Showing posts with label Saudi Arabia. Show all posts
Showing posts with label Saudi Arabia. Show all posts

Sunday, July 15, 2012

'India and the Persian Connection'

There is a whole lot of talk about how India does not have a robust enough strategic culture. So "Geek at Large", in its own small way, has decided to start hosting guest posts, bringing to the fore varied perspectives in the realms of geopolitics and military affairs.
Today's post deals with the ongoing crisis in the Persian Gulf and the complex Indian response to it where Ananth Durai explains India's understated role in managing the crisis and how it has actually thrown up new opportunities for both widening and deepening our engagement with various players in the region.
India and the Persian connection
Much has been made of the recent move by the Kingdom of Saudi Arabia (KSA) to extradite a terrorist who was involved in the 26/11 Mumbai attacks - many press reports cited the growing relationship in security and intelligence matters between the two countries. It is indeed true that the growing high-level intelligence interaction between Indian and Saudi counterparts has led to arrests of other wanted terrorists in the Kingdom (not just Lashkar terror operatives). But this is just one part of the multi-faceted relationship between the Kingdom and India.
One of the chief drivers of the growing relationship between the India and Saudi Arabia is the perceived Iranian threat to the latter. Over the past 15 years, Iran has managed to expand its influence into countries that were once perceived to be less of a security threat towards the Saudi Kingdom. Today, Iran is believed to have major control over Iraq - via influence over the politico- religious system (with Gulf leaders referring to the Iraqi PM as an "Iranian stooge"), and the two major Shia Iraqi militias (Mahdi Army and the SCIRI - Supreme Council of the Islamic Revolution in Iraq).Iran also has in place a strong alliance with the Alawite-led Syrian leadership and the oft-spoken-about relationship with Hezbollah in Lebanon.
With the removal of President Hosni Mubarak in Egypt - a staunch ally of the Saudis and one who was relied upon as a strong pillar of support especially on the security and defence side of things - the Kingdom sees itself surrounded by emergent problems. The newly elected President of Egypt, Mohammed Morsi, is overtly promising to strengthen ties with Iran and when you couple this with the continuing instability in Bahrain and Yemen, it is completely understandable why the KSA in particular and the Gulf Cooperation Council(GCC) states in general are looking increasingly nervous.
Indeed, one can but imagine the effect that a nuclear Iran would have on the security affairs of the various Gulf Kingdoms. As a result of this KSA has no choice but to build strong ties with regional powers such as India, Pakistan, Jordan and Turkey. It is also a time when the GCC with KSA, UAE and Qatar at its core is taking proactive steps to defend its security. One standout example of the same would be these countries lending support to Syrian rebels - by providing arms, finances as well as diplomatic support in order to break the Iranian alliance framework in Syria and Lebanon.
With all this happening in the Saudi neighbourhood, the last thing that the GCC needs is an Indo-Pak war which would remove two regional powers who have the capability to intervene favourably in the event of a war between itself and Iran. KSA of course also relies heavily on Pakistani military personnel to man its own armed forces in exchange for the transfer of military equipment, and perhaps for financing up to 30 per cent of the Pakistani military budget. However, it is likely that Pakistan would request these personnel to return in the event of a war with India, which would make the Gulf security situation even more precarious.
The quiet visitors to New Delhi
Last December saw some quiet visits by a few Gulf dignitaries to Delhi - one of whom was Prince Turki Al-Faisal (the former Saudi Intelligence chief) and another was a senior advisor to the Kingdom of Kuwait. Officially they were in India to interact with sundry mandarins in South Bloc and visit the Institute of Defence Studies and Analysis (IDSA) but truth be told these visits were probably of much greater importance than is readily understood.
As it turns out, the GCC has been seeking a mediator with Iran for some time over the nuclear issue. Initially, the Sultanate of Oman was chosen due to its relatively close ties with Iran. However, as one Gulf official put it, "No big nation listens to a small nation". This then led to Turkey being asked to mediate between the Iranians and the Arabs. However, the Gulf Kingdoms have been disappointed as Turkey has been unable to deal with the Iranians effectively.
The message conveyed from these visits was that the Gulf leadership is impressed with the way India has been able to deal with the Iranians - particularly, the mechanism created to deal with the subject of Afghanistan (where all difficult issues are discussed) and also India's ties with the entire spectrum of the Iranian leadership. The Gulf Kingdoms, it seems, want India to utilise its relationship with Iran in order to mediate on the nuclear issue. In reference to this, sources have confirmed that India has indeed opened a channel with the Iranians although how effective this has been is, as yet, unclear.
As a quid pro quo, there is an expectation in Indian quarters that the Gulf Kingdoms who have considerable influence in Pakistan can help moderate Pakistani behaviour on terrorism (and other areas of concern), increase investments in Indian infrastructure which will help develop the economy (as it did for the US), growth in all areas of the strategic relationship and pave the way for a FTA to be signed shortly.
Afghanistan
While the Gulf nations are pushing us to help settle the Iranian nuclear file amicably - we can't obviously forget our very real interests in Iran. Since Pakistan has blocked India's access to Central Asia and Afghanistan, India has no choice but to build close relations with Iran. Iran is central to our trade with Central Asia and Afghanistan. Our interests there are not merely trade-oriented but also involve security and defence matters in Eurasia which have a direct impact on us.
The development of the Iranian port of Chabahar and multi-modal transport (rail and road) into Afghanistan as well as Central Asia will allow us access to a highly resource rich region that can be utilised to support our economy. It will also serve as a shorter route for Indian goods heading towards Europe, thus helping to increase the competitiveness of Indian goods.
However, there is also a military aspect to such infrastructure. Having access to roads and rail will give us the capability, should the need arise, to intervene in a large way (subject to Russian and Iranian support of course). All this suggests that India has tough decisions ahead in order to balance our interests in the Gulf with our interests in Iran.
The nuclear file: what lies ahead
Gulf sources acknowledge that sanctions need time to work and a long-term solution is required to fully resolve the issue. It appears there is both a short-term and a long-term strategy at play here with Gulf states, Israel and the west in agreement on these aspects. The short-term strategy is to do all that is possible to delay the Iranian nuclear project by any means possible (including a last resort military strike on Iranian nuclear sites). The long term one, that of regime change (without the need to intervene militarily), can delay the prospects of a nuclear Iran indefinitely if it ever comes to fruition.
A former chief of the Mossad, Meir Dagan, acknowledged that air strikes on Iranian nuclear sites will only delay the project by two years at the most. However, in a recent interview, Dagan admitted that an air strike or regional war will result in people getting behind the regime and hence extending its life. Many US, GCC and Israeli officials agree with the view expressed by Dagan and conclude that the Iranian regime is under deep pressure to deliver results to the Iranian people. Dennis Ross (former Special Advisor to the Obama Administration on the Persian Gulf), in a recent conference, described Iran as similar to the Soviet Union in 1981 where ideology is no longer believed and the veneer is wearing thin. Therefore it is clear that all sides consider a regional war is not the best option although it may get sparked of suddenly as we shall see below.
Concurrently, the aim of the sanctions regime on Iran is to force the Iranian leadership to give up their nuclear weapons programme. If they don't, the pressure on the economy and the Iranian people will result in some sort of Arab spring-type revolution. The use of cyber weapons by western and Israeli intelligence has been particularly successful in the case of Iran with US officials suggesting that they have managed to delay the programme by a couple of years. Going forward, we can expect to see the collective use of sanctions, cyber attacks as well as a naval blockade by the west and Israel.
Why a naval blockade?
A nuclear Iran is not going to be in the interests of either Russia or China as Iran would naturally compete in the same sphere of influence of these two nations, particularly what Russia considers as its back yard, Central Asia. As a result, a blockade imposed by the west will not be really opposed by these two and it will mean that the Iranians will have no option but to cooperate with the world powers on their nuclear programme. After all, attacking your only allies, Russia and China, will not help the Iranians.
Interestingly, the US military has apparently conducted a number of joint exercises off the coast of North Carolina with their Russian and European counterparts, dealing with the "repulsion of an attack by small-sized vessels, helicopter rescue operations, personnel transfer procedures and joint manoeuvring" - operational scenarios that could well describe an asymmetric naval showdown with the Iranian Navy.
After a strike
Some alarming estimates say that Iran is only 8 months away from achieving the capability to build a nuclear weapon and hence Israel as well as the west may be pressured to act militarily before then. In the event of such a scenario, India will have to prepare contingency plans to evacuate the millions of Indians in the region as well as secure energy supplies for itself in the event Iran chooses to retaliate by closing the Strait of Hormuz.
Gulf forces are already on red alert in the region as war between the US/west and Iran could take place by miscalculation on either side, not to mention the high concentration of military vessels/aircraft in the Arabian Gulf where the chances of accidental shots being fired and escalating into a conflict are rather high. Contingency measures have been put in place for the last 6 months by the GCC fearing the worst.
One hopes preparations for such a scenario are being made by Indian military planners as well.
Summing it all up
The growing threat of war would mean that India will have to source oil from more stable neighbourhoods. Africa and South America are possible solutions. India will also need to develop its own shale oil and gas resources. The threat of war will also mean that oil prices will remain sticky at least for the next one to two years and the New Delhi will have to take this into consideration when drawing up its financial plans.

