Gulf Region
Islands in the Straits of Hormuz area: Easing of
tension between the Emirates and Iran through high-level
visits
Any tension in the Straits of Hormuz region has
a direct bearing on South Africa’s economic
security since most of South Africa’s oil emanates
from areas to the north of this obligatory passage
to and from the Gulf. Iran and the UAE are still
attempting to settle their dispute over the Abu
Musa and Greater and Lesser Tunb islands situated
inside the Straits and the Oman-controlled Musandam
peninsula. The Arab League and the GCC support the
claims of the UAE in this dispute. The dispute provoked
increased regional tension in March and April 2001
when it became known that in addition to arming
the three islands, Iran was in the process of colonising
the islands with a transfer of Iranian citizens
to them. In July 2001 three of the Emirati President‘s
sons visited Iran to congratulate President Khatemi
on his re-election victory. On 6 August 2001 one
of President Khatemi’s closest aides, Mohammed
Abtahi, the Head of the Presidential Office, visited
the Emirates’ President Sheikh Zaid bin Sultan
Al-Nahayan to convey a personal message of goodwill
from the Iranian leader. These two visits were important
from a regional security point of view since they
brought about a marked improvement of relations
between Iran and the UAE. The Iranian Foreign Ministry
observed "We are witnessing cordial relations
between the two countries". Discussions about
the islands have yet to be held.
Iraq and Kuwait and the continuing Anglo-American
air strikes on Iraqi territory
Contrary to the previous Arab Summit held in Amman
which failed to settle ongoing tensions between
Iraq and Kuwait, the last Arab League Summit held
in Beirut in March 2002 showed a significant improvement
in relations between the two rival neighbours. The
Arab leaders welcomed the Iraqi leadership’s
decision that it will no longer continue to threaten
the existence of its neighbour, the State of Kuwait.
South Africa, as Chair of NAM, has an interest
in King Abdullah II of Jordan’s arbitration
efforts between Kuwait and Iraq. Apart from Saudi
Arabia and Iran, South Africa also sources its crude
oil supplies from Kuwait.
The situation remains tense as American and British
fighters continue to carry out raids on targets
inside Iraqi territory. A more serious consequence
of these raids is the increased concern of Kuwait’s
Arab neighbours about their own security. The British
and American insistence that the raids will continue
is beginning to generate signs of concern in Kuwait’s
neighbour Saudi Arabia.
Iran faces the Challenge of Political Liberalisation:
Widening Split between the Conservatives and Reformers
Thirteen years since the death of Ayatollah Ruhollah
Khomeini, the founder of the Islamic Republic of
Iran, the reformers (led by President Mohammad Khatami)
and conservatives (led by Ayatollah Khamenei) are
still struggling to interpret his legacy for their
political gains. President Khatami believes that
the "enemies of democracy" (the conservatives)
are threats to the Islamic Republic and as such
are in contradiction with the Imam’s (Khomeini)
legacy. The conservative backlash to thwart President
Khatami’s liberalisation of the state and society
still continues and has recently significantly increased.
The conservatives see Khatami’s reform as a
means of "polluting" their religion (Islam)
by introducing what they view as Western values
and ideas. The judiciary and the institutional organs
of state are at the forefront of the conservative
opposition against changes in the Iranian society
and have jailed several dissidents, newspaper editors
and even MPs.
SOUTH AFRICA AND THE GULF REGION
Problems for South African meat exporters to the
Gulf: the beef ban
Between March and April 2001 the Governments of
the Kingdom of Saudi Arabia, the United Arab Emirates,
Qatar, Kuwait and Bahrain imposed a ban on the importation
of meat and dairy products from Africa, including
South Africa, in view of fears of Foot and Mouth
disease.
As a continuation of the ban on Africa will negatively
affect livestock exporters, the South African Government
has actively lobbied the Governments of these Gulf
countries to rescind their import bans. This has
been motivated by the European Commission’s
re-acceptance on 14 February 2002 that meat imports
from South Africa, except from those localised areas
still under restriction, were acceptable.
On 21 May 2002, the Ministry of Agriculture and
Fisheries of the United Arab Emirates (UAE) issued
a Ministerial Decree which lifted the import ban
on South African livestock, meat and diary products.
