Arab

Palestinian participation in upcoming Knesset vote continues to shrink with withdrawal of Sami Abu Shehadeh.

Arab Israeli politician Sami Abu Shehadeh has withdrawn his candidacy for the upcoming Israeli elections after the Supreme Court advised him to drop out.

The leader of the left-wing Palestinian Balad party announced on Friday he was dropping his bid for election to the Knesset on October 27. His withdrawal, which came after the court threatened to disqualify him, comes amid increased efforts by Israeli authorities to block Arab Israeli parties from taking part.

Political analysts view Arab Israeli parties as potential kingmakers in the election, with polls showing neither Prime Minister Benjamin Netanyahu’s coalition nor the main opposition bloc on course for an outright majority.

The withdrawal came after the Supreme Court indicated that a majority of its judges agreed with a September 23 decision from Israel’s Central Elections Committee to oust him from the race after nationalist political rivals accused him of supporting Hamas’s attack on October 7, 2023.

Adalah, a rights organisation representing Abu Shehadeh, condemned the court, saying the evidence it presented had no legal basis.

“The court has effectively decided to remove a Palestinian leader, a citizen of Israel, from the Knesset,” Adalah said in a statement.

“The court’s clear intention to disqualify him,” it added, was “a direction that would have set a dangerous legal precedent with devastating consequences.”

Abu Shehadeh served in the Knesset from 2019 to 2022. Balad confirmed he was withdrawing his candidacy but stressed that the decision did not mark the end of his political struggle and that he would remain party leader.

The elections committee voted to disqualify him at the request of far-right National Security Minister Itamar Ben-Gvir, who accused him of supporting the Hamas attack due to an article issued the following day in which Abu Shehadeh called it an “important historical event”.

Speaking to the Supreme Court on Thursday, Abu Shehadeh said he did not support “armed struggle” but acknowledged that a paragraph in the article had been incorrectly worded. He said his intention was to call for moving the conflict towards a political process.

Adalah labelled his withdrawal from the election “a severe blow to the right of Palestinian citizens to be represented and to stand for election”.

The elections committee has also barred two Arab electoral lists: the United Arab List and the Joint List, a three-party alliance that includes Abu Shehadeh’s party Balad. The Supreme Court is due to continue hearing appeals from the parties on Friday.

Adalah has questioned why the Palestinian candidates are being disqualified but far-right Israeli candidates were “cleared to run” despite openly calling for violence against Palestinians and making statements “amounting to incitement to genocide”.

Excluding Ra’am and the Joint List leaves Palestinian citizens in Israel without major Knesset representation options.

Israel’s Central Elections Committee has voted to bar both main Arab electoral lists from next month’s election, putting the political representation of Palestinian citizens of Israel before the Supreme Court weeks before voters go to the polls.

The committee voted on Wednesday to disqualify the United Arab List, or Ra’am, led by Mansour Abbas, and the Joint List, an alliance of the Arab-led Hadash, Ta’al and Balad parties. It also voted separately to bar Hadash legislator Ofer Cassif and Balad leader Sami Abu Shehadeh. The election is scheduled for October 27.

The bans are not final. Decisions against individual candidates require Supreme Court approval, while lists can appeal their exclusion. Adalah, the legal centre representing the parties and candidates, says it will challenge the votes when the court hears the cases next week.

Ra’am called its exclusion “political and unacceptable”, saying the decision was intended to prevent it from influencing the balance of power and changing the government.

The Joint List said Israeli Prime Minister Benjamin Netanyahu and far-right National Security Minister Itamar Ben-Gvir were trying to discourage Arab citizens from voting “because they fear our ability to bring down the government of genocide and racism”. Its leader, Yousef Jabareen, questioned how the committee could bar parties representing more than 1.25 million voters.

Abu Shehadeh told Al Jazeera that his exclusion was an attempt to silence criticism of government policy and said the decisions would be challenged in court and through public protest. Rejecting the allegation that he supports violence, he told The Times of Israel: “I have never called for violence or terrorism. I oppose armed struggle.”

The petitions invoke Section 7A of Basic Law: The Knesset, which allows a list or candidate to be excluded for denying Israel’s existence as a “Jewish and democratic state”, inciting racism or supporting armed struggle against Israel by an enemy state or an organisation designated as terrorist.

Netanyahu’s Likud party sought to disqualify the Joint List and Cassif, and was among the groups that filed against Ra’am. Ben-Gvir’s Otzma Yehudit party also sought to bar Abu Shehadeh. Adalah disputes the allegations. It says the case against Ra’am presents no evidence that the party supports armed struggle, while the Joint List petition relies heavily on old material, including bills proposed in previous Knessets.

Abu Shehadeh’s case has drawn a different response. Attorney General Gali Baharav-Miara found no legal basis to exclude the other targeted parties and candidates but said an article he published on October 8, 2023, which she said may constitute support for armed struggle, warranted serious examination. The committee voted 31-4 to bar him. Adalah says the article contains no such call.

The push to bar Abu Shehadeh drew support from parties outside Netanyahu’s coalition. According to The Times of Israel, opposition parties voted to disqualify him, as did Supreme Court Justice Noam Sohlberg, who chairs the elections committee. The vote broke with decades of precedent in which committee chairs abstained from disqualification votes. Abu Shehadeh’s exclusion still requires approval from the full Supreme Court.

Why the Arab vote matters

Ra’am joined the coalition government formed by Naftali Bennett and Yair Lapid in 2021, helping end Netanyahu’s 12 consecutive years in office in 2021, although Abbas had previously discussed cooperation with Netanyahu as well. Now Likud itself has filed petitions against Arab representation, while Ben-Gvir’s party has pursued separate exclusions.

A Channel 12 poll published on Tuesday projected seven seats for the Joint List and five for Ra’am, against 50 for Netanyahu’s current coalition bloc. The 12 projected Arab seats would not automatically back Netanyahu’s opponents, as mainstream opposition parties remain divided over whether to govern with Arab support. But removing both lists would change the possible routes to the 61-seat majority needed to form a government.

The Supreme Court has overturned previous committee bans on Arab lists and candidates, including Balad’s exclusion in 2022. It must now decide whether the evidence meets the legal threshold for barring the two principal lists seeking to represent Palestinian citizens of Israel. The ruling will determine who can appear on the October ballot.

DUBAI: The US House of Representatives has gone into an early recess without voting on a Republican lawmaker’s bid to impeach Defense Secretary Pete Hegseth over the US’ war on Iran.

House Speaker Mike Johnson sent lawmakers home on Wednesday, ending the chamber’s scheduled business a day early and delaying action on a resolution by Republican Rep. Thomas Massie that accuses Hegseth of conducting military operations against Iran without congressional authorization.

The move comes as President Donald Trump said on Wednesday that the seven-month war on Iran was “hopefully” nearing its end and that Tehran wanted to reach a deal.

Trump is also expected to meet GCC leaders on the sidelines of the UN General Assembly in New York, with discussions expected to include the conflict and its aftermath.

Massie, a Kentucky Republican and longtime critic of the administration’s Iran policy, introduced eight articles of impeachment against Hegseth on Tuesday. 

He accused the defense secretary of violating the War Powers Resolution by continuing hostilities against Iran without congressional authorization, as well as other alleged abuses of power related to US military operations.

Massie had sought to force a vote in the House within two legislative days. His resolution was therefore left pending after Johnson ended the House’s session early.

Massie condemned the decision, accusing Johnson of avoiding a debate over the US military campaign.

“I’m trying to stop a war,” Massie said from the House floor on Wednesday, while criticizing the speaker for sending lawmakers home.

