As U.S. President Barack Obama seeks to reinvigorate his administration’s policy in the Middle East, he will have to contend with several issues where U.S. influence is less than overwhelming.

Chief among them, according to Middle East analysts, is the growing assertiveness of Saudi Arabia as it confronts Iranian influence in the region and tilts away from its historic bargain with the U.S.: oil for security.

In recent months, the Saudis have essentially taken the gloves off — sending troops into Bahrain to prop up the island’s Sunni monarchy against a rebellious Shiite majority; consolidating their relationship with Pakistan as a regional counterweight to Iran; and expanding the Gulf Cooperation Council (GCC) to reinforce the club of Sunni monarchies.

Through the GCC Saudi Arabia has also moved to resolve the crisis in Yemen, its neighbor to the south, where al Qaeda is establishing a foothold and where the Saudis suspect Iranian meddling.

Their core mission, says Ian Bremmer, president of the Eurasia Group, “is to ensure stability in their neighborhood.” Bremmer believes “the single most important long-term implication of the Arab Spring may be a consolidated GCC that is tacking away from the West.”

At the same time, the Saudi kingdom’s relations with the United States have deteriorated — in part over the Obama administration’s support for pro-democracy movements in the Arab world. On two occasions in recent months, according to well-placed sources in the Gulf, King Abdullah of Saudi Arabia even refused to meet senior U.S. officials.

Earlier this week, Saudi grievances were laid out in a Washington Post op-ed by Nawaf Obaid, a consummate insider and a senior fellow at the King Faisal Center for Research and Islamic Studies. Describing a “tectonic shift” in the Saudi-U.S. relationship, he complained of an “ill-conceived response to the Arab protest movements and an unconscionable refusal to hold Israel accountable” for its settlement-building in Palestinian territories. On the latter issue, he said the U.S. “had lost all credibility.”

Obaid also echoed some of the criticisms made last year by Prince Turki al Faisal, a former ambassador to the United States who said that “negligence, ignorance and arrogance” had cost America the “moral high ground” it held after 9/11.

Saudi alienation from Washington predates the Obama administration. Riyadh saw the invasion of Iraq as a disaster because it unleashed Shiite influence in a country traditionally dominated by its Sunni minority. Several Saudi officials have described Iraqi Prime Minister Nuri al Maliki — who leads a Shia-dominated government — as an “Iranian agent.”

The Saudis also complained that the Bush administration had “dropped the ball” on the Israel-Palestinian peace process by not endorsing King Abdullah’s plan for a two-state solution, with east Jerusalem as the Palestinian capital. That, they argued, had only strengthened more radical forces in the region, such as Hamas and Hezbollah.

Above all, the Saudi establishment has long been anxious that the threat it perceives from Iran is not adequately acknowledged in Washington.

U.S. diplomatic cables obtained by WikiLeaks and published last year showed growing Saudi impatience with U.S. caution toward Iran’s nuclear program, with King Abdullah quoted as urging Gen. David Petraeus to “cut off the head of the snake” during a meeting in April 2008. A year later, the King is quoted as telling President Obama’s counterterrorism adviser, John Brennan, that he hoped the U.S. would review its Iran policy and “come to the right conclusion.”

So now, Obaid writes, “Riyadh intends to pursue a much more assertive foreign policy, at times conflicting with American interests.”

One long-time observer of Saudi policy says the kingdom is preparing to use its wealth and economic growth (forecast at nearly 6% this year, thanks to the rising price of crude oil) to lead an expanded bloc as old certainties wither away.

The Saudis plan to spend $100 billion to modernize their armed forces, buy a new generation of combat aircraft and add 60,000 Interior Ministry troops. Like other Gulf states, Saudi Arabia also plans to expand its special forces.

Beyond its borders the kingdom wants to expand the six-member Gulf Cooperation Council, until now a club of wealthy monarchies, by inviting Jordan and Morocco to join. They might not have much money, but they, too, are ruled by Sunni monarchs and have — by regional standards — cohesive and well-trained armies.

