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Rocket Attack on U.S. Base in Iraq; Ambulance Workers on Front Lines Struggle in Wales; Deep Freeze Leaves Millions of Americans in the Dark; Biden Hits the Road to Sell COVID-19 Plan; New Rule on Government Contracts Affirms Saudi Vision 2030. Aired 10-11a ET

Aired February 16, 2021 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[10:00:00]

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BECKY ANDERSON, CNNI HOST (voice-over): Tonight, scenes reminiscent of Iraq's traumatic past. Rocket fire erupting in a most unusual place.

Details on that are just ahead.

And Saudi Arabia looks to unseat glitzy Dubai as the financial capital of the Middle East.

Can they do it?

We'll explore that in the show.

Plus --

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LYNDA STEPHENS, ADVANCED EMT: And you know it may be the last time they say goodbye to their family on back of the ambulance.

ANDERSON (voice-over): CNN goes along on a ride-along in a Welsh ambulance to explore the impact of the U.K.'s vaccination program.

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ANDERSON: It's 6:00 pm in Iraq, 3:00 pm in Wales and 7:00 pm in Abu Dhabi. I'm Becky Anderson. Welcome to CONNECT THE WORLD.

This hour, a volley of rockets fired at coalition forces in Irbil in northern Iraq that could prove to be the Biden administration's first real

geostrategic test here in the Middle East.

First, it was deadly, one civilian contractor losing his life in the attack. Six others were wounded, including an American service member. We

are working to find out how badly they were hurt.

(BEGIN VIDEO CLIP)

ANDERSON (voice-over): Now I want to show you the moment it happened. One of the rockets almost directly hitting a busy road. You can see the burst

of sparks there and the smoke rising.

Remember, this is just an ordinary street in a relatively peaceful part of Iraq. People driving around at half past 9:00 on a Monday night and a

rocket crashing out of the night sky. You can see the damage as well as the impact that these rockets cause.

(END VIDEO CLIP)

ANDERSON: So who is behind it?

That's unclear. A Shia militant group claiming responsibility but it hasn't provided any proof of that. We are connecting you on this to CNN's Barbara

Starr, who is at the Pentagon, and to Arwa Damon, who is in Turkey for you this evening.

Barbara, let me start with you. This is the first time in nearly two months that Western military or diplomatic installations have been targeted in

Iraq after a series of similar incidents last year.

What's been the response in Washington?

What do we know of the details of these attacks?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you pretty much spelled it out right there, Becky. And the U.S., the Biden administration now

looking for the launch site.

Where did these rocket comes from?

Who launched them?

There's been claims of responsibility but no verification of that.

And where exactly were they launched from?

That could be the beginning of trying to go after a launch site if they can verify all the information. But it's not at all clear that that really

would be the next step. What we are mostly hearing is diplomacy. The secretary of state, Tony Blinken, issuing a statement, saying in part and

let me read it to you.

"We are outraged by today's rocket attack in the Iraqi Kurdistan region. We express our condolences to the loved ones of the civilian contractor killed

in this attack and to the innocent Iraqi people and their families, who are suffering these ruthless acts of violence."

So the U.S., for now at least, going with that diplomatic, although very tough, that diplomatic message. And what President Biden decides to do next

certainly remains to be seen -- Becky.

ANDERSON: Arwa, Irbil normally a rather peaceful part of Iraq these days now, engulfed in what is this disaster and a not so known Shiite group

claiming responsibility for it.

What do we know at this point?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Becky, this group that calls themselves the Guardians of the Blood brigade is very little known,

not one of the usual groups that tends to be blamed for these types of attack.

And they are taking credit for this. They are saying that they managed to launch 2 dozen rockets at the U.S. occupiers in the beloved northern part

of the country.

[10:05:00]

DAMON: And it's going to be interesting to see what happens over the course of the next few days and weeks in terms of a reaction to this and

whether or not any of these perpetrators actually do end up caught.

Now what the country's president has said was that this was a dangerous escalation, a criminal terrorist act, and that Iraq has no choice but to

firmly strengthen its efforts to root out terrorism. But one also needs to look at where this happened.

