US national security adviser says stopping Houthi Red Sea attacks is an ‘all hands on deck’ problem

US National Security Advisor Jake Sullivan attends a session during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024. (REUTERS)
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Updated 17 January 2024
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US national security adviser says stopping Houthi Red Sea attacks is an ‘all hands on deck’ problem

  • Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al Thani: ‘Qatar believes that ending the conflict in Gaza will stop the Houthis and militant groups from launching attacks elsewhere in the region’

WASHINGTON: A senior White House official said Tuesday that addressing the ongoing threat by Yemen’s Houthi rebels on commercial vessels in the Red Sea is an “all hands on deck” problem that the US and allies must address together to minimize impact on the global economy.
“How long this goes on and how bad it gets comes down not just to the decisions of the countries in the coalition that took strikes last week,” White House national security adviser Jake Sullivan said during an appearance at the World Economic Forum in Davos, Switzerland.
The Iran-backed Houthi group has launched dozens of attacks since November on vessels in the Red Sea, a vital corridor for the world’s shipping traffic, in what they say is an effort to support Palestinians in the war with Israel. US and British forces have responded by carrying out dozens of air and sea strikes on Houthi targets in Yemen since Friday. The attacks by the Houthis have continued.
The Red Sea attacks have already caused significant disruptions to global trade. Oil prices have edged higher in recent days, though Brent crude futures were down slightly in early trading Tuesday. Tesla last week announced it would temporarily halt most production at its German factory because of attacks in the Red Sea.
The US launched a new strike against the Houthis on Tuesday, hitting anti-ship missiles in the third assault on the Iranian-backed group in recent days. The strike came as the Iranian-backed Houthis claimed responsibility for a missile attack against the Malta-flagged bulk carrier Zografia in the Red Sea. No one was injured.
Sullivan said it was critical that countries with influence on Tehran and other Middle East capitals make it clear “that the entire world rejects wholesale the idea that a group like the Houthis can basically hijack the world.”
President Joe Biden’s senior adviser acknowledged that the Houthi attacks in the Red Sea as well as groups allied to Iran carrying out attacks in Lebanon, Syria, Iraq and Yemen pose concerns that the Israel-Hamas war could escalate even as Israeli officials have indicated a shift in intensity in their military campaign.
“We have to guard against and be vigilant against the possibility that in fact, rather than heading toward de-escalation, we are on a path of escalation that we have to manage,” Sullivan said.
The comments from Sullivan came after Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, said during an appearance at the Davos forum that the situation in the Middle East is a “recipe for escalation everywhere.” He said Qatar believes that ending the conflict in Gaza will stop the Houthis and militant groups from launching attacks elsewhere in the region.
Sullivan on Tuesday met with Al Thani as well as Iraqi Prime Minister Mohammed Shia Al-Sudani and Iraqi Kurdish Prime Minister Masrour Barzani, according to the White House.
Iran fired missiles late Monday at what it said were Israeli “spy headquarters” in an upscale neighborhood near the sprawling US Consulate compound in Irbil, the seat of Iraq’s northern semi-autonomous Kurdish region, and at targets linked to the extremist Daesh group in northern Syria.
Iraq on Tuesday called the attacks, which killed several civilians, a “blatant violation” of Iraq’s sovereignty and recalled its ambassador from Tehran.

 


Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

Updated 3 min 18 sec ago
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Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

  • Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions
  • Facility builds on PIF’s recent success with sukuk issuances over the past two years

RIYADH: Saudi Arabia’s Public Investment Fund has completed its inaugural murabaha credit facility worth $7 billion, as part of its medium-term capital-raising strategy. 

The Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions, according to a press release. 

A murabaha credit facility is a financing structure compliant with Islamic principles, where the lender purchases an asset and sells it to the borrower at an agreed profit margin, allowing repayment in installments. This structure avoids interest, adhering to Shariah laws. 

“This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia,” said Fahad Al-Saif, PIF’s head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division. 

The facility builds on PIF’s recent success with sukuk issuances over the past two years, further bolstering its financial strength and commitment to best practices in debt management. 

Rated Aa3 by Moody’s and A+ by Fitch, both with stable outlooks, PIF continues to solidify its position as a global financial powerhouse. 

The fund’s capital structure is supported by four main funding sources, including contributions from the Saudi government, asset transfers, retained investment earnings, and financing through loans and debt instruments. 

PIF’s strategy focuses on financing initiatives that contribute to economic growth in Saudi Arabia and internationally. 

The $7 billion murabaha credit facility is expected to bolster PIF’s liquidity, supporting its investments both locally and globally. 

By diversifying its funding sources through a Shariah-compliant structure, PIF looks to enhance its financial partnerships while complementing its existing financing tools, such as sukuk issuances. 

This aligns with its medium-term capital strategy, ensuring flexibility, competitive financing terms, and risk mitigation. 

Earlier in January, the National Debt Management Center also secured a Shariah-compliant revolving credit facility worth SR9.4 billion ($2.5 billion). 

