6 Sep

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ON IP TI SC R SU B

TUESDAY, SEPTEMBER 6, 2011

Kuwait faces dilemma over taxing expatriates

Syria forces in deadly raids, Red Cross visits jail

150 FILS

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www.kuwaittimes.net

SHAWWAL 8, 1432 AH

Pakistani tech wiz harnesses Internet for the poor

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Nadal collapses after win at scorching US Open

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NO: 15201

Iraq says dispute over Kuwaiti port resolved Zebari: Technical report removes fears of Mubarak port

Inflation seen staying muted DUBAI: Kuwait’s annual inflation eased to an 11-month low of 4.6 percent in July and edged up only slightly from the month before on higher food and transport prices, data showed yesterday, and analysts said they expect price pressures to stay muted. Inflation in the Gulf, the world’s top oil-exporting region, is expected to creep higher this year on robust global commodity prices, a weak dollar and increased government spending following political turmoil across the Arab world. In Kuwait, inflation had been hovering above 5.0 percent since reaching almost a two-year high of 6.0 percent in December 2010, though it subsided to 5.0 percent in June. On the month, consumer price growth slowed to 0.1 percent in July from 0.2 percent the previous month, data from the Gulf Arab country’s Central Statistics Office showed. “The July reading confirms a very benign inflationary situation, with prices essentially unchanged compared with June,” said Liz Martins, senior MENA economist at HSBC in Dubai. “The August number could come in higher, thanks to the Ramadan effect, but the underlying picture is of very low level price growth,” she said. Food prices usually rise during the holy month of Ramadan, which ended in August, as families enjoy more elaborate evening meals after fasting during the daylight hours. Kuwait has one of the highest annual inflation rates in the Gulf, second only to Saudi’s 4.9 percent in July, although price growth remains well below a record high of 11.6 percent seen during an oil-fuelled boom in Aug 2008. Analysts polled by Reuters in June expected average inflation in the world’s No. 6 crude exporter to reach 5.1 percent in 2011 after 4.0 percent last year. In July, food costs, which account for 18 percent of Kuwait consumer expenses, rose by 0.2 percent on a monthly basis after a 0.6 percent drop in the previous month, the data also showed. Transport and communication prices rose 0.1 percent month-on-month, cooling down from a 1.0 percent jump in June. Housing costs, which make up 27 percent of the basket, were unchanged for the fourth month in a row in July. “There is significant oversupply in housing in both the UAE and Qatar that is helping subdue inflation. But in Kuwait they don’t have that kind of oversupply in the housing market,” said Shady Shaher, senior economist at Standard Chartered in Dubai. Kuwait’s Central Bank governor was quoted in June as saying interest rates were at a suitable level, and a dinar peg to a basket of currencies was helping to curb inflation, mostly driven by rising import costs. Slowing global economic growth and sovereign debt problems in the euro zone are affecting bigger economies like Italy and Spain, while emerging markets are also struggling to contain inflation. “The main risk for Kuwait would be an exogenous factor which would be a double-dip recession that would subdue demand for oil,” Shaher said. The $131 billion economy of Kuwait, which abandoned its dollar peg in 2007 to rein in soaring inflation, is seen growing by 4.4 percent this year helped by robust crude prices and increased government spending after an estimated 3.0 percent growth in 2010. — Reuters

KUWAIT: MP Falah Al-Sawwagh holds a placard which reads in Arabic “Why Medvedev?” and another one bearing a manipulated picture of the Russian president with an Adolf Hitler mustache and a swastika during a demonstration outside the Russian embassy yesterday against Russian support for President Bashar Al-Assad’s regime in its deadly crackdown on pro-reform protests. (Inset) MP Waleed Al-Tabtabaei holds a placard in Arabic reading ‘“Why O people of Russia?” and another in Russian at the protest. — Photos by Yasser Al-Zayyat (See Page 3)

Session for illegal bank deposits eyed for Sept 22 Barrak asks about embassies importing liquor By B Izzak KUWAIT: The Reform and Development Bloc said yesterday it had prepared a request to call for an emergency parliamentary session on Sept 22 to discuss the issue of multimillion-dinar deposits as several MPs allowed the Central Bank to examine all their

Settlers torch W Bank mosque QUSRA, West Bank: Jewish settlers set fire to a mosque in the occupied West Bank yesterday, Palestinians said, in reprisal for Israel’s dismantling of three buildings in an unauthorised settlement outpost hours earlier. Abdel Azeem Wadi, a member of the village council in Qusra near the Palestinian city of Nablus, said settlers threw burning tyres into the mosque, damaging the entire first floor. Palestinian Prime Minister Salam Fayyad denounced the attack as an act of terrorism. “These acts are what threaten to pull A man looks down at a Star of David spray the region into a cycle of violence,” Fayyad’s Continued on Page 13 painted on a wall of a mosque. — AP

in the

bank accounts. MP Faisal Al-Mislem called on MPs to sign the request from today to submit it to the speaker on Thursday. At least 33 MPs must sign the request to force the emergency session because the Assembly is currently in recess until Oct 25. The session was called to debate press reports claiming that Continued on Page 13