Irbil, which, as you mentioned, compared to the rest of the country, significantly calmer; in fact, that part of Iraq generally tends to promote

itself as "the other Iraq," the Iraq that is stable, the Iraq that one can invest in. And so, for this kind of an attack to take place, there is most

certainly a great concern.

Now what could the purpose be in this?

Is this a message to the government up in Iraqi Kurdistan, the government in Irbil, because they do support the presence of U.S. forces, they do

allow them to maintain a presence there?

Is this a message to the Americans?

Keeping in mind that the U.S. forces have been under increasing pressure to leave, especially following last year the killing of the top Iranian

general, Qasem Soleimani. That is unclear but this sense of calm has been shattered in a country that knows all too much violence.

ANDERSON: Barbara, you read out part of the U.S. secretary of state's statements in response to these attacks.

Antony Blinken went on to say, and I quote here, "I have reached out to the Kurdistan regional government. The prime minister is to discuss the

incident and to pledge our support for all efforts to investigate and hold accountable those responsible."

Is it fair to say that this could be the first real geostrategic test for this administration here in the Middle East, Barbara?

STARR: Well, it possibly could be if it could be proven that this militia was behind it and the militia group being backed by Iran. The challenge,

perhaps, is getting that proof, getting that chain of custody evidence.

And as Arwa knows better than anybody, and she can address this, this is, as she said, a region of Iraq that likes to look after its own affairs.

And, obviously, what the U.S. might want to see happen is for this region to actually go ahead and do that.

A lot of economic investment and future possibilities really at stake if this kind of violence in Kurdistan was allowed to take hold. So there's

going to be a lot of concern about that -- Becky.

ANDERSON: We are just now a couple of weeks away from the 18th anniversary of the U.S. invasion of Iraq, March 2003. Since then, you have spent much

of your life reporting on or from Iraq.

I just wonder, how will this attack resonate, do you think, in Iraq, the Iraq of 2021?

DAMON: Becky, for the bulk of the population, there has been for quite some time now this growing frustration, this growing anger at having their

country being used as this proxy battlefield between the U.S. and Iran.

And Iraqis are very savvy and they're very well aware of the geopolitical dynamics and how they are often something like cannon fodder when it comes

to these bigger geopolitical strategies and maneuvers that end up being put into play.

But what we've been seeing in Iraq, especially over the last few years, with these demonstrations that were erupting in Baghdad and in parts of the

country's predominantly Shia south, is that the population is also growing fed up with Iran and with Iranian influence.

And so you have this sense that, with this attack right now, there is perhaps mounting anxiety that the situation could once again escalate. And

one should also remember that, you know, Iraq has its own definition right now, sadly, for what stability looks like.

It doesn't look like it does in a lot of places, where we live, for example. Stability is not about no attacks, no suicide bombings, no rockets

falling; it's about a low level of all of that happening.

[10:10:00]

DAMON: And even though Iraqis can go about their daily affairs, for lack of a better way to put it, with a better sense of security today than they

could, say, six, seven, eight years ago, that is still not a security that is, by any means, guaranteed.

Don't forget, you know, fairly recently, earlier this year, there was a double suicide bombing that happened in a very crowded area of Baghdad. And

so each time these kinds of attacks happen, that hope that Iraqis may perhaps be beginning to have, that their lives will finally be getting

better, it shatters.

And each time hope shatters, it's more painful than the time before because hope can be a very cruel beast. And no one knows that better than the Iraqi

population.

ANDERSON: Arwa Damon reporting from Turkey today, Barbara Starr at the Pentagon, to both of you, thank you.

Troubling but not surprising news today on COVID vaccine rollouts. They are not being distributed equally around the world. As of today, according to a

joint statement by the WHO and UNICEF, almost 130 countries have yet to administer a single dose. That is 2.5 billion people with no access to a

potentially life-saving jab.

And even in the countries with the highest vaccination rates, the majority haven't gotten their first dose. The U.K. has met its target of

administering 15 million first doses. It's also recorded its lowest number of new daily COVID-19 cases since October. You can see that drop here on

this graph.

