Obama’s visit to ‘lay groundwork for Saudi-US relations’, no deliverables to be expected
Obama’s visit to ‘lay groundwork for Saudi-US relations’, no deliverables to be expected
April 20, 2016 | 12:18 AM
Obama’s visit to ‘lay groundwork for Saudi-US relations’, no deliverables to be expected
April 20, 2016 | 12:18 AM
Last Updated: April 20, 2016 | 12:18 AM
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Layan Damanhouri
JEDDAH – US President Barack Obama’s visit to the Gulf Cooperation Council (GCC) Summit in Riyadh this month is expected to focus on security issues, including the fight against Daesh terrorist group, according to the White House.
Saudi Arabia has recently witnessed some turbulence with the relationship with the United States since the Iranian nuclear deal, with fears of lifting sanctions on Iran might incite further instability in the region.
Furthermore, low oil prices have altered the dynamics of the historic decades-long alliance between the two countries in various ways.
[caption id="attachment_49735" align="alignleft"]
Ali Tulbah[/caption]In an interview with Saudi Gazette, Managing Director of McLarty Associates Ali Tulbah offers some insight to the recent challenges and future prospects of the Saudi-US relations. Tulbah leads the Middle East & North Africa practice of McLarty Associates, a Washington-based strategic advisory firm that advises leading global corporations on their international affairs. He also supports the firm’s extensive work in the energy sector, its broad portfolio of merger and acquisition engagement, and is a member of the firm’s New York-based Financial Markets practice and is its principal representative in Washington, DC.
SG: What should we expect from Obama’s visit in April?
AT: The purpose of the visit is that this is a commitment made at the Camp David Summit that the president would participate in the GCC Summit. It heralds a progression of the strategic nature of our coordination with our allies. I think this is key for our relationship with Saudi Arabia and others in the GCC particularly after the signing of the negotiated deal with Iran that continues to find ways to enhance and develop our partnership together. It is an important precedent to set and one that I hope will be followed on by our next president. There’s great importance for the US president to be coming here and participating and underscoring the commitment and establishing that precedent and enhancing the strategic nature of the partnership.
I think we should moderate our expectations about the deliverables because at the moment there are some difficulties in the relationship with this particular president and in speaking with my Saudi friends and officials, we’re laying the groundwork for building a relationship with the next president whoever it may be. There will be important symbolism and commitment starting with this visit but I would not be expecting significant announcements or deliverables beyond that. It’s really laying the groundwork for further work and development by the next incoming president.
SG: Many newspapers have been saying it’s a chance to repair relations by the nuclear deal with Iran. Would you agree with that?
AT: Absolutely. Relations with this administration are currently strained. It’s not going to be solved in one meeting. I think it’s very important for the US to work closely with Saudi Arabia and stay in touch at the principal level to continue to strengthen the relationship. Because after the Iran deal, we in Washington have heard loud and clear from our friends in Saudi Arabia and the GCC their concerns about relieving any of the pressure on Iran and giving them room and resources to continue causing instability in the region. While we continue to try and lead Iran to become a more peaceful nation and find a policy trajectory for bringing a peaceful Iran back into the international community, it’s important that we stay close with our Saudi and Gulf allies and that we continue to enhance our coordination and partnership together for ensuring stability in the region while we undertake the important work of trying to create a peaceful Iran. The two have to go hand in hand together. Any work that can be done by our president in this summit to enhance that very key goal of strengthening our relationship is important.
SG: How are oil prices in Saudi Arabia impacting the US economy?
AT: Lower oil prices are good for the US economy because energy is a key input in so many industries and a key expense for so many American families. There’s a bit of turbulence, as a result. Communities in Ohio, Pennsylvania and the Midwest who have benefited from higher energy prices are being hit by lower energy prices. Secondly, it’s created volatility in equity markets. The sentiment for investing in equities has been highly correlated with the price of oil over the last months.
SG: In light of the Saudi-US Business Opportunities Forum last month, is the business environment in Saudi Arabia attractive for US companies to invest in?
AT: There are opportunities particularly in energy and downstream industries. But beyond that, there are some sectors where there are comparative advantages in Saudi Arabia that are ripe for growth such as transportation, logistics, renewable energy, health care, and education. Some of that growth is going to come organically and some of it is going to come from bringing in outside partners. Saudi Arabia recognizes that when it comes to quality, human capital development, technology transfer, US companies are the best in the world.
However, there are some real challenges that need to continue to be addressed. First of all, there needs to be additional streamlining of regulation. SAGIA has done a very good job of making improvements for making it easier for international companies to do business here but there needs to be done in terms of regulatory reform. Secondly, one of the primary things that companies look for when looking for doing business around the world best is talent. Saudi Arabia is making strides in developing young, talented professionals in working in the global workplace but there’s more work to do. Finally, Saudi Arabia is in a difficult neighborhood. It makes people making investment decisions to think twice. One way is to resolve those challenges, and continue to tell the Saudi story that although it’s a tough neighborhood, Saudi Arabia continues to be a safe and stable place to do business.
