabia flogs liberal activist Raif Badawi in public Friday near a mosque in the Red Sea city of Jeddah, receiving 50 lashes for “insulting Islam,” witnesses said.

Badawi, 30, was arrested in June 2012 and charged with offenses ranging from cyber crime to disobeying his father and apostasy, or abandoning his faith.

He was sentenced to 10 years in prison, a fine of 1 million Saudi riyals ($266,666) and 1,000 lashes last year after prosecutors challenged an earlier sentence of seven years and 600 lashes as being too lenient.

Witnesses said that Badawi was flogged after the weekly Friday prayers near Al-Jafali mosque as a crowd of worshipers looked on.

Badawi was driven to the site in a police car, and taken out of the vehicle as a government employee read out the charges against him to the crowd.

The blogger was made to stand with his back to onlookers as another man began flogging him, witnesses said, adding that Badawi did not make any sound or cry in pain.

The faithful who had emerged from noon prayers watched in silence and were ordered by security forces not to take any pictures on their mobile phones.

Media watchdog Reporters Without Borders said the punishment was “barbaric” and noted its timing after Saudi Arabia condemned Wednesday’s deadly attack on French magazine Charlie Hebdo.

“Although Saudi Arabia condemned yesterday’s cowardly attack on the French satirical magazine Charlie Hebdo, it is now preparing to inflict the most barbaric punishment on a citizen who just used his freedom of expression and information,” Reporters Without Borders program director Lucie Morillon said Thursday.

Badawi, who has been in jail since 2012, is a “prisoner of conscience”, said London-based Amnesty International, demanding his release.

Badawi is the co-founder of the Saudi Liberal Network along with women’s rights campaigner Suad al-Shammari, who was arrested last October and also accused of “insulting Islam.”

“Flogging and other forms of corporal punishment are prohibited under international law, which prohibits torture and other cruel, inhuman or degrading treatment or punishment,” said Amnesty’s Philip Luther.

Badawi’s website included articles critical of senior Saudi religious figures and others from Muslim history.

Saudi Arabia’s legal code follows a medieval version of Sharia law. Judges are trained as religious scholars and have a broad scope to base verdicts and sentences on their own interpretation of religious texts.

The new Saudi terrorism law issued early this year casts a wide net over what it considers to be “terrorism.”

Human rights organizations and activists have called on Saudi Arabia to end death sentences and other brutal punishments, accusing the Saudi regime of curbing freedom of speech and opinion.

Western-allied Saudi Arabia has beheaded six since the start of 2015 in the oil-rich kingdom.

Last year, Saudi Arabia executed 87 people, up from 78 in 2013, according to an AFP tally.

Rape, murder, apostasy, armed robbery and drug trafficking are punishable by death in the kingdom.

Political activism can also be penalized by death, as US-ally Saudi Arabia, like neighboring Bahrain, has taken a zero tolerance approach to all attempts at protest or dissent in the kingdom, including by liberal rights activists, Islamists, and members of the Shia minority.

Saudi judges have this year passed death sentences down to five pro-democracy advocates, including prominent activist and cleric Nimr al-Nimr, for their part in protests.

(AFP, Al-Akhbar)

Filed Under: Human Rights, Muslim World Tagged With: Blogger, Human rights, Raif Badawi, Saudi Arabia

Saudi Arabia braces for $39bn deficit, to cut wages due to low oil prices

December 27, 2014 by Nasheman

saudi-arabia-oil

by RT

The number one crude oil exporter, Saudi Arabia, has projected a $39 billion deficit in 2015. The impact of lower oil prices, along with the decision not to cut production, is putting pressure on the country’s finances.

The figure was part of the endorsed 2015 budget, which was made public in a statement read out on state-run television on Thursday.

The estimated trade deficit will be Saudi Arabia’s largest on record.

The Finance Ministry said the government will try to save some money by cutting salaries, wages, and allowances that represent around “50 percent of total budgeted expenditures.” But the move could anger Saudi youth, who are already struggling to cover the costs of living in the country.

According to the International Monetary Fund (IMF), about two-thirds of the population works for the government.