In return, Gulf largesse would help support their weak economies. Amid recriminations and confusion in the Arab League — whose planned Baghdad summit has just been postponed for a whole year — the Saudis see the GCC as the institutional antidote to the upheavals of the Arab Spring.

Saudi Arabia has already created a $20 billion fund to assist Bahrain and Oman. And the dispatch of some 1,000 troops to Bahrain in March served notice to Tehran that Saudi Arabia would not tolerate a Shiite-dominated state a few miles off its coast.

“Sending a force to Bahrain was a necessary evil for the GCC in order to protect the monarchy in Bahrain,” says Theodore Karasik of the Institute of Near East and Gulf Military Analysis. “If a monarchy falls in the region, this might create a domino effect.”

It was also a slap in the face to U.S. policy in the region, which was focused on coaxing dialogue in Bahrain. Just days before the Saudi intervention, U.S. Defense Secretary Robert Gates was in Bahrain urging King Hamad to take more than “baby steps” towards reform.

That followed alarm in Riyadh over the Obama administration’s desertion of long-time ally Hosni Mubarak, who had cultivated close ties with the Gulf states and who was regarded by the Saudis as another Arab bulwark against “Iranian expansionism.” The U.S. eventually told Mubarak it was time to go, but the Saudi royal family supported him to the end, even offering to make up for any cut in U.S. aid.

Bremmer of the Eurasia Group says the United States does hold important cards — through multi-billion-dollar arms contracts and long-established relationships in the oil industry. And regional analysts say that ultimately Saudi Arabia would likely appeal for and get U.S. help in any showdown with Iran.

Bremmer says that much in the Gulf revolves around personal relationships and loyalties, and he says the Obama administration needs to invest more in that, starting at the top. By contrast, senior executives in U.S. oil companies — by and large no fans of the president’s energy policy — do talk with the Saudis.

In the longer-term, a Saudi tilt to the East may simply reflect new economic realities. Some 55% of Saudi oil now flows to Asia, compared with about 10% that flows to the United States. The Saudi state oil firm has built refineries in China, and trade between the two countries was worth $40 billion in 2010.

As relations with the West fray, Bremmer concludes that “a far-reaching Saudi-China strategic partnership could well result alongside expanded Chinese contracts to buy long-term access to Saudi oil and Chinese investment in developing Saudi infrastructure.”

Malaysian premier Najib Razak says his country is willing to send peacekeepers to help “de-escalate tension” in Bahrain while backing Saudi Arabia’s role in resolving regional unrest.

Bahraini authorities in the kingdom ruled by a Sunni dynasty have attempted to curb violent protests in recent months inspired by uprisings that toppled Egypt’s and Tunisia’s presidents.

“Malaysia stands ready to contribute peacekeepers to the Kingdoam of Bahrain, if invited to do so by the Bahraini leadership,” Najib said in a statement late Friday following a meeting with Saudi Arabian monarch King Abdullah in Riyadh.

“Malaysia will consider it a great honour to offer assistance in this noble effort.”

He said Malaysia, a Sunni Muslim-majority nation, supported the national dialogue process launched by Crown Prince Salman bin Hamad Al-Khalifa in a bid to “de-escalate tension in the country.”

On March 16, security forces drove mostly Shiite protesters out of central Manama’s Pearl Square and demolished their camp after King Hamad declared a state of emergency.

The King also called in Saudi-led Gulf troops to boost his security force.

Bahrain authorities said 24 people, including four policemen, were killed in the unrest with the kingdom coming under strong criticism from international human rights organisations for its heavy-handed crackdown.