Johnson defended the House’s record and dismissed Massie’s impeachment effort as a “stunt,” saying the chamber had completed its legislative work.

The early recess also comes after the House voted this week on a separate war powers measure concerning the Iran conflict, with several Republicans joining Democrats in backing efforts to rein in the administration’s military authority.

The House is now expected to return after the November midterm elections, leaving Massie’s impeachment resolution and other pending legislation unresolved.

– With AP

Sydney: Australia will reduce migration by curbing “visa hopping”, tightening rules on students and working holiday makers as well as cracking down on overstayers, its interior minister said Thursday, as the far-right surges in the polls.

Home Affairs Minister Tony Burke told the National Press Club in Canberra that immigration was “fundamentally a strength” for Australia, but accepted that housing pressures required changes.

He denied his ruling Labor party was tightening visa rules in response to the rise of One Nation, which has become one of the country’s most popular parties this year with pledges to drastically slash migration. Business groups warned such cuts would cause economic damage.

“We need immigration to soften enough that housing has a chance to catch up,” he said, while stressing the housing shortage was not caused by migrants.

Net overseas migration – the net gain or loss to the population through movement to and from Australia – reached a peak of 538,000 in 2022 after a surge in arrivals when borders re-opened after the Covid-19 pandemic.

Numbers fell to 292,100 in the year to March, data on Thursday showed.

Burke said this was 47 percent below the post-Covid peak — and that policy changes would help to reach a target of 225,000 for next year.

Australians want to know the government was “taking control” of migration but also “being decent about it”, he said.

Students are the largest group of arrivals, with 753,000 international students in Australia, most from China and India, data shows.

Under the new rules, family members seeking to join students in Australia will face new curbs and it will become harder for students to move between courses to extend their stay, Burke said.

A backlog of applications from the UK for working holiday visas would continue to be processed slowly after a record 80,000 applications — a matter that is under discussion with the UK government, he said.

Working holiday makers in rural areas will enter a ballot to stay for a second or third year, with just 5,000 visas available for the latter.

Family members seeking to visit Australians will have “no further stay” conditions attached to their temporary visas.

Migrants with construction and housing skills will be prioritised for visas, he said.

Australia would return to a policy of a decade earlier in which visa overstayers were given two weeks to leave the country or face detention and deportation, he said.

An additional 100 compliance officers and 250 more beds in immigration detention centres would show there are consequences to overstaying a visa, he said.

But he stressed “this is not the sort of operation that some people have seen on TV happening in other countries” — a nod to hardline immigration policies in the United States.

A third of Australia’s resident population of 27.6 million was born overseas, the latest census data shows.

WASHINGTON, United States: The US military honor guard has been rehearsing and the new White House helipad is ready. But will Xi Jinping and Donald Trump achieve lift-off at their summit next week?

Warnings of an AI apocalypse hang heavy over the Chinese president’s first talks at the White House with his US counterpart, with both countries racing for supremacy in this technology.

Trump’s Iran war casts a long shadow too, as China seeks to avoid US sanctions against countries dealing with Tehran, despite reports that Beijing supplied Tehran with intelligence for a strike on US troops.

A trade war is of even greater concern and the world’s two largest economies are still seeking to mitigate the fallout from Trump’s global tariffs. The threat of war over Taiwan looms large as well.

Behind it all is desire to manage tensions between a superpower keen to keep its place at the top and a rapidly rising rival determined to make the 21st century a Chinese one.

“I’ll be discussing almost everything with him,” Trump told reporters aboard Air Force One on Sunday, ahead of their meeting on September 24.

‘Don’t expect much’

But the two leaders are more likely to simply extend a relative truce rather than produce any concrete results, like when Xi hosted Trump in Beijing four months ago, experts said.

“I don’t expect much to come out of this,” Jonathan Czin of the Brookings Institution told AFP.

“In many ways, this is going to be a recapitulation of Trump’s visit to Beijing back in May, where the focus was really on the ostensible rapport between the two leaders.”

With fears about AI making global headlines, agreement to cooperate on regulation or a slowdown is expected to be a major topic of discussion between Trump and Xi.

But any major deals are “politically out of reach for now,” said Wang Dong, a professor at Peking University, as Beijing and Washington both fear losing out in the race for AI dominance.

Tensions over Iran will also come up. US Treasury Secretary Scott Bessent is due to meet his Chinese counterpart He Lifeng this weekend for pre-summit talks including on Iran sanctions.

Trump has, however, played down reports that Chinese entities supplied Iran with satellite imagery for an attack on a US military base in Jordan, saying Xi had “behaved reasonably well” and that “we spy on them, too.”

On trade, there is “room for progress on tariffs, agricultural purchases and selected export controls,” Yue Su of The Economist Intelligence Unit told AFP.

‘Spectacle’

Yet Trump has, as so often before, appeared more interested in the optics of his meeting with a powerful foreign leader than with the substance.

“This is less a summit and more a spectacle. This is designed for deep public consumption,” said Kurt Campbell, former US Deputy Secretary of State and now Chairman of The Asia Group.

Trump pushed for a new granite helicopter landing pad on the White House South Lawn to be open in time for Xi’s visit, which will include a grand state dinner.

Troops in flashy uniforms have been rehearsing on the White House driveway this week ahead of the welcome ceremony.

Trump’s only disappointment is that his under-construction $400 million ballroom won’t be ready — though he has said that when finished it will “top” Beijing’s Great Hall of the People, where Xi hosted him in May.

During the Beijing trip Trump showered praise on Xi, only for the Chinese leader to warn about possible “conflict” over Taiwan.

Fears of a possible Chinese invasion of the self-governing island and global semiconductor hub — which Beijing claims as its territory — remain the most sensitive topic between Washington and Beijing, said Peking University’s Wang.

One possible concrete deliverable is an announcement of further summits.

Trump and Xi are expected to meet in November at the Asia-Pacific Economic Cooperation (APEC) forum in Shenzen, China. The Kremlin has suggested a three-way meeting with Russian President Vladimir Putin.

Trump is meanwhile expected to invite Xi to the G20 summit in December at his Doral resort in Miami.

WASHINGTON: US President Donald Trump threatened on Wednesday to cut trade with the European Union after the bloc proposed to make Canada its first ever associate member.

EU chief Ursula von der Leyen raised the prospect a day before Canadian leader Mark Carney was due to address the European Parliament.

Her pitch comes as both Canada and the European Union seek to pivot away from an aggressive United States under Trump’s leadership.

“I think it’s laughable,” Trump told reporters when asked about the plan.

“If they do that, if I think it’s at all a hostile act, I will put very serious tariffs or stop trading with Europe, on many things.”

He added: “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe, which is a possibility.”

Von der Leyen pitched closer cooperation on tech, defense and energy to Carney, who became the first non-European head of government to attend the annual “State of the European Union” speech.

The German told the European Parliament in Strasbourg that, as democracies face a “fracture in the international rules-based system,” Brussels and Ottawa needed to pull closer together.

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen told the Canadian premier, drawing a standing ovation in the chamber.

A broader alliance

Carney has been pursuing closer ties with the European Union as Canada gets drawn ever deeper into a trade war with the United States.

He is set to address the parliament on Thursday, with his visit meant to act as a catalyst ahead of an EU-Canada summit in Montreal next month.

Von der Leyen said it was time to move from cooperation based on trade to a broader “alliance for the future” and “bring the relationship with Canada to the highest level possible.”

“We will work on intelligent manufacturing. We will create a tech alliance. We will integrate defense industrial bases. We will make the Arctic a flagship joint project,” she said.