The 2015 budget includes 860 billion riyals (US$229.3 billion) in spending and 715 billion riyals ($190.7 billion) in revenue. Saudi Arabia promised to cover the difference by digging into its reserves.

At the latest OPEC meeting in Vienna, Austria, the Gulf country opted not to cut the production ceiling of 30 million barrels per day, despite oil prices plunging nearly 50 percent since summer.

Saudi Arabia has also made clear that it is unwilling to cut down production, even if oil prices continue to fall further. Last week, the country’s oil minister, Ali Al-Naimi, said that output would not be reduced, even if prices fall to $20 a barrel.

The decision has been interpreted by some experts as trying to weed out new players from North America, who can competitively produce shale oil only at higher crude prices. However, lower oil prices also directly hurt the economies of countries like Russia, Iran, and Venezuela.

Some economists fear that the deficit in 2015 might be even larger than projected, since Saudi Arabians have underestimated the figure in the past.

“I believe we are headed for a difficult year in 2015. I think the actual deficit will be around 200 billion riyals [$53 billion] because actual revenues are expected to be lower than estimates,” Saudi economist Abdulwahab Abu-Dahesh told AFP. “Spending in the budget is not in line with the sharp decline in oil prices,” he said.

According to the country’s Finance Ministry, the 2014 fiscal year budget is set to post a deficit of 54 billion riyals ($14.4 billion) – the first budget shortfall since 2009.

Filed Under: Muslim World Tagged With: Oil, Oil Price, Saudi Arabia, USA

Saudi Arabia sends women drivers to 'terrorism' court

December 26, 2014 by Nasheman

Saudi activist Manal Al Sharif, who now lives in Dubai, drives her car in the Gulf Emirate city on October 22, 2013, as she campaigns in solidarity with Saudi women preparing to take to the wheel on October 26, defying the Saudi authorities, fight for women's right to drive in Saudi Arabia. AFP / Marwan Naamani

Saudi activist Manal Al Sharif, who now lives in Dubai, drives her car in the Gulf Emirate city on October 22, 2013, as she campaigns in solidarity with Saudi women preparing to take to the wheel on October 26, defying the Saudi authorities, fight for women’s right to drive in Saudi Arabia. AFP / Marwan Naamani

by Al-Akhbar

Two women’s rights campaigners detained in Saudi Arabia for driving have been transferred to a special tribunal for “terrorism,” activists said on Thursday after the women appeared in court.

The ruling came at a hearing in al-Ahsa, in the kingdom’s Eastern Province, according to the activists who declined to be named.

Loujain Hathloul has been detained since December 1 after she tried to drive into the kingdom from neighboring United Arab Emirates in defiance of a ban. Maysaa Al-Amoudi, a UAE-based Saudi journalist, arrived at the border to support Hathloul and was also arrested.

US-ally Saudi Arabia is the only country in the world which does not allow women to drive.

Activists say women’s driving is not actually against the law, and the ban is linked to tradition and custom ultra-conservative Wahhabi nation, and not backed by Islamic text or judicial ruling.

Some leading members of the kingdom’s powerful Wahhabi clergy have argued against women being allowed to drive, which they say could lead to them mingling with unrelated men, thereby breaching strict gender segregation rules.

Last November the oil-rich kingdom’s top cleric, Sheikh Abdul Aziz bin Abdullah al-Sheikh, said the female driving prohibition protects society from “evil” and should not be a major concern.

“They will transfer her case to the terrorism court,” said an activist familiar with Hathloul’s case, adding that her lawyer plans to appeal.

A second activist confirmed that Amoudi’s case was also being moved to the specialist tribunal.

Human Rights Watch have urged the Saudi authorities to abolish The Specialized Criminal Court, Saudi Arabia’s scandalous “terrorism tribunal,” to which the women’s cases were referred.

The court is the same body that convicted prominent cleric and pro-rights advocate Sheikh Nimr al-Nimr and sentenced him to death alongside four other pro-democracy advocates for criticizing the kingdom’s unfair doings and calling for greater rights for Saudi minorities.

HRW said that analysis of trials of a number of human rights workers, peaceful dissidents, activists and critics of the Saudi regime revealed “serious due process concerns” such as “broadly framed charges,” “denial of access to lawyers,” and “quick dismissal of allegations of torture without investigation.”

