UK Businesses Fear for Afghan Rug Weavers After Taliban Takeover

Afghan rugs are a major commodity and the country's second largest non-agricultural export, according to the World Trade Organization. (AFP)
Afghan rugs are a major commodity and the country's second largest non-agricultural export, according to the World Trade Organization. (AFP)
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UK Businesses Fear for Afghan Rug Weavers After Taliban Takeover

Afghan rugs are a major commodity and the country's second largest non-agricultural export, according to the World Trade Organization. (AFP)
Afghan rugs are a major commodity and the country's second largest non-agricultural export, according to the World Trade Organization. (AFP)

Overseas businesses selling colorful handwoven rugs and vivid handblown glass from Afghanistan are concerned for their suppliers as the Taliban's takeover of the country threatens those with links to the West.

British businessman James Wilthew has built up close ties with Afghan rug weavers and sellers, buying the sought-after carpets directly from the northern provinces, where the industry is traditionally based.

The ex-serviceman sells the carpets at his shop in Hebden Bridge in Yorkshire in northern England and estimates that his company, The Afghan Rug Shop, supports about 200 families.

A share of the proceeds goes to Afghanaid, a British charity supporting people in Afghanistan.

He said he was frustrated by the British government's response, despite an emotive emergency debate on the crisis in parliament and urgent calls for help.

"Nothing happens, there's been no action," he said, warning: "Government bureaucracy will result in the death of thousands of people."

The former RAF officer worked in Afghanistan in 2004 on the UK Provincial Reconstruction Team, set up to help development projects.

Asked if hardliners could target those who worked with him due to his UK military background, he said: "Yes, of course".

The Taliban could say, "You've been working for Mr. James", he said. "It's just the association."

"I'm not necessarily sure how far the Taliban will go with these things: we just don't know what the spectrum of danger is."

Major export commodity
Afghan rugs are a major commodity and the country's second largest non-agricultural export, according to the World Trade Organization.

Textiles are by far the most significant Afghan import to the UK, worth some £2.4 million ($3.3 million) per year, government figures show.

The ancient carpet trade existed under the previous Taliban regime, which ruled Afghanistan with an iron fist from 1996 until they were ousted in the US-led invasion in 2001.

The uncertainty and chaos since the return of the hardline extremists was "a temporary issue", said Wilthew.

"Under the Taliban regime, that trade (in textiles) will continue, they need the tax from that business, the employment," he added.

"It's their export commodity, it's how they make an income."

Most Afghan carpets are exported via neighboring Pakistan, but Wilthew is unusual in dealing directly with artisans and traders inside the country.

That could force him to change his business model, possibly using a middleman in Pakistan, and switching from US dollars if the greenback is banned in Afghanistan.

He is also unlikely to be able to continue using international shipping and delivery companies DHL and FedEx for delivery, he added.

"Acquiring rugs from Afghanistan is not a concern for me. It's not an issue, the issue is my friends," he said.

'Impossible' logistics
Another high-end company that sells goods made by Afghan artisans is London-based Ishkar, which sells contemporary-design carpets, as well handblown tumblers, jewelry and clothes.

The brand's creative director, Electra Simon, said the company was in daily contact with people in Afghanistan, and "pretty much everybody is trying to leave".

"They just basically want to get out, they can't leave their houses right now," she said, adding they felt "sheer desperation" at the situation.

"It's really hard: the relationships we've built up with people, seeing them in these massively tricky situations," she said.

Ishkar's online shop is selling photographic prints of Afghanistan to raise funds for Emergency, which provides medical treatment to conflict victims.

The company, which works with some 30 people in the country, has removed references to Afghan partners from its website to protect them.

"We want to do everything possible to continue working with people in Afghanistan, if it doesn't put them at risk," she said

"Some of them will be (at risk), others probably not as much because they are just traditional artisans working, so hopefully we can continue working with them."

Some artisans in areas captured by the Taliban have been able to keep working, she said, although the logistics of exporting to Britain were at the moment "completely impossible".

Both she and Wilthew said the situation was still too fluid to predict, and a clearer picture will emerge in the coming weeks.

"It will definitely be different for us, that's 100 percent," said Simon.



Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
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Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)

Real estate experts have welcomed Saudi Arabia’s decision to allow foreign investment in real estate companies in the Makkah and Madinah regions. They said it will attract more foreign capital, speed up major projects, and support development in these cities.

The Saudi Capital Market Authority (CMA) said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy.

“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” the statement added.

The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis.

The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both.

However, people without Saudi nationality would not be allowed to own more than 49% of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies.

The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation.

At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah.

This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis.

Real estate expert Ahmed Al-Faqih told Asharq Al-Awsat that the decision will benefit the overall Saudi real estate market, especially in Makkah and Madinah. It will attract more foreign investment, supporting Saudi Vision 2030's goals of boosting investments and reducing reliance on oil.

Al-Faqih expects the market to react positively, with more investors coming in. The decision’s impact will go beyond buying and selling properties to include changes in regulations and market innovations.

“We’ll see more capital flowing into the market, and development projects will transform the two cities into major construction hubs in the next five years, especially with their ongoing religious tourism during Hajj and Umrah,” said Al-Faqih.

He added that the decision targets Muslims worldwide who want to invest in the holy cities, as well as other investors.

“This long-awaited move is a sign that Saudi Arabia is close to allowing foreign investment in its real estate sector,” he noted.