Three of four major Gulf economies may review investments in overseas including US: Report
Several Gulf countries are reviewing their overseas investments and financial commitments as they assess the economic pressure caused by the ongoing US-Israeli war against Iran.
According to a report by The Financial Times, the financial strain on Gulf economies could lead to reconsideration of some international investment pledges and contracts.
A Gulf official cited by The Financial Times that the economic pressure may affect various types of international commitments including to the United States made by Gulf countries.
These could reportedly include investment pledges to foreign governments or companies, sports sponsorship deals, contracts with international businesses, and even the sale of existing holdings.
The official said that three of the four major Gulf economies, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar, had discussed the financial pressure being placed on their budgets and economies. However, the official did not identify which three countries were involved in the discussions.
The official said that some Gulf countries have begun internal reviews of their financial commitments and contractual obligations.
“A number of Gulf countries have begun an internal review to determine whether force majeure clauses can be invoked in current contracts, while also reviewing current and future investment commitments in order to alleviate some of the anticipated economic strain from the current war,” the official was quoted as saying by the Financial Times.
“Especially if the war and related expenses continue at the same pace,” the official added.
The official said the review was being carried out as a precautionary measure because several economic sectors have been affected by the conflict.
An adviser to a Gulf government cited by The Financial Times stated that the possibility of an investment review by wealthy Gulf states has already drawn attention from the White House.
Saudi Arabia, the United Arab Emirates and Qatar manage some of the world’s largest sovereign wealth funds and are among the most active investors globally, the report added.
The adviser said these countries had pledged to invest hundreds of billions of dollars in the United States last year after US President Donald Trump visited the region.
Gulf countries are also major backers of global sporting events and have been investing heavily in domestic projects aimed at diversifying their economies and reducing dependence on oil.
Any decision by these countries to reduce or reconsider investments in the United States or other Western countries could increase pressure on the Trump administration to pursue diplomatic efforts to end the war, the adviser reportedly told FT.
According to the report, the conflict has severely affected shipping traffic through the Strait of Hormuz, a key maritime route through which around one-fifth of the world’s oil and gas passes.
Shipping activity in the area has slowed significantly, and at least 10 tankers have been struck in the Gulf.
The war has also affected energy infrastructure in the region. Qatar, which is the world’s second-largest liquefied natural gas producer, declared force majeure earlier this week after it suspended production following a drone attack on its main LNG plant.
In addition, one of Saudi Arabia’s largest oil refineries has been hit during the conflict.
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Nashik court sends ‘godman’ Kharat to 3-day police custody in 7th sexual exploitation case
Nashik (PTI): A court in Maharashtra's Nashik has remanded self-styled astrologer-cum-godman Ashok Kharat to police custody till April 29 in the seventh case of sexual exploitation registered against him.
Kharat, a former Merchant Navy officer arrested on March 18, is accused of sexually exploiting several women and indulging in large-scale financial fraud by claiming to have divine powers and knowledge of black magic.
In the seventh case, Kharat sexually exploited a married woman who had approached him in search of solutions to her family problems.
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The accused allegedly gave the woman something to drink, sexually assaulted her while her husband sat outside his office and threatened to kill her if she told anyone about it.
The Special Investigation Team (SIT), which is probing into 12 cases of sexual exploitation and financial fraud registered against Kharat in Nashik and Ahilyanagar districts, on Sunday filed a request application in the court demanding his custody in the seventh case.
Kharat was produced in court for a virtual hearing in the seventh case on Monday.
The prosecution demanded six-day police custody for Kharat, citing the discovery of a locker in Kharat's house during the investigation, from which the police recovered two blank cheques and other documents, all of which have to be probed.
The court agreed to the prosecution's demand and remanded Kharat to three-day police custody till April 29 in the case.
Kharat has been at the centre of a political firestorm, as he was well-connected, and photographs of him with political leaders and other important members of society have been surfacing in mainstream and social media since his arrest.