Max 45º Min 27º Low Tide 11:25 & 23:08 High Tide 03:47 & 18:10

BAGHDAD: Iraq’s top diplomat says a dispute over a planned Kuwaiti port has been resolved and that the facility will not disrupt Iraqi shipping in the Arabian Gulf. Foreign Minister Hoshyar Zebari said a technical review shows the Mubarak Al-Kabeer port that Kuwait is building on the Gulf “won’t affect our navigation”, as had been feared. In an interview aired late Sunday, Zebari said the review “removed the fears of the Mubarak port”. Construction of the facility on Bubiyan island off Kuwait’s coast raised new tensions between the two nations this summer. Iraq initially objected to the port and feared the country would be cut off from the lucrative Gulf shipping trade just as it regains its economic footing. Zebari said the report submitted by a technical team, which visited Kuwait recently to be briefed over the project, dispelled fears about the construction of the mega port. “The report was very clear and has brushed aside fears about possible negative impacts resulted from the construction of the port,” he said in the interview with the official Iraqiya channel. But he stopped short by saying that “the decision over this issue will not be technical but political, and there are still differences in views within the (Iraqi) government.” Zebari noted that the government had discussed the report thoroughly. He said the foreign ministry’s job was to solve problems, not to create them. The ministry, he added, was working to get Iraq out of Chapter VII of the UN Charter “but this will not happen without honoring a bundle of commitments with the Kuwaiti side”. He said Iraq was working to overcome these disputes “through technical work and not by statements”. Zebari said the report indicated that Mubarak AlKabeer port would consist of three phases and would not include a wave breaker “because there is no technical need for it”. Iraq, he added, would need a long time to know the possible environment impacts of the port. Zebari said Iraq should quickly carry on with the construction of the Faw port. Iraq “will not allow any harm to fall against it and it has to quickly build the big Faw port,” he said. — Agencies

Gaddafi bastion waits as talks fail SHISHAN, Libya: Anti-Gaddafi fighters played a waiting game yesterday outside the besieged town of Bani Walid, as reports from Niger said prominent officials of the old regime had fled across the border. They included Muammar Gaddafi’s internal security chief Mansour Daw, who was earlier reported to be in Bani Walid with at least two of the fallen strongman’s sons, a Tuareg source in Libya’s southern neighbour said. China meanwhile denied a Canadian press report that it had offered masses of arms to Gaddafi during the final months of his regime and held secret talks on shipping them through Algeria and South Africa. Continued on Page 13

Scuffles at Mubarak trial Wall built around Israeli embassy CAIRO: A top police witness at the trial of Hosni Mubarak said yesterday he was not aware of any order to fire on protesters who ousted the Egyptian president, as scuffles erupted inside and outside the courtroom. But General Hussein Saeed Mohamed Moussa told the court police were given guns and live ammunition to protect the Interior Ministry from attack, a decision he said was issued by a senior officer, Ahmed Ramzi, who is one of the defendants. Mubarak is charged with involvement in killing protesters and “inciting” some officers to use live ammunition against them, in the first trial of an Arab leader in person since street unrest erupted across the Middle East early this year. About 850 people died in the protests that erupted on Jan 25 and ended Mubarak’s three decades in office on Feb 11. CAIRO: An anti-Mubarak protestor flashes a victory sign during Continued on Page 13 clashes with pro-Mubarak demonstrators yesterday. — AFP

news 200 Shiite inmates on hunger strike

Giant croc captured alive in Philippines

DUBAI: More than 200 Shiite Bahrainis jailed for their role in a month of pro-democracy protests in the Sunni-ruled kingdom have joined a hunger strike, a rights and opposition activist said yesterday. The strike was started last week ago by 12 doctors arrested in the wake of a mid-March deadly crackdown on the Shiiteled protests, said Nabeel Rajab, the head of the Bahrain Centre for Human Rights. He said the number of prisoners on strike has climbed to more than 200, adding that some of the medics have been hospitalised. Despite the heavy-handed clampdown by security forces in March, which was followed by mass arrests and dismissals from jobs for thousands of Shiites, the majority community has taken to the streets again.

MANILA: Villagers and experts have captured a oneton saltwater crocodile which they plan to make the star of a planned ecotourism park in a southern Philippine town. Mayor Cox Elorde said yesterday that dozens of villagers and experts ensnared the 6.4-m male crocodile along a creek in Bunawan township in Agusan del Sur province after a three-week hunt. It is one of the largest crocodiles to be captured alive in the Philippines in recent years. Elorde says the crocodile killed a water buffalo in an attack witnessed by villagers last month and is also suspected of having attacked a fisherman who went missing in July. Elorde said putting the huge crocodile in a tourism park will turn it “From a threat into an asset.”

MALKIYA, Bahrain: A woman shouts anti-government slogans through a compressed-air horn during a protest against the Bahraini monarchy late Sunday in this western Shiite village. — AP

BUNAWAN, Philippines: Mayor Cox Elorde pretends to measure a huge crocodile captured by residents and crocodile farm staff along a creek in Bunawan late Saturday. — AP


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6 Sep by Kuwait Times - Issuu