(Ananth Durai is a London-based commentator on regional affairs with a special interest in West Asian political and security issues. He currently works for an accounting firm and has worked extensively within the financial industry. The views expressed by him are personal. You can catch him on Twitter@ADurai)

Originally reported here: http://ibnlive.in.com/blogs/sauravjha/2976/63684/guest-post-1-india-and-the-persian-connection-by-a-durai.html

Friday, November 4, 2011

Regional Update - Nov 4th

This week has been particularly action packed with Israel testing a ballistic missile system, Turkey threatening to send its warships to escort aid ships to the port of Gaza, Syria - Arab League deals, UK stands ready to deploy its Trident equipped submarines in Arabian Gulf waters to support an allied mission to destroyIranian nuclear sites.

Syria

We continue where we left off from our 2 part series on the Syrian situation.




We are of the opinion that large number of alawite leaders (both businessmen and military) are of the view that it is now too late to save the system. However, the question they seem to be pondering is whether they will continue to have a role in a post Assad world? Will the wider public take it easy on them? Looking at Egypt,  businessmen who were allied with the Mubarak regime are today being prosecuted and targeted, so we should probably conclude that Syrian public will not go easy on the alawite community. Therefore It is likely that several Alawites may fight right to the end and prolong the brutal attack on citizens. This will lead to further growing international pressure. Just yesterday the Chinese asked the Syrian government to resolve the issue.

Is the Syrian government agreement with the Arab League to implement reforms a sign of strength or weakness? Probably weakness. In our opinion, this is just to buy more time, on the ground not a lot seems to have changed as more deaths were reported yesterday and today.



The Alawite military can still rely on a vast number of loyal soldiers, therefore this is a recipe for civil war. So therefore efforts are underway to convince the army to conduct a coup in order to have an orderly transition of power preventing a civil war from taking place. Will this be successful? Maybe.

Keep in mind, that for Obama and Sarkozy elections are coming up. It is easier for them to show external success than to show domestic economic successes, so you will see Sarko and Obama more active with regards to Syria.


Iran

The international pressure on Iran seems to be increasing. If the IAEA and western/GCC intelligence reports are to be believed it appears that Iran is speeding up its nuclear activity.   If this is not resolved diplomatically, war is the last option. Therefore, countries require more time to prepare for the eventual war.




The Gulf intelligence agencies have compiled an intelligence report titeled "The nuclearisation of Iran". This is meant to be issued prior to the GCC Defence ministers meeting in Riyadh sometime in November/December. According to the report, Iran has recently tested  a neutron initiator, which is used to detonate anuclear bomb at the Fordo site. It also mentioned that Khamanei has taken full contol of the nuclear file, away from Mahmoud Ahmadinejad.

The report also notes that North Korea recently sold Iran an MCNPX 2.6.0 computer program that simulates the neutron and photon flows in nuclear processes.A North Korean team of engineers were in Tehran to train defence ministry officials on the program.





There appears to be a lot of deception and psy-ops going on. First Britain confirmed that it will take part in any operation to support an allied mission to destroy Iranian nuclear sites by deploying its Trident equipped Submarines. The British subs were in the Arabian gulf a few years ago conducting manuevers with other allied forces.

Raising the nuclear issue about Syria's attempts to acquire nuclear capability was also we think, a means to attack Iran diplomatically and also keep the pressure on the Syrian regime. Transfer of US troops from Iraq to the Gulf is also due to the fact that there is an estimate that Iran will respond to the removal of the Assad regime by retaliating in the Gulf. This will be done via proxy groups such as Mahdi army in Iraq (the IRGC is busy professionalising the Mahdi Army and building it on the lines of Hezbollah), Hezbollah and others.


Israel Air Force planes participating in an aviation drill at Decimomannu air base, Italy, Oct. 2011.

Another interesting piece of news was the NATO exercise with the Israeli Air force, where F-16s travelled 1700km to bases in Italy, which was supposedly a dress rehearsal for an attack on Iran. Then also the leak of news to the media about PM Netanyahu convincing his cabinet to agree to military strikes on Iran. Our opinion is that this is nothing but strategic deception in order to maintain the pressure on Iran and divert its focus away from saving the Syrian regime. These exercises are also due to the fact that western alliance do not rule out some response by the Iranian regime to the removal of the Assad regime (their ally).