Activists did not provide full details of the allegations against Hathloul and Amoudi but said investigations appeared to also focus on the women’s social media activities.

Saudi Arabia, which is on media watchdog Reporters Without Borders (RSF) group’s “Enemies of the Internet” list, has been particularly aggressive in policing the Internet, including by arresting those who post critical articles or comments.

Hathloul, who has 228,000 followers on Twitter, tweeted before her arrest, sometimes with humor, details of the 24 hours she spent waiting to cross into Saudi Arabia after border officers stopped her.

Amoudi has 131,000 followers and has also hosted a program on YouTube discussing the driving ban.

Some 41 percent of internet users in the oil-rich kingdom use Twitter, a study published by the US-based Business Insider website found.

The micro-blogging site has stirred broad debate on subjects ranging from religion to politics in a country where such public discussion had been considered at best unseemly and sometimes illegal.

Scores of Saudis have been arrested over the years for posting content critical of the Wahhabi regime on Twitter and other social media outlets.

In February, RSF said that Gulf monarchies, in a yet another crackdown on dissent, have stepped up efforts to monitor and control the media, particularly online.

In early December, Saudi authorities blocked the website of a regional human rights group which reported the two women’s arrest.

Moreover, Saudi women have taken to social media in protest of the ban on female driving.

In October, dozens posted images online of themselves behind the wheel as part of an online campaign supporting the right to drive.

They also circulated an online petition asking the Saudi government to “lift the ban on women driving” in a move that attracted more than 2,400 signatures ahead of the campaign’s culmination on October 26.

In response, the Ministry of Interior said it would “strictly implement” measures against anyone undermining “the social cohesion.”

Late October, the UN Human Rights Council urged Saudi Arabia to crack down on discrimination against women among other rights abuses.

The council had already adopted a report listing 225 recommendations for improvements a couple of days earlier in Geneva during a Universal Periodic Review (UPR) of the Western-backed kingdom’s rights record.

Many of the UN recommendations called on Riyadh to abolish a system requiring women to seek permission from male relatives to work, marry or leave the country, and one urged it to lift the driving ban.

(AFP, Al-Akhbar)

Filed Under: Muslim World, Women Tagged With: Drive Ban, Rights, Saudi Arabia, Women

As oil prices dive, Saudi Arabia looks to Israel for new market

December 5, 2014 by Nasheman

Minister of Petroleum says Saudi Arabia ‘does not hold grudge against any nation,’ including ‘Jewish state’

saudi-arabia-oil

by i24 News

Saudi Arabia is looking to expand its oil sales and would be willing to sell oil to any country that wants to buy it, including Israel, the country’s Minister of Petroleum Ali Al-Naimi told reporters at an OPEC summit in Vienna on Sunday.

“We do not hold a grudge against any nation and our leaders promote peace, religious tolerance and co-existence,” Al-Naimi was quoted as saying by the Kuwaita news agency KUNA. “His Majesty King Abdullah has always been a model for good relations between Saudi Arabia and other states – and the Jewish state is no exception.”

Saudi Arabia is also prepared to further reduce oil prices worldwide, but only if Germany agrees to remove an existing embargo on the sale of combat tanks to the country.

The statement came as oil tumbled to new multi-year lows in Asia on Monday, extending a sharp sell-off last week in response to OPEC’s decision to maintain output despite a supply glut and plunging prices.

US benchmark West Texas Intermediate (WTI) for January delivery dipped $1.65 in afternoon Asian trading to $64.50, its lowest intraday level since July 2009.

Brent crude for January sank $1.76 to $68.39, to stay below the psychologically important $70 level. It had touched $67.90 earlier Monday, its lowest since February 2010.

“Negative actions in the oil market are continuing today. Investors see crude as remaining vulnerable after last week’s OPEC announcement,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.

“We have not yet seen any piece of news or development that could trigger a bottoming-out phase in oil prices,” he added.