SG: Saudi citizens have always had a friendly relationship with American citizens. But recently there have been a lot of angry reactions towards Obama’s statements in an article published in The Atlantic magazine. He referred to Saudis as “free riders”. Would you consider this Obama’s personal attitude towards Saudis or the American administration’s opinion?
AT: One of the greatest things I’ve seen in the US political process is there’s no one voice. There’s a collection of hundreds and thousands of people who are working within one part of the process to make the best decisions on behalf of our country. As a result of all those various individuals, it takes a human characteristic of diversity of thought, disagreements, and good intentions. In that Atlantic article, Obama is spending a fair amount of his time trying to speak his own personal mind. This is really the point of engaging with one journalist so deeply and on so many occasions and to write such a long piece and one that is so personal. It’s not meant as a statement of US policy or the administration’s policy. This is unusually unscripted and as a result I think he intended it as insight into his own personal views and thinking but not as a statement of US policy or even of any consensus point of view amongst policymakers.
SG: Regarding the presidential elections, what is the White House’s stance regarding Republican candidate Donald Trump’s statement on banning Muslims from entering the US and similar statements regarding Muslims?
AT: I think the president and his administration have been clear and joined by many Republican figures in saying we understand that we live at a time where the threat of terrorism affects us all and that the byproduct of terrorism is to create fear. In many ways it has been successful in creating fear. But it’s important that we have solutions that fit the problem. President Obama, Democrats and Republicans have said that banning all Muslims from coming into the United States has a great potential in making the problem worse. Law enforcement officials to the FBI to the most senior level government officials will say the reason America has been able to avoid many of the significant terrorist attacks planned in the last several years, is the work and coordination with American Muslim patriots. The Muslim communities have been working in partnership with the government to identify vulnerable people and potential radicals before they are able to cause harm inside of our country.
The second reason is those people who are trying to recruit vulnerable individuals to commit acts of terrorism use a very luring narrative that there is a war under way between the West and the Muslim world and that it’s their obligation to commit these acts of terrorism. We in the US could not disagree more strongly. There are hundreds of thousands outstanding Muslims American citizens who are able to practice their faith freely. It’s important that we work to counter the narrative of violent extremists. It’s important to not to feed into their narrative because in the end that will not make us safer. We need to identify policies and programs that will make us all safer.
SG: Recently, media coverage of Saudi Arabia in the West has been negative. What’s your comment on that?
AT: I’ve noticed over the last three months that a narrative has taken route. That narrative is that low energy prices are not only going to create real fiscal struggle for the Kingdom which relies almost entirely on energy revenues to provide critical services for its citizens but that there is going to be great instability as a result. Of course, Saudi Arabia has challenges, many of which have been related to lower oil prices. But what people are missing is there’s a real determination to actually meet those challenges and that the environment created by low energy prices is actually catalyzing a process of reform, development and policy changes that Saudi Arabia needs. The low energy prices could very well be a blessing in disguise because they are giving rise to a very broad effort both within the government and through much of the society to undertake some necessary changes.
Ali Tulbah[/caption]In an interview with Saudi Gazette, Managing Director of McLarty Associates Ali Tulbah offers some insight to the recent challenges and future prospects of the Saudi-US relations. Tulbah leads the Middle East & North Africa practice of McLarty Associates, a Washington-based strategic advisory firm that advises leading global corporations on their international affairs. He also supports the firm’s extensive work in the energy sector, its broad portfolio of merger and acquisition engagement, and is a member of the firm’s New York-based Financial Markets practice and is its principal representative in Washington, DC.
SG: What should we expect from Obama’s visit in April?
AT: The purpose of the visit is that this is a commitment made at the Camp David Summit that the president would participate in the GCC Summit. It heralds a progression of the strategic nature of our coordination with our allies. I think this is key for our relationship with Saudi Arabia and others in the GCC particularly after the signing of the negotiated deal with Iran that continues to find ways to enhance and develop our partnership together. It is an important precedent to set and one that I hope will be followed on by our next president. There’s great importance for the US president to be coming here and participating and underscoring the commitment and establishing that precedent and enhancing the strategic nature of the partnership.
I think we should moderate our expectations about the deliverables because at the moment there are some difficulties in the relationship with this particular president and in speaking with my Saudi friends and officials, we’re laying the groundwork for building a relationship with the next president whoever it may be. There will be important symbolism and commitment starting with this visit but I would not be expecting significant announcements or deliverables beyond that. It’s really laying the groundwork for further work and development by the next incoming president.
SG: Many newspapers have been saying it’s a chance to repair relations by the nuclear deal with Iran. Would you agree with that?
AT: Absolutely. Relations with this administration are currently strained. It’s not going to be solved in one meeting. I think it’s very important for the US to work closely with Saudi Arabia and stay in touch at the principal level to continue to strengthen the relationship. Because after the Iran deal, we in Washington have heard loud and clear from our friends in Saudi Arabia and the GCC their concerns about relieving any of the pressure on Iran and giving them room and resources to continue causing instability in the region. While we continue to try and lead Iran to become a more peaceful nation and find a policy trajectory for bringing a peaceful Iran back into the international community, it’s important that we stay close with our Saudi and Gulf allies and that we continue to enhance our coordination and partnership together for ensuring stability in the region while we undertake the important work of trying to create a peaceful Iran. The two have to go hand in hand together. Any work that can be done by our president in this summit to enhance that very key goal of strengthening our relationship is important.