The decision for Erdogan to send Turkish Naval ships to escort aid ships to Gaza may also be strategic deception. Most people know that the Turkish Navy has no capability to take on Israeli navy, therefore there is a possibilitythat this serves as  a cover for some other action.

Saturday, October 29, 2011

India and the Syrian Imbroglio: Part 2


The conclusion in the GCC is that a civil war will strengthen the Asaad regime and allow his regime to last longer. This is why from the beginning the KSA has been telling the US that they don't want the MB in power in Syria (The US is busy cutting deals with MB in Egypt and Syria if some sources are to be believed but we'll leave that for another day) and that the KSA want a secular govt in power (another reason for this is that arabia has been at war with Mesapotamia and Persia since mankind).

So what’s the next step?
  
The next step is for the intelligence services of the GCC, Turkey and Jordan to contact the key movers and shakers within the Syrian military. Making them split and join with the protestors will actually strengthen the Asaad position and allow him to retain control for longer. Then Syria will descend into another Iraq. So the move is to essentially establish contact with the Syrian Colnols/ National Security Council etc and negotiate with them. Get their opinions together and eventually cripple the ability of the military to function. Then essentially ask for their support for the Syrian people's aspirations. This could be similar to that of Egypt or could even be via a military coup de etat.

This should occur when soldiers are sick off killing unarmed protestors to the point of disgust and start rebelling against illegitimate instructions from superiors.

The defection of Col. Maher Al Asaad showed that even minorities are against the Asaad regime. The protestors have decided not to take up arms and this is actually to prevent a civil war from taking place.

Asaad's response.

 
Syrian army operations in Northern Syria

Asaad's response has been quite smart. He is not afraid to kill many people. His forces in key positions are mainly from the Syrian minorities and from families that have been allied with the regime. This has brought an attitude where the soldiers are killing for the protection of their communities. The continued use of the terms 'fighting armed groups' is to project a legitimacy and maintain the morale of the military and avert pressure.

However, our sources suggest that the Asaad regime has decided to sideline the military from anti protestor operations. The regime has chosen to use the Hezbollah, Iranian police/troops and other Alawite militia's to conduct the anti protestor policing/killings. This is to prevent the military from splitting.

The Syrian intelligence has conducted several operations in neighbouring countries. Intelligence sources confirm that several key opposition figures (Over a dozen) have been kidnapped in Turkey and Lebanon by the Syrian intelligence. The well known case to date is that of Colonel Hussein Harmoush who has retracted all his statements that he made when he had defected.

Tehran's role

Tehran's role is to provide military support and also from a strategic perspective provide the Syrian regime with the experience (dealing with protestors, their communication, disrupting protesters via the internet) that was learned during the 2009 mass protests in Iran in the wake of Ahmadinejad's election victory. 

The Iranian National Security council have written a document on how they can provide support to the Syrian regime. These mainly involve economic projects such as the $10billion oil & gas pipeline from Iran to Syria of which lots of money had already been transferred to the Syrian government.

Iran will have to switch focus back to its internal problems eventually with planned demonstrations against Corruption and also how to organize future parliamentary elections. It is also important to note the last IRGC exercise was actually on how to deal with demonstrations across Iranian cities.


Conclusion

Our conclusion is that we expect to see this conflict being drawn out for a longer period than previously expected although the Turkish intelligence is telling its friends that Asaad's fall will come quickly. Is this because they have already began negotiating with key players?

As India is a relatively fringe player in this crisis, we should remain neutral and suggest that the Asaad regime must implement reforms or risk exhausting the patience of the international community. At the same time, we should begin establishing contacts with key elements of the regime to ensure our interests in the country are protected in a post Asaad Syria.

India and the Syrian Imbroglio: Part 1


India and the Syrian Imbroglio

President Assad has been a good friend of India, as was his father Hafez Al Assad. Both Syria and India are secular countries, have been partners in NAM and have shared several common interests (economic and diplomatic). However, India has expressed its concern over the current situation in Syria and that too with good reason. According to the UN over 3000 people have been killed since unrest broke out in March.

 

India along with several nations (Brazil and South Africa) have sensed that another military intervention by is in the offing. In order to prevent another Libya like situation, India along with what is termed as IBSA – India, Brazil and South Africa, visited Damascus and had told President Assad that he needs to implement multi party reforms and thereby alter article 8 of the Syrian constitution which states that only the Baath party can select its leader. In return, Assad told his Indian interlocutors that he did make some mistakes when handling the situation and a national dialogue was in process to solve the prevailing problems. Many analysts have opined that this is at best a stall tactic for Assad to retain power.

The Syrian protests are being done for genuine economic and political reasons, however, there are nations in the region who see it as in their interests to remove Assad and are taking advantage of the prevailing situation. The Assad regime has been allied with Iran over several issues – Iraq, continued support of the Palestinian groups such as Hamas and military support to Hezbollah. Iran has deployed extensive military support to Hezbollah via Syria.



Iran sees the protection of the Syrian regime as part of their strategic interests. As part of this process, Iran has sent police forces, militia, advisers and has brought in Hezbollah militiants to help Syria deal with the current unrest. The aim is to utilize and apply the experience learned in dealing with the unrest in Iran after Pres. Ahmadinejad’s victory.

The GCC along with an alliance of other countries were formed around 5 years ago to coordinate against what was seen as growing Iranian expansionism. The GCC had felt threatened as Iran had extended its influence throughout the region. In Iraq – today the GCC views the Iraqi PM as an “Iranian stooge” and for example Iranian backed shia militants who are extremely powerful in the south of Iraq have fired scud missiles into Kuwait. Lebanon has now a Hezbollah dominated government which is naturally aligned with Iranian interests. In Yemen, Houthi rebels who are in the Northwest of Yemen were battling Saudi troops as well as the Yemeni government troops and had seized several villages on the Saudi border. The GCC as well as Yemen had accused Iran of funding and arming the rebels. With the ongoing unrest in Yemen, there are fears in Riyadh that Iran could take advantage of the situation. In Egypt, Iran has attempted to build relations with the government as well as pro-Iran groups. Lastly, the GCC had also accused Iran of backing the unrest in Bahrain – the US had confirmed that they had intelligence to confirm this view. Several Iranian spy cells have been dismantled in the last few months in Kuwait and Bahrain.

All these moves by Iran, have made the GCC feel surrounded and feel threatened. As a result, the GCC and its allies have decided the time has come to aggressively remove Iranian influence in the region. As part of this process, the GCC has decided to turn up the rhetoric and coordinate with Sunni Turkey against Syrian President Assad.

The removal of President Assad will deliver the first defeat to Iranian influence in the region. It will cause the supply lines to Lebanese Hezbollah to be damaged and thereby weaken Hezbollah. The Iranian regime has been utilizing Hezbollah for its nefarious activities in the Gulf, a swift military force that can be used to defend Iranian interests in the region and fight the GCC in a war (if it comes to that).

