Sunday, February 26, 2017

The Economic Boycott Against Israel

The strategy of the anti-Jewish boycott in modern times can be traced to the anti-Semitism of the Nazi Germany and in the Middle East to the postwar Arab anti-Zionist activity. In the same year that Hitler rose to power in Germany, the Arab Higher Committee (لجنة العربية العليا), headed by the future Nazi collaborationist Haj Amin al-Husseini, Mufti of Jerusalem, called for a boycott against the Jews in the British Mandate of Palestine. A couple of years before the 1948 establishment of the State of Israel, the Arab League organized an official boycott against the Jews of Palestine in December 1945.

Three Jewish businessmen are forced to march down a crowded Leipzig street while carrying signs reading: "Don't buy from Jews. Shop in German businesses!" Leipzig, Germany, 1935.
Three Jewish businessmen are forced to march down a crowded Leipzig street while carrying signs reading: "Don't buy from Jews. Shop in German businesses!" Leipzig, Germany, 1935. 
— US Holocaust Memorial Museum

In 1994, partially because of the Oslo accords, partially because the inefficiency of the Arab boycott, GCC states (Cooperation Council for the Arab States of the Gulf), officially ceased their participation in the boycott. They also states that the boycott hindered the regional economic development.

Since then the boycott was not much applied, but in the mid-2005 the Palestinians initiated a global movement pressuring for boycott, divestment and sanctions, in different fields like trade, academics, cultural activities, etc. The main aim of this movement is the destruction of the State of Israel as was admitted by one of its founders, Omar Barghouti, who said “ending the Israeli control of the territories is only the first stage in the way to implement the vision of dismantling Israel”. Barghouti was born in Qatar, grew up in Egypt and later moved to Israel as an adult. He opposes the two-state solution. He has been widely criticized for on one side lobbying for a global economic, cultural and academic boycott of Israel, and on the other, having studied in the Tel Aviv University.
In the end of the day, the BDS movement is basically an anti-Semitic force, and, in the same fashion that the Nazis attacked in the last century the Jewish main demographical centre, today they attack the current largest Jewish community of the world and the main resource of the Jewish people, the State of Israel.


In a direct challenge to legal rulings, BDS activists staged a protest calling for the boycott of Israeli goods at a LIDL supermarket in the south of France on 23 January 2016. 

The BDS is a malign force, but also very inefficient. They can disrupt the selling of Israeli oranges in a Parisian supermarket, but it doesn’t work the same way with the complex Israel export of knowhow and high-tech products. Israel is economically strong and it is strengthening even more. In the last days, the Indian government has cleared a $2.5 billion deal purchasing from Israel for its army a medium-range surface-to-air missile defense system. The partners of the Leviathan gas reservoir, some 130 km west of Haifa, have announced that they will invest $3.75 billion. Crushing the BDS efforts, this is Israel’s biggest energy project and financial investment in all its history.

Tuesday, February 7, 2017

Saudi Arabia: The troubles of PetroRabigh

Saudi petrochemicals group PetroRabigh — a joint venture between state-owned Saudi Aramco and Japan’s Sumitomo Chemical — has further delayed the completion of its Rabigh 2 expansion project (near Jeddah), leading to a cost increase. The rest of the project, including the majority of electrical and non-electrical utilities, support services buildings, as well as the cumene and phenol units, will be completed in the second quarter of 2017, instead of second half of 2016 as previously announced. The main reason for the delays was the failure of the key contractors of the project to meet the planned implementation schedule. Feasibility study on the project was carried out in 2009, while construction work began three years later. Work on the ethane-fed cracker, a main component of the project, was completed in April. It raised the capacity of the cracker to 1.6mn t/yr of ethylene from 1.3mn t/yr. The cracker’s ethane processing capacity increased by 30mn ft³/d (30.9bn m³/yr) to 125mn ft³/d. The project also involves a new naphtha reformer and aromatics complex that will be able to process more than 2.7mn t/yr of naphtha and produce 1.3mn t/yr of paraxylene. It is designed to produce a broad range of petrochemical products, including ethylene propylene diene monomer rubber, thermoplastic olefins, methyl methacrylate and polymethyl methacrylate. Once the Rabigh 2 expansion project is completed, the entire complex will be capable of producing 5mn t/yr of petrochemical products and 15mn t/yr of refined petroleum products. Along with around 107,000 t/yr, of sulphur an increase from around 44,000 t/yr.
PetroRabigh's earnings have been hit hard by falling product prices, like many petrochemical firms in the kingdom, as they are closely tied to slumping oil prices.