A tectonic shift has occurred in the U.S.-Saudi relationship. Despite significant pressure from the Obama administration to remain on the sidelines, Saudi leaders sent troops into Manama in March to defend Bahrain’s monarchy and quell the unrest that has shaken that country since February. For more than 60 years, Saudi Arabia has been bound by an unwritten bargain: oil for security. Riyadh has often protested but ultimately acquiesced to what it saw as misguided U.S. policies. But American missteps in the region since Sept. 11, an ill-conceived response to the Arab protest movements and an unconscionable refusal to hold Israel accountable for its illegal settlement building have brought this arrangement to an end. As the Saudis recalibrate the partnership, Riyadh intends to pursue a much more assertive foreign policy, at times conflicting with American interests.

The backdrop for this change are the rise of Iranian meddling in the region and the counterproductive policies that the United States has pursued here since Sept. 11. The most significant blunder may have been the invasion of Iraq, which resulted in enormous loss of life and provided Iran an opening to expand its sphere of influence. For years, Iran’s leadership has aimed to foment discord while furthering its geopolitical ambitions. Tehran has long funded Hamas and Hezbollah; recently, its scope of attempted interference has broadened to include the affairs of Arab states from Yemen to Morocco. This month the chief of staff of Iran’s armed forces, Gen. Hasan Firouzabadi, harshly criticized Riyadh over its intervention in Bahrain, claiming this act would spark massive domestic uprisings.

Such remarks are based more on wishful thinking than fact, but Iran’s efforts to destabilize its neighbors are tireless. As Riyadh fights a cold war with Tehran, Washington has shown itself in recent months to be an unwilling and unreliable partner against this threat. The emerging political reality is a Saudi-led Arab world facing off against the aggression of Iran and its non-state proxies.

Saudi Arabia will not allow the political unrest in the region to destabilize the Arab monarchies — the Gulf states, Jordan and Morocco. In Yemen, the Saudis are insisting on an orderly transition of power and a dignified exit for President Ali Abdullah Saleh (a courtesy that was not extended to Hosni Mubarak, despite the former Egyptian president’s many years as a strong U.S. ally). To facilitate this handover, Riyadh is leading a diplomatic effort under the auspices of the six-country Gulf Cooperation Council. In Iraq, the Saudi government will continue to pursue a hard-line stance against the Maliki government, which it regards as little more than an Iranian puppet. In Lebanon, Saudi Arabia will act to check the growth of Hezbollah and to ensure that this Iranian proxy does not dominate the country’s political life. Regarding the widespread upheaval in Syria, the Saudis will work to ensure that any potential transition to a post-Assad era is as peaceful and as free of Iranian meddling as possible.

Regarding Israel, Riyadh is adamant that a just settlement, based on King Abdullah’s proposed peace plan, be implemented. This includes a Palestinian state with its capital in East Jerusalem. The United States has lost all credibility on this issue; after casting the sole vote in the U.N. Security Council against censuring Israel for its illegal settlement building, it can no longer act as an objective mediator. This act was a watershed in U.S.-Saudi relations, guaranteeing that Saudi leaders will not push for further compromise from the Palestinians, despite American pressure.

Saudi Arabia remains strong and stable, lending muscle to its invigorated foreign policy. Spiritually, the kingdom plays a unique role for the world’s 1.2 billion Muslims — more than 1 billion of whom are Sunni — as the birthplace of Islam and home of the two holiest cities. Politically, its leaders enjoy broad domestic support, and a growing nationalism has knitted the historically tribal country more closely together. This is largely why widespread protests, much anticipated by Western media in March, never materialized. As the world’s sole energy superpower and the de facto central banker of the global energy markets, Riyadh is the economic powerhouse of the Middle East, representing 25 percent of the combined gross domestic product of the Arab world. The kingdom has amassed more than $550 billion in foreign reserves and is spending more than $150 billion to improve infrastructure, public education, social services and health care.

To counter the threats posed by Iran and transnational terrorist networks, the Saudi leadership is authorizing more than $100 billion of additional military spending to modernize ground forces, upgrade naval capabilities and more. The kingdom is doubling its number of high-quality combat aircraft and adding 60,000 security personnel to the Interior Ministry forces. Plans are underway to create a “Special Forces Command,” based on the U.S. model, to unify the kingdom’s various special forces if needed for rapid deployment abroad.