What will we see now? 

The Leader of the Free Syrian Army


President Assad has now crossed the point of no return. Intelligence sources have pointed out that defections have taken place in the Syrian conscript army. Slowly but surely if the killings of the Syrian people continue, the Syrian army begin to defect with the protesters – as soldiers question the orders provided by the Syrian military high command.

The UAE is said to have already offered Assad asylum. However, the GCC as well as the Turkish intelligence have concluded that Assad’s fall will come quickly. Hence, now you are seeing a tightening of the noose around Assad’s kneck. Turkey has today announced sanctions. It is highly possible that Turkey will create a “buffer zone” where Syrian refugees will receive military training and help continue the fight.  Turkey will be forced to take the action as it cannot see Syria’s Kurds assert their independence which will automatically instigate Kurds in Turkey.

Erdogan’s rhetoric against Israel was nothing but a cover for his inaction in Syria and to win over the Arab street. Erdogan’s Turkey has initiated intelligence cooperation with Israel since 6th June due to the prevailing situation in Syria.

Iran hasn’t sat quietly watching the developments, it has issued strong warnings to Turkey. It conducted a major missile exercise in the North west which was sent as a message to Ankara that any military intervention in Syria will be met with war against Turkey. As a result Turkey has beefed up its anti missile batteries being deployed, western ships have also amassed off the Turkish coast including some with AEGIS class anti missile systems to protect Europe from Iranian missiles.

The view is that Assad has crossed the point of no return – even if multi party reforms are initiated, the people will demand an answer to the killings and for the President to be held responsible.

Lebanese army officers have suggested that the prices for weapons in black markets within Lebanon have spiked due to demand from Syria. Some sources have said that the Assad’s close circle has tightened to around 3 or 4 people.

India’s position

In light of the mounting evidence in support of Assad’s downfall and his continuing massacres. It is time for India to work together with the UN Security council to prevent further massacres from taking place.

However, India as well as China are indeed wary of the fact that the UN Security council vote against Syria could be used as a historical precedent to interfere in their respective countries. Therefore, it might be prudent for India to remain neutral in this crisis but ensure that its interests in Syria are protected.

Friday, June 10, 2011

The Saudi Perspective - DECODED!

A Saudi perspective on the Arab uprisings

Editor's Note: Nawaf Obaid is a Senior Fellow at the King Faisal Center for Research & Islamic Studies based in Riyadh, Saudi Arabia. He recently wrote an op-ed for The Washington Post entitled, Why Saudi Arabia is stable amid the Mideast unrest. Previously, Obaid was also private security and energy advisor Nawaf Obaid to Prince Turki al-Faisal when al-Faisal was the Saudi Ambassador to the United States.
By Nawaf Obaid – Special to CNN

The Arab world faces a period of historic upheaval: The economic and social malaise that existed in Tunisia before the revolution remains, and there is no realistic plan to turn the situation around.
Egypt's economy is in free-fall and the Muslim Brotherhood is poised to significantly increase its power through upcoming elections.
Civil war in Libya and escalating violence in Yemen have cost thousands of lives and set back development by decades.
Syria is on the edge of an abyss of nightmarish internecine warfare, which could spill into Lebanon, Turkey and Iraq.
The so-called "Arab Spring" has not brought new life to the Middle East, but leaderless anarchy, creating a virtual pan-regional movement that is alarmingly dangerous and ultimately unsustainable.
Recognizing the threat that the spread of this movement represents, Saudi Arabia is expanding its role internationally and mobilizing its vast resources to help countries facing domestic upheaval.
As the birthplace of Islam and the leader of the Muslim and Arab worlds, Saudi Arabia has a unique responsibility to aid states in the region, assisting them in their gradual evolution toward more sustainable political systems and preventing them from collapsing and spreading further disorder.
That the Kingdom has the ability to implement this foreign policy goal should not be in doubt - it is backed by significant military and economic strength.
The foundation for this more robust strategic posture is Saudi Arabia's investment of around $150 billion in its military. This includes a potential expansion of the National Guard and Armed Forces by at least 120,000 troops, and a further 60,000 troops for the security services at the Interior Ministry, notably in the special and various police forces. A portion of these will join units that could be deployed beyond the Kingdom's borders.
In addition, approximately 1,000 new state-of-the-art combat tanks may be added to the Army, and the Air Force will see its capabilities significantly improve with the doubling of its high quality combat airplanes to about 500 advanced aircraft.
A massive new missile defense system is in the works. Finally, the two main fleets of the Navy will undergo extensive expansion and a complete refurbishment of existing assets.
As part of this new defense doctrine, the leadership has decided to meet the country's growing needs for new equipment by diversifying among American, European and Asian military suppliers.
Few countries are able to support such considerable military investment, but Saudi Arabia occupies a unique position in that it has sufficient reserves and revenues to carry out the above plans, while also funding vital domestic social programs.
With 25 percent of the world's oil reserves and over 70 percent of global spare capacity, current projections for the next five years estimate that the Kingdom will earn on average about $250 billion in oil revenue per year (for 2011, the projection is almost $300 billion). In addition, the Kingdom has approximately $550 billion in foreign reserves, a sum it plans to steadily increase.
To maintain current oil export levels while at the same time fulfilling its growing domestic energy needs, the government is investing heavily in solar technology, and will spend more than $100 billion to build at least 16 nuclear power plants across the Kingdom.
Solar energy will fill the gap in the short term, satisfying some incremental domestic energy needs, and within a decade, plans call for nuclear power to play the leading role in augmenting oil as a source of domestic energy.
Thus, Saudi Arabia will be able to fuel the growth of its burgeoning economy without significantly reducing its oil exporting capability.
The Kingdom's more assertive policies are already apparent. It has provided Egypt $4 billion and Jordan $400 million (the latter could form the first installment of a much larger aid package that is being discussed).
Saudi Arabia is also leading the effort to improve regional collaboration by working to include Jordan and Morocco in a Saudi-centric Gulf Cooperation Council alliance.
In Yemen, it is spearheading diplomatic negotiations to effect a peaceful transition of power.
The Kingdom is the main supporter of Bahrain's monarchy, and will maintain a military presence there.
As Saudi Arabia grows more influential, initiatives such as these - which currently stretch from Morocco to Malaysia - will increase in number and reach, regardless of whether they meet with Western approval.
In Saudi Arabia, protests on the so-called "Day of Rage" predicted by pundits never materialized; the country remains stable and the leadership enjoys widespread support.
Those who are similarly skeptical about the Kingdom's ability to rise to its historic role as the indispensable regional power will again be proven wrong. The Saudi government will use its vast resources to steer the Arab world away from anarchy and unrealistic populist movements, and towards steady evolution in a manner that respects each country's unique culture and history.
The views expressed in this piece are solely those of Nawaf Obaid.
Despite the disclaimer at the end, we know that Nawaf Obaid has regular interactions with the highest levels of the Saudi government. Born of a Lebanese mother and Saudi father, Obaid has lived in Switzerland, where his mother resides, and studied in the United States. He holds degrees from Georgetown University, MIT and Harvard. His articles tend to be fairly accurate in terms of the positions taken by the Saudi government and are often prescient.