She listed energy, critical minerals, batteries, AI, cyber and economic security as other fields of cooperation.

“This is a partnership not against anyone else, but for our common strength,” she said.

But both the EU and Canada have been buffeted by tariffs and territorial threats from the US and competition from China.

“In a more dangerous and divided world, Canada is forging stronger relationships with trusted partners,” Carney’s office said in a statement.

What’s in a name?

While EU treaties do not envision the possibility of becoming an “associate member,” the idea was first floated by German Chancellor Friedrich Merz this year for Ukraine.

Under that plan, which met a cold reception from a country pushing for full membership, Ukraine would have been allowed to attend the bloc’s summits and have a representative in the European Commission.

It would have also benefited from parts of the EU budget, but without full voting rights.

“We don’t really know yet what it means,” said Tobias Cremer, a center-left European lawmaker from Germany and the main sponsor of a resolution urging stronger EU-Canada cooperation, after von der Leyen’s “associate membership” pitch.

Under EU rules, member states have to approve any form of partnership with a third country and it was unclear how much support von der Leyen’s proposal would receive from capitals.

Brussels and Ottawa already enjoy a considerable level of cooperation.

The CETA free-trade agreement that abolished almost all tariffs has been credited with boosting trade in goods and services by more than 80 percent since 2016.

And this year Canada became the first non-EU country to join a flagship defense loan program.

Carney later flew to Britain for his first meeting with new UK Prime Minister Andy Burnham.

They attended a football match between Everton and Wolverhampton together before Carney’s return to Strasbourg for his Thursday speech.

MADRID: Raphinha scored a hat trick as Barcelona earned yet another big win on Wednesday, routing Racing Santander 7-2 for its best-ever start to a season.

The Catalan club had never won seven games in a row. It has won six straight in the league and another in the Champions League.

Gabriel Jesus and Lamine Yamal also found the net for Barcelona, which has scored at least five goals in five of its seven matches across all competitions this season.

In the English League Cup, Manchester United was stunned 3-2 by Brighton after squandering a two-goal lead to crash out in round three.

In the Europa League, Benfica beat AC Milan 2-0 on the road in the first round of the league stage.

Barcelona and Raphinha stay red-hot in Spain

With his hat trick, Raphinha took his league-leading tally to nine goals in six matches. The Brazil forward has scored a goal in all but one game this season.

“Happy for the goals and for the victory, which is the most important thing,” Raphinha said. “The players have the hunger to always want more. It’s a mentality to always try to score more goals and to create more scoring opportunities.”

João Cancelo also scored for Barcelona, which was helped by an own-goal from Racing’s Asier Villalibre. Maguette Gueye and Yassir Zabiri scored for the visitors.

Barcelona has only failed to score fewer than four goals this season in a 2-0 win against Athletic Bilbao.

Barcelona had previously won six games in a row to start the season — in 1929-30, 1960-61 and 2018-19, the club said.

Yamal had a goal disallowed for offside, missed a penalty and hit the post before finally scoring late for Barcelona.

The La Liga champion has also crushed Elche, Rayo Vallecano and Valencia in the league, and Feyenoord in the Champions League.

Hansi Flick’s team has outscored opponents 33-7 in seven games across all competitions. Barcelona has a three-point league lead over Real Madrid, which won at Elche on Tuesday.

Barcelona goalkeeper Joan García was replaced by Wojciech Szczesny at halftime because of an apparent injury. Szczesny’s blunder led to a Racing goal after the goalkeeper tried to control the ball inside the area and was robbed in front of the net.

Atletico Madrid routed visiting Osasuna 4-0 with goals by Jonathan David, Lee Kang-In, Robin Le Normand and Álex Baena.

It was the second win in a row for Diego Simeone’s team, which moved to third. Osasuna has lost three in a row.

Sevilla jumped to fourth by winning 1-0 at Deportivo La Coruña with a second-half goal by Miguel Sierra. Sevilla has won two in a row. Deportivo stayed seventh.

The game between Levante and Athletic Bilbao was postponed because of heavy rain in the city of Valencia.

United upset by Brighton rally in League Cup

Manchester United was booed at Old Trafford after it fell to a third defeat of the season, and second in as many games following Sunday’s loss to Manchester City.

“We had the game exactly where we wanted it and let it get away from us in a big way,” United coach Michael Carrick told Sky Sports. “We can’t accept that as a group. I take responsibility for it.”

United led 2-0 after 10 minutes through goals from Shea Lacey and Mason Mount. But Brighton rallied with Charalampos Kostoulas pulling one back before halftime, and Pascal Gross and Maxim De Cuyper secured victory after the break.

Defeat means United has suffered elimination from the League Cup at the earliest stage for the second season in a row after being knocked out by fourth-tier Grimsby last year.

Benfica tops Milan as Europa League kicks off

Benfica beat AC Milan in the highlight match in the Europa League.

Dodi Lukébakio and Jakub Kaminski scored a goal in each half for the Portuguese club.

Sparta Prague won 4-1 at Ararat-Armenia for the round’s biggest victory.

Sunderland beat visiting AZ Alkmaar 1-0 in its first European match in more than seven decades. Lyon won 2-1 at Anderlecht, while Bayer Leverkusen defeated visiting Celje 2-0.

Celta Vigo’s winless start to the season reached seven matches after a 1-0 loss at Omonia.

JERUSALEM: Prime Minister Benjamin Netanyahu vowed on Wednesday ‌to pass a law to revoke the citizenship of anyone who defames Israel’s soldiers, his latest threat against the Israeli directors of “NAZA,” a documentary about soldiers’ killing of Gaza ​civilians.

Directed by Israeli journalists Yuval Abraham and Rachel Szor, NAZA alleges that mass civilian deaths were routinely built into Israeli targeting decisions in Gaza, something Netanyahu and the military reject.

The film, which won a major prize at the Venice Film Festival on Saturday, takes its title from an Israeli military term for expected “collateral casualties” and is built around anonymous interviews with intelligence officers and soldiers.

It has drawn a backlash in Israel, with ‌the military examining potential ‌legal action against those involved in it. But ​it ‌has ⁠also ​played into ⁠the charged political atmosphere ahead of Israel’s October 27 election, which public opinion polls show Netanyahu’s right-wing coalition could lose.

On Tuesday, Netanyahu accused some of his election rivals of failing to take a tough stand against the documentary, saying this made them unfit for office. And on Wednesday, he pledged to advance two bills that he said aimed at addressing the “immense damage” done to ⁠Israeli soldiers.

“The first, to revoke the citizenship of anyone ‌who defames (Israeli) soldiers, and the second ‌to hit them in their pockets and increase ​the statutory damages for defamation they ‌can be sued for by 20 times,” Netanyahu said in a social ‌media video.

“We will hit them both in their pockets and in their citizenship, as their place is not with us.”

Netanyahu cited three incidents in proposing the bills: “the recent film NAZA which portrayed (Israeli) officers and soldiers as war criminals“; 2025 remarks ‌by left-wing ex-general turned politician Yair Golan that “a sane country does not kill children as a hobby“; and a ⁠military legal officer’s ⁠2024 leak of a video showing soldiers abusing a Gaza detainee.

Reuters could not immediately reach the NAZA filmmakers for comment.

In 2022, Israel’s Supreme Court upheld a law that permits stripping citizenship from Israelis who carry out actions that constitute a breach of trust against the state. Any new legislation would likely face similar court challenges.

The NAZA filmmakers say they believe it is important that Israelis watch the documentary and grapple with the narrative it presents.

Gaza health authorities say more than 73,000 Palestinians, most of them civilians, have been killed in Israel’s military campaign that has left much of ​Gaza in ruins.

