Yemen’s Huthis will use Saudi raids to push for a deal

Significance This comes as the Huthis have escalated attacks on military and civilian targets in southern Saudi Arabia. These cross-border attacks hit targets often deep within Saudi territory and are a key component of the Huthis’ strategy of slowly increasing pressure on Saudi Arabia. Impacts Over the short and medium term, the Huthis will be able to dedicate more men and materiel to their northern front. The Huthis’ ability to strike within Saudi Arabia points to the inadequacies and limited operational capabilities of Saudi border forces. Such attacks show Huthi ability to take the war to Saudi Arabia, which will help them secure further limited, but strategic, Iranian aid.

Significance This followed a marked intensification of hostile verbal exchanges between Iranian and Saudi officials and religious leaders in the weeks leading up to the annual pilgrimage to sacred Islamic sites in Saudi Arabia in mid-September. The two countries' mutual hostility prevented Iranian citizens from taking part in the hajj. Iran's developing ties with both Russia and Turkey are also raising mutual tension with Saudi Arabia. Impacts Tension between Iran and Saudi Arabia will hinder future efforts by oil producers to agree a strategy leading to a rise in global prices. Mutual hostility between Tehran and Riyadh will be a major factor behind the failure of international efforts to end the war in Yemen. Medium-term low oil prices may threaten Saudi Arabia's ability to provide further financial bail-outs to Egypt, a key Sunni Arab state.


Significance That is one of the terms of the Stockholm Agreement, signed in December 2018, which was the first -- and thus far only -- successful step toward de-escalation taken by the warring parties. Despite ongoing violations by all sides and their continued failure to pull back, a local ceasefire has largely been maintained, reducing the intensity of fighting in Hodeida. Forces backed by the Saudi-United Arab Emirates (UAE) coalition are positioning themselves to launch another offensive to capture the city and its port. Impacts Any renewed offensive will exacerbate the humanitarian crisis by further restricting the delivery of essential aid. The Huthis may increase cross-border raids into Saudi Arabia and drone and missile attacks on coalition targets in Yemen and Saudi Arabia. Coalition air forces would intensify their bombing of targets in Huthi-held territory.


Headline SAUDI ARABIA: Medium-term jihadist threat may rise


Significance Saudi Arabia, Kuwait and the United Arab Emirates (UAE) are pursuing ambitious natural gas plans that depend on relatively high-cost non-associated gas developments. Impacts The cost of gas in Saudi Arabia, Kuwait and the UAE will rise, creating further pressure to reform domestic markets. Hoped-for LNG export opportunities are unlikely to be realised in the short-to-medium term. Initial phases of assessment will determine whether the targeted prospects are genuinely commercial. Gas production will be intimately linked with refinery and petrochemical expansion plans.


Significance Former territorial tensions between Muscat and its Gulf Cooperation Council (GCC) neighbours have receded in recent decades, allowing smoother cross-border links. However, the boycott of Qatar, escalating tensions over Iran and developments in Yemen’s border province of Mahra are now straining Oman’s relations with both Saudi Arabia and the United Arab Emirates (UAE). Impacts The gap between Saudi Arabia and the UAE and the rest of the GCC could widen, contributing to the regional body’s potential demise. Oman’s role as a mediator in regional disputes -- for example, Yemen -- may be undermined by rising tensions. Unlike in the case of Qatar, new quarrels within the GCC are likely to be kept relatively quiet by the respective leaderships.


Significance The finance ministry has sought to boost non-oil revenue by increasing the value-added tax (VAT) rate and other measures. The finance minister has also floated the possibility of introducing income tax in the medium term. Impacts Spending on public sector salaries could remain consistently higher than revenue from oil exports. Raising the income tax option, although controversial at home, might provide some reassurance to external creditors. The withdrawal of cash benefits compensating for the 2018 fiscal measures will hit household budgets hard.


Significance The declaration ends the 43-month boycott of Qatar by Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt. Saudi Arabia has reopened its land border and airspace to Qatar, with other states following, and Doha will suspend related international legal claims. Media outlets are toning down their criticism of neighbouring states’ affairs. Impacts Ending the boycott will boost the Saudi and Qatari economies when some cross-border trade and investment resumes, post-pandemic. Differences over Iran will immediately test renewed GCC unity, as new US President Joe Biden moves to re-enter the nuclear deal. Unpublished provisions mandating media restraint may be difficult to verify and enforce, especially on social media. Political and societal trust will be hardest to rebuild, and memories of the rift will take a long time to dispel.


Significance The 2015 budget statement from the Ministry of Finance provides a glimpse into the government's fiscal policy response to the fall. Saudi Arabia opted not to try to stem the slide by cutting its own oil production on the grounds that this would only benefit less efficient producers, such as US shale oil operators, whose hugely increased output in recent years has been one of the main factors in creating a market glut. However, if low prices persist, the kingdom risks running deficits on its fiscal and external accounts. Impacts The deficit will be financed by drawing down reserves and issuing new government debt, mainly to Saudi banks. The kingdom is likely to trim its oil output eventually if prices continue to sink. Spending on politically sensitive areas, such as public sector wages and subsidies, will be protected. However, in the long term, the kingdom may need to reduce spending in these areas to maintain its strong financial position. Saudi Arabia may reduce some of its foreign aid payments to limit overall government expenditure.


Significance The two leaders are set to discuss Syria, Yemen and "steps to counter Iran's destabilising activities in the region", the White House has said. Saudi Arabia will seek stronger US backing, both diplomatically and militarily, for its newly assertive policy to push back against perceived Iranian expansionism across the region. The campaign against Huthi militants Yemen presents the most immediate challenge to the Saudi leadership as its coalition prepares for a push on the capital, Sana'a. Impacts Offensive on Sana'a is likely to prompt escalation of cross-border attacks into southern Saudi Arabia by Saleh and Huthi forces. If Yemen conflict backfires Saudi Defence Minister Mohammed bin Salman may be removed from the succession following King Salman's death. Stabilisation and reconstruction efforts are likely to be difficult, and require susbstantial involvement from Western governments. Persistent instability and rise of local militias will slow central government efforts to reassert authority nationwide.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ibrahim El-Sayed Ebaid

Purpose Undergraduate accounting program at Umm Al-Qura University in Saudi Arabia is a unique case. The program includes 147 credit hours of which 28 credit hours are religious courses. This study aims to examine the effect of teaching these religious courses on students’ ethical perceptions and decisions. Design/methodology/approach A survey was conducted for a sample of accounting students at Umm Al-Qura University. The sample was divided into two groups; the first group includes students who did not study religious courses, while the second group includes students who study religious courses. The questionnaire contained three groups of questions that aimed to explore students’ perceptions of ethics in general, students’ perceptions of business ethics and explored their ethical attitudes regarding some accounting decisions that involve ethical dilemmas. Independent two-sample t-test and multiple regression analysis were used to determine whether the responses of the two groups were significantly different. Findings The findings of the study revealed that teaching religious courses led to an improvement in students’ perception of business ethics and an improvement in students’ ethical decision-making. However, the results of the independent sample t-test showed that this improvement was not significant. The results of the study also revealed that male students tend to make less ethical decisions than female students. Research limitations/implications The findings offer an indication for those responsible for managing the accounting program at Umm Al-Qura University to start developing the program so that some of the general religious courses are replaced with specialized courses in accounting ethics that focus directly on ethical dilemmas faced by the accountant when practicing the accounting profession. Originality/value This study contributes to the current literature related to examining the effect of teaching ethics courses on the ethical perception of accounting students by focusing on accounting students in Saudi Arabia as a context that has not been examined before.


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