Nawaf's article DECODED:

  • They will back political political parties that are pro - Saudi in the Arab spring countries and if these parties come to power, the KSA government will back them to preserve a status quo. The KSA will do everything possible to preserve the status quo across the region and beyond (hence incorporating Jordan & Morocco) hence even supporting sunni monarchies such as Malaysia.
  • Interesting that he hints that the Saudi units "could" be deployed abroad. He is referring to the Saudi Special Forces and specifically we believe he is hinting at deployment in either Lebanon (to cut off Hezbollah) or possibly in Iraq to defend the sunni tribes. Cheney had proposed deploying sunni troops in sunni provinces of Iraq such as Al Anbar back in 2006.


  • Mentioning the specific Saudi plans to expand tanks, air force and army is a further confirmation that Saudi's will protect their own interests with minimal help of the US Security agreement. The emergence of a muslim brotherhood dominated Egyptian government is likely to be seen as a threat by the KSA government and particularly an egypt that is renewing diplomatic links with Iran. Therefore, the new air force/Naval purchases and expansion will be so that KSA can deal with a 2/3 front war (Red sea, arabian gulf, Iraqi borders).
  • Tier 1 and 2 (high tech equipment such as Aircraft or Electronic warfare equipment) purchases will be from US/EU defence firms with some Russian systems, but Tier 3 equipment will be purchased from possibly China or India or maybe Russia.
  • Saudi aid to Jordan is an incentive for Jordan to join the GCC. Once Jordan joins the GCC, it will be able to take advantage of larger aid packages.
  • The article hints that KSA is likely to build a permanent base in Bahrain.
  • The last paragraph reaffirms that KSA will do everything to prevent further pro-democracy movements in the region.



    We'd also add that KSA will have to train up a vast number of Saudi defence personell, as it currently relies mainly on deputed Egyptian and Pakistani officers to man aircraft/naval vessels. The large increase in defence assets would also mean that more such officers will be brought in termporarily from Pakistan, Egypt, Jordan and other countries until Saudi officers are able to take over. This further re-affirms the position of Pakistan as a strategic partner to KSA.

    Meanwhile, the Iranian government hasn't sat back to these latest developments. Stay tuned for the next post which will detail the Iranian response!

    Feel free to post a comment or email us your views at eye.on.middleeast "At" Gmail "dot" com.

    Monday, April 4, 2011

    The GCC – Pakistan Relationship


    The GCC – Pakistan Relationship

    Pakistan and GCC countries enjoy close bilateral relations. Although all GCC nations have fairly close relations with Pakistan, the Kingdom of Saudi Arabia (KSA) stands out as having the closest relations with Pakistan. Successive Saudi leaders have visited Pakistan from time to time. King Saud visited Pakistan in 1954, King Faisal in 1966 and 1974. King Khalid in 1976. Similarly, King Fahd as Crown Prince visited Pakistan in 1980 and King Abdullah went to Pakistan as Crown Prince in 1984, 1997, 1998 and 2003.

    What are the Fundamentals of this relationship?
    What keeps the bonds strong is the significant economic aid that Pakistan enjoys, dynasties in the Arabian Gulf enjoy protection from the Pakistani military and lastly religious affinity.

    Economic Aid

    The First and foremost problem with Pakistan is that, it is a country that survives on economic aid to sustain the functioning of the country. If it were not for this aid, Pakistan would be close to economic collapse as was seen in the balance of payments crisis in 2008[1]. The 2 major contributors to this are the United States and the Kingdom of Saudi Arabia. Other GCC countries also contribute to the coffers of the Pakistani government, but none to the tune of KSA. The United States since 9/11 have contributed close to $17 billion in aid to Pakistan according to statistics[2] recently published. In late 2009, the US congress agreed to a package of $7.5 billion in civil aid over 5 years as well as an additional $2billion in military aid agreed in October 2010[3]. There are no public figures to aid offered by KSA however; many have mentioned that contributions are significant – for example when oil prices reached their peak of $147, the Pakistani government had received a $300million grant from KSA in order to provide a budgetary cushion (in order to fill the fiscal gap) to the high oil prices.

    In May 1998 when Pakistan was deciding whether to respond to India’s test of five nuclear weapons, the Saudis promised 50,000 barrels per day of free oil to help the Pakistanis cope with the economic sanctions that might be triggered by a counter test. The Saudi oil commitment was a key to then Prime Minster Nawaz Sharif’s decision to proceed with testing. It cushioned the subsequent U.S. and EU sanctions on Pakistan considerably[4]. The post-1998 economic support by KSA was maintained for 3 years with deferred payments which were written off at the end of the term. In early 2008, they again agreed to deferred payments.

    As one can see, Pakistan's corrupt and security-phobic mindset squanders away its finances without investing in developmental activities and is hence highly reliant on economic aid from the US and the KSA in particular. Pakistan greatly relies on the support provided by the KSA in order to survive. Pakistan spends more money on military expenditure (estimated to be $5billion, of course Pakistan receives aid in addition to this which mostly is military[5]) than education (estimated to be just 2.2% of GDP – i.e. $3 billion).



    Military Relations

    One of the major components to the Pakistani – GCC relations is military cooperation. Due to the economic situation of Pakistan, Pakistan has relied on other nations footing the bill for defence requirements. Most of the Pakistani defence requirements are provided under the guise of military aid to combat terror. However, it is acknowledged that much of the military aid is actually being diverted to being used to fund weapons purchases in order to be used against India - Former president Pervez Musharraf admitted that US military aid given to Pakistan during his tenure was used to strengthen defences against India[6].

    What about cooperation between Pakistan and the GCC?

    Pakistan has provided military aid and expertise to the kingdom for decades. It began with help to the Royal Saudi Air Force to build and pilot its first jet fighters in the 1960s. Pakistani Air Force pilots flew RSAF Lightning’s that repulsed a South Yemeni incursion into the kingdom’s southern border in 1969. In the 1970s and 1980s up to 15,000 Pakistani troops were stationed in the kingdom[7].

    As recently as late 2009/early 2010, during the Saudi conflict with the Houthi rebels, Pakistani forces had been deployed. This author understands that Pakistani Air Force pilots were operating missions in support of Saudi forces fighting the Houthi rebels. Some unverified sources have suggested that the Pakistani Air Force were paid per mission undertaken in the conflict.