(with AFP)

Filed Under: Uncategorized Tagged With: Israel, Oil, OPEC, Saudi Arabia

Rights groups urge Gulf states to protect migrant workers from abuse

November 24, 2014 by Nasheman

A construction worker on site at the Dubai Mall in the United Arab Emirates. Migrant workers are extremely vulnerable to abuse in the Gulf States, say rights groups.

A construction worker on site at the Dubai Mall in the United Arab Emirates. Migrant workers are extremely vulnerable to abuse in the Gulf States, say rights groups.

by Al-Akhbar

International rights and labor groups called Sunday for urgent action to protect migrant workers from abuse in Gulf countries.

Ahead of a meeting this week of Gulf and Asian labor ministers, 90 groups issued a statement saying millions of Asian and African workers are facing abuses including unpaid wages, confiscation of passports, physical violence and forced labor.

“Whether it’s the scale of abuse of domestic workers hidden from public view or the shocking death toll among construction workers, the plight of migrants in the Gulf demands urgent and profound reform,” said Rothna Begum, Middle East women’s rights researcher at New York-based Human Rights Watch.

Ministers from the Gulf Cooperation Council (GCC) and Asian countries are meeting on November 26-27 for the third round of the so-called Abu Dhabi Dialogue on labor migration.

About 23 million foreigners, including at least 2.4 million domestic servants, live in the six-nation GCC that brings together Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

GCC countries have come under fire for the kafala system of sponsorship for migrant workers, which is used to varying extents across the Gulf.

It restricts most workers from moving to a new job before their contracts end unless they obtain their employer’s consent, trapping many workers in abusive situations, the statement said.

It called for comprehensive laws to protect migrant laborers and reforming the kafala system to allow workers to change employers without permission from their sponsors.

HRW was one of the signatories of the statement along with other groups including Amnesty International, the International Trade Union Confederation and the International Domestic Workers Federation.

On Tuesday, Amnesty accused the UAE, which is hosting a Formula One race this weekend, of repression it said is the “ugly reality” behind the glitz and glamor of the event.

In a report titled “There is no freedom here: silencing dissent in the UAE,” the human rights watchdog speaks of a “climate of fear” and the “extreme lengths” the authorities go to in order to stamp out opposition or calls for reform.

“Millions of spectators from across the world are expected to tune in to watch the Abu Dhabi Formula One Grand Prix this weekend – yet most of them will have little clue about the ugly reality of life for activists in the UAE,” said Amnesty’s deputy director for the region, Hassiba Hadj Sahraoui.

“Beneath the facade of glitz and glamor, a far more sinister side to the UAE has emerged showing the UAE as a deeply repressive state where activists critical of the government can be tossed in jail merely for posting a tweet,” she said.

Amnesty’s UAE report came a day after a report by Australian-based human rights group The Walk Free Foundation ranked Qatar in fourth place in a global ranking of countries where slavery is most prevalent.

The tiny Gulf state has come under scrutiny by rights groups over its treatment of migrant workers, most from Asia, who come to toil on construction sites, oil projects, or work as domestic help.

Early November, Amnesty International published a report titled, “No extra time: How Qatar is still failing on workers’ rights ahead of the World Cup.”

It said that “Qatar is still failing on workers’ rights ahead of the World Cup” and “has made only minimal progress on a number of plans it announced in May 2014” to tackle the reported exploitations.

The report highlighted the situation of migrant workers in the Gulf state, namely “delays in payments of migrants’ wages, harsh and dangerous working conditions, poor living conditions and shocking details of forced labor.”

The oil-rich Arab monarchies of the Gulf, especially Saudi Arabia and Bahrain, have long cracked down on dissent and calls for democratic reform, drawing criticism from human rights groups.

(AFP, Al-Akhbar)

Filed Under: Human Rights, Muslim World Tagged With: Bahrain, Gulf, Migrant Workers, Qatar, Rights, Saudi Arabia, UAE

Indian expat duped by recruitment agency, killed by coworker in Saudi Arabia

October 24, 2014 by Nasheman

arar

by  Irfan Mohammed, Arab News

Jeddah:  An Indian expat was killed by a fellow worker in the Northern Borders region in a dispute over the grazing of sheep.

According to the victim’s family, Naushad Fakaria came to work as a driver but discovered that he would have to work as a shepherd in the arid desert near the regional capital, Arar.