Saudi Arabia has the will and the means to meet its expanded global responsibilities. In some issues, such as counterterrorism and efforts to fight money laundering, the Saudis will continue to be a strong U.S. partner. In areas in which Saudi national security or strategic interests are at stake, the kingdom will pursue its own agenda. With Iran working tirelessly to dominate the region, the Muslim Brotherhood rising in Egypt and unrest on nearly every border, there is simply too much at stake for the kingdom to rely on a security policy written in Washington, which has backfired more often than not and spread instability. The special relationship may never be the same, but from this transformation a more stable and secure Middle East can be born.

The Gulf Co-operation Council could be turning itself into the club of Arab monarchies as it considers bringing Jordan and Morocco into its fold, a move that would strengthen the political and economic capacity of the two countries’ leaders to fend off any popular challenge.

In a surprise announcement late on Tuesday, the GCC, which joins six oil-producing Gulf Arab states, said it was considering a request by Morocco and Jordan to join the bloc, even though the two poorer countries have little in common with existing members.

Following a GCC summit in Riyadh, Abdullatif al-Zayani, the secretary-general, said foreign ministers would be holding talks with the two non-Gulf countries to complete the procedures required for membership. It is not yet clear if membership will be granted or in what form.

The GCC was formed in 1981 in the wake of the Iranian revolution as an alliance of oil-producing monarchies, including Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, Kuwait and Oman.

Efforts at economic integration have been only partly successful, undermined by rivalries and political divisions.

As republics dominated by family rule have proved most vulnerable to popular revolts this year, however, the GCC has been asserting itself, closing ranks to protect its members from the changes sweeping the region. GCC troops were sent to Bahrain to support the ruling Sunni family, helping it crush a Shia uprising. Meanwhile, the organisation pledged $20bn in financial aid to Bahrain and Oman, another Gulf monarchy that was hit by protests.

Saudi Arabia, the heavyweight in the GCC, has also been dismayed by the willingness of the US to abandon long-time allies such as Egypt’s Hosni Mubarak, who was ousted this year, and to criticise a Bahraini intervention, which Riyadh insists was needed to counter Iranian meddling.

Diplomats say GCC states have been sending the message that no Gulf ruling family will be allowed to fall – nor will Iran, which is seen as the biggest regional threat, be permitted to take advantage of the unrest in the region.

Khalid al-Khalifa, Bahrain’s foreign minister, said on Twitter that Jordan and Morocco were “clear examples of good, wise governance and real political development”. The GCC, he added, had “a vital interest in joining together with them”.

Mustafa Hamarneh, a Jordanian political analyst, said the GCC move was a sign that Jordan belonged to the “conservative monarchy club”. What all the countries had in common, he said, was that “they see eye to eye on all the main issue: on Iran, on Bahrain and on the question of political reforms”.

Membership in the GCC would be a boost for the Jordanian monarchy, if it went ahead, but would prove a setback for groups seeking reform, he added.

Hassan al-Mostafa, a Saudi writer, said the possible integration of the two countries into the GCC was an attempt to “reshape the region” by creating new alliances at a time when a democratically elected Egyptian government was likely to follow a more independent foreign policy, possibly becoming friendlier with Tehran.

“The GCC will also help Jordan and Morocco to avoid pressure or collapse of these regimes,” he said. “But Moroccans and Jordanians are more politically active and won’t accept the GCC dictating foreign policy.”

Dris Ben Ali, a Moroccan economist who has been advocating political reforms, said he was concerned about the political rationale behind a potential membership in the GCC, which might be aimed at halting Morocco’s move towards a “democratic, parliamentary monarchy” that could become a model for others in the region.

