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Boycott campaigns over Gaza war hit Western brands in some Arab countries

Boycott campaigns over Gaza war hit Western brands in some Arab countries

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Boycott campaigns over Gaza war hit Western brands in some Arab countries

On a recent evening in Cairo, a worker cleaned tables in an empty McDonald’s restaurant. Branches of other Western fast-food chains in the Egyptian capital also appeared deserted.

All have been hit by a largely spontaneous, grassroots boycott campaign over Israel’s military offensive in the Gaza Strip since the deadly Hamas attack in southern Israel on Oct. 7.

Western brands are feeling the impact in Egypt and Jordan, and there are signs the campaign is spreading in some other Arab countries including Kuwait and Morocco. Participation has been uneven with only minor effects seen in Saudi Arabia and the United Arab Emirates.

Some of companies the campaign is directed at are perceived to have taken pro-Israeli stances, and some are alleged to have financial ties to Israel or investments there.

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As the campaign has started to spread, boycott calls circulated on social media have expanded to list dozens of companies and products, prompting shoppers to shift to local alternatives.

In Egypt, where there is little chance of people taking to the streets because of security restrictions, some see the boycott as the best or only way to make their voices heard.

“I feel that even if I know this will not have a massive impact on the war, then this is the least we can do as citizens of different nations so we don’t feel like our hands are covered in blood,” said 31-year-old Cairo resident Reham Hamed, who is boycotting U.S. fast food chains and some cleaning products.

In Jordan, pro-boycott residents sometimes enter McDonald’s and Starbucks branches to encourage scarce customers to take their business elsewhere. Videos have circulated of what appear to be Israeli troops washing clothes with well-known detergent brands which viewers are urged to boycott.

“No one is buying these products,” said Ahmad al-Zaro, a cashier at a large supermarket in the capital Amman where customers were choosing local brands instead.

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In Kuwait City on Tuesday evening, a tour of seven branches of Starbucks, McDonald’s and KFC found them nearly empty.

In Rabat, the capital of Morocco, a worker at a Starbucks branch said the number of customers had dropped off significantly this week. The worker and the company gave no figures.

McDonald’s Corp said in a statement last month that it was “dismayed” by disinformation regarding its position on the conflict and that its doors were open to all. Its Egyptian franchise has underlined its Egyptian ownership and pledged 20 million Egyptian pounds ($650,000) in aid to Gaza.

Asked for comment, Starbucks referred to a statement on its website about its operations in the Middle East that was updated in October. The statement said the company was a non-political organisation and dismissed rumours that it had provided support to the Israeli government or army.

Starbucks, which earlier this month reported record revenues for the fourth quarter, said it had nothing further to share on its business. Other Western companies did not immediately respond to requests by Reuters for comment.

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‘UNPRECEDENTED REACTION’

The boycott campaigns have spread in countries where pro-Palestinian sentiment has traditionally been strong. Egypt and Jordan made peace with Israel decades ago, but those deals did not lead to a popular rapprochement.

The protests also reflect a groundswell of anger over an Israeli military operation that is more destructive than previous offensives, causing a humanitarian crisis and killing 13,300 civilians, according to authorities in Hamas-run Gaza.

Israel said about 1,200 people were killed in the Hamas attack on Oct. 7, and that about 240 were taken hostage.

Previous boycott campaigns in Egypt, the Arab world’s most populous nation, had less impact, including those advocated by the Palestinian-led Boycott, Divestment, Sanctions (BDS) movement.

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“The scale of the aggression against the Gaza strip is unprecedented. Therefore, the reaction, whether on the Arab street or even internationally, is unprecedented,” said Hossam Mahmoud, a member of BDS Egypt.

Some campaigners have singled out Starbucks for suing its workers’ union over a post on the Israel-Hamas conflict, and McDonald’s after its Israeli franchise said it gave free meals to Israeli military personnel.

An employee at McDonald’s corporate offices in Egypt who asked not to be named said the Egyptian franchise’s October and November sales fell by at least 70% compared to the same months last year.

“We are struggling to cover our own expenses during this time,” the employee said. Reuters was not immediately able to verify the figures the employee provided.

Sameh El Sadat, an Egyptian politician and co-founder of TBS Holding, a supplier to Starbucks and McDonald’s, said he had noticed a drop or slowdown of about 50% in demand from his clients.

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UNEVEN TAKE-UP

Despite efforts by targeted brands to defend themselves and retain business with special offers, boycott campaigns have continued catching on, in some cases outside the Arab world.

In Muslim-majority Malaysia, a worker at a McDonald’s in Putrajaya, Malaysia’s administrative capital, said the branch was seeing about 20% fewer customers, a figure that Reuters was not immediately able to verify.

Ride-hailing app Grab also faced calls for a boycott in Malaysia after the chief executive’s wife said she had fallen “completely in love” with Israel during visits there.

She later said the posts were taken out of context. The Malaysian arms of Grab and McDonald’s said following the boycott calls that they would donate aid for Palestinians.

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Earlier this month, Turkey’s parliament removed Coca-Cola and Nestle products from its restaurants, with a parliamentary source citing a “public outcry” against the brands although no big Turkish company or state agency has cut ties with Israel.

Take-up of boycotts has been uneven, with no major impact seen in some countries including Saudi Arabia, the United Arab Emirates and Tunisia. Even where boycotts have a wider following, some people are sceptical they can have much effect.

“If we really want to boycott and support these people (Palestinians), we take arms and fight with them…Otherwise, no,” said Cairo kiosk owner Issam Abu Shalaby. 

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

 A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

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The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

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Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Govt jacks up power price by Rs1.47 per unit

Govt jacks up power price by Rs1.47 per unit

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

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Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Hong Kong allows China’s digital yuan to be used in local shops

Hong Kong allows China’s digital yuan to be used in local shops

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

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Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

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The yuan’s use in global finance remains low, though it has shown steady increases.

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