The war was ​triggered by Hamas’ October 7, 2023, attack on Israel which killed 1,200 people, most of them civilians, according to Israeli tallies.

WASHINGTON, United States: The US Federal Reserve on Wednesday raised interest rates for the first time since 2023, defying President Donald Trump’s demand for cuts, as central bank chief Kevin Warsh stressed the need to combat inflation that has been “too high” for “too long.”

The Fed’s Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent, saying the rate hike would support a “timelier return” to its two-percent target for inflation.

Warsh, appointed by Trump, said the decision was a “serious” one, but needed to be taken.

“The plain fact is that inflation is too high, and has been for too long,” he told a press conference.

And Wednesday’s rate hike may not be the last — the vast majority of Fed policymakers indicated that at least one more rate hike was likely necessary before the end of the year, according to their Summary of Economic Projections.

US households and businesses have been battered by years of higher-than-target inflation, and prices have surged in the wake of Trump’s war on Iran, his signature tariff policies and the ongoing AI boom.

Trump has launched an unprecedented assault on the Fed’s independence since taking office, attempting to fire a Fed Governor and launching a criminal probe against Warsh’s predecessor in his quest for lower rates to spur economic activity.

The president’s Republican Party faces a stern test in upcoming midterm elections, with rival Democrats seeking to wrest control of both houses of Congress and economic issues front-and-center for voters.

Growing calls for hike

The Fed has held rates steady since January, choosing to wait to gauge the effects of the Iran war’s energy price shocks and to let the impact of tariffs on prices ripple through the economy.

Since July, however, a growing faction of policymakers had indicated a rate hike may be required to tame inflation, as the war grinds on and prices remained elevated.

On Friday, August’s consumer price index came in at 3.4 percent — unchanged from the month before, but still well above the Fed’s long-term two-percent target.

In its SEP, the Fed raised its forecast for its preferred gauge of inflation — the Personal Consumption Expenditures (PCE) price index — by 0.1 percentage points to 3.7 percent by year-end.

The Fed also raised its projection for GDP growth by year-end to 2.3 percent, up 0.1 percentage points.

‘Rather unfortunate’

US stock markets largely priced in Wednesday’s rate hike, but they were still down on the news — expected with any rate hike as equities become less attractive.

Yields on 10-year US Treasury bonds — which have surged in recent days as uncertainty on long-term inflation has spiked — were also up past the five-percent threshold.

Following the Fed’s announcement, White House spokesperson Kush Desai said the decision was “rather unfortunate” and that Trump had been clear that he wanted lower interest rates.

Warsh was named to his position after a contentious Senate confirmation process, where Democratic lawmakers accused him of being a “sock puppet” for Trump, which he denied.

So far, Trump has supported Warsh, claiming that the Fed chair wants lower rates and accusing the board of being “political.”

The Fed has a dual mandate to deliver maximum employment while keeping inflation to its long-term two-percent target.

It mainly achieves these goals by setting the key US interest rate — lower rates tend to spur economic activity but fuel inflation, and hiking them cools both activity and prices.

The Fed’s SEP showed that at least 12 of 18 policymakers who participated in the projection expected one more rate hike would be required before the end of the year.

Four policymakers expect two more rate hikes to be required.

Warsh has criticized the Fed’s policy of offering such projections in the past and did not participate in the previous iteration in June.

This projection also included only 18 policymakers, suggesting he had once again withheld his contribution.

CALIFORNIA: Three people were charged by federal authorities in Los Angeles on Wednesday with stealing $12 million in federal and state homelessness aid to pay for real estate, luxury trips and vintage vehicles.

It was the second such arrest of people on federal fraud charges in Southern California this week, as President Donald Trump’s administration tries to emphasize a crackdown on fraud and waste in government and aid programs. On Tuesday, 12 people were charged with stealing more than $10 million in federal childcare aid.

The three defendants each worked for or ran Southern California-based nonprofit organizations, which often contracted with city, county, state or federal agencies to provide aid or money to find housing and social services for homeless people. Prosecutors allege that the defendants used funds from those contracts to pay personal expenses, accepted bribes, and billed for services that were never provided.

“Make no mistake, HUD and the Trump administration will not tolerate the theft and abuse of taxpayers in this country,” Secretary of Housing and Urban Development Scott Turner said at a news conference.

Turner used the indictments to accuse the Los Angeles Homeless Services Authority, which approved grants to these defendants, of being negligent with taxpayer dollars.

Taxpayer aid spent on video games, nightclubs

Two defendants, Lakiya Malone, 48, and Michael Young, 46, were arrested early Wednesday in Los Angeles. A third defendant charged with wire fraud, Donye Mitchell, 55, is considered a fugitive.

Young is the founder of Home At Last, a nonprofit that took in more than $118 million in public funds since 2019 for its stated mission of providing housing and aid to homeless people.

Federal prosecutors say Young instead created shell companies that he claimed were independent contractors but were, in fact, controlled by him. This alleged self-dealing allowed Young to be paid both at Home At Last and overbill federal and local authorities, prosecutors said. They say Young misused an estimated $7.5 million in taxpayer funds through fake contractors and vendors.

Young used the proceeds to take luxury trips to Tahiti, and used funds to open a nightclub in Inglewood called the Six Seven Five Lounge and other commercial real estate projects, prosecutors allege.

Mitchell is the CEO of Big Blue Umbrella, which was awarded more than $1.2 million from a federally supported nonprofit for housing and mental health care aid. Prosecutors say Mitchell not only misstated his organization’s ability to provide such services, but also used money from the award to pay off his credit card debts, give funds to family members, buy video games and pay legal expenses for an unrelated case.

Malone was charged with accepting more than $180,000 in bribes from another homelessness-aid nonprofit. Malone allegedly not only accepted bribes but also placed people in homeless aid programs who weren’t homeless.

Separately, federal prosecutors announced that a fourth person pleaded guilty to wire fraud and money laundering charges for stealing at least $2 million in homeless aid. Alexander Soofer, the executive director of Abundant Blessings, admitted to working with Malone to bill federal and state authorities for homelessness aid services when there were no participants in his programs.

Big money, little documentation

Some 72,000 to 75,000 people live in shelters or encampments in Los Angeles and Los Angeles County, making it one of the largest homeless populations in the country. It has been a significant issue in Southern California for years, and Los Angeles Mayor Karen Bass made it a cornerstone of her 2022 election campaign.

City and county authorities spend roughly $1 billion a year trying to help the homeless population, often using LAHSA to coordinate aid. While significant funds are spent to address the issue, city and county reviews have repeatedly found that the programs lacked appropriate recordkeeping, audit trails and documentation.

Nathan Hochman, the district attorney for Los Angeles County, told reporters that the public should expect more investigations and indictments into the misuse of homeless aid funds. Hochman’s office’s investigation into Soofer and Abundant Blessings led to his indictment earlier this year.

“I can assure this is the beginning of these prosecutions and we are far, far from the end,” he said, adding that his office’s investigation had found that the only “abundant blessings” Soofer provided were to his friends and family.

Some of the Trump administration’s efforts to go after fraud and abuse of government benefit programs have faced criticism and legal challenges. In December, Vice President JD Vance, who chairs the administration’s task force on the subject, amplified a YouTube video of a popular right-wing influencer accusing childcare providers in Minnesota, many of them immigrants from Somalia, of running scams. State authorities visited the centers and found nearly all of them operating normally.

Nonetheless, the administration launched a massive immigration crackdown in Minnesota. Officials later attempted to freeze federal funds for childcare in five Democratic-led states but were halted by a lawsuit.