Drive-by attackers lobbed two grenades at the Saudi consulate in Pakistan’s largest city of Karachi on Wednesday, in a first possible violent reaction to the US killing of Osama bin Laden.

Officials reported no damage and no casualties after two men on a motorcycle threw the explosives at the heavily fortified building in Clifton, the smartest neighbourhood of Karachi, nine days after bin Laden was killed in Pakistan.

“This was an attack on the Saudi consulate. Two motorcycle riders threw two grenades and fled,” provincial government official Sharfuddin Memon told AFP.

“One exploded and hit the outer wall. The second landed inside and fortunately didn’t explode. It was later defused by bomb disposal,” he said.

“There were no casualties. We are seeing this incident in the present context. It could be a reaction of the Osama incident.” Pakistan has been in the grip of domestic and international crisis since US Navy SEALS flew in, seemingly undetected, from Afghanistan to identify and kill the Saudi-born Al-Qaeda terror mastermind at a suburban compound on May 2.

Pakistanis have expressed horror at the perceived impunity of the raid, furiously asking if their military was too incompetent to know he was living in a garrison city near the capital, or, even worse, conspired to protect him.

But while the killing has not ignited mass protests in the Muslim country, where more than 4,240 people have died in bomb attacks blamed on the Taliban and Al-Qaeda in the last four years, small gatherings have vowed revenge.

“We fear that desperate elements are planning to launch a big attack. We are taking precautionary measures in this regard,” Memon said.

Saudi Arabia expelled bin Laden in 1991 and later revoked his nationality. The government in Riyadh, which is allied to the authorities in Islamabad, last week welcomed his killing as a boost to international anti-terror efforts.

An AFP photographer said ambulances, police and paramilitary Rangers swarmed outside the Saudi consulate after the attack, where small shrapnel marks could be seen on the outer wall of the building.

Mohammed Safdar, a police official at the scene, said security guards at the diplomatic mission had opened fire on the attackers but they escaped.

“Two security men at the gate opened fire on them, but they managed to flee,” he told AFP.

“The security guards informed us and we reached the spot immediately. The bomb disposal squad are here. Other police and Rangers have surrounded the area,” he added.

Pakistan is holding in protective custody three of bin Laden’s widows, who come from Saudi Arabia and Yemen, and 13 of their children.

The foreign ministry says it has yet to receive a formal request from the United States for access to the relatives or requests from their home countries for their repatriation.

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001166

SIPDIS

NSC FOR BROWN, TREASURY FOR GLASER, DHS FOR WARRICK,
CENTCOM FOR POLAD GFOELLER

E.O. 12958: DECL: 09/08/2019
TAGS: PREL PGOV PTER KTFN EFIN SA PK
SUBJECT: FORMER TERRORIST SAYS AL-QAEDA LACKS FINANCING
REF: A. RIYADH 1110 B. RIYADH 1121 C. RIYADH 1151

Classified By: CDA Ambassador Richard Erdman for reasons 1.4 (B) and (D )

SUMMARY
——-

¶1. (C) In a September 6 interview with liberal daily Al-Watan, former Al-Qaeda fighter Fawaz Al-Otaibi, whose surrender to Saudi authorities was announced on September 2, said that Al-Qaeda was in a “”catastrophic financial situation”” — thanks in part to strict measures aimed at cutting off the flow of terrorist financing — and was now directing its efforts towards recruiting Arab youths to perform suicide operations in their home countries. Commenting on Otaibi and the concept of Jihad in general, Al-Watan editor and former Osama bin Laden confidant, Jamal Kashoggi, told us the concept of jihadism is a key tenet of Islam; it will not go away, but we should work to channel the concept into a state context, where decisions concerning the duty to wage jihad must rest with the state rather than the individual. In related news, the Ministry of Social Affairs announced plans to institute quarterly reviews of charities to prevent “”financial misconduct,”” including direction of charitable fund to terrorist activities. END SUMMARY.

