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Journalist Jamal Khashoggi was killed in a fight in the Saudi consulate in Istanbul, the country's state TV reports, quoting an initial inquiry.
Deputy intelligence chief Ahmad al-Assiri and Saud al-Qahtani, senior aide to Crown Prince Mohammed Bin Salman, were sacked over the affair, it says.
Analysis by BBC Security Correspondent Frank Gardner
The Saudi leadership will now be hoping that its belated admission that Khashoggi did die, after all, inside its consulate - coupled with a handful of sackings and arrests - will be enough to draw a line under this affair. It will not.
This is only a first step towards publicising the truth of what really happened. Given the days of indignant denials by the Saudi leadership it's doubtful we would have even got this far without sustained international pressure.
There can only be one of two possible alternatives here: either - as many suspect - the powerful Crown Prince Mohammed Bin Salman was to blame or he had lost control of his inner circle, something most observers find hard to believe.
MBS, as he is known, has a huge following amongst young patriotic Saudis who see him as a visionary reformer. If that support were now to ebb away then the crown prince could find himself dangerously isolated at court.
A statement from Saudi Arabia's public prosecutor says a fight broke out between Mr Khashoggi, who had fallen out of favour with the Saudi government, and people who met him in the consulate - ending with his death.
Investigations are still under way, it says, and 18 Saudi nationals have been arrested. The Saudi authorities have yet to give evidence to support this version of events.
Unnamed officials speaking to Reuters news agency and the New York Times say the Saudis did not know the whereabouts of the body after it was handed to a "local collaborator" to dispose of.
Saud al-Qahtani is a prominent member of the Saudi Royal Court and adviser to Prince Mohammed bin Salman.
Major-General Ahmed al-Assiri has acted as the top spokesman for the kingdom about the war in Yemen.
He spoke to the BBC in 2017 about the conflict, defending Saudi Arabia's actions.
King Salman has also reportedly ordered the formation of a ministerial committee, headed by Crown Prince Mohammed, to restructure the intelligence services.
Saudi Arabia says it acted on information provided by Turkish authorities as part of its inquiry, investigating a number of suspects.
President Trump said the arrests were an important "first step". He praised the kingdom for acting quickly, and while he said sanctions were an option against the country, he spoke of the possible effect such moves would have on the US economy.
Asked if he found Saudi Arabia's version of events credible, he replied, "I do."
He stressed the importance of Saudi Arabia as a counterbalance to Iran in the Middle East, and pushed back against the need for sanctions against the country in light of the new information, talking about the effect of such a move on the US economy.
He spoke of his visit to Saudi Arabia - his first trip abroad as president - and the $110bn (£84bn) arms deal he signed with the kingdom.
"I'd rather keep the million jobs [in the US] and find another solution," he said.
Earlier this week Mr Trump had said there would be "very severe" consequences if Saudi Arabia was proved to have killed the journalist.
The White House said in a separate statement the US was "deeply saddened" to hear confirmation of Mr Khashoggi's death.
A number of US lawmakers, including a Republican highly critical of the Saudis, Senator Lindsey Graham, said they were sceptical about the report on the journalist's death.
Bob Corker, the top Republican on the Senate Foreign Relations Committee, said the Saudi explanation changed with each passing day and "we should not assume their latest story holds water".
The senior Democrat on the House Intelligence Committee, Adam Schiff, tweeted that if Mr Khashoggi had been "fighting with those sent to capture or kill him, it was for his life".
Meanwhile, Mr Khashoggi's fiancée, Hatice Cengiz, questioned in a tweet what had happened to his body, saying: "The heart grieves, the eye tears, and with your separation we are saddened, my dear Jamal."
Turkey has so far remained silent on the latest Saudi reports.
Turkish officials believe Mr Khashoggi was killed by a team of Saudi agents inside the consulate, and his body then removed - and they say they have video and audio evidence to back this up.
Saudi Arabia has denied this, and initially insisted Mr Khashoggi had freely left the embassy.
Turkish newspapers with close links to the government have published gruesome details of the alleged audio, including what they describe as the sounds of screams and Mr Khashoggi being interrogated and tortured.
Turkish media said earlier this week they had identified a 15-member team of suspected Saudi agents who flew into and out of Istanbul on the day of the disappearance.