PARIS: France’s ex-culture minister Rachida Dati appeared in court Wednesday on corruption charges linked to dealings with the Renault-Nissan group, just months after her bruising defeat in the Paris mayoral race.

One of the most prominent figures on the French right, Dati, 60, stood in court dressed in black to hear the charges against her, all of which she denies.

Carlos Ghosn, the fugitive former Renault-Nissan chief now living in Lebanon, is being tried in absentia.

Dati has been dogged by controversies for much of her political career.

She resigned as culture minister in February to concentrate on the Paris mayoral race, but lost to Socialist rival Emmanuel Gregoire in March.

She stands charged with corruption and influence-peddling over alleged lobbying for Renault-Nissan between October 2009 and February 2013 while she was a member of the European Parliament.

She became an MEP after serving as justice minister between 2007 and 2009 under President Nicolas Sarkozy.

She has been accused of accepting 900,000 euros (around $1 million) in lawyers’ fees from a Netherlands-based subsidiary of Renault-Nissan.

Dati, who is still the mayor of the French capital’s wealthy seventh district, denies all the charges.

She faces up to 10 years in prison and a fine of up to 450,000 euros, if convicted. She could also face a five-year ban on holding public office.

Her legal team said Dati worked “exclusively” as a lawyer for the Netherlands-based subsidiary.

“Unfounded allegations of influence-peddling in the European Parliament stem from an artificial intellectual construct devised by the prosecution,” her lawyers said.

– ‘Explain facts’ –

French prosecutors argue that a legal services contract signed in 2009 between Dati and Ghosn, under which the former minister was paid an annual fee of 300,000 euros, was used to disguise lobbying work.

Investigators obtained the contract in 2019 during a search of Renault’s headquarters following Ghosn’s arrest in Japan, in a separate case.

Ghosn, the 72-year-old former chairman and chief executive of the Renault-Nissan-Mitsubishi alliance, was arrested in Japan in 2018 on suspicion of financial misconduct, before being sacked by Nissan’s board.

He made a dramatic escape from Japan hidden in an audio-equipment box, landing in Beirut, where he remains at large.

Ghosn faces a litany of charges, including abuse of power and bribery. He has denied any wrongdoing.

In a letter sent to the court in August and seen by AFP, Ghosn requested that the proceedings be postponed.

Denying any attempt to “delay the trial”, Ghosn said he was prepared to appear by video link to “explain facts” that he disputes.

Dati has repeatedly sought to have the charges against her quashed.

She has also been accused of accepting nearly 300,000 euros in undeclared payments from energy group GDF Suez, also while an MEP.

Prosecutors said last year they were looking into reports that Dati failed to declare jewelry and watches worth 420,000 euros upon taking ministerial office.

She has denied any wrongdoing.

SILVERSTONE, England: Max Verstappen needed about 35 minutes to overcome 100 karting drivers in a Red Bull event at Silverstone on Wednesday.

Verstappen started 101st at the Silverstone karting circuit, and overtook 64 drivers on the first lap alone, with many of his opponents crashing among themselves.

Many got blocked on the track after a pile-up that prompted a full-course yellow flag. Verstappen went off track but was able to return.

“That was simply lovely,” Verstappen said. “It was a lot of fun.”

Verstappen, who finished second in Formula 1’s Spanish Grand Prix on Sunday, was up to 37th after the first lap, and up to sixth place by the sixth lap.

He went off track again but stayed comfortably faster than most drivers, none of them with any significant professional driving experience.

He said jokingly that the victory ranked as “the best one yet” in his career.

LONDON: Pope Leo XIV expressed satisfaction with Jordan’s preparations for the 2,000th anniversary of Jesus Christ’s baptism in the Jordan River, according to a Jordanian priest on Wednesday.

Fr Rifat Bader, director of the Catholic Center for Studies and Media in Jordan, described the meeting with the pope in Rome last week to the Jordan News Agency as taking place in a “friendly and spiritual atmosphere.”

The Jordanian priest returned this week from a two-day religious dialogue platformed at the Vatican. The Interreligious Platform for Dialogue and Cooperation in the Arab World, affiliated with the International Dialogue Center, held its meetings early this month. The Jordanian delegation included Sheikh Omar Rousan of the department of fatwas.

The 2,000th anniversary of the revered event is scheduled for 2030 and will take place at Christ’s baptismal site, also known as Bethany Beyond the Jordan, a UNESCO World Heritage site that attracts Christian pilgrims and other visitors.

Jordan is home to many important Christian sites, including Mount Nebo in the Madaba governorate, where the Bible says Moses saw the Promised Land before he died.

JEDDAH: Around 150 senior business leaders, investors and policymakers will gather in Riyadh on Sept. 29 to examine the forces expected to shape Saudi Arabia and wider MENAT economies over the next five years.

Forum to examine five-year economic outlook

The inaugural Economic Forum by Servcorp, powered by Emerging Markets Intelligence & Research, or EMIR, will examine the broader forces shaping the Kingdom and the wider Middle East, North Africa, and Turkiye, or MENAT, according to a press release.

As Saudi Arabia continues to advance its Vision 2030 agenda, the forum will use the Kingdom as its base while adopting a broader MENAT perspective.

Its five-year outlook will focus on the longer-term forces shaping business and policy decisions, drawing on Servcorp’s regional experience and EMIR’s economic intelligence to connect global developments with the practical realities of operating across MENAT.

Leaders to discuss regional growth and business priorities

“After more than 25 years supporting businesses in the region, we know that ambition creates value only when it is translated into execution,” CEO, Middle East, Europe, and America at Servcorp, David Godchaux, said.

Godchaux added that leaders must decide where to commit, which capabilities to build and which priorities to defer, yet the context for making those decisions is becoming more complex.

He added that the Economic Forum by Servcorp would provide a setting for candid, peer-level discussions on the decisions that will shape the region’s next phase of growth.

“The Economic Forum by Servcorp will provide a setting for candid, peer-level discussions on the decisions that will shape the region’s next phase of growth,” he said.

UNITED NATIONS, United States: UN Secretary-General Antonio Guterres on Wednesday called for coordinated international action to address AI risks as fears rise about the dangers of the fast-evolving technology.

“National action is essential. But global coordination is also indispensable,” he told reporters. “AI does not stop at borders and neither do its risks.”

“AI has enormous potential — to accelerate sustainable development, enhance learning, strengthen health systems, boost climate resilience, and so much more,” Guterres said.

“But a growing number of those building it are sounding the alarm — warning that development is racing ahead of our understanding of the risks.”

“The world cannot afford a race to the bottom on AI safety,” he warned.

Concerns about AI safety have escalated in recent weeks, with workers at major AI developers resigning over concerns about the dangers posed by the technology.

President Donald Trump has dismissed warnings against AI risks as a “hoax” and pushed back against calls for tighter oversight.

KYIV: A Russian drone struck a passenger bus in southern Ukraine early Wednesday, killing five people and wounding at least seven in the latest in a series of Russian strikes on civilian transportation.

Ukrainian President Volodymyr Zelensky called the attack an atrocity with no military purpose.

The strike occurred in the Nikopol district of Ukraine’s Dnipropetrovsk region, near the war’s southern front line. Oleksandr Hanzha, head of the regional military administration, said that all five were killed at the scene while the seven wounded were receiving medical care.

Zelensky described the vehicle as a minibus and said in an X post that the strike had “no military rationale” and that it was “just another atrocity.” He said the strike was connected to Russia’s targeting of logistics and critical infrastructure that has continued “unabated.”