AL-OTAIBI’S SURRENDER MADE PUBLIC
———————————

¶2. (U) On September 2, the MOI announced that Fawaz Al-Otaibi, a Saudi on the 85 most wanted list, had surrendered to authorities. The announcement came less than a week after the failed suicide attack on Assistant Interior Minister Prince Mohammed bin Naif (reftels), and gave no indication of how long Otaibi had been in custody. The report said he had been reunited with his family and allowed to perform Umrah. Prior to his surrender, Al-Otaibi reportedly called his parents and told them he wanted to return to Saudi Arabia and hand himself in. He had left the Kingdom approximately 1 year ago for the UAE, and his last known location prior to surrendering was reportedly Iran.

¶3. (U) In a Saudi Gazette interview published September 6, Otaibi’s mother claimed her son had been dreaming of Jihad since his teens. He told his family he was being transferred to a national guard post in Tabuk, said farewell, and later called his brothers, telling them “”he was in Pakistan for Jihad,”” she added. She claimed to have noticed no change in his behavior; that he had finished secondary school and married; and that prior to his sudden departure she had assumed he led “”a normal life.”” In his final phone calls to family members prior to his surrender, he said he “”regretted leaving the Kingdom”” and “”didn’t find the jihad he had hoped for.”” Otaibi surrendered to the Saudi Embassy in Pakistan and has been held at the Al-Haier prison in Riyadh since his capture.

AL-QAEDA FRUSTRATED, LACKS FUNDS
——————————-

¶4. (U) On September 6, Otaibi spoke out about his experiences in an interview with influential daily Al-Watan. The main points of the interview follow:

¶5. (U) FINANCIAL RESOURCES DRYING UP: Measures aimed at cutting off the flow of money to Al-Qaeda, including efforts to control money channeled through suspicious charitable organizations, had forced Al-Qaeda into a “”catastrophic financial situation.”” As a result, Al-Qaeda was reducing its fighters abroad and relying on experienced local veterans. Individual cell leaders were beginning to turn interested recruits away, citing insufficient resources.

¶6. (U) REHABILITATION PROGRAMS IRK AL-QAEDA: The Al-Qaeda camp in Waziristan, which Otaibi joined in September of last year, had been populated by many frustrated young Arabs- especially Saudis, Egyptians, Libyans and Yemenis. However, many decided to return to their home countries when they endorsed policies that invited them to return and repent. Otaibi suggested Al-Qaeda was annoyed by countries that adopted these policies successfully, most notably Saudi Arabia.
RIYADH 00001166 002 OF 002

¶7. (U) TARGETED RECRUITING FOR HOME COUNTRY OPERATIONS: Otaibi said the recruitment process targeted very few people, for both psychological and moral reasons. Some Afghan fighters believe fighting beside Arabs gives them God’s blessing, but Al-Qaeda leaders preferred to limit the numbers of Arab fighters. Current efforts were focused on recruiting youths to carry out terrorist operations in their home countries. In fact, newly recruited foreign fighters were not allowed to participate on the front in Afghanistan, but were instead asked to join suicide bombing groups targeting Saudi Arabia, other GCC countries, and elsewhere.

AL-WATAN’S EDITOR ON AL-OTAIBI, EXTREMISM
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¶8. (C) Jamal Kashoggi, editor of the influential daily Al-Watan, told Charge at a September 3 Iftar dinner that he had had an opportunity to interview Al-Otaibi in his home before the arranged time for turning himself in. The interview, he said, had been relatively short and he was hoping to have another opportunity to meet with Otaibi for a longer interview. Kashoggi, self-described as coming from a very fundamentalist family once but no longer associated with the Muslim Brotherhood, was a friend of Osama bin Laden in his younger days, as he was beginning his ideological journey into violent jihadism. (Kashoggi is frequently quoted in “”The Looming Tower”” as a source on Osama bin Laden, his character, and personality.) At the September 3 dinner, Kashoggi said we needed to come to grips with the fact that jihadism IS part and parcel of Islam. Pretending that it isn’t is a delusion. The way to reconcile this reality with the need for a peaceful social order and stability was to make clear to the Muslim community that the decision to wage jihad resided not with individuals, but with the leader of the State- in this case, the Custodian of the Two Holy Mosques.

