S&P downgrades Bahrain’s Al Baraka Bank to junk status
by Abhinav Ramnarayan – 8 August, 2013 – Reuters

LONDON, Aug 8 (IFR) – Bahraini lender Al Baraka has been downgraded to junk status by Standard & Poor’s, the only credit rating agency that rates the bank.

The Islamic lender’s rating was reduced from BBB- to BB+ with a negative outlook on the back of increased sovereign and economic risk in the regions where it operates, S&P said in a statement.

The move follows the ratings firm’s review of the sovereign credit-worthiness of some of the countries where Al Baraka operates, particularly Egypt and Jordan.

“We expect the operating environment and credit conditions in the MENA region, especially Jordan and Egypt, to remain tough over the coming 12-18 months. Consequently, we foresee an adverse impact on (Al Baraka’s) business and financial profiles,” S&P said.

The negative outlook reflects S&P’s view that the lender’s capitalisation could deteriorate if, for instance, Egypt defaults and economic conditions worsen in Jordan.

This is the first time that Al Baraka has been downgraded since S&P first gave it a rating of BBB- in 2007.

Earlier this week, the lender said that net income for the second quarter of 2013 rose 11 percent from a year ago to $42 million. …source

‘Hooligans in US government have no idea as to how Iran sanctions harm America’ – expert
Evgeny Sukhoi – Voice of Russia -7 August, 2013

The US Senate continues to pressure Barack Obama, this time not regarding his planned meeting with Vladimir Putin, but concerning Iran and its nuclear program. The Senators believe America should increase sanctions on the country following the election of Iran’s new president. Meanwhile, Hassan Rouhani gave his first press conference in Teheran advising other nations to “speak to Iran through the language of respect, not through the language of sanctions”. The Voice of Russia discussed the situation with Shabbir Razvi, a political analyst and director of the International Dialogue Foundation from London.

Why do you think the US Senate is urging for tougher sanctions on Iran without even waiting for any tangible moves on the part of Teheran and the newly elected president?

It is quite curious and really paradoxical in the manner in which the Congress and the Senate are operating in the US. There are mixed signals coming out from the USA, the White House spokesman talks about establishing better relationships while at the same time the Congress has already passed further tightening and extreme sanction and 76 US Senators are urging president Barack Obama to toughen the line against Iran. I think the hooligans who occupy the Senate and Congress really have no idea as to how they are actually harming the US by continuing these sanctions against Iran.

Obviously Iran is facing a challenge, the economic challenge internally and trading issues with oil and other items that Iran may require. However not doing business with Iran it is America that is losing out at this moment.

So, that is from a purely business point of view if you like. But from a political and international fallout it clearly shows that US policy makers are not really thinking of the American individuals, the US nationals but perhaps have been guided by another nation who wants to have a belligerent approach to Iran. I really can’t see what is in it for the US by continuing these extreme sanctions against Iran.

Would it be wise for the US to maintain an aggressive approach towards Iran in the current situation?

The US policy makers are keep on saying that all options are on the table. When they say “all options”, obviously they are saying “more threatening, more sanctions”, and Mr. Rouhani is trying to have a new rapprochement with the US and European nations and I think it is a great opportunity for us living in the UK and others in the US and so on to take this opportunity that Iran is providing rather than continuing with the same stories that is continued for the last 35 years since the inception of the Islamic revolution in Iran.

I am sure your listeners would recall that Iran had a war of 8 years which was inflicted upon it by Saddam Hussein who was really an instrument of what the west wanted to do to emasculate Islamic revolution at that time and continuously after that Iran surrounded by American forces in Qatar, in Bahrain, in Saudi Arabia, in Kuwait, all over the place in Gulf region.

So, really at the end of the day I think Iran is giving an opportunity for our policy makers in Washington, London and Paris to have a more sensible approach and approach that will be beneficial for all humanity rather than trying to threaten Iran and not really giving it due dignity that Iran deserves.

Rouhani says Iran is ready to have serious talks with the West, however, in the past such talks did not bring any substantial results. Do you think the country’s new president really means what he is saying now?

I think not only Mr. Rouhani, but previous leaders, Mr. Khatami or Mr. Rafsanjani and others, because Iran has had 7 presidents, even Mr. Ahmadinejad who has been portrayed as some vicious character also provided an opportunity for Washington, London and Paris to have more sensible approach to Iran but there has always been pressure on the policy makers in Washington from Israel, if you like, to continue in the same vein, trying to isolate Iran, trying to put sanctions.

When you think about economic crisis that we are facing in Europe and America with high unemployment, with austerity measures and so on, it really smacks off cutting one’s nose despite one face by putting extra sanctions on Iran, we are closing the opportunities for our businesses, our export houses to benefit with trade from Iran. …source

Saudi Arabia Donates $100 Million to UN Counter-Terrorism Centre
7 August, 2013 – By Royal Embassy of Saudi Arabia, Information Office

WASHINGTON – Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz announced that the Kingdom of Saudi Arabia donated $100 million to the UN Counter-Terrorism Centre (UNCCT). The announcement was made tonight in Makkah during King Abdullah’s annual Eid Al-Fitr address following the end of the holy month of Ramadan.

