Tag: Middle East

  • Political stability in Africa and Middle East

    Recently, US Republican Presidential candidate Donald Trump said he admires Saddam Husain the late president of Iraq who was judicially lynched by the successor Shiite government of Iraq during the American occupation of the country. People were aghast at his comment. He also said he sees no reason for America to be an eternal enemy of Russia and that even if the USA does not like Russia, it should cooperate with Russia to defeat ISIL (Islamic state of Iraq and the Levant) and that the USA fought along with the brutal dictator Joseph Stalin during the Second World War to defeat the axis powers of Japan and Germany. One may disagree violently with Trump on almost everything but in this particular instances cited, I can see some sense in his usual madness.  I am convinced that the likes of Saddam Husain maintained some kind of peace in the Middle East in spite of the brutality of his regime. Even though he came from the minority Sunni population and treated all opposition Shiite or Sunni with brutality, he ensured that there was peace which was what the generally apolitical ordinary people of Iraq wanted. The mistake people in the West made was wanting to graft democracy on a traditionally autocratic conservative Arab environment.

    When people in the West were hailing the so called Arab Spring, I had the sneaky feeling that things will not turn out well. This was when I listened to the ambassador of Syria to the UN sometime in 2010 at the plenary of the UN General Assembly pleading for understanding of his country’s problem. He had argued that Syria was a delicately balanced country of Alawites, (Shiite) Sunnis, Christians, Kurds, Armenians and Aramaics and that backing Sunnis who want to overthrow the Bashar -al-Asad regime would bring all sorts of external forces and complications which will not augur well for the future of Syria and the Middle East. After more than a decade of warfare and a whole country with an old civilization destroyed, there has neither been democracy nor peace in Syria; rather a murderous group calling itself a caliphate has emerged bridging the frontiers of Iraq and Syria and imposing its draconian rule and will on a helpless and hapless people leading to the largest migration of a destabilizing horde of people since the end of the Second World War. But for the tenacity of the Sharifian dynasty in Morocco and the FLN government led by the old and infirm Abdelaziz Bouteflika in Algeria who were able to resist the forces of the dissidents particularly FIS (Front Islamique de Salut), the so-called Arab Spring would have engulfed the whole of the Maghreb. The situation in Libya was unfortunately not the same for several reasons. NATO wanted Muamar al Ghadafi to be removed from power because of what was considered as his dangerous ambitions in the past especially wanting to develop nuclear and chemical weapons on the other side of the Mediterranean which Europe considers a European lake. Even though he had given up the ambition, he was never trusted. So when the occasion for his removal presented itself, NATO was not going to allow it to slip from its hand. Their forces instigated a local rebellion which it joined to murder without trial an incumbent head of state. But what has replaced the years of stability in Libya is chaos and the take-over of part of the country by forces pledging allegiance to the Caliphate. The situation in Libya is like the case of Humpty Dumpty and everybody is waiting for which forces will secure the vast country of Libya. Whatever anybody may say about Ghadafi, he secured the country for decades after the overthrow of King Idris -al-Sannusi . Egypt is back in the hands of the military after the initial hoopla of getting rid of President Mubarak. He was replaced by Mohammad Morsi for about a year before he was overthrown by General Muhammad -al-Sisi. It appears that the Egyptians would rather have stability than some wooly democracy or chaotic rule by the Islamic brotherhood of Morsi. The effendiyyah in Egypt is just too sophisticated for that. It is only in Tunisia where the Arab Spring has brought in some form of constitutional regime albeit under an 82 year old president! Yemen is in turmoil and the Saudi army is there fighting a proxy war with Iran that is backing the Houthis who are Shiites. Oman and the other Gulf States including Saudi Arabia are maintaining some precarious peace with their Shiite subjects cowed down by overwhelming Sunni forces. Iran continues to pose existential challenge to the gulf Arab states and even far afield to Sunni domination or threatened domination in Lebanon, Syria and Iraq. Egypt which could have provided Sunni counterweight to Iran is held down by a collapsed economy and terrorist challenge in the Sinai. The chaos in North Africa and Middle East has reverberation in Africa where the Al Qaida in the Maghreb and West Africa, Boko haram in Nigeria, Niger and the Cameroon and al Shabbab in Somalia and Kenya constitute variants of the same Middle East Islamic terrorism. The direct effect of this is the proliferation of weapons of precision that are fuelling insurgency all over Africa.