NEW QUARTERLY REVIEWS OF SAUDI CHARITIES
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¶9. (U) In related news, Deputy Minister of Social Affairs Abdullah Al-Yousef announced on September 4 plans to conduct quarterly reviews of the financial accounts of charities across the Kingdom. Auditors will be expected to inform the ministry of any financial misconduct, and “”the ministry will act according to the violation of charity regulations.”” These new measures indicate, in part, continuing Saudi efforts to stem the flow of terrorist financing.

ERDMAN “

The six Gulf monarchies Tuesday responded to Arab uprisings by agreeing to expand their regional grouping to include pro-Western Jordan and Morocco and urged a quick political deal in Yemen.

The Gulf Cooperation Council (GCC) welcomed bids by the two Arab kingdoms to join the six-nation grouping of Gulf monarchies, its secretary general Abdullatif al-Zayani said.

“Leaders of the GCC welcomed the request of the Hashemite Kingdom of Jordan to join the council and instructed the foreign ministers to enter into negotiations to complete the procedures,” Zayani told reporters.

He said the same procedure would be followed with Morocco.

His remarks came after a summit in Riyadh of the GCC, which groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates, discussed relations with Iran, the unrest in Yemen — the Arabian Peninsula’s only republican state — and the tensions sweeping the region.

The heads of state demanded that all sides in Yemen, which has limited observer status in the GCC, sign a transition plan brokered by the bloc.

“The council urged all parties in Yemen to sign the agreement which is the best way out of the crisis and spare the country further political division and deterioration of security,” the GCC leaders said in a joint statement.

It said their transition plan for Yemen was a “comprehensive agreement that would preserve Yemen’s security, stability and unity.”

GCC heads of state discussed the bloc’s mediation efforts which stalled this month in the face of veteran President Ali Abdullah Saleh’s refusal to sign up to proposals which would require him to stand down.

He has been insisting that any transfer of power should be in line with the constitution which would allow him to serve out his term until 2013.

The GCC plan proposes the formation of a government of national unity, Saleh transferring power to his vice president and resigning after 30 days, a day after parliament passes a law granting him and his aides immunity.

GCC Secretary General Abdullatif al-Zayani travelled to Sanaa last week to invite members of the government and the opposition to sign the transition plan in Riyadh and to obtain the president’s signature but he returned empty-handed.

At Tuesday’s summit, the Gulf monarchies also criticised Iran’s “continued interference” in their internal affairs.

Relations between Iran and its Gulf Arab neighbours have deteriorated sharply, with the bloc accusing Tehran of seeking to destabilise Arab regimes by stoking the unrest that has rocked the region.

Shiite-dominated Iran strongly criticised Saudi Arabia’s mid-March military intervention in Sunni-ruled Bahrain which was aimed at helping crack down on a Shiite-led uprising.

Iran says it gives “moral support” to Bahrainis but is not involved in the protests. Bahrain and Kuwait have expelled Iranian diplomats, accusing them of espionage.

Hundreds of women took part in demonstrations in Princess Nora Bint Abdulrahman University in Riyadh Saudi Arabia today after failing their English exam.

The students felt hard done by the results, which were marked subjectively without a clear academic criteria.

The University President tried to stop the demonstration but to no avail. The women were chanting we will continue to demonstrate  until the President resigns.

The University President retaliated by saying: “that all those who have failed their english exams will repeat the whole year and retake all their subjects. They will start from scratch because they’ve caused a lot of chaos and humiliated the university staff. This will be a lesson to all students, not just in this university but in all universities around the country.”

The woman’s revolution in Saudi Arabia is up and running.