UAE's move of forming separate group with Saudi could worsen Gulf crisis

The United Arab Emirates today announced it has formed a new economic and partnership group with Saudi Arabia, separate from the Gulf Cooperation Council, a move that could undermine the council amid a diplomatic crisis with member state Qatar.

The Emirati Foreign Ministry announcement, just hours ahead of a GCC meeting in Kuwait, said the new "joint cooperation committee" was approved by the UAE's ruler and president, Sheikh Khalifa bin Zayed Al Nayhan.

Saudi Arabia did not immediately report on the new partnership.

It wasn't immediately clear how the development could affect the six-member GCC meeting, which is expected to focus on the Qatar issue. Half of the GCC members are boycotting Doha in a dispute that's cleaved the Arabian Peninsula.

The Emirati ministry said the new "committee is assigned to cooperate and coordinate between the UAE and Saudi Arabia in all military, political, economic, trade and cultural fields, as well as others, in the interest of the two countries."

The UAE and Saudi Arabia have cultivated even-closer ties in recent years. Emirati troops are deeply involved in the Saudi-led war in Yemen.
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Saudi Arabia plans to launch nuclear power tender next month: Sources

Saudi Arabia is expected to launch a tender process for its first nuclear reactors as early as next month and will reach out to potential vendors from countries including South Korea, France and China, industry sources said.

The world's top oil exporter wants to start construction next year on two plants with a total capacity of up to 2.8 gigawatts, three industry sources said, as it follows Gulf neighbour the United Arab Emirates in seeking atomic energy.

This will make it the second country in the Arab world to tap nuclear power as a way to diversify its energy supply for its 32 million population. The UAE's first plant is expected to come online next year after delays.

While a possible multi-billion-dollar Saudi tender would be smaller than those being considered in India and South Africa, Saudi Arabia's deep pockets and the lack of any anti-nuclear movement in the country could make it one of the strongest prospects for an industry struggling for contracts following the 2011 nuclear disaster in Fukushima, Japan.

"Competition will be fierce," an industry source said, adding Saudi Arabia was expected to send a Request for Information (RFI) to suppliers in October, marking the official start of the tender process following feasibility studies.
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Arab states' sanctions boost food prices, hurt real estate in Qatar in July

Sanctions imposed by other Arab states are continuing to push up food prices in Qatar while hurting the real estate market, but not to the point of damaging the economy severely, according to inflation figures released by the government on Tuesday.

The annual inflation rate fell back sharply to 0.2 per cent in July. It had spiked to 0.8 per cent in June from 0.1 per cent in May after Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt cut diplomatic and transport ties with Qatar on June 5, accusing it of supporting terrorism, which Doha denies.

By closing Qatar's land border with Saudi Arabia and disrupting maritime shipping routes, the sanctions slashed Qatari imports by more than a third in June, pushed up prices of some basic goods and hurt business sentiment in Doha.

There were fresh signs of that damage in the July inflation numbers. Food and beverage prices climbed 4.5 per cent from a year earlier - their fastest rate of increase since at least 2014, and accelerating from a rise of 2.4 per cent in June.
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