    One common denominator to the Middle East and Africa is their sit-tight presidents in Museveni’s Uganda, Mugabe’s Zimbabwe, Bashar’s Sudan   Paul Kagame’s Rwanda and other dictators in the inter-lacustrine state of Burundi as well as virtually all the Francophone states of the two Congos , Central African Republic and the Spanish  speaking Equatorial Guinea. Even the new state of Southern Sudan is torn by ethnic war because of the sit-tight syndrome. While this goes on, there is neither growth nor development of the economy. On top of this is the rising population of young people who have no hope of employment. Even countries like Nigeria, Kenya, Ghana, Senegal, Ivory Coast, Ethiopia and Tanzania to mention a few are also afflicted by unimpressive economic performance and joblessness of their ballooning youthful population. This a time bomb in both Africa and the Middle East. The situation is so bad that young people are ready to die crossing to Europe by leaky dinghies and boats across the Mediterranean Sea.

    What is to be done? It seems to me that Africa has largely accepted that the democratic way is the way forward. There may be debate about what style of democracy. It is obvious that the western model may have to be modified to suit the peculiar condition of each African state.  This is not the same as supporting any bastardized democratic contraption called home grown democracy which is a euphemism for dictatorship. The market-driven economic prescriptions of the West may not work because of paucity of foreign and local investors. The state would have to intervene through direct investment by state corporations side by side with private investors like it happened in South Korea. The enforced orthodoxy of market economy will have to give way to practical solution that would also generate employment for the teeming masses of the people.

    But as for the Middle East and North Africa, democracy may not work there for long time to come. The Middle East will only survive if a way is found to satisfy its young people who are suffering from unemployment. This problem would worsen with the decline in the price of gas and oil which will make it impossible for the gulf countries to continue to bribe young people with generous perks because sooner or later they will run out of cash. The future of the almost 350million Arabs is uncertain unless realistic solution is found to the economic and political conditions of those countries. There will also have to be reconciliation between Iran and the Arab states as well as between Sunni and Shiite sectarian traditions in Islam. Finally the question of war and peace with Israel must be resolved by accepting the existence of two states, Israel and Palestine, in old Palestine. Inability to solve this problem may drive Arab youth to extremist tendencies which would not augur well for peace in the Middle East an absence of which could pose a threat to global peace.

  • Ford Middle East & Africa gets new president

    Ford Middle East & Africa gets new president

    Ford Motor Company has announced leadership changes in the Middle East and Africa as it continues to deliver the company’s One Ford plan for profitable growth.

    Jacques Brent, 46, currently Vice President Marketing, Asia Pacific, is appointed President, Middle East and Africa, effective from July 1.

    He will be based in Dubai. He replaces Jim Benintende, who will be taking over the role of director, US Sales Support and be reporting to Mark LaNeve, Vice President U.S. Marketing Sales and Service at Ford’s World Headquarters in Dearborn, from August 1.

    Brent described the appointment as a great opportunity in Ford’s newest region and “I look forward to continuing the growth and momentum we have established in these diverse markets. Jim and the team have done great job establishing the region and it is an honour for me to be able to lead this region as we embark on the next exciting phase of our development.

    “I am also very excited to once again be working with South Africa, and to get to know the employees and dealers in the other regions.

    “We welcome one of our favourite sons back to the region,” said Jeff Nemeth, CEO and President Sub Saharan African Region.

    “Jacqueshas distinguished himself in his assignments in North America and Asia Pacific and understands the workings of South Africa and Africa. He has key relationships with our team and dealer body, which will greatly benefit the company going into the future,” Nemeth added.