They allege he was duped into doing the job of a shepherd and was later murdered.

Northern Borders Police spokesman Col. Awayed Bin Mahdi Al Enzi has confirmed the killing. “Police investigations have revealed that an Indian shepherd was murdered by another shepherd of Arab origin 50 km from Arar,” Al Enzi said. He added that initially the Syrian accused said he had found a person dead in the middle of the road probably due to a road accident. However, he later confessed to the murder.

Naushad Fakaria

Naushad Fakaria

Naushad hailed from Moradabad in Uttar Pradesh and is a father of three children aged 3 to 7. He was recruited by a manpower agency in Jaipur, Rajasthan. According to a police report, Naushad was murdered on Aug. 29.

He had brought a mobile phone from India but it was confiscated by the employer. He was also barred from calling home, family sources said.

However, he was able to make a call to India apparently using the Syrian’s mobile and had informed his family that he had been assigned to graze sheep instead of working as a car driver. He had also told them of the nonpayment of salary and that he was desperate to return home, sources added.

“Since then, Naushad’s wife had tried almost everyday to call her husband back on the Syrian shepherd’s number but was unable to get through,” they said.

According to a family friend, Riad Ali, Naushad had been trying to return home but suddenly the family heard news of his death. “We have been approaching the Indian Embassy but are unable to get any information. Later, I flew to Arar myself to find out about the circumstances related to the incident,” Ali who is based in Jeddah said.

Quoting a medical report issued by the Arar Central Hospital, Ali said: “Naushad was brutally murdered with multiple injuries to his neck, shoulder, back, chest and ears.” He added that the deceased had also had his arms broken.

Ali said the police in Arar are being very helpful in completing the legal procedures. “They also informed us that the murderer has been arrested and is in jail,” he said.

Filed Under: India Tagged With: Indian Expat, Jeddah, Moradabad, Naushad Fakaria, Saudi Arabia, Uttar Pradesh

Saudi Arabia sentences Shia leader Sheikh Nimr al-Nimr to death

October 17, 2014 by Nasheman

A protester holds up a picture of Sheikh Nimr al-Nimr during a rally at the coastal town of Qatif, against Sheikh Nimr's arrest in this 8 July 2012 file photo. (Photo: Reuters - STR)

A protester holds up a picture of Sheikh Nimr al-Nimr during a rally at the coastal town of Qatif, against Sheikh Nimr’s arrest in this 8 July 2012 file photo. (Photo: Reuters – STR)

– by Deutsche Welle

A Saudi court has sentenced prominent Shia leader Nimr al-Nimr to death for sedition. The verdict is likely to escalate further the tensions between the kingdom’s Shia minority and the Sunni-led authorities.

Sheikh Nimr al-Nimr, who is 54 years old, was found guilty of “disobeying” the kingdom’s rulers and of seeking “foreign meddling” in the country’s affairs, a thinly veiled reference to Iran, whose regime is dominated by Shias.

Al-Nimr had denied ever carrying weapons or calling for violence. He can appeal the sentence.

The well-known cleric was accused of being a driving force behind protests against Saudi Arabia’s Sunni authorities in the Eastern province that began in 2011. This followed an outbreak of violence between Shia pilgrims and religious police in Medina, the Muslim holy city.

He was shot in the leg and arrested by security forces in 2012, leading to more protests.

Shias feel marginalized

Al-Nimr’s family said the verdict set a “dangerous precedent for decades to come.”

Saudi Arabia’s roughly two million Shias live mainly in the east of the country, where the majority of oil reserves are located. Despite the region’s wealth, Shias in Saudi Arabia say they feel marginalized and discriminated against.

Protests, which are banned in Saudi Arabia, escalated after the Saudi regime intervened in neighboring Bahrain to support its Sunni monarchy.

In June this year, a Saudi court sentenced two people to death for “taking part in forming a terrorist group” and other crimes linked to the protests by Shias. Several others have received multi-year jail sentences.

Public beheadings

According to Human Rights Watch, more than 1,040 people were detained in Shia protests between February 2011 and August 2014. There are at least 280 still imprisoned.