But officials credit the drop to tougher lockdown measures rather than vaccines themselves. The rollout of vaccines for the most vulnerable in

Wales certainly gathering pace. And that is welcome news for exhausted and stressed ambulance workers.

In two days, only two possible COVID cases emerged during a CNN ride-along. Nick Paton Walsh has that for us.

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NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR (voice-over): Endless bad news here has traces of good in it now.

UNIDENTIFIED MALE: 9-9-9 is activated.

WALSH (voice-over): Paramedic team Angie and Lynda, after months of exhaustion and loss, raced between back-to-back COVID call-outs.

This is number callout test team (ph).

WALSH: This is a normal busy morning for the ambulance crew but with one key difference: they are finding that we're now in the middle of a two-day

period, where these COVID cases are dramatically dropping off.

WALSH (voice-over): On one day, we spent here, in this city of half a million, Cardiff, there were only four.

Could it be just a glitch or a global first?

Vaccines sweeping in and easing pressure on the very front line.

UNIDENTIFIED FEMALE: Hello, my sweetheart.

WALSH (voice-over): This turning up to an elderly possible COVID patient. And discovering Khartoum Makani (ph) had the vaccine two weeks ago will

soon be the norm.

UNIDENTIFIED FEMALE: You're struggling to get your breath?

Struggling to breathe?

WALSH (voice-over): Khartoum (ph) says her home test found COVID but only has a slight fever and is awaiting a proper test.

UNIDENTIFIED FEMALE (from captions): Shivering. My mouth is getting really dry.

Khartoum (ph) decides not to go to hospital as she's already alone enough. This house, mired in a new solitude and grief. Her son, Rahim (ph), died

just days ago from a non-COVID heart attack.

The U.K. has one of the worst death tolls but also the fastest vaccination rates. In Wales, where nearly a quarter, all the vulnerable, have had their

first dose by this day. They are even ahead of the U.K.'s schedule.

They went in to lockdown a little faster than England, too, and now something could be changing, because we only see one other COVID case in

two days, who isn't that sick. Angie and Linda have been a team for 12 years.

UNIDENTIFIED FEMALE: We finish each other's sentences.

WALSH (voice-over): But this year, had patients they'll never forget.

ANGIE DYMOTT, PARAMEDIC: She was my next-door neighbor. So I knew her. I immediately knew she wasn't well so I called for an ambulance myself for

her.

WALSH: Must be harder to know the person.

DYMOTT: It was really hard. Really hard to tell her that she really, really needed to go in, which I don't think she expected to.

WALSH: She was OK or.

DYMOTT: No, she wasn't. No. So that particular lady did pass away five days later.

STEPHENS: You know it may be the last time they say goodbye to their family on the back of the ambulance.

WALSH: Is there a patient that stays with you when you say that?

STEPHENS: Yes.

WALSH: What were they saying to each other?

STEPHENS: Mostly just goodbye. Don't worry. I love you, that sort of thing. Yes. I think everybody is well aware of family, well aware they

might not see their family, that person again.

[10:15:00]

WALSH (voice-over): And then there was April, when Ange became a COVID patient herself, raced by her own colleagues to hospital.

DYMOTT: I was really scared. I was scared. And I'm, although, I kept telling myself, you know, I'm healthy and I'm youngish, I still kept

thinking, you know, I could deteriorate at any time now. My oxygen levels weren't getting better.

WALSH: Was there a moment of panic at some point?

STEPHENS: Oh, yes. Definitely. Yes.

WALSH: Would it have been possible to come back to work without Ange for you?

STEPHENS: Probably not, no. I hope this vaccine is what we need to, you know, we really hope there's not a third wave. I think we're all exhausted

now.

WALSH (voice-over): Wales' first minister Mark Drakeford thinks the lockdown is more behind the drop in cases than the vaccine.

MARK DRAKEFORD, WELSH FIRST MINISTER: Well, it will begin to make a difference. We know it's three weeks before the vaccine begins to make a

difference and we're only 66 days in to our program altogether today.

What has really made the difference was the decision we made, the very difficult decision, to go into a full lockdown before Christmas.