Zelensky said that a passenger train was also struck in the Mykolaiv region on Wednesday, damaging a railway station and a diesel locomotive. Nearly 170 passengers on board the train were evacuated before the strike. An electric locomotive in the northwestern city of Kovel was also struck, Zelensky said.

Ukraine requests locomotives from partners

Russian strikes on Ukraine’s rail network have resulted in more than 500 locomotives being damaged or completely destroyed since the beginning of the all-out war on Feb. 24, 2022, with more than half those strikes occurring this year, Ukrainian Foreign Minister Andrii Sybiha wrote on X on Tuesday.

Sybiha described such attacks as “systematic” and aimed at disrupting logistics across Ukraine. He said that Ukraine urgently needs replacements for damaged locomotives, and called on the country’s partners to assist in finding locomotives compatible with its 1,520-millimeter rail gauge and to assist in financing.

In another post on X on Wednesday, Sybiha said that Russian forces were striking passenger trains, locomotives, stations and railway routes “knowing exactly how essential they are for civilians, evacuations and Ukraine’s economy.”

“This is not collateral damage. It is a systematic hunt for people and an attempt to (paralyze) civilian life,” he wrote.

Zelensky says there is no truce on halting energy strikes

In an interview with CBS News on Tuesday, Zelensky pushed back against an earlier claim by US President Donald Trump that Ukraine and Russia had agreed to mutually cease attacks on each other’s energy infrastructure. Zelensky said that Ukraine was ready to enter such an agreement, if Russia stops striking Ukrainian energy facilities.

Trump said in a social media post Monday that such a truce had been reached, but didn’t offer details on the purported agreement. Previous efforts to broker even a partial ceasefire have repeatedly fallen apart within hours, with both sides accusing the other of violations.

In the CBS interview, Zelensky said that the possibility of an energy truce was discussed during a recent meeting in Kyiv with Trump’s representatives, Steve Witkoff and Jared Kushner, but that he had told them: “If the Russians are ready for an energy truce, that means there will be no attacks on energy facilities at all.”

Russia decorates ship captain who fired flares at Danish helicopter

Russia’s Defense Ministry said Wednesday that the captain of a Russian warship that fired two signal flares toward a Danish military helicopter on Monday, drawing ire from Denmark, has been awarded a medal for his “competent and resolute action.”

The ministry said in a statement that the Soobrazitelny corvette was on a mission in neutral waters in the Baltic Sea when its crew spotted the approaching helicopter, which failed to respond to calls made via the international communication channel.

“To prevent a provocation by the Danish helicopter, the corvette commander decided to fire two red signal flares, after which the helicopter left the area where the Russian warship was located,” the ministry said.

Russian Foreign Minister Sergey Lavrov said Wednesday that Moscow has no aggressive intentions toward Europe, but that if countries on the continent were to launch an attack on Russia, “it would be a completely different kind of war, and a very short one.”

Russian general killed in Ukrainian drone strike

The deputy head of the Russian armed forces’ military-political department, Lt. Gen. Apti Alaudinov, confirmed Wednesday that a decorated Russian general had been killed in the occupied Donetsk region.

Alaudinov, who didn’t provide details on the circumstances of Maj. Gen. Anton Grunis’ death, hailed the officer as “a hero” and “one of the most respected generals … a real man and officer and a great patriot.”

The confirmation of Grunis’ death came after Robert “Magyar” Brovdi, commander of Ukraine’s Unmanned Systems Forces, alleged on Wednesday that Grunis had been killed in occupied Donetsk by a Ukrainian drone while at a command post in the village of Kindrativka.

In July, Grunis reported to Russian President Vladimir Putin that his troops had captured the town of Kostiantynivka and he was later awarded the Hero of Russia medal. Ukraine has disputed that Kostiantynivka was fully taken by Russian forces.

Grunis had previously fought in Chechnya, a mainly Muslim republic whose bid for independence after the Soviet Union’s collapse led to years of war with Russian government forces. He also took part in Russia’s campaign in Syria.

In Ukraine, he commanded the 4th Guards Motorized Infantry Brigade.

Meanwhile, 17 other sites were damaged in Ukraine’s Kyiv region between Tuesday and Wednesday morning, according to the head of the Kyiv regional military administration, Tymur Tkachenko. Eight private homes, five vehicles, a municipal building, a hangar and a production facility were among the sites damaged, Tkachenko said on Telegram.

Zelensky said on X that the Kherson, Donetsk and Poltava regions had also come under attack.

In the northern city of Sumy, six people were injured in a Russian guided aerial bomb attack, including a 14-year-old girl, according to the head of the Sumy regional military administration Oleh Hryhorov. Two homes were destroyed and 10 others damaged in the strikes, along with damage to an educational facility, Hryhorov said, adding that two other men were hospitalized after a separate strike hit an industrial zone.

In the port city of Odesa, one person was killed in a Russian attack that sparked a fire at garages and damaged vehicles and private homes, Serhii Lysak, head of the city’s military administration, wrote on Telegram Wednesday.

Russia’s Defense Ministry said that its air defenses downed 71 Ukrainian drones overnight. In the Belgorod region, one person was killed and four others were wounded by Ukrainian strikes over the last 24 hours, according to acting governor Alexander Shuvayev.

Saudi digital payments company barq announced the close of a series A funding round worth $329.5 million, at a valuation of $1.85 billion, marking a new milestone that reflects the growth the company has achieved since its launch. The funding round cements its position among the fastest-growing fintech companies in Saudi Arabia and the region.

The round saw participation from Noon Investments, Sohar International Bank, and M20 Fund, a step that reflects investor confidence in barq’s trajectory and future potential, and underscores the appeal of the investment opportunities emerging in the fintech sector across the Kingdom and the region.

The round follows a standout growth journey for barq, which has now surpassed 15 million users within two years, from more than 210 nationalities, alongside the expansion of its ecosystem of digital financial services and solutions — reflecting the growing demand for the company’s products and its ability to build a broad user base within a record period of time.

The value of funds processed has also surpassed SR440 billion ($117.2 billion), an indicator that reflects the scale of activity barq has achieved and the widening use of its digital financial services since launch.

Based on its valuation, barq has become one of the fastest companies in the region to reach unicorn status, and among the fastest globally within the fintech sector, reflecting the pace of growth the company has achieved within a short period since its launch.

The funding round will support barq’s next phase of growth, by strengthening operational efficiency, accelerating the development of products and services, investing in new financial and technology solutions, and expanding into new regional and international markets — contributing to delivering a more advanced and accessible digital financial experience for users.

This achievement comes at a time when Saudi Arabia’s fintech sector is undergoing exceptional development, driven by continued progress in financial and digital infrastructure, a supportive regulatory environment, the targets of Saudi Vision 2030, and the Saudi Central Bank’s efforts to advance digital payments and support innovation in financial services.

The close of the round marks a major milestone in barq’s journey, reflecting its ability to move within a short period from a phase of rapid growth to building a broad-scale digital financial platform, underpinned by a growing user base, an increasing volume of operations, and expansion ambitions aimed at strengthening its presence in the fintech sector at both the regional and international levels.

JEDDAH: Saudi Arabia’s Tadawul All Share Index held firm on Wednesday, losing just 1.66 points, or 0.02 percent, to close at 10,779.96 

As investors traded around 168 million shares worth nearly SR3.5 billion ($933 million), 113 stocks advanced and 147 declined. 

The Kingdom’s parallel market Nomu lost 2.77 points, or 0.01 percent, to close at 21,376.05, with 30 companies gaining and 33 declining. The MSCI Tadawul 30 Index also fell 0.08 points, or 0.01 percent, to close at 1,450.01. 