The three-year facility, supported by three regional and international financial institutions, is designed to meet the Kingdom’s general budgetary requirements. 

Aligned with Saudi Arabia’s medium-term public debt strategy, the arrangement focuses on diversifying funding sources to meet financing needs at competitive terms. 

It also adheres to robust risk management frameworks and the Kingdom’s approved annual borrowing plan. 

PIF has been actively engaging in credit arrangements to support its investment initiatives and the Kingdom’s Vision 2030 economic diversification plan. 

In August 2024, PIF secured a $15 billion revolving credit facility for general corporate purposes, replacing a similar facility agreed upon in 2021. 

In addition to the revolving credit facility, PIF has diversified its financing instruments by issuing a $2 billion seven-year Islamic sukuk earlier in 2024 and planning to issue bonds in pounds sterling. 

These efforts are part of PIF’s strategy to leverage a variety of funding sources to support its expansive investment activities. 


Closing Bell: Saudi main market gains to close at 12,105 points

Updated 12 min 56 sec ago
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Closing Bell: Saudi main market gains to close at 12,105 points

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 34.87 points, or 0.29 percent, to close at 12,104.69. 

The total trading turnover of the benchmark index was SR6.43 billion ($1.71 billion), as 137 of the listed stocks advanced, while 94 retreated.  

The MSCI Tadawul Index also increased by 1.07 points, or 0.07 percent, to close at 1,510.91. 

The Kingdom’s parallel market Nomu dropped, losing 190.29 points, or 0.61 percent, to close at 30,864.09. This comes as 36 of the listed stocks advanced, while 43 retreated. 

Al Majed Oud Co. was the best-performing stock of the day, with its share price surging by 5.62 percent to SR158. 

Other top performers included SAL Saudi Logistics Services Co., which saw its share price rise by 5.42 percent to SR276, and Riyadh Cables Group Co., which saw a 5.17 percent increase to SR158.80. 

Al Mawarid Manpower Co. and Astra Industrial Group also saw a positive change, with their share prices surging by 5.17 percent and 5.05 percent to SR114 and SR195.40, respectively. 

United International Holding Co. saw the steepest decline of the day, with its share price easing 2.45 percent to close at SR183.40. 

Zamil Industrial Investment Co. and Nayifat Finance Co. both recorded falls, with their shares slipping 2.43 percent and 2.43 percent to SR36.15 and SR14.44, respectively. 

National Co. for Learning and Education and Saudi Electricity Co. also faced losses in today’s session, with their share prices dipping 2.27 percent and 2.25 percent to SR197.80 and SR16.54, respectively. 

On the announcement front, the Saudi Exchange announced the listing and trading of shares for Almoosa Health Co. on the main market starting Jan. 7. 

During the first three days of trading, daily price fluctuation limits will be set at plus or minus 30 percent, while static price fluctuation limits will also apply. 

From the fourth trading day onward, the daily fluctuation limits will revert to plus or minus 10 percent, and the static limits will no longer be enforced. 

In a separate development, Almujtama Alraida Medical Co. announced the signing of a credit facility agreement with Alinma Bank worth SR45 million. 

Alinma Bank saw a 0.17 percent decrease in its share price on Monday to settle at SR29.90.

The financing package includes an SR35 million revolving facility aimed at purchasing goods and an SR10 million revolving facility for capital expenditures. 

The credit facilities have a duration of three years and are secured by a promissory note. The objective of the financing is to support working capital requirements and fund capital expenditures, the company stated. 

Meanwhile, Mufeed Co. revealed the awarding of an SR41.5 million project focused on the development of concept, content, and execution of events aimed at reviving the Kingdom’s cultural and historical heritage. 

The contract, which is set to be signed on Jan. 20, will involve a legal entity as the counterparty. 

The project entails organizing unique activities designed to showcase and enhance the Kingdom’s rich historical and cultural narratives. 

Mufeed Co. saw a 2.93 percent increase in its share price by the close of Monday’s trading session to reach SR73.80. 


Pakistan says no human metapneumovirus case reported, monitoring flights from China

Updated 37 min 52 sec ago
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Pakistan says no human metapneumovirus case reported, monitoring flights from China

  • Human metapneumovirus, or HMPV, is a respiratory virus causing cold-like symptoms such as cough, fever and congestion
  • China has experienced a significant outbreak of the virus since last month resulting in overwhelmed medical facilities