WALSH (voice-over): Hope, good news, something so alien now to these streets, it will take time to be sure of it.

(END VIDEOTAPE)

ANDERSON: Our international security editor Nick Paton Walsh reporting and joining me now from London.

As much as people are eager to see the easing of these restrictions across the U.K. and beyond, of course, the big question is, is this sort of

progress that we are seeing sustainable?

Is there an answer for that at this point?

WALSH: No. What you saw there was purely anecdotal. But it's very strange to stand at the A&E in Cardiff's main hospital and talk to ambulance crews,

all of whom, one day, have not had a COVID patient. That was obviously very rare for them and the A&E itself said they hadn't taken anyone in. That was

one day.

But on the other day we were there, there were only four suspected COVID patients across all of Cardiff. That, for them, was remarkable. And you

simply have to remember that what they used to be dealing with is people over 70, 75, feeling sick, most likely having coronavirus and needing

rushing to hospital.

Now most of those people whose calls they answer with chest pains or other such illnesses have had the vaccine. That's just a simple fact in Wales.

And that surely, at some point, is going to impact the frequency in which these very frontline workers, the people most likely, frankly, to see the

change happen at the very first, that's going to impact the volume of calls out they have.

Lockdown restrictions you heard there, the Welsh first minister, Mark Drakeford, made it clear his slightly different timing to the U.K., England

specifically, bringing them into lockdown more harsh, faster ahead of Christmas, which seems to have influenced England's decisions back in

December.

He says that's behind it. Maybe some politics there, too. He also accepts the vaccines will be playing a role at some point, too. More broadly for

Boris Johnson, the British prime minister, he's saying they'll be cautious but also do things that are irreversible. They don't want to go through

this constant undulating lock down, open up, lock down, open up again.

It's damaged the economy here, trust in the government as well. There's also still in the background here concerns about continuing variants of

concern moving around. South Africa's one has prompted a lot of spontaneous testing in certain risk areas in the U.K.

And across the river from Cardiff in Bristol, another variant has been noticed, too. That could really upset the apple cart here in terms of the

vaccine rollout.

But after reporting this story for a year and the relentless misery that it often brings, to actually spend time with an ambulance crew, who are

wondering where the bad news is, apart from the awful daily things they normally experience, that was something of a relief -- Becky.

ANDERSON: Absolutely. And we can only applaud their efforts through the absolute worst of all of this and be delighted for them that they are

getting a little bit of relief, as you point out. Thank you for that, Nick.

(CROSSTALK)

ANDERSON: Yes, absolutely. Thank you.

The U.S. taking a pounding from a winter storm. It's put much of the country in, quite frankly, a deep freeze and in some places, a warning.

Brace for more.

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UNIDENTIFIED FEMALE: We all see the current situation. I'm not going to sugar-coat it. The next few days are going to be very tough.

ANDERSON (voice-over): Still ahead, we'll get you to Dallas in Texas, where very tough only begins to describe the situation.

(END VIDEO CLIP)

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UNIDENTIFIED MALE: For me, it's compromise. And by that, I mean it's working together to come up with a solution.

(END VIDEO CLIP)

[10:20:00]

ANDERSON: The U.S. President will soon hear straight from Americans, many of them anxious about the future of their divided country. Details on Joe

Biden's upcoming CNN town hall are ahead.

And a bold ultimatum from Saudi Arabia. How it looks to attract more foreign investment. A live report from the region is just ahead for you.

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ANDERSON: Much of the U.S. in the icy grip of what could be the worst cold snap in more than a century. It's all about a massive winter storm system

breaking records left, right and center. It's affecting more than 200 million people from America's border with Mexico all the way up to Canada.

At least 15 people have died in weather-related traffic accidents across the country. And wind chills have dipped to a bone-freezing negative 41

degrees Celsius in some areas.

What's strange about this is not just how cold and how big the storm is, it's also where it hit Texas, a state not known for cold weather, has been

taking a real beating. Winter advisories were issued in every single county in what is believed to be a first in more than 35 years.

To make things worse, power outages are widespread, making it much harder for people to keep warm. Ed Lavandera is feeling some of that cold right

now as he stands by in snowy Dallas, Texas, for you.