This means that the UAE will resume its import of
cattle, sheep and goats from South Africa. The ban
was lifted after confirmation was received from
the International Epizootic Office in Paris that
livestock in South Africa is disease free.
The lifting of this ban by the UAE would have major
and positive implications for the meat and dairy
industry in South Africa especially if the other
countries in the Gulf would follow suit. Negotiations
are proceeding between South Africa and the remaining
Gulf Co-operation Council countries to have the
ban lifted as soon as possible. Those include Saudi
Arabia, Qatar, Kuwait and Bahrain. So far South
Africa has lost R1 billion in revenue as a result
of these import bans on South African red meat products.
Kingdom of Bahrain
The State of Bahrain was converted into a Kingdom
in early 2002.
Since succeeding his father in March 1999, the
present ruler of Bahrain, King Hamed Bin Issa Al-Khalifa
has embarked on a program of liberalisation, which
culminated in the referendum of February 2001. In
that referendum, 98% of the electorate voted for
a new Charter which promises a freely elected parliament
for the first time in 25 years. The immediate changes
include the abolition of oppressive security laws,
which were principally passed to quell opposition
activity among the island’s Shiite majority.
In May 2002, Bahrain held Municipal elections. These
elections were significant because for the first
time in the history of Bahrain, women were also
allowed to vote. Parliamentary elections are envisaged
to be held in autumn 2002.
Bahrain also achieved diplomatic and juridical
success in March 2001 when the International Court
of Justice in the Hague awarded it the gas-rich
Huwar archipelago and Qi’tat Jaradah island,
ownership of which had hitherto been contested by
Qatar.
Although South Africa established its first resident
embassy in the Gulf in Manama in 1993, it presently
has no permanent resident representation on the
island. Bilateral trade is limited. A Consular Agent
in Manama promotes South Africa’s interests.
South Africa, however, hopes to attract Bahraini
investments in sustainable development projects.
Islamic Republic of Iran
The 6th South African-Iranian Joint Commission
took place from 3 to 6 February 2002 in Tehran under
the joint chairmanship of the Iranian Minister of
Foreign Affairs, Minister Kamal Kharazzi and the
South African Minister of Foreign Affairs, Minister
Nkosazana Dlamini Zuma. The South African Minister
of Foreign Affairs was accompanied by the Minister
of Health and a South African delegation consisting
of the Departments of Trade and Industry, Arts,
Culture Science and Technology, Environmental Affairs
and Tourism and Minerals and Energy.
South African private sector companies representing
the petrochemical industry, railway engineering
sector and the mining sector also attended. The
activities of the Joint Commission were conducted
in two working groups, the first dealing with political
and social matters and the other with economic issues.
The Joint commission concluded with the signing
of two documents, the first a Memorandum of Understanding
in the field of Health signed by Minister Tshabalala-Msimang
and the second a Joint Communiqué signed
by the two Foreign Ministers calling for closer
co-operation between Iran and South Africa, the
easing of trade restrictions between the two countries,
establishment of reciprocal trade promotion centres
and a diversification of the current trade situation.
Visit by the Executive Mayor of Tshwane
The Mayor of Tshwane, His Worship Father Smangaliso
Mkhatswa visited Iran from 15 to 17 March 2002.
The Mayor was leading a delegation of 5 members
that included members of the Mayoral Committee business
development.
The South African delegation was hosted by the
newly elected Mayor of Tehran, Dr Malek-Madani and
over the course of three days investigated various
fields of possible co-operation between the two
municipalities. The members of the Mayoral Committee
also held fruitful discussions with the Iranian
Chamber of Commerce, Industry and Mines. The Mayor
of Tshwane extended an invitation to the Mayor of
Tehran to visit South Africa as soon as his programme
permits.
The visit was concluded by the signing of a MOU
that will see Tshwane and Tehran become Sister Cities
during the visit of Mayor Malek-Madani to South
Africa.
State of Kuwait
Kuwait has long enjoyed political stability due
mainly to the long-standing political legitimacy
of the ruling Al-Sabah royal family. This situation
survived even the devastating Iraqi invasion of
2 August 1990 and its occupation by Iraqi forces
up to February 1991. It is thanks to this structural
stability and its financial power that Kuwait, despite
its relatively small surface area, has considerable
influence both in the region and in multilateral
forums such as the GCC, the OIC and the Arab League.
