News - May 2008

May 25 - May 31, 2008

~~~~~~~~ [ May 31] ~~~~~~~~~

Saudi Kayan in $6bn Loan Deal to Fund Plant [May 31]
"Saudi Kayan Petrochemical Company said on Saturday it had signed a $6 billion loan agreement with a group of banks to partly finance its complex in Al-Jubail industrial zone. ABN AMRO, Bahrain's Arab Banking Corporation, France's BNP Paribas SA, HSBC Holdings and Samba Financial Group will lead manage the 15-year loan agreement, it said in a statement on the bourse website. Kayan is 35 per cent owned by state-controlled Saudi Basic Industries Corporation (Sabic). The Kayan project will start commercial production in the fourth quarter of 2010.." [more]

Campaign Against Smoking Planned [May 31]
"The Kingdom will participate with other nations in the world No-Tobacco Day titled 'Youth Without Tobacco' set by the World Health Organization Saturday. Minister of Health Dr. Hamad Bin Abdullah Al-Mane’ said the theme of this year’s No-Tobacco Day aims to protect young people from the dangers of tobacco and to encourage them to adopt healthy behavior to be effective in building a healthy society.. ..The campaign entitled “Youths are Nation’s Hope” is being organized under the patronage of Prince Khaled Al-Faisal, Emir of Makkah Region and Honorary Chairman of the Charitable Society for Enlightenment on the Harms of Smoking and use of Drugs.. ..'This third campaign is especially targeting the youth because they are the future of the nation. The campaign will welcome participation from different walks of life.." [more]

Amid Stability, Saudis Are Heading Back to Lebanon [May 31]
"Saudis are returning back to one of their top tourism destinations: Lebanon. According to local travel agents, flight reservations are up for the Saudi summer vacation season after numbers fell dramatically following the July War of 2006 that sent many Saudis scrambling for evacuation. Saudis make up the largest tourist segment in Lebanon, estimated at 30 percent of Arab tourists; many own summer homes in Lebanon.. ..'Lebanon, or as many people like to call it ‘the Monte Carlo of the East’, has special status among Saudis whose like to enjoy a Mediterranean climate in a country that speaks their language,'.." [more]

Al-Assaf, Paulson Agree on Saudis Keeping Dollar Peg [May 31]
"U.S. Treasury Secretary Henry Paulson and Saudi Arabian Finance Minister Ibrahim Al-Assaf agreed that the Gulf kingdom benefits from keeping its currency pegged to the dollar. The riyal's peg ``has served this country and the region well,'' Paulson said today at a joint press conference. ' I totally agree with Secretary Paulson,'' al-Assaf told journalists in Jeddah. 'As we have said many times, we have no intention of de-pegging or of revaluation.' Paulson is getting an update on the fixed exchange rates retained by most oil-rich nations in the Middle East on his four-day trip to the region.." [more]

Leading Saudi Bankers to Attend MEFX [May 31]
"Saudi Arabia, long considered one of the most important financial and banking markets among the GCC countries, is all set to have a significant presence at MEFX, the first Middle East Banking, Financial Technology and Services Exhibition and Conference to be held in Dubai. MEFX, through its hosted delegate programme, MEFX Host© will bring the leading bankers and key decision makers from Saudi Arabia to Dubai to connect with international financial technology suppliers, financial institutions and service providers. Saudi Arabia is the second largest and most important banking economies in the region with assets currently estimated at $290bn. Saudi banks posted profits of $8.1bn at the end of 2007 and are regarded as one of the most profitable and efficient in the region.." [more]

OPEC to Spend $160 Billion to Increase Capacity [May 31]
"Opec members will invest US$160 billion in oil development projects in the next three years to increase their production capacity by 15% in response to growing demand. The announcement by Abdalla Salem el Badri, the secretary general of Opec, came a day after British Prime Minister Gordon Brown sought to put high oil prices at the top of the agenda for a summit in July of the Group of Eight (G8) most powerful nations.. ..'Even though we see no shortage of oil in the market, since the middle of 2007 we have seen a major disconnect between oil prices and market fundamentals. A number of factors have contributed to this, but primarily [it is] the massive role that speculators now play in the oil market,' Mr Badri said. He said Opec countries would add five million barrels per day (bpd) of extra crude production capacity by 2012.." [more]

~~~~~~~~ [ May 30] ~~~~~~~~~

Saudi Bourse Surpasses London in IPO Activity [May 30]
"The Saudi Stock Exchange surpassed London to be the world's second busiest market for initial public offerings in the first five months, Thomson Reuters data showed. The New York Stock Exchange, thanks to the $19.7 billion listing of Visa Inc topped the global IPO league table with 12 new issues raising a combined $24.4 billion, up 173 percent year on year. The total of Saudi Stock Exchange IPOs jumped 322 percent from a year earlier to $8.5 billion as it welcomed Alinma Bank 1150.SE, which raised $2.8 billion in the country's biggest IPO in April. The Saudi bourse also benefited from the $1.87 billion listing of mobile phone company Zain Saudi Arabia.. ..Despite growth on some exchanges, global IPO activity fell 36 percent to $65 billion in the first five months as the global financial crisis dented investor appetite for equity.." [more]