How are people holding up over there?

This is an unprecedented storm for where you are.

ED LAVANDERA, CNN CORRESPONDENT: Clearly, in the state of Texas, not used to temperatures this cold. But the disaster that people here are enduring

is really more of a man-made disaster, as the power system here has been an unmitigated failure. And 4 million people here in the state have spent a

brutal night without electricity.

(BEGIN VIDEOTAPE)

LAVANDERA (voice-over): Freezing temperatures and power outages are pummeling areas from Texas through the Plains states. More than one-third

of the country reached temperatures below zero on Monday. Texas is receiving the brunt of the storm, with millions across the state left with

no power and no heat.

UNIDENTIFIED FEMALE: We all see the current situation. I'm not going to sugarcoat it. The next few days are going to be very tough. There's a high

chance the power will be out for these folks until the weather gets better, which will not be for a couple of days.

LAVANDERA (voice-over): The city of Abilene, that has a population of more than 100,000 residents, was forced to shut off water last night due to

power outages. The lacking infrastructure for these conditions is a major concern for hardhit areas, with some families freezing in their homes.

[10:25:00]

UNIDENTIFIED MALE: It's like a walk-in freezer. It's like 34 to 36 degrees, I would say.

UNIDENTIFIED FEMALE: It depends which room you're in, 40 degrees is at the lowest end to 55 at the highest.

LAVANDERA (voice-over): In Harris County, power outages nearly spoiled more than 8,000 coronavirus vaccine doses. Moderna advised the county that

3,000 of those doses could go back into storage. And the rest were distributed throughout the county.

Historic lows in Dallas, Oklahoma City and Kansas City, the coldest since 1989. The wind chill factor reaching temperatures as cold as minus 32

degrees.

In Tennessee, authorities reported two fatalities from the storm on Monday. In Kentucky, the governor is warning that another storm is on its way. He

tells residents not to run your gas ovens to generate heat and be careful using generators and camp stoves.

GOV. ANDY BESHEAR (D-KY): Again, I can't stress the dangers of carbon monoxide poisoning, which is absolutely avoidable. Those are casualties we

don't want to see. We did not make it through almost a year of a pandemic to lose people to a snow or an ice storm.

(END VIDEOTAPE)

LAVANDERA: The failure of the power grid system here in Texas has had deadly consequences. Houston police reporting this morning that a family of

four was found in a car, sleeping in a warm car, from the effects of carbon monoxide, and that a woman and young child were found dead in that car --

Becky.

ANDERSON: Ed Lavandera reporting for you. Thank you, Ed.

The U.S. President hitting the road for his first official trip since taking office last month. Joe Biden heads to Wisconsin, a state he won by

less than 1 percent, for a live CNN town hall in Milwaukee tonight.

He'll also take questions from Wisconsin voters, who, like a lot of Americans, are anxious about the pandemic, their jobs and the future of

what is their divided country. CNN's Jeff Zeleny reports.

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CAROLINE QUINLAN, WISCONSIN VOTER: Yes, I'm giving him a shot.

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Caroline Quinlan didn't vote for Joe Biden. But she's pulling for his success.

QUINLAN: I think he's just a very nice man. I think he's very good, one of the last politicians, I think, can go across the aisle and meet with people

and I think that is a big plus.

ZELENY: When we first met Quinlan in the heat of the campaign last fall, she was torn.

QUINLAN: I get it why people don't like Trump, but at the same time, he has done a few things that I thought were important.

ZELENY: But said she ultimately decided Trump would do a better job fixing the economy.

QUINLAN: I voted for Trump. ZELENY: In the end, Biden won Wisconsin by less than one point and the city of Cedarburg by only 19 votes, turning the

reliably Republican suburb of Milwaukee blue for the first time in a quarter century. With most signs of the election long gone, it is a new

season. And many voters here say a fresh start from the acrimony of the Trump era.

NATASHA LOOS, OWNER, CEDARBURG TOY CO.: Just the tone down of the rhetoric, the not having to be glued to the T.V. or social media to find

out what the latest is going on has been very refreshing.