  • Oil prices tumble after Doha talks collapse

    Oil prices tumble after Doha talks collapse

    Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output.

     

    Tensions between Saudi Arabia and Iran were blamed for the failure which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

     

    The failure also made the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

    “OPEC’s credibility to coordinate output is now very low,” said Peter Lee of BMI Research, a unit of rating agency Fitch.

     

    “This isn’t just about oil for the Saudis. It’s as much about regional politics.”

     

    Morgan Stanley said that the failed deal “underscores the poor state of OPEC relations.’’

     

    “We now see a growing risk of higher OPEC supply,” especially as Saudi Arabia threatened it could hike output following the failed deal.

     

    Oil prices have fallen by as much as 70 per cent since mid-2014 as producers have pumped one to two million barrels of crude every day in excess of demand.

     

    The oversupply has led storage tanks around the world filled to the rims with unsold fuel.

     

    Sunday’s meeting in Qatar’s capital, Doha, had been expected to finalize a deal to freeze output at January levels until October 2016 in an attempt to slow that ballooning oversupply.

     

    But the agreement fell apart after top exporter Saudi Arabia demanded that Iran, which was not represented, should also sign up.

     

    The Sunni Muslim kingdom of Saudi Arabia and Shia Islamic Republic of Iran compete for influence in the Middle East, where they are currently fighting proxy wars in Syria and Yemen.

     

    Brent crude futures fell almost seven per cent in early trading on Monday before recovering to 40.97 dollars per barrel, still down 2.15 per cent since their last settlement.

     

    Traders said only an oil worker strike in Kuwait had prevented Brent from tumbling below 40 dollars per barrel, while a cut in U.S. drilling down to 2009 levels had prevented steeper falls there.

     

    Benchmark U.S. crude futures were down more than five percent at 38.31 dollars a barrel.

     

    Goldman Sachs said the Doha no-deal could a “bearish catalyst” for U.S. crude prices, which it forecast would average 35 dollars a barrel in the current quarter.

     

    Analysts said that the failed agreement would also impact the broader economy.

     

    “In the near-term, lower oil prices are bound to weigh on investor confidence and could exacerbate financial volatility,” said Frederic Neumann, co-head of Asian economics research at HSBC.

     

    “Concerns over financial stability in the energy sector and a further fall in drilling capex are headwinds to growth against an already fragile global economic backdrop.”

     

    With producers such as Saudi Arabia and Russia pumping near record levels and Iran also increasing output following the lifting of international sanctions against it last January, there is no end in sight for the global oil glut.

     

    Iran was the only OPEC member not to attend the Doha talks.

     

    Despite calls on Saudi Arabia to save the agreement, Riyadh, OPEC’s de facto leader, insisted that all 13 members must take part in any freeze.

     

    “It seems that for the Saudis politics and national pride are still more important than the price of oil,” said Ralph Leszczynski of shipbroker Banchero Costa.

     

    Iran has refused to stabilise production, seeking to regain market share post-sanctions.

     

    “Iran has no reason to auto-sanction themselves when they are just trying to get back some of the market share they lost in recent years due the western-imposed sanctions,” Leszczynski added.

     

    While tumbling oil prices hurt producers, straining the budgets of energy exporters from Russia to Malaysia, they can also benefit consumers.

    As a result of the failure at Doha, Barclays said that Brent would likely average 36 dollars per barrel during the second quarter of this year as a global glut continued unabated.

     

    “This meeting and its outcome should have built… trust among producers for possible future cooperation and coordinated action. In this regard, the meeting was a complete failure,” Barclays said.

     

    It added that “the failure of the talks gives the market another clear indication that OPEC’s relevance in this market environment has faded.”

  • ‘Low oil prices, instability affecting Middle East, North Africa insurance’

    Once viewed as an economic power house among emerging markets, with seeminglyunstoppable growth prospects, the Middle East region has succumbed to a deterioration in medium-term economic forecasts, driven by unrelenting low oil prices and persisting regional instability.

