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| Egypt court backs government in Red Sea islands dispute |
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| By Mohamed Abdellah CAIRO (Reuters) - An Egyptian appeals court on Saturday upheld an agreement to give control of two islands in the Red Sea to Saudi Arabia, providing a boost for the government in a case that has prompted rare street protests. The territorial deal, announced in April, caused public uproar among many Egyptians who said the uninhabited islands of Tiran and Sanafir belonged to their country. The case has become a source of tension with Saudi Arabia, which has provided billions of dollars of aid to Egypt but recently halted fuel shipments amid deteriorating relations. |
| Thai King urges unity in first New Year speech |
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 Thailand's King Maha Vajiralongkorn called for unity in his first New Year address since taking over from his late father, who was widely seen as a unifying force during decades of turbulence. Any appearance by the new king is closely watched and the pre-recorded address was only the second time he has spoken to the public since taking the throne on Dec. 1 after the death of his father, King Bhumibol Adulyadej. In the coming weeks, King Vajiralongkorn is expected to endorse a constitution drafted by the military government to start the process of restoring democracy.
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| Merkel says Islamist terrorism is biggest test for Germany |
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 By Joseph Nasr BERLIN (Reuters) - Islamist terrorism is the biggest test facing Germany, Chancellor Angela Merkel said on Saturday in a New Year's address to the nation, and vowed to introduce laws that improve security after a deadly attack before Christmas in Berlin. The European Union for example," Merkel said. What a distortion," she said in a veiled reference to claims by the far-right party Alternative for Germany (AfD) that is stealing votes from her conservatives.
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| Egypt hands over remains of air crash victims |
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 Egypt began on Saturday handing over to their families the bodies of those who died when EgyptAir flight MS804 crashed into the Mediterranean in May with the loss of 66 passengers and crew, the state news agency MENA reported. The remains of crew members were handed over on Saturday, with the handover of Egyptian, French and other foreign passengers expected to begin on Sunday.
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| South Korea court issues arrest warrant for pension chief in corruption scandal |
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| By Jack Kim SEOUL (Reuters) - A South Korean court issued an arrest warrant on Saturday for the head of the national pension fund, the world's third largest, in a corruption scandal that has led to President Park Geun-hye's impeachment, an official said. A special prosecutor probing the wide-reaching scandal has sought the arrest of the National Pension Service (NPS) Chairman Moon Hyung-pyo on charges of abuse of power and perjury. The Seoul Central District Court issued the warrant saying evidence supported the charges against Moon, an official at the court said, but did not provide further details. |
| Yazidi woman escapes Islamic State in Mosul as Iraqi forces advance |
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| A Yazidi woman held captive by Islamic State militants for more than two years managed to escape when Iraqi forces pushed into Mosul and provided information that helped them retake a neighbourhood of the city, Iraqi commanders said. The 42-year old woman, who asked to remain unnamed, was kidnapped by the militants from her hometown of Sinjar in the summer of 2014 when they overran northern Iraq and purged its Yazidi minority. Since then, some have escaped or have been bought back from the militants, but as many as 3,500 remain in Islamic State captivity, according to a recent estimate provided by the office that handles kidnappings in the Kurdish region of northern Iraq. |
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