You're welcome.

ZELENY: Natasha Loos is a small business owner who supported Biden but senses a new era of calm.

So you can really tell that there is more civility now than there was last year?

LOOS: Yes, without a doubt, Jeff. I feel that has already stated come back even just as it pertained to mask. As a business owner, I come to work

every day wanting to share joy and happiness.

ZELENY: You sell toys.

LOOS: I sell toys and I was not interested in being part of any kind of political anything in my store. That is just one thing we don't try to do

here.

ZELENY: The headwinds facing the administration on coronavirus come into sharper view at a nearby vaccination center.

PAUL FARROW, WAUKESHA COUNTY, WISCONSIN EXECUTIVE: Our goal is to provide a thousand vaccines a day seven days a week. The only limitation we

currently have is getting the vaccine.

ZELENY: Paul Farrow is the Waukesha County executive, who said he received only 900 doses this is week instead of 7,000. Farrow voted for President

Trump but praised Biden's pledge to restore unity.

FARROW: For me, it is compromise. And by that, I mean it is working together to come up with a solution.

ZELENY: Yet compromise also comes with complications for Biden. Angela Lang and her group, Black Leaders Organizing for Communities, helped push

Biden over the finish line, as black voters did across the country.

ANGELA LANG, EXECUTIVE DIRECTOR, BLACK LEADERS ORGANIZING FOR COMMUNITIES: We elect people knowing that they are not going to be perfect and that

means that we have to hold them accountable. ZELENY: She said she is patiently waiting for Biden to take steps to combat systemic racism, a

chief criminal justice reform and broader equity.

LANG: I always get kind of skeptical and a little nervous when people say that they want to unite everyone and bring everyone together. I think

sometimes that means watering down progressive policies for the sake of unity.

UNIDENTIFIED MALE: Congratulations, Mr. President.

ZELENY: And for Biden that is the challenge, trying to be a successful leader in the eyes of Lang, Quinlan and all others who hunger for change.

QUINLAN: He is the president, so it is like let him do his job.

[10:30:00]

QUINLAN: And then we can decide in four years if we want him or somebody else.

(END VIDEOTAPE)

ANDERSON: Be sure to join us for CNN's town hall with U.S. President Joe Biden, moderated by my colleague, Anderson Cooper, Tuesday 9:00 pm Eastern

time. That is 6:00 Wednesday morning here in Abu Dhabi, 10:00 am If you are watching in Hong Kong.

And we'll replay the town hall at times that may be more convenient for you, 7:00 am Wednesday morning London, 11:00 am here in Abu Dhabi.

Taking a short break. Back after this.

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(BEGIN VIDEO CLIP)

MOHAMMED BIN SALMAN, SAUDI CROWN PRINCE (through translator): We have a case of addiction to oil in the kingdom of Saudi Arabia on the part of

everyone. The issue is serious. It disrupted the development of main sectors in the past years.

A very positive advantage is that achieving the vision does not require high government spending. It only needs organization and restructuring a

lot of sectors.

(END VIDEO CLIP)

ANDERSON: That was Saudi Arabia's crown prince back in 2016, outlining his economic vision for the kingdom. Now Mohammed bin Salman has an ambitious

plan focused on ending that addiction to oil. It begins with revamping the way the country does business.

Starting in 2024, international companies will have to establish regional headquarters in the kingdom to win government contracts. Now the goal is to

create thousands of jobs inside Saudi Arabia.

Just take a look at some of the American companies that have regional headquarters not in the kingdom but in Dubai. And this is just a partial

list. For more on the implications of this move in the kingdom, let's turn to CNN's John Defterios, my colleague in Abu Dhabi.

You've been talking to your sources in the region.

What are they telling you about the primary motivation by the crown prince here?

And is the timeline set out a realistic one?

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Yes, I think I spoke to 10 people today about this, Becky, both within Saudi Arabia and here in the

UAE. And they described it as a 21st century land grab in the desert.

It's a pretty audacious move to force the hand of the multinational companies and have them make a choice, if you will. And a three-year

timeline, I don't think, personally -- and others have said the same to me -- is very realistic. Let's look at the dynamics within the ruling family

of Saudi Arabia. Mohammed bin Salman is the crown prince in place.