Kuwait has established a noble reputation for its
generosity in matters related to aid assistance
and humanitarian relief, not least vis-à-vis
Sub-Equatorial Africa.
South Africa and Kuwait maintain good relations,
as evidenced by the fact that in July 2000 the two
countries entered into a Bilateral Consultations
Agreement which obliges both Governments to meet
at least once annually to discuss a number of topics
of mutual interest.
The balance of trade between South Africa and Kuwait
has remained in the latter’s favour, principally
due to the fact that Kuwait has joined Iran and
Saudi Arabia as a major supplier of South Africa’s
liquid energy needs.
Kuwait has shown a serious commitment to assist
South Africa in the further development of its infrastructure.
The Kuwait Fund for Arab Economic Development (
KFAED ) has offered South Africa a "soft"
loan of upward of R240 million for the provision
of basic social services to the less developed areas
of the country. This is an issue that requires finalisation.
To encourage trade and investments between the
two countries, the Governments of South Africa and
Kuwait are negotiating an Avoidance of Double Taxation
Agreement. This process was been given an additional
boost when the two countries initialled a Reciprocal
Promotion of Investments Agreement in October 2001.
A South African Department of Trade and Industry
delegation visited Kuwait from 3-5 May 2002 to commence
negotiations on the conclusion of a Bilateral Trade
Agreement.
Former President Nelson Mandela visited Oman, Bahrain
and Kuwait from 13-16 April 2002 at the invitation
of the three Heads of State. Sheikh Jaber Al-Mubarak
Al–Hamad Al-Sabah, the Deputy Prime Minister
and Minister of Defence of the State of Kuwait is
due to visit South Africa from 14-20 July 2002.
It is envisaged that the Memorandum of Understanding
on Defence Co-operation between the Republic of
South Africa and the State of Kuwait will be signed
during his visit.
Sultanate of Oman
For the past two decades Oman has enjoyed political
stability and prosperity under the leadership of
Sultan Qaboos. Oman enjoys a positive profile multilaterally,
presently holding the Chair of the Indian Ocean
Rim/Association for Regional Co-operation (IOR/ARC).
Oman has consistently adopted a strategic approach
to its foreign policy and together with Qatar it
assisted the process of rapprochement between the
two regional super-powers, Saudi Arabia and Iran.
South Africa and Oman enjoy good but limited interaction
in their relations due to the fact that although
Oman has a resident Commercial Office in South Africa
the latter has no equivalent representation in the
Sultanate. Bilateral trade between the two countries
is limited and valued at a total of only some R30
million in 2000. Both countries hope to alter this
situation through trade promotion ventures including
a visit to South Africa of the Omani Chamber of
Commerce and Industry. An Honorary Consul, Mr Said
Amran Ameir Al-Harthy, promotes South Africa’s
interests in Oman.
Republic of Yemen
South Africa and Yemen enjoy good relations and
in 2000 these were strengthened further by the finalisation
of a Civil Aviation Co-operation Agreement.
Yemen has a resident Embassy in South Africa but
South Africa has no equivalent representation in
Yemen. Bilateral trade has still to take off- in
2000 its total value was some R70 million. In December
1999, South Africa appointed an Honorary Consul,
Mr Hassan al Zubieri, with a view to the further
development of trade relations.
Kingdom of Saudi Arabia
Saudi Arabia is a monarchy, which has been ruled
by the Al-Saud Royal Family since it was founded
by King Abelaziz Al-Saud.
During a visit to the Kingdom in 1997, former President
Mandela stated that the South African Government
considered the Kingdom of Saudi Arabia as a strategic
partner. This policy position has been re-iterated
by President Thabo Mbeki and forms the basis of
South African/Saudi relations. During his 2000 "State
of the Nation" address President Mbeki re-iterated
that he considered the Kingdom of Saudi Arabia to
be a partner in his vision of the African Renaissance
and as a member of the " G-8" of the South".
Bilateral economic and technological relations
look promising. Apart from the growth in bilateral
trade, which increased from R 251 million in 1994
to R 15,95 billion in 2001, there has been extensive
growth in technological exchanges. South Africa
was instrumental in assisting Saudi Arabia to counter
an outbreak of Rift Valley Fever by providing the
Kingdom with experts and vaccines to neutralise
the disease.