    A. M. Best Associate Director, Market Development & Communications, Dr. Edem Kuenyehia made this known in a report made available to The Nation in Lagos.

    According to him, these two key challenges are likely to dictate the operating landscape of Middle East and North Africa (MENA) economies over the near to medium term,and will have repercussions for the insurance markets across the region.

    He stated that the price per barrel in January, this year stood at approximately a quarter of its market value two years previously, and at the lowest point since 2003.

    He noted that despite the substantial fall inthe price of oil, there are further potential headwinds that can place greater pressure on the sector including reduced levels of demand from emerging economies, such as China, increased shale oil extraction mainly from the United States and the prospect of Iran reenteringthe market as a major supplier following the removal of certain oil-related sanctions.

    He said: “With a clear imbalance between global supply and demand already in existence, there is concern that a further reduction in demand and, or increased supply could drive oil prices as low as $15 per barrel. The Middle East, North Africa economies displayed relatively strong levels of resilience to the 2008 global financial crisis, however, with oil production and refinement the foundation of most economies in the region, the impact and severity of a prolonged period of low hydrocarbon, political instability remains a further and somewhat interlinked challenge for the MENA.

    “Inthe aftermath of the Arab Spring uprising, some of the countries affected have made positive strides from a political standpoint while others have seen a marked deterioration. Whilst the causes for political instability have not to date been directly linked to low hydrocarbon prices. There is a concern that heightened regional instability and political tensions over the longer term may exacerbate economic pressures on many MENA economies.”

    Kuenyehia said A.M. Best believes that the impact of these two key challenges on the insurance markets inthe region is difficult to predict, but will undoubtedly hinge upon where the “new normal” oil price lands and how governments manage potential budgetary cuts and social unrest.

  • REC joins Egypt’s O Capital to tap Middle East, Africa

    REC Solar Holdings AS has signed a deal with O Capital, the renewable energy arm of Orascom Telecom Media and Technology Holding SAE, forming a partnership to sell solar panels and related services in the Middle East and Africa.

    O Capital will manage tenders and turnkey installations while REC will be responsible for the engineering side, it said in a statement. The companies are seeking to provide REC’s solar panels to residential, commercial and utility-scale projects.

    REC sees Middle East and Africa as growth areas for the solar industry, according to Luc Graré, senior vice president for the region.

    “Beginning in 2017, we are expecting 10 gigawatts to be installed every year in the Middle East and Africa, which would make the region second in the world for new solar capacity after China,” he said by phone.

    Egypt is expected to be a major contributor to this growth, since the country is targeting to get 20 percent of its electricity from renewables by 2020.

    To reach this goal, it would need to install 2 gigawatts to 3 gigawatts of clean energy a year, Graré said. Cairo-based O Capital was chosen as a local partner to facilitate access to the Egyptian market and surrounding area.

    REC plans to establish similar partnerships in Ghana, South Africa and Kenya.