[10:35:00]

DEFTERIOS: He launched the program in 2016 but actually crown prince since 2017. And getting the blessing of his father, King Salman, to pursue this

Vision 2030, it is an effort to create thousands of jobs because the unemployment rate amongst the Saudis is very high.

A technology transfer and an effort to boost foreign direct investment. And while it's not said, this is what's interesting; it's understood. This is a

challenge against Dubai, which has a long lead time and an advantage, clearly.

And there's another motivation by MBS. He wants to make Riyadh the financial capital of the broader Middle East and double the size of the

population in line with his Vision 2030. It's a big city already, as you well know, with 7 million.

So we got an inkling of this in the last month at the future investment initiative or the Davos in the Desert, when they announced and made a big

deal of it, that they have 24 companies ready to relocate. They didn't say from where but in to Riyadh over this timeframe here to 2024.

Again, a tight timeframe. So far the official names that we know, PepsiCo; Deloitte, the accounting firm; Bechtel, the very large engineering firm

which has billions of dollars of work in Saudi Arabia; and even Tim Hortons, the coffee chain. That's one-sixth of the 24. We haven't seen the

rest yet.

But it's raising some eyebrows here. As Salim Khalid (ph) was saying, all is fair in love in war; this is a case of all is fair in brotherhood and

business at the same time in this region, because the UAE and Saudi Arabia are very close political allies.

ANDERSON: Yes, of course. And this is why there's much discussion about this decision here and around the region.

You, of course, first came to Dubai back in 1990. I think I first got here for my first visit around about sort of 1999. Look, you have been around or

certainly came here when the city of Dubai began opening up. That gives them a 30-year lead time over Riyadh.

That begs the question, can Dubai be unseated as the financial capital of the Middle East?

DEFTERIOS: Yes, I've been covering the story for the day and obviously following the trends here in Saudi Arabia and the 2030 plan. But I was

thinking about it in this context, Becky.

Mohammed bin Salman is a young crown prince, 35 years old. Nobody says anything about what he's trying to do in terms of the reforms, the economic

reforms, at least, and the political pace in which he's trying to pull that off.

But if you think about it, that's when the father of the current ruler of Dubai, his father was really pushing to build out that infrastructure.

So what do we have today?

Emirates airline, a world class carrier; Dubai International Airport, the number one airport for international arrivals; Jebel Ali port, handling 40

percent of the traffic in the broader Middle East, it is the regional financial center and obviously a tourism hub. Those are all things very

attractive, of course, to Saudi Arabia.

And you talked about the partial list. We have a list from the American Chamber, which is 55 companies, which call the UAE their home right now.

But you have to think about the wider context, the Japanese, the South Koreans, right, the Chinese, the Europeans that call this hub their home at

the same time. So I don't think it's going to be an easy push by Saudi Arabia.

There's always that danger, if you raise the bar too high and don't meet the expectations, for MBS, it's going to prove a challenge to his

reputation in the future.

ANDERSON: Absolutely. John, always a pleasure. Thank you very much indeed. John Defterios in the house for you.

A woman accused of being an ISIS terrorist is at the center of a diplomatic spat between neighbors Australia and New Zealand. At issue, her dual

citizenship. The 26-year-old woman was arrested with her two children after entering Turkey from Syria.

Now New Zealand's prime minister says the woman left for Syria from Australia, adding that Australia canceled the woman's citizenship

unilaterally.

(BEGIN VIDEO CLIP)

JACINDA ARDERN, NEW ZEALAND PRIME MINISTER: I think New Zealand frankly is tired of having Australia export its problems. But now there are two

children involved. And so we have to resolve this issue with the interest of those children in mind.

(END VIDEO CLIP)

ANDERSON: Australia argues it would always put its national security interests first but says it will look into this particular case.

Still ahead, like mother, like daughter; Serena Williams is powering forward at the Australian Open and her daughter is no slouch on court,

either. We'll check that out in "WORLD SPORT."

(WORLD SPORT)

[11:00:00]

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