A Saudi-owned company is a partner in the Cell-C
mobile phone service provider in South Africa. Recently,
Saudi Arabia’s Ministry of Education has embarked
on a process of restructuring the Kingdom’s
education system and it has requested the South
African Ministry of Education to furnish it with
information regarding South Africa’s education
system of all grades. South Africa and Saudi Arabia
are also in the process of finalising a number of
outstanding agreements. These agreements will regulate
the promotion and protection of investments, avoidance
of double taxation, military co-operation, and co-operation
in the scientific and technological fields. Negotiations
between South Africa and Saudi Arabia are still
continuing regarding the lifting of import ban on
South African livestock, meat and dairy products.
United Arab Emirates
The United Arab Emirates, which consists of a federation
of seven emirates, has since its establishment in
1971, experienced political stability and economic
growth under the presidency of His Highness Sheikh
Zayed bin Sultan Al Nahyan.
The South African Government regards the United
Arab Emirates as a significant partner of South
Africa in the Middle East, which could play an important
role in the realisation of the projects of the New
Partnership for Africa’s Development (NEPAD)
for sustainable development, poverty relief, democratisation
and good governance in Africa.
The UAE has over the last six years consistently
featured in South Africa’s top five regional
trading partners and is host to 30 South African
private sector companies. Bilateral trade on 2001
totalled R 2.09 billion.
State of Qatar
The State of Qatar became fully independent on
1 September 1971. Qatar is one of the most influential
countries in the Gulf Region because of its abundance
of natural gas and crude oil resources. Since Amir
Sheikh Hamad bin Khalifa Al-Thani came to power
in 1995, Qatar has generally followed an increasingly
independent foreign policy which enabled it to play
a role in the détente between Iran and the
Gulf States. In March 1999, elections for the Municipal
Council of Doha were held which were the first elections
to be held in Qatar. Women were permitted to vote
and to contest the elections although no female
candidates gained a seat on the Council.
A South African Company, Sasol Synfuels, has entered
into a US$ 800 million commitment with Qatar Petroleum
for the construction of a gas-to-liquids plant at
Ras Laffan Industrial City in Qatar. It is envisaged
that Qatar Petroleum will own 51% of the project
and Sasol 49%. Sasol hopes that this 34 000-bpd
plant, which is expected to be operational in 2005,
will be the first of a series of such projects in
the Gulf. The Qatari Government has indicated that
that this project will allow Qatar Petroleum to
participate in the developing markets for environment-friendly
fuels. The importance of Sasol’s investment
was underscored during the State Visit of His Highness
Sheikh Hamad bin Khalifa Al-Thani, the Amir of Qatar,
to South Africa from 14-16 May 2002.
The importance of the developing trade and economic
relations between South Africa and Qatar was underscored
during the State Visit of His Highness Sheikh Hamad
bin Khalifa Al-Thani when an agreement on economic,
commercial and technical co-operation and an agreement
on the reciprocal promotion and protection of investments
were signed. The two governments also signed a Memorandum
of Understanding (MOU) on Diplomatic Co-operation.
The Governments of South Africa and of Qatar have
agreed to open resident Embassies in Pretoria and
in Doha as soon as possible Currently, South Africa’s
Ambassador to Abu Dhabi is accredited to Qatar and
the Qatari Ambassador to Cairo is accredited to
South Africa on non-resident basis. The opening
of Embassies will strengthen the two countries’
diplomatic and economic relations. Bilateral trade
in 2001 totalled R 265 million.
In November 2000, Qatar assumed the chair of the
Organisation of Islamic Conference (OIC) for three
years. Thus while South Africa is the chair of the
Non-Aligned Movement (NAM), Qatar will be an important
interlocutor on the Middle East Peace Process and
on international security concerns about countries
in the Middle East. Qatar’s assuming of the
chair of the Gulf Co-operation Council (GCC) in
November 2002, could facilitate co-operation between
the GCC and the Southern African Development Community
(SADC). Qatar is also expected to play a significant
role in the implementation of the sustainable development
and poverty alleviation projects of the New Partnership
for Africa’s Development (NEPAD).
