Gulf Reconciliation: The Ball is in Qatar’s Court
December 31, 2020, 9:21 am

Gulf Reconciliation: The Ball is in Qatar’s Court

Dalia Ziada

How likely is Arab quartet reconciliation with Qatar, in 2021? This question has been trending in the Middle East, since Biden’s victory with the presidential elections in the United States, in November. The joint decision by the Arab quartet; namely Gulf Cooperation Council (GCC) countries Saudi Arabia, United Arab Emirates (UAE), and Bahrain, along with non-GCC country Egypt, to severe economic and diplomatic relations with Qatar, in 2017, was initially supported by US President Trump, who is due to leave office soon.

Later on, the Trump administration tried, in vain, to re-intervene to reverse the decision and make reconciliation. Kuwait has also been exerting a huge effort on shuttle diplomacy between Qatar and Saudi Arabia, which also fell on a stalemate. The Arab quartet set thirteen conditions for reconciliation with Qatar, which Qatar is not willing to abide by or even negotiate. That includes closing Al Jazeera media broadcast facilities, cutting relationship with Iran, removing Turkish troops from Qatari land, and ending support to the Muslim Brotherhood, which is designated as a terrorist organization in Egypt, Saudi Arabia, and UAE.

In early December, Jared Kushner, Trump’s closest advisor, son-in-law, and the engineer of recent Abraham peace accords between Israel and some Arab countries, paid a visit to Doha and Riyadh. Around the same time, unforeseen rapprochement started to warm up between Saudi Arabi and Turkey, following the G-20 summit. Turkey is the closest military and economic ally to Qatar in the Middle East region, if not in the whole world. These coincident events stirred speculations in Arab media about a potential reconciliation between Qatar and its Gulf neighbors Saudi Arabia, Emirates, and Bahrain, during the GCC summit that was scheduled to take place in Manama, Bahrain, in mid-December, regardless of Egypt’s position.

However, a tweet by UAE Foreign Minister Anwar Gargash, on December 8^th, busted this media hype. "The UAE appreciates the efforts of sisterly Kuwait and the United States’ endeavors towards strengthening solidarity in the Arab Gulf; and supports the good efforts by Saudi Arabia on behalf of the four countries,” Gargash tweeted. “UAE affirms that the relations of the Gulf Cooperation Council with sisterly Egypt are an essential pillar in preserving security and stability in the region. We look forward to a successful Gulf summit;” Gargash added to his tweet.

Currently, Prince Tamim is stuck between a rock and a hard place. On one hand, his country still cannot cope with the economic and social complications of the Arab boycott. Qatar’s reliance on Turkey for military support and trading is only solving a small part of the problem. On the other hand, the newly released documents proving Qatar’s support to Houthis in Yemen through providing drones and military equipment, puts Prince Tamim and the entire ruling family under the risk of international investigations.

On the other side, the news of electing the Democrat Joseph Biden as the new US President is forcing Arab quartet countries to recalculate their strategic options in the next years. That is particularly true for Egypt and Saudi Arabia, which expect a cold shoulder from the new US administration, for reasons related to human rights issues.

Yet, it is unlikely that Biden administration may favor the Qatari regime to other Arab Gulf allies like Saudi Arabia and UAE. The economic investments by Saudi Arabia and United Arab Emirates in rebalancing the political powers of the region, played a tremendous role in ensuring relative stability in face of the harmful attacks by the triangle of Turkey, Iran, and Qatar. This newly found state of relative stability is serving U.S. economic and political interests in the Middle East, too. US President elect Biden cannot afford the risk of shaking the well-established economic ties with Saudi and Emirates to please his supporters from the Muslim Brotherhood and their sponsors in the Qatari regime.

Given all the aforementioned intersected interests and concerns, the upcoming GCC summit may put an end to the Arab boycott of Qatar. After several postponements, the GCC Summit is scheduled to take place in Riyadh, Saudi Arabia, rather than Manama, Bahrain, on the first week of the new year, on January 5^th, 2021. Reportedly, King Salman of Saudi Arabia invited the Egyptian President El-Sisi to attend the summit. Meanwhile, King Salman sent an invitation to all Arab Gulf leaders, including the Prince Tamim of Qatar to join the summit.

By sending the invitation to Prince Tamim, King Salman threw the ball in Qatar’s court. The way he decides to play it back, or not, shall determine what would happen next on this matter. In the past two GCC summits of 2018 and 2019, Prince Tamim declined to attend the meetings, despite receiving invitations. Some believed this was his own way to protest the Arab quartet boycott of Qatar, while others interpreted it as an act blinded by an inflated ego. One can hardly be optimistic that Prince Tamim may willingly comply with the Arab quartet’s thirteen conditions. However, there is a high probability that he would attend the summit and negotiate a deal.

Dalia Ziada

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.