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The “deal” of the century


The US, Saudi Arabia, the UAE, Qatar and Israel will meet in June in Bahrain for Jared Kushner's economic plan to redraw the balance of power in the Gulf

A demonstration in Gaza in favour of Qatar. Doha pays millions of dollars into Gaza with the approval of Israel. Intelligence sources claim that there is also an unofficial stream of funds being sent to Hamas. REUTERS/Ibraheem Abu Mustafa/Contrast

The US, Saudi Arabia, the UAE, Qatar and Israel will meet in June in Bahrain for Jared Kushner’s economic plan to redraw the balance of power in the Gulf

After two years of embargo, Qatar certainly has its problems. Its economy is growing slower (creeping towards 3% in 2018 after a drop to 1.5% in 2017), but the Saudi action, besides not achieving its intent has if anything achieved the exact opposite. Because instead of banishing what Riyadh refers to as the “terrorist threat”, meaning the groups that one way or another are linked to Qatar and, more importantly perhaps, reducing Iranian influence over the region, the blockade has somehow increased Tehran’s presence in the area.

Relations between the Gulf countries and its neighbours are effectively always binary: Shiite or Sunni, oil or gas, are two of these binary combinations. Qatar is the only country that belongs to all four: it is the largest producer of natural gas in the world but also has some oil (the sector where Saudi Arabia rules the roost, followed by the UAE, among anti-Qatar coalition members); it is a Sunni country but has relations with Shiite Iran and is the only country in that part of the world that does so. The reason being that the largest gas field in the world, the South Pars in the Persian Gulf, five times the size of the Russian Urengoy gas field, is jointly owned by Iran and Qatar. Plus Qatar has excellent relations with Islamic movements which the Realm of Saud and other countries backing the embargo reject outright. This especially applies to the Muslim Brotherhood that have a splinter group in Palestine’s Hamas and in Egypt backed former president Morsi.

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