Last year the conservative Islamic kingdom executed more people than any other country except China and Iran, most of them by public beheading.

(AFP, Reuters)

Filed Under: Human Rights, Muslim World Tagged With: Human Rights Watch, Iran, Nimr al-Nimr, Qatif, Saudi Arabia, Shia, Sunni

​The Saudi oil war against Russia, Iran and the U.S

October 17, 2014 by Nasheman

A fisherman pulls in his net as an oil tanker is seen at the port in the northwestern city of Duba.(Reuters / Mohamed Al Hwaity)

A fisherman pulls in his net as an oil tanker is seen at the port in the northwestern city of Duba.(Reuters / Mohamed Al Hwaity)

– by Pepe Escobar, RT

Saudi Arabia has unleashed an economic war against selected oil producers. The strategy masks the House of Saud’s real agenda. But will it work?

Rosneft Vice President Mikhail Leontyev; “Prices can be manipulative…Saudi Arabia has begun making big discounts on oil. This is political manipulation, and Saudi Arabia is being manipulated, which could end badly.”

A correction is in order; the Saudis are not being manipulated. What the House of Saud is launching is“Tomahawks of spin,” insisting they’re OK with oil at $90 a barrel; also at $80 for the next two years; and even at $50 to $60 for Asian and North American clients.

The fact is Brent crude had already fallen to below $90 a barrel because China – and Asia as a whole – was already slowing down economically, although to a lesser degree compared to the West. Production, though, remained high – especially by Saudi Arabia and Kuwait – even with very little Libyan and Syrian oil on the market and with Iran forced to cut exports by a million barrels a day because of the US economic war, a.k.a. sanctions.

The House of Saud is applying a highly predatory pricing strategy, which boils down to reducing market share of its competitors, in the middle- to long-term. At least in theory, this could make life miserable for a lot of players – from the US (energy development, fracking and deepwater drilling become unprofitable) to producers of heavy, sour crude such as Iran and Venezuela. Yet the key target, make no mistake, is Russia.

A strategy that simultaneously hurts Iran, Iraq, Venezuela, Ecuador and Russia cannot escape the temptation of being regarded as an “Empire of Chaos” power play, as in Washington cutting a deal with Riyadh. A deal would imply bombing ISIS/ISIL/Daesh leader Caliph Ibrahim is just a prelude to bombing Bashar al-Assad’s forces; in exchange, the Saudis squeeze oil prices to hurt the enemies of the “Empire of Chaos.”

Yet it’s way more complicated than that.

Sticking it to Washington

Russia’s state budget for 2015 requires oil at least at $100 a barrel. Still, the Kremlin is borrowing no more than $7 billion in 2015 from the usual “foreign investors”, plus $27.2 billion internally. Hardly an economic earthquake.

Besides, the ruble has already fallen over 14 percent since July against the US dollar. By the way, the currencies of key BRICS members have also fallen; 7.8 percent for the Brazilian real, 1.6 percent for the Indian rupee. And Russia, unlike the Yeltsin era, is not broke; it holds at least $455 billion in foreign reserves.

The House of Saud’s target of trying to bypass Russia as a top supplier of oil to the EU is nothing but a pipe dream; EU refineries would have to be reframed to process Saudi light crude, and that costs a fortune.

Geopolitically, it gets juicier when we see that central to the House of Saud strategy is to stick it to Washington for not fulfilling its “Assad must go” promise, as well as the neo-con obsession in bombing Iran. It gets worse (for the Saudis) because Washington – at least for now – seems more concentrated in toppling Caliph Ibrahim than Bashar al-Assad, and might be on the verge of signing a nuclear deal with Tehran as part of the P5+1 on November 24.

On the energy front, the ultimate House of Saud nightmare would be both Iran and Iraq soon being able to take over the Saudi status as key swing oil producers in the world. Thus the Saudi drive to deprive both of much-needed oil revenue. It might work – as in the sanctions biting Tehran even harder. Yet Tehran can always compensate by selling more gas to Asia.

So here’s the bottom line. A beleaguered House of Saud believes it may force Moscow to abandon its support of Damascus, and Washington to scotch a deal with Tehran. All this by selling oil below the average spot price. That smacks of desperation. Additionally, it may be interpreted as the House of Saud dithering if not sabotaging the coalition of the cowards/clueless in its campaign against Caliph Ibrahim’s goons.