Directives and decision made by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, that took place, following the unfortunate incident that claimed the life of Jamal Khashoggi, may God have mercy upon him, proceed from the foundation of the Kingdom of Saudi Arabia, cherishing achievement of justice and equality, in accordance with Shariah, the Islamic law, setting forth to hold accountable, anyone who transgresses or belittles whoever he might be, and whatsoever the circumstances and regardless of any considerations, The General Secretariat of the Council of Senior Scholars (Ulemas) explained.
The General Secretariat of the Arab League welcomed the Royal Orders issued yesterday evening by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and the statement issued by the Saudi Attorney General regarding the case of the Saudi journalist Jamal Khashoggi.
The Arab League praised in a statement today the investigations carried out by the Kingdom so far, which indicate the keenness of the Custodian of the Two Holy Mosques to clarify the reality of events in the case and to take the necessary legal action.
The league expressed deepest condolences to the families and relatives of the Saudi journalist and reaffirmed its statement issued on 14 February on the refusal to politicize or exploit this issue by any party, including for the purpose of threatening economic sanctions or unilateral measures in any form against Saudi Arabia, which remains a key pillar of security and stability at the regional and international levels.
Prince Khalid Al-Faisal, Advisor to the Custodian of the Two Holy Mosques and Governor of Makkah Region, hailed the wise decisions made by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud against the backdrop of the unfortunate incident that killed Jamal Khashoggi.
He stressed that the decisions bolstered the principle of transparency adopted by the Kingdom of Saudi Arabia.
The Muslim World League (MWL) has hailed orders issued by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud following the tragic incident that claimed the life of Saudi citizen Jamal Khashoggi.
The MWL also praised the statement of Attorney General of the Kingdom of Saudi Arabia regarding the tragic incident.
In a statement issued today, the Secretary General of the Muslim World League and the Chairman of Board of Directors of International Organization for Muslim Scholars Sheikh Dr. Mohammed bin Abdulkareem Al-Issa said that the orders of the Custodian of the Two Holy Mosques and the statement of the Attorney General came within the Kingdom's record in applying the Islamic Sharia.
He added that the Kingdom of Saudi Arabia is addressing this issue with its transparent and justice approach.
Dr. Al Issa concluded that the measures taken by Kingdom came in the interest of achieving the justice.
Muslims should now realise that they have lost the Haramain
Shaykh (Maulana) Salman Nadwi (HA)
P.S: The actual facebook post from Mufti Saheb does not contain the extra text at the bottom, see here:
P.P.S: Sister has now pointed out that it is in the comment section.
We believe in the words of Nabi (Sallallaho Alaihe Wassallam) in Saheeh Bukhari “There is no disease that Allah has sent down except that He also has sent down its treatment.”
Diseases can be physical as we all as mental.
I am not a Sufi so no idea how Takabbur is diagnosed and treated and this is the domain of Mashaykh like Dr76 etc.
As far as Narcissism is concerned, it can be treated and does it gets treated:
But in the case of both Takabbur and Narcissism, the most important and the basic step is to come to terms with the fact that the person has a problem. The reason Narcissism (and Takabbur from little I know) is so hard to treat is that in both cases the person is so much in love with themselves and their opinion that they cannot admit that they have a problem.
Then even when personal and circumstances of life prove that they have a problem they think that they are suitable and capable enough to deal with it themselves and need no outside intervention. There is nobody on the outside who is capable enough to understand or treat them.
I will tell you a personal issue between myself and Mufti Amjad. I disagree with the analysis of Mufti Amjad here:
I have spoken to him in great detail about this article and his recommendations and I disagree. I have tried to delve into the matter and look at him as a person:
But can I bring myself to admit that I am wrong? No! My Nafs is clinging to small crumbs of disagreements that I have a point (which I may do) but in the grand scheme of things lets evaluate our positions:
But my Nafs cannot accept defeat. So I have a problem which needs to be discussed BUT my Nafs clings to technical discussions and scientific data instead of actually addressing the root cause of the problem.
So we all have problems. The difficulty is admitting to a problem then you can think about solving it.
This is the single biggest issue with Narcissism and Takabuur. The advantage we Muslims have Alhumdolillah is that we have Fear of Allah Ta’ala and we know that we will be reckoned on the day of judgement. This should over-ride all other considerations.
This cannot be undone and I am sure it will be greatly appreciated.