SG: How are oil prices in Saudi Arabia impacting the US economy?
AT: Lower oil prices are good for the US economy because energy is a key input in so many industries and a key expense for so many American families. There’s a bit of turbulence, as a result. Communities in Ohio, Pennsylvania and the Midwest who have benefited from higher energy prices are being hit by lower energy prices. Secondly, it’s created volatility in equity markets. The sentiment for investing in equities has been highly correlated with the price of oil over the last months.
SG: In light of the Saudi-US Business Opportunities Forum last month, is the business environment in Saudi Arabia attractive for US companies to invest in?
AT: There are opportunities particularly in energy and downstream industries. But beyond that, there are some sectors where there are comparative advantages in Saudi Arabia that are ripe for growth such as transportation, logistics, renewable energy, health care, and education. Some of that growth is going to come organically and some of it is going to come from bringing in outside partners. Saudi Arabia recognizes that when it comes to quality, human capital development, technology transfer, US companies are the best in the world.
However, there are some real challenges that need to continue to be addressed. First of all, there needs to be additional streamlining of regulation. SAGIA has done a very good job of making improvements for making it easier for international companies to do business here but there needs to be done in terms of regulatory reform. Secondly, one of the primary things that companies look for when looking for doing business around the world best is talent. Saudi Arabia is making strides in developing young, talented professionals in working in the global workplace but there’s more work to do. Finally, Saudi Arabia is in a difficult neighborhood. It makes people making investment decisions to think twice. One way is to resolve those challenges, and continue to tell the Saudi story that although it’s a tough neighborhood, Saudi Arabia continues to be a safe and stable place to do business.
SG: Saudi citizens have always had a friendly relationship with American citizens. But recently there have been a lot of angry reactions towards Obama’s statements in an article published in The Atlantic magazine. He referred to Saudis as “free riders”. Would you consider this Obama’s personal attitude towards Saudis or the American administration’s opinion?
AT: One of the greatest things I’ve seen in the US political process is there’s no one voice. There’s a collection of hundreds and thousands of people who are working within one part of the process to make the best decisions on behalf of our country. As a result of all those various individuals, it takes a human characteristic of diversity of thought, disagreements, and good intentions. In that Atlantic article, Obama is spending a fair amount of his time trying to speak his own personal mind. This is really the point of engaging with one journalist so deeply and on so many occasions and to write such a long piece and one that is so personal. It’s not meant as a statement of US policy or the administration’s policy. This is unusually unscripted and as a result I think he intended it as insight into his own personal views and thinking but not as a statement of US policy or even of any consensus point of view amongst policymakers.
SG: Regarding the presidential elections, what is the White House’s stance regarding Republican candidate Donald Trump’s statement on banning Muslims from entering the US and similar statements regarding Muslims?
AT: I think the president and his administration have been clear and joined by many Republican figures in saying we understand that we live at a time where the threat of terrorism affects us all and that the byproduct of terrorism is to create fear. In many ways it has been successful in creating fear. But it’s important that we have solutions that fit the problem. President Obama, Democrats and Republicans have said that banning all Muslims from coming into the United States has a great potential in making the problem worse. Law enforcement officials to the FBI to the most senior level government officials will say the reason America has been able to avoid many of the significant terrorist attacks planned in the last several years, is the work and coordination with American Muslim patriots. The Muslim communities have been working in partnership with the government to identify vulnerable people and potential radicals before they are able to cause harm inside of our country.
The second reason is those people who are trying to recruit vulnerable individuals to commit acts of terrorism use a very luring narrative that there is a war under way between the West and the Muslim world and that it’s their obligation to commit these acts of terrorism. We in the US could not disagree more strongly. There are hundreds of thousands outstanding Muslims American citizens who are able to practice their faith freely. It’s important that we work to counter the narrative of violent extremists. It’s important to not to feed into their narrative because in the end that will not make us safer. We need to identify policies and programs that will make us all safer.
SG: Recently, media coverage of Saudi Arabia in the West has been negative. What’s your comment on that?
AT: I’ve noticed over the last three months that a narrative has taken route. That narrative is that low energy prices are not only going to create real fiscal struggle for the Kingdom which relies almost entirely on energy revenues to provide critical services for its citizens but that there is going to be great instability as a result. Of course, Saudi Arabia has challenges, many of which have been related to lower oil prices. But what people are missing is there’s a real determination to actually meet those challenges and that the environment created by low energy prices is actually catalyzing a process of reform, development and policy changes that Saudi Arabia needs. The low energy prices could very well be a blessing in disguise because they are giving rise to a very broad effort both within the government and through much of the society to undertake some necessary changes.