Compounding the gloom, the EU might be allowed to muddle through this winter – even considering possible gas supply problems with Russia because of Ukraine. Still, low Saudi oil prices won’t prevent a near certain fourth recession in six years just around the EU corner.

Reuters / Hamad I Mohammed

Go East, young Russian

Russia, meanwhile, slowly but surely looks East. China’s Vice Premier Wang Yang has neatly summarized it; “China is willing to export to Russia such competitive products as agricultural goods, oil and gas equipment, and is ready to import Russian engineering products.” Couple that with increased food imports from Latin America, and it doesn’t look like Moscow is on the ropes.

A hefty Chinese delegation led by Premier Li Keqiang has just signed a package of deals in Moscow ranging from energy to finance, and from satellite navigation to high-speed rail cooperation. For China, which overtook Germany as Russia’s top trading partner in 2011, this is pure win-win.

The central banks of China and Russia have just signed a crucial, 3-year, 150 billion yuan bilateral local-currency swap deal. And the deal is expandable. The City of London basically grumbles – but that’s what they usually do.

This new deal, crucially, bypasses the US dollar. No wonder it’s now a key component of the no holds barred proxy economic war between the US and Asia. Moscow cannot but hail it as sidelining many of the side effects of the Saudi strategy.

The Russia-China strategic partnership has been on the up and up since the “epochal” (Putin’s definition) $400 billion, 30-year “gas deal of the century” clinched in May. And the economic reverberations won’t stop.

There’s bound to be an alignment of the Chinese-driven New Silk Roads with a revamped Trans-Siberian railway. At the Shanghai Cooperation Organization (SCO) summit last month in Dushanbe, President Putin praised the “great potential” of developing a “common SCO transport system” linking “Russia’s Trans-Siberian railway and the Baikal-Amur mainline” with the Chinese Silk Roads, thus“benefiting all countries in Eurasia.”

Moscow is progressively lifting restrictions and is now offering Beijing a wealth of potential investments. Beijing is progressively accessing not only much-needed Russian raw materials but acquiring cutting-edge technology and advanced weapons.

Beijing will get S-400 missile systems and Su-35 fighter jets as soon as the first quarter of 2015. Further on down the road will come Russia’s brand new submarine, the Amur 1650, as well as components for nuclear-powered satellites.

Reuters / Hamad I Mohammed

The road is paved with yuan

Presidents Putin and Xi, who have met no less than nine times since Xi came to power last year, are scaring the hell out of the “Empire of Chaos.” No wonder; their number one shared priority is to dent the hegemony of the US dollar – and especially the petrodollar – in the global financial system.

The yuan has been trading on the Moscow Exchange – the first bourse outside of China to offer regulated yuan trading. It’s still at only $1.1 billion (in September). Russian importers pay for 8 percent of all Chinese goods with yuan instead of dollars, but that’s rising fast. And it will rise exponentially when Moscow finally decides to accept yuan under Gazprom’s $400 billion “gas deal of the century.”

This is the way the multipolar world goes. The House of Saud deploys the petrodollar weapon? The counterpunch is increased trade in a basket of currencies. Additionally, Moscow sends a message to the EU, which is losing a lot of Russia trade because of counter-productive sanctions, thus accelerating the EU’s next recession. Economic war does work both ways.

The House of Saud believes it can dump a tsunami of oil in the market and back it up with a tsunami of spin – creating the illusion the Saudis control oil prices. They don’t. As much as this strategy will fail, Beijing is showing the way out; trading in other currencies stabilizes prices. The only losers, in the end, will be those who stick to trade in US dollars.

Pepe Escobar is the roving correspondent for Asia Times/Hong Kong, an analyst for RT and TomDispatch, and a frequent contributor to websites and radio shows ranging from the US to East Asia.

Filed Under: Uncategorized Tagged With: Brazil, China, Conflict, Economy, EU, Germany, India, Iran, Iraq, Russia, Saudi Arabia, Syria, Ukraine, USA, Venezuela

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