ISLAMABAD: Pakistan’s health ministry on Monday said the South Asian country had not reported any case of human metapneumovirus (HMPV) so far, but it was monitoring all flights from China that has reported a significant number of cases in recent weeks.
HMPV is a respiratory virus causing symptoms similar to the common cold, such as cough, fever, nasal congestion, and shortness of breath. While it often leads to mild illness, young children, elderly and individuals with weak immune systems are at higher risk of severe complications.
Discovered in 2001 by Dutch researchers, HMPV spreads through close contact with infected individuals, exposure to respiratory droplets from coughing or sneezing, and touching contaminated surfaces like doorknobs or toys. In the United States, it’s more prevalent during winter and spring months.
China has experienced a significant outbreak of HMPV since last month resulting in overwhelmed hospitals, particularly in its Hunan province and surrounding areas, with videos shared online showing packed medical facilities reminiscent of the early days of the COVID-19 pandemic.
“Currently, no [HMPV] cases have been reported in Pakistan, but the Ministry of Health is closely monitoring the situation,” Dr. Nadya Jamil, the ministry’s focal person on HMPV, told Arab News on Monday.
“All flights arriving from China are under observation and authorities have instructed that any passenger exhibiting flu-like symptoms be tested and provided with appropriate care.”
The official said monitoring desks at airports, which were already screening passengers for monkeypox (Mpox), had now been tasked with screening for HMPV as well. She, however, said that HMPV was not new to Pakistan, with studies conducted on it as early as 2015.
“The virus can cause pneumonia in children under 14, the elderly, and individuals with weakened immune systems,” Jamil said.
While infectious disease experts have urged caution regarding HMPV, they emphasize that it does not pose a threat on the scale of COVID-19.
Dr. Shobha Luxmi, an infectious diseases specialist at Aga Khan University in Karachi, said HMPV is a respiratory tract illness and usually its cases occur worldwide every year, but in small numbers.
“Since it is now being reported in large numbers in China, it is likely to eventually reach Pakistan, potentially in higher-than-usual numbers,” she told Arab News.
“So, the public should follow the same measures recommended during COVID-19, such as maintaining hygiene, wearing masks, and practicing social distancing.”
HMPV could be isolated through testing, and the disease itself was not “generally severe” and should not have been a “major concern,” according to Dr. Luxmi.
“It is not considered highly dangerous as the fatality rate is relatively low,” she said. “The government should issue public service messages to encourage people to wear masks and also increase screening at the airports to prevent its spread in Pakistan.”
Dr. Javed Usman, a health expert, told Arab News that HMPV could not be detected without a PCR (polymerase chain reaction) test.
“The virus itself isn’t life-threatening, but it can cause pneumonia and other respiratory issues, particularly in children, elderly, and those with weakened immune systems,” he said.
“This is why vigilance and preventive measures are crucial, even if the virus doesn’t present the same level of danger as COVID-19.”


Al-Jouf olive festival boosts economy, tourism

The 18th Al-Jouf International Olive Festival highlights the journey of olives from cultivation to the final product. (SPA)
Updated 37 min 52 sec ago
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Al-Jouf olive festival boosts economy, tourism

  • Event showcases Al-Jouf region’s olive production, which includes over 23 million trees yielding more than 150,000 tonnes of table olives annually

RIYADH: The 18th Al-Jouf International Olive Festival offers an engaging experience, highlighting the journey of olives from cultivation to the final product.

Held at the Prince Abdullah Cultural Center in Sakaka until Jan. 12, the event showcases the Al-Jouf region’s olive production, which includes over 23 million trees yielding more than 150,000 tonnes of table olives annually.

The festival features 43 local farmers and five agricultural companies offering high-quality olive oil, table olives, and related products, the Saudi Press Agency reported.

In addition to competitive pricing, all products meet strict food safety standards, having undergone rigorous testing at Al-Jouf’s municipal laboratory.

Seven analyses — acidity, rancidity, moisture, chemical content, oil blending, taste, and authenticity — ensure the products’ quality. Those that pass receive a certification label for consumer confidence, the SPA added.

The festival has also become a key tourism and economic event for both the Kingdom and Al-Jouf region, attracting significant interest, visitors, and investment.

It also supports families in cottage industries, entrepreneurs, and small businesses by offering spaces to showcase their products, fostering growth and expanding their consumer reach.

Additionally, the festival celebrates Saudi heritage through folk art performances, the Saudi Ardah, traditional fashion, Sadu weaving, plastic arts, poetry, and cultural evenings.


Makkah authorities on high alert amid heavy rains

Updated 49 min 16 sec ago
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Makkah authorities on high alert amid heavy rains

JEDDAH: The Saudi Red Crescent Authority’s Makkah branch has increased its readiness in response to warnings of heavy rain issued by the National Center for Meteorology.

On Monday, several regions of the Kingdom, including Makkah and Madinah, experienced heavy rain and thunderstorms, with the Civil Defense expecting the weather to continue until Wednesday, the Saudi Press Agency reported.

The authority stated that its command-and-control room, ambulance stations, rapid response teams, and volunteer ambulance units in Makkah are fully operational.

The Makkah region has on standby teams of doctors, specialists, and emergency medical technicians, the authority said.

A total of 1,420 staff members are ready to respond, supported by 149 vehicles. This includes advanced ambulances, disaster response vehicles, and an air ambulance for critical situations, the SPA added.

The authority urged citizens and residents to follow official instructions, exercise caution, and prioritize road safety during heavy rainfall.

The public was also asked to cooperate with ambulance teams by clearing the way for them on the roads, the SPA reported.

The authority operates 24/7, and individuals can request ambulance services by calling 997 or through the Asefne app in emergencies.