Market movers 

The main market’s top performer was Raydan Food Co., whose share price increased 10 percent to end the session at SR16.28, while Nofoth Food Products Co. recorded a 9.87 percent increase to close at SR6.57.

Ataa Educational Co. also increased 4.75 percent to end the day at SR42.76. 

On the losing side, Armah Sports Co. decreased 4.92 percent to close at SR67.60, while Flynas Co. declined 4.46 percent to end the session at SR42.02.

Sumou Real Estate Co. also declined 4.13 percent to close at SR25.08. 

Corporate disclosures 

Saudi Vitrified Clay Pipes Co. said Laffan Pipes Co., or Laffan Saudi, has been converted from a one-person limited liability company into an unlisted Saudi joint stock company with issued capital of SR45.5 million, according to a Tadawul filing. 

Laffan Pipes Factory Co. of Qatar has completed its admission as a shareholder through a capital increase against an in-kind contribution, giving it a 45 percent stake in Laffan Saudi, while SVCP retains the remaining 55 percent. 

Laffan Saudi’s issued capital comprises 45.5 million ordinary shares, each with a nominal value of SR1, and has been fully paid through in-kind contributions.  

The development follows an MoU signed between the two companies in February 2024 and a partnership agreement signed about six months later. 

SVCP’s shares declined 3.12 percent to close at SR17.99. 

In another disclosure, Umm Al-Qura for Development and Construction Co. said it signed an agreement to sell a 2,500-sq.-meter plot within Masar Destination in Makkah to Rawajeh Real Estate Co. for SR168.91 million. 

The boulevard-facing plot, located in Zone 2 of Masar Destination, has a book value of SR76.01 million. 

Umm Al-Qura, whose shares rose 2.50 percent to SR17.20, said the sale is part of its development strategy for Masar Destination, with the plot to be developed as a residential tower.

The transaction is expected to have a positive impact on liquidity and financial results, with proceeds to be used to finance working capital and ongoing projects. 

In a separate Tadawul filing, CATRION Catering Holding Co. said it signed an agreement with Air Arabia DMM Co. to provide inflight catering services under a five-year contract valued at an estimated SR200 million.  

Under the agreement, CATRION will provide inflight catering services, sell onboard food, beverages and other supplies, and provide logistics services to Air Arabia.  

The agreement was signed on Sept. 15 and is expected to have a financial impact beginning in the fourth quarter of 2026. 

CATRION, whose share price fell 0.74 percent to SR67.25, said the agreement is part of its strategy to sustain business, strengthen long-term partnerships with airline-sector clients, support growth, diversify revenue streams and enhance operational efficiency. 

Are the brakes finally being slammed on the artificial intelligence race? Or are we simply witnessing a wake-up call that has come too late?

Developers are coming forward in numbers these days to say that the speed and direction of travel of AI, machine learning and the tech reaching the human level of intelligence is threatening human existence.

Jacob Coxon, the researcher who quit Anthropic last week, feared that those developing AI systems are “genuinely frightened” for the future of humanity. His words echo a growing anxiety in the field, as well as in government, about the challenges and dangers posed by AI. At this late stage, could there still be room for a U-turn that keeps the machine at the service of humanity, instead of human existence becoming a victim of the machines that have already been built?

Ask anyone on the street and — though they would be all for the progress and the positives the tech is offering in many fields touching human life — they would be quick to roll their eyes in despair when they reflect on AI, the uncertainties it brings and their future job security. Scratch the surface further and their anxiety surges about the impact unregulated tech companies are having on their children, potentially exposing them to unmoderated, manipulated content and often-damaging influence.

People are quick to despair when they reflect on AI, the uncertainties it brings and their future job security

Mohamed Chebaro

Their worries take a turn when they reflect that, even if they safely navigate their children’s youth, the job market may be permanently changing, hurting their prospects in the digitally automated and largely autonomous world of tomorrow.

It was troubling when I read recently that Microsoft co-founder Bill Gates had called, in a 6,000-word essay, for society to intentionally keep certain roles off-limits to the machine. His proposal of setting aside 40 percent of occupations as “human-reserved” is bizarre to say the least, as he better than anyone should be aware that markets, economies and competition do not work this way.

The words of Gates and the AI developers and researchers point to a grave lapse. It seems we have rushed into a race to make the machine supreme, giving artificial general intelligence agency over humans, who could ultimately be replaced by AI and advanced robots. The developers seem to have fallen into the trap of the machine becoming an end in itself and not a tool to serve and ensure the well-being of individuals.

It is not usual for companies and entire industries to plead with the world to make them work less and advance at a slower pace. And who and which institutions should heed their calls when we live in a highly fractured and geopolitically splintered world, in which superpowers and medium powers are vying for supremacy, with AI and its tools becoming their most potent vehicles?

The tech industry has clearly become too big to fail and too big to slow down. An AI slowdown — if there were suggestions its progress could be reversed or even stalled — would significantly affect the long-term direction and costs of the infrastructure boom.

It was surprising and unusual to hear key world leaders defend the sector. In the race for the vast supremacy and advantages it offers, their posture is understandable. The political imperative to press ahead was made clear by both Washington and Beijing. That appears to show that, whatever the private sector does, governments will want to ‌drive this capability precisely because of, not despite, the risks that are now being flagged.

Governments want to ‌drive this capability precisely because of, not despite, the risks that are now being flagged

Mohamed Chebaro

In this competitive world, there is no place for existential worries or fears for humanity and its survival. One country’s slowdown is another’s chance to catch up.

Calls for guardrails, rules and regulations are being constantly ignored or watered down. In a world where multilateralism is waning, technological restrictions like arms controls are useless unless solid conventions enforce them internationally.

The prospect of a multilateral agreement on hard-and-fast rules limiting the capacity of AI seems far-fetched. US President Donald Trump made that clear, saying on social media that “There is a SICK conspiracy going on against AI and Data Centers, and the only one that is happy about it is China.” The reply from Beijing came through an editorial in China’s state-backed Global Times, which claimed that AI warnings were a “Cold War playbook” targeting Beijing.

A call by Anthropic CEO ‌Dario Amodei to slow the pace of AI development won ⁠rare backing from SpaceXAI’s Elon Musk and OpenAI’s Sam Altman, with all evoking AI “doomerism.” This should surely not be ignored.

The solution should be simple: more cooperation in order to regulate.

According to these tech supremos, reports that swarms of AI agents have been increasingly found to be collaborating with others and hacking outside systems, or that their power was being used to develop harmful biological agents, are just the beginning. The same AI tools might have the potential to take down the internet and everything that relies on it, such as power grids, transport infrastructure, water supplies and banking systems. All of which could be the first call for an act of aggression by any group or state.

AI has become a crucial tool of economic and military prowess. Calls for protocols and conventions to restrain the tech realm have long irked most companies. Yet, if we are to believe some in the tech community, the world has in its hands a calamity in the making that surpasses even the existential nuclear threat, which was ultimately constrained through global moratoriums and conventions. AI is a different beast and, since its onset, humans have been the victims in the name of reducing labor costs.

Over the past decade, labor has become a mere number on a cost sheet. The fear is that humanizing work once again would be a far more complex task — one that the tech giants, the financiers and the state are not ready to undertake, even if it could save humanity from eventual extinction. The world has long since departed from the mindset that the machine should serve humans and not the other way round.

• Mohamed Chebaro is a British-Lebanese journalist with more than 25 years of experience covering war, terrorism, defense, current affairs, and diplomacy.

Mohamed Chebaro is a British-Lebanese journalist with more than 25 years’ experience covering war, terrorism, defense, current affairs and diplomacy. He is also a media consultant and trainer.