    During the visit of Assistant Defence Minister of KSA Prince Khaled bin Sultan to Pakistan in 2004, a tighter military cooperation was made between the 2 countries[8]. For the first time a discreet visit to Kahuta was also made. Kahuta is home to Khan Research Laboratories which houses Pakistani nuclear arms facilities.

    Here are some highlights of the defence relations between the 2 countries:
    -         Increase in training of the number of Saudi nuclear physicists at KRL, Kahuta[9]
    -         Support Pakistani defence industry by purchasing Al Khalid tanks and offering sub-contractor work for the $7billion Saudi MIKSA border protection program to Pakistani government contractors.
    -         Stationing of a 1000 pakistani soldiers in KSA, with the option to increase to 80,000 in the event of a major conflict.
    -         A joint military Command in Saudi Arabia with pre-positioned arms dumps.
    -         Possible integration with the Peninsula Shield in Hafr Al Bateen along with allied states such as Egypt.
    -         Saudi pilots will travel to Rawalpindi for training along with Pakistani Air Force pilots.
    -         There are persistant rumours that Pakistan acted as a conduit for nuclear capable missiles to Saudi Arabia.

    Any close watchers of the region can see that Pakistan co-ordinates military purchases closely with the GCC. It is also a well known fact that Pakistani defence purchases are partly paid for by the KSA. Purchase of French Agosta submarines as well as US F-16D’s were some of the examples. This is done so that the GCC can call upon the services of the Pakistani armed forces when needed.

    The author understands that Riyadh relies on Pakistani personnel to fill in gaps in personnel in the Saudi military – mainly the Air Force which flies similar aircraft to the Pakistani Air Force. The agreement is that in exchange for bankrolling Pakistani purchases of defence equipment, in return Pakistan provides some of its more experienced pilots/naval officers to be seconded to the Saudi military.

    The Downsides to relations with Pakistan

    It is apparent today that most major terror plots involve Pakistan in some way or form – usually training and other support. Muscat was made the target of attacks in 2007. Lashkar sympathisers in Oman had plans of targeting prominent landmarks in Muscat, among them a British Broadcasting Corporation office, the Golden Tulip Hotel, and a spa in the upmarket Nizwa area. No final operational plans were made, but Oman authorities found enough evidence to sentence suspects to life in prison.

    For further info on the planned attacks in Oman and how Omani and Indian investigators worked together on the Mumbai Attacks please read:
    http://www.hindu.com/2009/05/28/stories/2009052860421000.htm
    http://www.hindu.com/2009/05/28/stories/2009052850390100.htm

    Members of the AQAP (Al Qaeda in the Arabian Peninsula) are also known to be very active in the Af-Pak region and evidence suggests that these individuals receive support from the Pakistani ISI (Inter Services Intelligence). It is also noteworthy to remember that the head of the Al Qaeda’s military wing Brigade 313 is Ilyas Kashmiri – A former member of the Pakistani Army’s Special Services Group (SSG). A well known fact is that the Pakistani army is known to use the services of ex-servicemen for supporting jihadi/terror activities targeting India and ISAF troops (of which Bahrain and the UAE militaries also have a presence) in Afghanistan[10].

    It is also not a coincidence that the Saudi ministry of interior recently released names of 47 most wanted terrorists, of which the majority (27) were located in the Af-Pak region. Majority of these leaders are likely to be living under protection of Taliban and their allies such as the Haqqani network. Many of these groups are armed and trained by the Pakistani military. It is also well acknowledged that the Taliban and its leadership are under the control of the ISI[11]. A question GCC security officials need to ask themselves is, is it worth supporting a nation that continues to harbor/support individuals that are trying to topple their governments?

    The GCC officials should also be reminded that one of the gravest threats they face today – the Iranian nuclear threat - was caused directly by Pakistan. Evidence has emerged that the “father of the Pakistani bomb” Abdul Qadeer Khan had sold equipment/know how in his nuclear black market to Iran[12]. There are also indications that AQ Khan was aided and abetted by Senior Pakistani military and intelligence officials. In fact AQ Khan himself claimed that Musharraf was aware of the nuclear black market trade and approved deals[13].

    It’s no secret that GCC officials are worried about the threat emanating from Iran as we have all read in the wikileaks episode. Again, the question needs to be asked, Is this the partner that GCC wishes to rely upon for its security?

    Why is this relevant today?

    Many analysts have completely missed the significance of recent high level visits from Kingdom of Saudi Arabia and Bahrain to Pakistan. Prince Bandar (A royal emissary for HM King Abdullah of Saudi Arabia) had visited senior leaders in Pakistan including the Pakistani Army Chief General Ashfaq Kiyani. Sources have confirmed that Prince Bandar is said to have requested Pakistani troops to be deployed if the internal unrest continues in Yemen, Bahrain and the Eastern Province of Saudi Arabia.
    The Foreign Minister of Bahrain HRH Shaikh Khalid bin Ahmed bin Mohammed Al Khalifa also paid a visit to Islamabad shortly after Prince Bandar had departed for New Delhi [14]. We expect similar discussions on security coordination to have taken place.

    Conclusion

    Pakistan army is being utilized as cannon fodder or mercenaries for the Gulf Kingdoms, in return Pakistan gains significant economic support that it requires for its very survival. How long will this relationship continue and also how reliable is this support if Pakistan continues to harbour or indirectly/directly support the AQAP as well as a Nuclear Iran? Is it time for the GCC to start imposing conditions on Pakistan for its continued aid?  

    I leave you with a quote from the book (My Life with the Taliban) of Mullah Abdul Salam Zaeef, Taliban regimes Ambassador to Pakistan:

    ”Pakistan, which plays a key role in Asia, is so famous for treachery that it is said they can get milk from a bull. They have two tongues in one mouth, and two faces on one head so they can speak everybody’s language; they use everybody, deceive everybody. They deceive the Arabs under the guise of Islamic nuclear power, they milk America and Europe in the alliance against terrorism, and they have been deceiving Pakistani and other Muslims around the world in the name of the Kashmiri jihad.”


    [1] http://www.huffingtonpost.com/2008/11/15/pakistan-agrees-to-76-bil_n_144080.html Pakistan said Saturday it had agreed to borrow $7.6 billion from the International Monetary Fund
    [8] Data Source
    [9] Data Source
    [10] http://www.timesonline.co.uk/tol/news/world/asia/article4926401.ece Taliban leader killed by SAS was a Pakistani Army officer

    Wednesday, March 2, 2011

    MENA Region - Quick Update

    Editor has not been sleeping and is watching the current events unfold.

    First Stop: Libya

    Many are wondering what is going on in Libya. We'll make this simple.
    The eastern side of Libya is currently held by "rebels". These rebels are essentially members of the armed forces of Libya and the people.