“I announce the donation from the Kingdom of Saudi Arabia of $100 million to support this center and work for its activation under the umbrella of the United Nations, calling on all other nations to take part in support of this center to get rid of the forces of hatred, extremism and criminality as this is the inevitable duty for whoever sees that terrorism is a demolishing tool that aims at threatening the world security and peace,” said King Abdullah in his speech, which was delivered on his behalf by Minister of Culture and Information Dr. Abdulaziz bin Mohieddin Khoja.

Saudi Ambassador to the United States Adel bin Ahmed Al-Jubeir commended the donation, stating, “This tremendous contribution reflects King Abdullah’s commitment and determination to enhance international cooperation to fighting terrorism.”

Under the directives of King Abdullah, Saudi Arabia has forged partnerships with foreign governments and multilateral organizations to protect national security and reinforce counterterrorism strategies.

In 2011, Saudi Arabia signed an agreement with the United Nations to create the UNCCT and donated $10 million to its establishment. The initiative for this center was conceived in 2005, when King Abdullah held the Counter-Terrorism International Conference in Riyadh, Saudi Arabia.

The center is located at the UN headquarters in New York City. UNCCT works with experts to discuss counterterrorism related subjects and reinforce current United Nations counterterrorism initiatives. …more

The history of British involvement in Bahrain’s internal security
by Marc Owen – 8 August, 2013 – openSecurity

John Yates is only the most recent Briton to be given a public role in Bahrain’s internal security. Since founding the Bahraini police force, the British influence is as strong as ever.

Britain has played a prominent role in protecting Bahrain’s government and its Ruling Family from internal and external threats ever since Bahrain became an informal protectorate in 1861. This protection has ranged from overt strategies, such as direct military intervention, to subtle ones, such as the export of surveillance technologies for use by Bahrain’s Ministry of the Interior. Even after Bahrain’s Independence in 1971, Britain has continued to play an important, albeit less direct role in Bahrain’s internal and external security.

As recently as 2012, an agreement concerning military cooperation was signed between the two countries. In 2011 ex assistant commissioner of the Metropolitan Police John Yates was brought in to reform the Bahrain police after they brutally repressed the pro-democratic uprising of 2011. But Yates is only the most recent Briton to be given a public role, albeit as a private citizen, since Bahrain’s independence. The British relationship was foundational for Bahrain’s security sector, and is as strong as ever: perhaps less direct, but no less insidious.
From protection to intervention

In order secure their domination of trade routes to India, the British conducted a series of treaties with tribal leaders along the Persian Coast in the 1800s. The first of these agreements was the General Maritime Treaty of 1820, and it recognised the Al Khalifa as the legitimate rulers of Bahrain. A subsequent agreement, the ‘Perpetual Truce of Peace and Friendship’, turned Bahrain into an informal protectorate of Britain in 1861. However, in exchange for control over Bahrain’s foreign policy, Britain were now bound to protect the Bahraini government from external aggression.

Despite the so-called treaty of ‘friendship’, most British administrators despised the Ruling Family, with one official describing them as ‘uneducated, vain, lazy, and inclined to oppress’. Britain’s relationship with the Al Khalifa grew progressively worse in the 1920s, when the Ruling Family’s oppression of the indigenous Shia Baharna increased. Persia, incensed by the maltreatment of their Shia co-religionists, threatened to go before the League of Nations to complain how British protection allowed the Al Khalifas to oppress with impunity.

In an attempt to address this disquiet from Persia, at that time an important ally, Britain took increasing responsibility for Bahrain’s internal security policy, and imposed a number of reforms – including the creation of a police force. Britain also deposed the recalcitrant ruler of Bahrain, Sheikh Isa bin Ali Khalifa, and put Isa’s weaker son Hamad on the throne. Hamad was given a force of mostly Baluchi troops to deter Isa and his allies from engaging in further acts of oppression against the Baharna. This force promised to be a more efficient security solution for the British, whose coercive methods prior to the 1920s revolved around the use of gunboats to intimidate belligerent tribal elements. …more

BAE: Bahrain eyes Eurofighter
8 August, 2013 – Ma’an New

LONDON, England (AFP) — Bahrain is interested in buying the Eurofighter Typhoon jet, British defense group BAE Systems said on Wednesday.

“Bahrain has expressed an interest in Typhoon and the UK government is leading very early discussions. BAE Systems is supporting the UK government in these discussions,” a BAE Systems spokeswoman said.

Bahrain’s King Hamad held talks with British Prime Minister David Cameron in London on Tuesday.

The Eurofighter Typhoon is made by BAE Systems in a consortium with the European airspace groups EADS and Finmeccanica of Italy.

BAE and Saudi Arabia signed a £4.5-billion ($7.0-billion) deal in 2007 to supply seventy-two Eurofighter Typhoon jets to Riyadh, but the contract has faced obstacles over the cost.

Oman, a Gulf state which like Bahrain has close links to Britain, ordered twelve of the jets last year.

BAE Systems also hopes to sell sixty of the jets to the United Arab Emirates, where it is facing competition from the Rafale jet made by France’s Dassault Aviation.

Bahrain has been rocked by Shiite-led protests since 2011, which has forced its allies such as Britain to review the defense equipment that it exports to the Gulf state.…more