More from Mohamed Chebaro

Indonesia is expanding cultural cooperation with Gulf states to preserve the diverse heritage of Muslim societies, the culture minister tells Arab News, as he seeks partnerships in new technologies and creative entrepreneurship to keep it relevant for younger generations.

Minister of Culture Fadli Zon has held talks with Gulf officials in recent months, as part of Indonesia’s effort to strengthen cultural diplomacy. 

This includes meetings with Saudi Minister of Culture Bader bin Abdullah bin Farhan, the Kuwaiti Ambassador to Indonesia Khalid Jassim Al-Yassin, and the Qatari Ambassador to Indonesia Sultan bin Mubarak Saad Al-Dosari.  

“Indonesia and the Gulf countries share an interest in safeguarding heritage while ensuring its relevance to younger generations,” Fadli said.  

“Collaboration in digitization, museum development, heritage management, cultural education, and the use of new technologies can strengthen preservation while supporting tourism, research, and creative entrepreneurship.” 

He envisions deeper cooperation with Gulf partners through more extensive cultural exchange, experience and knowledge sharing, as well as collaborations in the creative economy, ranging from modest fashion, culinary traditions to digital content creation. 

While Indonesia and Gulf countries have “distinct cultural traditions and national experiences,” they are still connected by centuries-long ties, through which further cultural cooperation can serve as “an important platform for sharing the diverse expressions of Muslim societies,” Fadli added. 

He highlighted “strategic, multi-layered initiatives” Jakarta currently has with Gulf nations, including how the visit of Saudi culture minister to Jakarta in April “opened new avenues in joint film co-production, artist residencies, museum innovation and digital cultural” programs and boosted the renewal of their cultural cooperation, following Jakarta and Riyadh’s first such agreement in 2017. 

The two countries are also collaborating under the framework of intangible cultural heritage, including on preserving Arabic calligraphy and the extension of its recognition by UNESCO. 

This year, the world’s largest Muslim-majority country will organize cultural programs with Qatar to celebrate their 50th anniversary of diplomatic relations, with plans to showcase their national stamps. 

In 2025, the culture ministry’s Directorate General of Cultural Diplomacy, Promotion and Cooperation signed an agreement with the Abu Dhabi Arabic Language Center, as Jakarta aims to promote Indonesian literature and arts through major international events held in the UAE. 

In his meetings with the Qatari and Kuwaiti envoys last month, Fadli also proposed talks on bilateral cultural agreements to broaden cooperation in the sector.

“Indonesia is committed to transforming its longstanding historical and spiritual ties with the Gulf into modern, dynamic, and sustainable partnerships … We believe that the relationship between Indonesia and the Gulf can become an important model of cooperation between diverse Muslim societies,” Fadli said. 

“By working together, Indonesia and the Gulf can ensure that culture does more than preserve the memory of our past. It can guide our societies through the challenges of the present and help us shape a more peaceful, inclusive, and humane future.”

JEDDAH: Saudi-Chinese relations are currently in an excellent phase, according to China’s Consul General in Jeddah, Yang Yi.

Speaking to Al-Eqtisadiah, Yi said this year marks the 10th anniversary of the establishment of the comprehensive strategic partnership between the two countries, adding that bilateral trade reached $100 billion in 2025.

$100 billion in bilateral trade

Yi said China is Saudi Arabia’s largest trading partner, while the Kingdom ranks as China’s largest trading partner in the Middle East.

Bilateral trade amounted to about $50 billion during the first half of this year, with China’s imports from Saudi Arabia exceeding $26 billion during the same period. In contrast, the Kingdom’s imports from China amounted to about $24 billion.

Yi said trade between the two countries is “very balanced,” adding that bilateral trade relations have remained strong despite regional tensions. He also highlighted the growing economic and trade ties between Saudi Arabia and China.

Chinese firms support targets of Saudi Vision 2030

Yi said Chinese companies are actively supporting the implementation of Saudi Vision 2030, noting that China leads among countries contributing to infrastructure and new-energy projects in the Kingdom.

Regarding mutual investments, he estimated that Chinese investment in Saudi Arabia has exceeded $4.26 billion, while Saudi investment in China is also growing, particularly in new energy, advanced technologies and biotechnology.

Saudi investments also include the culture and education sectors, with Yi confirming that the strength of relations and the depth of the partnership are encouraging more Chinese companies to invest in the Saudi market.

At the same time, Saudi companies are showing growing interest in the Chinese market, with the consul general expressing his aspiration for “more prosperous and fruitful” bilateral economic relations in the coming period.

New energy and artificial intelligence

The Chinese official highlighted new areas of Saudi-Chinese cooperation, including new energy, green energy and artificial intelligence, noting that the two countries have held discussions on these areas in recent years.

The leaders of the two countries have also reached important understandings to strengthen cooperation in several areas.

Government entities, companies, and research centers in the two countries are working intensively to develop cooperation.

This aims to consolidate the Saudi-Chinese partnership and enhance cooperation in artificial intelligence and new energy.

China calls for the Strait of Hormuz to remain open

Yi said developments in the Strait of Hormuz are of great importance to countries in the region and the international community, stressing that China attaches great importance to the issue.

He said China supports a political settlement on the issue and called for an immediate ceasefire, adding that keeping the Strait of Hormuz open and free serves the interests of all parties.

He also stressed China’s support for efforts to find a peaceful solution to the issue, saying this would help maintain stability and security in the region while ensuring the continued flow of trade and energy.

DUBAI: Film AlUla has signed a memorandum of understanding with international film financier Sherborne Media at the 2026 Toronto International Film Festival, establishing a financial framework designed to expand production support for Saudi, regional, and international filmmakers shooting in AlUla in the northwest of Saudi Arabia.

Qualifying productions filming in AlUla will be able to access debt financing solutions secured against available production rebates, grants, incentives, and soft money. The combined support packages will cover up to 50 percent of eligible production expenditure incurred in AlUla.

The partnership aims to address one of the filmmaking industry’s key barriers: upfront liquidity for producers against their contracted rebate and incentives receivables, ensuring sufficient cash flow to facilitate production.

By providing a standardized, transparent process for financial due diligence, the initiative supports established Saudi, MENA (Middle East and North Africa), and international storytellers in bringing their projects to life using AlUla’s production facilities, purpose-built soundstages, and historic landscapes.

The partnership will also integrate workforce development opportunities to support the sustainable growth of Saudi Arabia’s film industry. Film AlUla and Sherborne will collaborate on structured training programmes, crew upskilling, and local hiring initiatives to build long-term regional production capacity.

Zaid Shaker, acting executive director of Film AlUla, said: “Financing remains one of the most critical challenges facing creators today — particularly for emerging creators in Saudi Arabia and the region. Our partnership with Sherborne Media allows us to establish an efficient, transparent mechanism that bridges the gap between creative vision and financial execution. By pairing our state-of-the-art facilities and rebate structures with institutional debt solutions, we are providing a reliable platform for local and international artists to tell authentic, compelling stories – right here in AlUla.”

Alastair Burlingham, CO-CEO of Sherborne Media, said: “Saudi Arabia’s screen sector is expanding rapidly, supported by strategic leadership and infrastructure investment. After the successful financing and production of ‘Chasing Red’ earlier in 2026, and leveraging the services offered by Caravan — our Saudi joint venture company with Stampede — we are delighted to join forces with Film AlUla during TIFF 2026 to help facilitate its growth by introducing a structured financing model.

“Curated credit facilities against soft money and incentives receivables give producers the financial certainty required to execute high-quality feature and television projects efficiently in AlUla.”