    Do we see them winning? Nope. We do not. As long as Gaddafi continues to control the Airspace,
    he may continue to bring in troops/Mercenaries from Niger, Chad, Syria etc. Yes that's right Syria is not a typo, Syria is showing solidarity with Libya and in the event of a full scale war, Syria will send their pilots to fly on behalf of the Libyan Air Force.

    We believe that the western intelligence agencies are busy on the ground in Libya, trying to organise the rebel movement and of course evacuate their nationals. So far the french and british have delivered "aid" and weapons to the rebels.

    Rebel soldiers teach civilians who have volunteered to join the rebel army at a school in Benghazi March 2, 2011. The rebel army is preparing to fight Libyan leader Muammar Gaddafi's forces if necessary, an official in the rebel army said.


    Talks of no-fly zone are just that - talk, at the moment. Its something that is too difficult to impose as it would involve a US/western intervention and bombing spree. The current economic/political climate in the EU and the US does not allow for this - which is evidenced by Secretary of Defence Gates comments in the last few days.

    No one appears to be covering the damage that the current crisis is going to cause the Spanish economy, which would feed into the EU economies. 

    So in summary: We do not see an intervention by the West at this juncture. Rebels are slowly losing territory to Gaddafi's military evidenced by re-gaining Al Bayda today. Unless, the west enforces a no fly zone via Egypt etc anti-government forces will get over run.

    We'd also like to point out that there is a heavy propaganda going on here by the west. Good quality information is particularly hard to receive at the moment.

    Shades of Saddam here. By no means is this over yet - this war may continue for a while.


    Next Stop: Bahrain

    The process of national dialogue has begun by Crown Prince Sheikh Salman, the PM and Sheikh Nasser bin Hamad (HM King Hamad's son playing a limited role).

    The opposition party Wefaq and Haq have met and are discussing their position on the issue. To date it appears they have agreed on certain issues and have had some disagreements. It is not clear what each's position is on asking for a constitutional monarchy.

    The author commends the Crown Prince's call for dialogue. It is clear that others have copied this process/idea -> President Saleh (Yemen), Saif Al Gaddafi (Libya) are doing similar things.

    The talk of the town was Bahraini King Sheikh Hamad visiting Riyadh to receive King Abdullah of KSA in Riyadh last week.


    Saudi Arabia's Crown Prince Sultan (R) smiles with Bahrain's King Hamad bin Isa as they welcome the arrival of Saudi Arabia's King Abdullah, in Riyadh February 23, 2011.
    King Abdullah got straight to business after landing. He had to deal with the Bahrain issue and also internal family issues that needed sorting out.

    Regarding Bahrain, King Abdullah affirmed support to Bahrain and to the royal family. He told King Hamad that he supports the dialogue process initiated by the Crown Prince. They both agreed that using violence by the police or military is not the answer as it will eventually help Iran. King Abdullah also said that there are 3,000 Saudi troops stationed in the east that are on alert and are ready to help support the BDF (Bahrain Defence Force). Saudi officers are present already in Bahrain to help with any coordination, in the event of a crisis.

    Oman

    Protests have taken place in an industrial city of Sohar and troops have been deployed. We are monitoring this situation closely.

    This is not an anti-monarchy protest. The people are in support of Sultan Qaboos, however they are not happy with the government ministers, whom they accuse of corruption. It is also about jobs for the unemployed and so on. We expect the protestors demands to be met to a certain extent and this will probably go away in a matter of days.

    India and GCC

    Prince Turki Al Faisal will be in New Delhi on the eve of the first Joint Indo-Saudi military exercises in India.

    Omani troops are also expected to come to India for a massive Air, Sea and Land exercise in India this month.

    Army Chief to visit US Centcom HQ


    The India-US military relationship is set for a qualitative leap with the first ever visit of an Indian Army Chief to the headquarters of the US Central Command (Centcom), which has charge of Af-Pak, the Middle East and Iraq.

    Gen. V K Singh will visit the Tampa, Florida-based Command in his 10-day trip to the US between March 6 and 15 with an aim to set up a Brigadier-level direct liaison with the Indian Army. India liaises only with the US Pacific Command, and having a liaison officer in Tampa will signal a recognition of Indian interests in the arc from the Gulf of Aden to the Straits of Malacca, government sources said.

    The Centcom liaison and acquisition of M777 ultralight howitzers will figure in the bilateral Defence Policy Group meeting, for which a high-level delegation led by Defence Secretary Pradeep Kumar is going to Washington on March 1. Sources said Gen. Singh will meet Centcom Commander Gen. James Mattis on March 8 to discuss the situation in Af-Pak, the Arab world and Iraq. Gen. Singh will also hold talks with his US counterpart Gen. George W Casey Jr.

    IndianExpress


    Watch this space!
    ----

    Thanks for reading. Feel free to email us any questions at eye.on.middleeast "at" gmail "dot" com

    Monday, January 3, 2011

    Iran and the Nuclear Issue

    Iran has been dominating the news over the last few years, mainly due to its development of a Nuclear Program.
    Lets assess the issue at large, interests of each country in the region and world at large.



    Iran's Nuclear Program 

    Iran's nuclear program appears to be the most pressing issue for the GCC and the west.

    What does Iran stand to gain by going nuclear?

    It is the same reason why India and others went nuclear. In the words of Former Indian President Abdul Kalam, nuclear weapons are a "weapon of peace". First and foremost for Iran, it is to deter aggressors/bullying and protect the country from the US. Having a nuclear weapon, can deter a major war and essentially cements Irans position as a regional and international player in politics.
    Secondly, I believe it allows Iran to flex its muscles regionally. Consequently this is the biggest worry for those in the GCC.

    The Iranians continue to agree to talk, just in order to stall for time and keep the clock ticking so that Iranian nuclear scientists can continue to work. It’s just a question of time for the Iranians to come out and say they have a bomb ready for testing.

    Will the Iranians actually use it?

    You may have heard in the press of Ahmadinejad telling people that Israel will be wiped off the map etc. The west is using this as a tool to scare ordinary people and obtain support for their governments actions on stopping the Iranian nuclear program.

    No nation is crazy enough to use it as it will likely be met with an equi-proportionate nuclear response, especially if the target nation has a triad of nuclear missiles (Missiles/Bombs deliverable via Land systems, Airplanes and using Submarines).

    Iran and perhaps the nuclear powers too, believe in MAD (Mutually Assured Destruction). This is where both sides have enough nuclear missiles to cause serious damage to each other.

    So its safe to say that Iran isn't actually getting a nuclear weapon in order to use it, its more of a deterrent and use as a support to foreign policy objectives. However, as the USSR showed us, possessing a nuclear weapon does not guarantee the regime power to rule for an infinite period. Regime change is still very much possible and will continue to be a major threat in my opinion.