  • Audacious hope for Middle East peace

    Audacious hope for Middle East peace

    – Kerry fought hard for a slender chance that must be seized

    IT is a mark of how slim the chance of a two-state solution to the Israeli-Palestinian conflict has become that the talks about talks that are soon to begin in Washington are the most hopeful development for some years. Few expect substantive progress to emerge from the discussions. There is little sign that the Israeli government will accept its 1967 borders as a starting point for negotiations, as Palestinian leaders have been insisting; in the occupied territories, it continues to build illegal settlements that it aims to annex to Israel as part of any deal. What has brought the parties to the table is not so much the prospect that talks might succeed as the advantages to be won by taking part. The government of Prime Minister Benjamin Netanyahu must appear to engage with the Palestinians if it is to deflect international pressure to end its obstructionism. The Palestinian leadership receives a concession in the form of prisoner releases, and anyway has few alternative venues in which to press its demands. Meanwhile, having made the cause of Middle East peace his own, John Kerry, US secretary of state, needs to show some return on his frenzied diplomacy if he is to move it further up the agenda of his boss, President Barack Obama. It would be easy, therefore, to wax defeatist about Mr Kerry’s initiative. Certainly, without strong backing from the White House, he is in no position to offer the leadership in the Middle East that Mr Obama once promised but has failed to deliver. Still, a glimmer of hope is a precious thing. Historic change has sometimes been wrought from inauspicious beginnings, and, if Mr Kerry can lift the air of futility that now surrounds the peace process, even modest steps towards agreement could conceivably mark the beginning of progress that will one day come to look unstoppable. If that faint prospect is to be realised, others must do all they can to nurture it. Mr Obama’s capitulation over Israeli settlements – which he criticised in his Cairo speech in 2009, only to veto similar criticism at the UN Security Council in 2011 – has weakened his voice. But the squeals of protest in Tel Aviv that followed the EU’s recent decision to cut a small amount of European funding for Israeli entities on occupied Palestinian lands reveals a government sensitive to criticism from foreign quarters. Israel’s friends must use all their influence to ensure that this chance for peace, hard-won but slender, is seized. – Financial Times

  • Entries open to Africa, Middle East agencies

    Once again entries are open for the region’s most prestigious advertising and brand communication awards. Works produced in Africa and the Middle East are eligible for entry into the Loeries.

    The entry deadline is May 31, 2013 and all work must be produced between June 1, 2012 to May 31, this year.

    DDB Mozambique and Squad Digital are also positioned for first and second place in the official rankings for agencies from Africa and the Middle East. On being top of the rankings, Cristiana Oliveira, Strategic Planner Director at DDB Mozambique says: “Being first place means we are on the right track to become a reference in our region, if not one of the most creative agencies in Africa. Winning Loeries has a huge impact for us, because it puts us on the map not only for international but also regional clients.”

    Managing Director, Squad Digital, Guarav Singh said: “Squad is a young agency, but has high aspirations to become a thought leader in the digital marketing communication space. Prestigious awards like Loeries are very important for agencies, it not only puts credibility to the agencies credentials but also helps to attract and retain talent.”

    The Africa and Middle East category is open for entries in communication design; PR communication campaigns; digital and interactive communication; live events; print communication, outdoor and collateral media; radio; TV, Video and Film; and integrated campaigns.

    The week will culminate in two awards evenings on September 21 and 22, where delegates will discover the most innovative concepts from Africa and the Middle East across radio, design, media, PR, digital, direct, events, print, outdoor, TV, Film and Video and Integrated Campaigns.

    Events will kick off at Cape Town’s City Hall on Monday September 16 with the Loeries judging week. Finalists for each category will be announced at the end of each day. The judging will round off with the International Seminar of Creativity, also to be held at City Hall.

    Other events will include the Judges Wrap Party, Student Portfolio Day, Media Brunch, and The Official Party.

  • Middle East to dominate UN summit

    Middle East to dominate UN summit

    World leaders are gathering in New York for a United Nations General Assembly likely to be dominated by Syria, although it is not formally on the agenda.

    Discussions are also expected to centre on Iran’s nuclear programme and the video that has prompted anti-United States protests across the Muslim world, BBC reports.

    President Barack Obama is due to focus on the Middle East when he gives one of the opening speeches on Tuesday.

    His address comes six weeks before the U.S presidential election.

    But it is not to be seen as a campaign speech, according to White House spokesman Jay Carney.

    “I would expect the president to address the recent unrest in the Muslim world and the broader context of the democratic transitions of the Arab World.”

    Syria’s 18-month conflict is not formally on the UN General Assembly’s agenda but it is likely to be addressed by several speakers on the opening day, including UN Secretary General Ban Ki-moon, French President Francois Hollande and Qatari emir Sheikh Hamad bin Khalifa Al-Thani.

    Mr. Hollande, in his first appearance at the assembly, is also expected to call for backing for an international force to be sent to the West African state of Mali to help dislodge Islamist militants who have taken over the north of the country.