A three-day strike by oil workers in Kuwait last month over pay reforms shows the government faces considerable opposition as it prepares to push through painful and controversial cuts to longstanding welfare benefits. - Reuters
The Yemeni government suspended direct peace talks to end the country's civil war on Sunday after the Houthi movement and its armed allies seized a military base north of the capital Sanaa, two members of the official delegation to the talks said. - Reuters
Michael Morell writes: [T]he implications of the Emirati operation are significant. It is the kind of military capability and willingness to act against terrorists that should become a model for other countries in the region. It is the kind of action that the United States should support—both with tangible assistance and public statements. - Politico
Much of the plan hinges on privatizing government assets, including education, healthcare, and most importantly Saudi Aramco, the national oil company. Under the plan, Aramco will become a holding company listing 5 percent of the company on stock exchanges in Riyadh and one other city, possibly New York. According to bin Salman, Aramco is worth between $2 and $3 billion, which could bring Riyadh up to $150 billion in an initial public offering. “Mohammed bin Salman wants to light a fire under a system that is accustomed to moving at a glacial pace. His thinking is sound. His timeframe less so,” one expert told the Financial Times in response to the plan.
“If fully implemented, these reforms would alter the basic terms of the Saudi social contract and could lead to wider progressive social change in the Kingdom. ‘What is missing from the current Saudi economy,’ one Saudi official said, ‘is the idea of what Saudis can do for their country and their economy.’ The partial privatization of Saudi Aramco, for instance, would require an unprecedented level of transparency for the Kingdom and more predictable business laws and regulations. A more open and competitive Saudi economy could make it difficult to sustain gender-based restrictions that currently prevent Saudi women from seeking work and maintaining employment. Although it is far from guaranteed that economic reform will lead to political and social change, support for the new Saudi leadership’s economic reform program should be a top priority for the next administration -- especially in the context of a new bilateral strategic dialogue with Riyadh. American policymakers should encourage their Saudi counterparts to couple their economic reforms with progressive political and social change by reminding them that social progress in Saudi Arabia will make the Kingdom more attractive to American businesses and more conducive to sustainable economic growth.”