    Factors to keep in mind:
    - It takes more than one test to perfect the weapon (The West have conducted 100's of tests to perfect theirs)
    - Even once you have a weapon, you need a credible delivery vehicle that can reach your intended enemy. This can take many years.

    Anyone interested in understanding why India went nuclear and how it outsmarted the US in going nuclear, please read Weapons of Peace: The Secret Story of India's quest to become a Nuclear Power by Raj Chengappa.

    The US

    The views of the senior leadership in Iran is that the US cannot afford another major war. The US has announced timelines to pull out of Iraq and any increase in violence in Iraq will probably slow this process. Iran can obviously make it difficult for the US to pull out. An attack on Iran will in all likeliness cause an upsurge in violence in Iraq by Al Qods forces (Iranian special forces troops controlled by the Iranian Revolutionary Guard Corps). and Iranian controlled militia - specifically the Mahdi army (Officially disbanded but highly active in the South of Iraq) who have been undergoing training with the Hezbollah/IRGC in Iran.



    Of course this is also a similar situation in Afghanistan, where certain part of the Taliban are backed by Iran. Evidence of Iranian made shells, weapons etc have showed up in Afghanistan[1]. Members of the Taliban still receive training in Iranian bases close to the border with Afghanistan.

    Now the biggest reason why the US can't afford another war is because of its economy. Recent data published by the US Department of Labor of high unemployment (9.8%[2]) Some people go as far as to say that the unofficial US unemployment rate taking into consideration those that have not claimed unemployment benefits is around 1 in 5 people. The economic situation is not improving very much either, this can be witnessed by recent remarks of Ben Bernanke and further stimulus plans.

    Imagine if the US was to go to war with Iran, would ordinary people in the street in the West be happy with this? Probably not. Public opinion would frown at such an idea, and will not be happy with a significant portion of their budgets/taxes being spent on "another war!”. Tehran also appears to agree with the idea that US cannot afford another war[3]. In my opinion this is also the same reason why Israel is being held back from attacking Iran, simply because Israel would not be doing itself any favours with the West (support that it needs for its very survival).

    The GCC



    The GCC is the one that is most worried about the Iranian threat. One can witness the statements from the recent wikileaks saga:  HM King Abdullah of Saudi Arabia repeatedly exhorted the United States to "cut off the head of the snake" by launching military strikes to destroy Iran's nuclear program.

    HM King Hamad of Bahrain argued "forcefully for taking action to terminate  Iran's nuclear program, by whatever means necessary". "That program must be stopped," he was quoted as saying. "The danger of letting it go on is greater than the danger of stopping".

    An Iranian nuclear weapon will provide a lot of power on foreign policy. Each nation in the GCC approaches the issue of Iran differently:

    KSA

    A crux of the issue for the Saudi's appears to be that Iran is a challenge for their regional power and a leader of Islam.

    There are also worries that Iran will be able to meddle in the internal affairs of the Kingdom, especially amongst the significant Shia population in the East of the Kingdom (the majority of saudi oil is located in this region). Worst comes to worst Iran could back a succession movement in the East of the Kingdom.

    Bahrain

     Similar to the Saudi's, there is a significant Shi'ite population in the island nation. Bahrain has a long history with Iranian meddling in Internal affairs of Bahrain. The majority of the population in Bahrain is Shi'ite and the rulers are Sunni. I'll go into Iranian activities in the GCC as a whole in another post.

    Qatar

    Main issue for Qatar is believe it or not NATURAL GAS! Both Iran and Qatar share the worlds largest natural gas fields. They are competitors, in this way and are trying to extract as much gas as possible. As the sea borders are not actually demarcated by either Iran or Qatar, this can be a source of conflict. Iran has displayed aggression here by routinely sending IRGC personnel in boats to damage Qatari Gas infrastructure[4].

    UAE




    Lesser Tunb, Greater Tunb and Abu Mussa Islands that are claimed by the UAE but currently under occupation of Iran.

    The GCC

    I have left out Kuwait, Oman and Qatar on purpose as most of the issues are covered above. Iran has made threats of attacking GCC nations in the event of any US/Israeli strike coming from their territory. Iranians have also made it clear that they have covert cells in the GCC, in the event of war, will be activated to damage infrastructure (electricity, roads, etc), conduct suicide attacks.

    Is this threat for real? Bahrain has faced these threats from the 80s and have dismantled many cells since. Even to this day, building construction work in Manama usually ends up finding buried cache's of professionally packed weapons[5].

    Trained in Iran or in Hezbollah camps in the Oronte valley in Lebanon, the elements aim to launch sabotage operations against American and European interests in the event of an attack against Iran. In the event of a war, Iran will use these sleeper cells to launch a civil disobedience movement and send people to the US embassy and to the HQ of the 5th fleet in Manama5.

    The Saudi decision to set up a force to protect oil facilities came because of the discovery of Iranian infiltrated operatives in the East of the Kingdom.

    So in short, Yes the Iranian threat is very real.

    Conclusion

    Will there be war?

    Mmm.... Not sure. At this point in time, the US can't afford a war and neither will the US let anyone else launch any attacks against Iran. But Israel and the West will probably continue to use other methods to slow Iran down - Stuxnet and other covert means.

    Does Iran want war?

    Despite all the loud noises from Iranian generals of how they will strike their enemies, the Iranians do not want war. Iranians know that they will come out worse in any major war with the US. Iranians are happy to make gutsy moves, like the recent visit to the Lebanon - Israel border by Ahmadinejad, use IRGC boats to intimidate US Navy ships in the Straits of Hormuz. But in my opinion Iran will not do anything major to provoke the US.
    In short, neither US or Iran wants a war! Neither will provoke the other in any big way.

    What will happen if Iran does nuclearise?

    The GCC will make peace with Iran and satisfy their needs. Game theory tells us that the GCC will probably nuclearise (How? Thats a different matter altogether). We have also seen this in the past between India and Pakistan. India was first to nuclearise and Pakistan responded with attaining nuclear weapons[6].
    The cheapest option is probably to strike an agreement with one of the nuclear powers - Probably India, Pakistan and the US as the most reliable partners out of the nuclear nations to provide an umbrella. However, will these nations risk getting involved in nuclear war? You decide.
    There are a lot of side issues related here that I could not talk about due to time constraints. I hope this has provided readers with a useful basic understanding on what is happening, what the world leaders are thinking about Iran and what we can expect to see in the future.

    Thank you for reading.



    [2] http://www.bbc.co.uk/news/business-11913196 The US unemployment rate rose to 9.8% in November, the highest rate since April
    [3] http://in.reuters.com/article/idINIndia-30081720071020 US in no position for war says Iran minister.
    [4] Gulf States Newsletter 845
    [5] Gulf States Newsletter 888
    [6] http://www.defencejournal.com/2000/june/chagai.htm When Mountains Move, the story of Chagai.