Saudi Loans US$80M for Projects in Mindanao [May 30]
"President Gloria Macapagal-Arroyo announced Thursday that the Kingdom of Saudi Arabia (KSA) has pledged a US$80 million loan for government priority projects. The projects are aimed for the Autonomous Region in Muslim Mindanao (ARMM) including Tawi-tawi, the poorest province in the country. This developed as the President enlisted the help of presidential daughter and World Wildlife Fund (WWF) policy officer for the Coral Triangle program Lourdes Evangeline "Luli" Arroyo in uplifting the lives of the Tawi-tawi residents.. ..The US$80 million would be in addition to the US$20-million loan that the Saudi government extended earlier to the ARMM.." [more]

GE Unit Wins $500m Saudi Contracts [May 30]
"GE Energy has signed contracts totalling more than $500 million to supply gas turbines and generators for power plant projects owned by Saudi Electricity Company (SEC). In the first agreement, GE Energy has received a contract to supply gas turbine generators for the 960-megawatt expansion of the Rabigh Power Plant in Rabigh City, on the west coast of Saudi Arabia. The project is part of SEC's initiative to provide additional power to support the region's econ-omic and population growth.. ..GE Energy also has received a contract for gas turbines that will be used by four power plants owned by SEC.." [more]

Shell Increases Stake in Empty Quarter Project [May 30]
"Royal Dutch Shell has raised to 50 from 40 percent its stake in a project to explore for gas in Saudi Arabia’s vast Empty Quarter after French Total pulled out of the joint-venture. Saudi Aramco’s stake in the South Rub Al-Khali Co (SRAK) joint-venture will rise to 50 percent from 30 percent, SRAK said in a statement on Tuesday. 'Total ventures Saudi Arabia has transferred its share in ... (SRAK) to both Shell Saudi Ventures Limited and Aramco,' SRAK said in a statement, without giving financial or other details of the transfer. 'Based on this transfer of Total’s share, the South Rub Al-Khali Company Limited is now equally owned by Shell and Saudi Aramco,'.." [more]

Kingdom Mulls Writing Off Iraq Debt [May 30]
"Saudi Arabia is willing to consider alleviating debts owed it by neighboring Iraq, Minister of State for Foreign Affairs Nizar Madani said at a meeting in Sweden yesterday. Iraq and the United Nations are co-chairing a review of a strategy adopted for Iraq in Egypt a year ago. Ahead of that conference in May 2007, Saudi Arabia said it was willing to waive 80 percent of the funds owed it by Iraq. So far nothing has come of that pledge, but Madani told the assembled diplomats in Stockholm that the Saudi government might be prepared to rescind the entire debt.. ..Maliki said the large debts — some of which date back almost 30 years — along with compensation payments for Saddam’s invasion of Kuwait in 1990, were shackling the economy. Iraq is obliged to set aside five percent of its oil revenues as compensation payments, amounting to $3.5 billion this year, according to the Iraqi government.." [more]

Saudi Arabia- Oil's Uncertain Future [May 30]
"Saudi Arabia last week marked 75 years of oil production with unusually jaunty celebrations at the site of the nation's first oil well. Yet amidst the revelry there is no disguising the fact that oil, and the kingdom's role in the oil economy, is entering an uncertain future.. ..Saudi Arabia is understandably feeling bemused. It has plans to expand production from 11.3m barrels per day to 12.5m, primarily by increasing production at the offshore Manifa field by some 900,000 barrels per day, and installing two new refineries with a combined capacity of 800,000 barrels per day. The additional capacity should be enough to absorb actual demand from the market, and maintain a "cushion" of excess supply. Yet there is no guarantee the installation of additional capacity will have any effect on oil prices, which seem to be driven more by speculation than demand outstripping supply.." [more]

~~~~~~~~ [ May 29] ~~~~~~~~~

Conference to Set Norms for Inter-Faith Dialogue [May 29]
"The international Islamic conference, which will begin in Makkah on Wednesday, will set guidelines for dialogue between Muslims and followers of other religions and cultures. 'The conference would discuss the basis for dialogue with other faiths in the light of the Quran and Sunnah. It will also review past experiences in the field to make use of them,' said Dr Abdullah Al Turki, Secretary-general of the Makkah-based Muslim World League.. ..Dr Al Turki said the conference underscores the significance of the recent initiative of King Abdullah Bin Abdul Aziz for holding a reinforced dialogue between Islam, Christianity and Judaism.." [more]

Saudi Arabia Pumps Extra Oil to Match Rising World Demand [May 29]
"Top oil exporter Saudi Arabia has boosted supply to help meet the world’s need for fuel and may further increase output later if needed, a senior Gulf Opec source said yesterday. Opec’s 13 members, especially core Gulf producers, are taking their output cues from global oil demand rather than sticking to production targets, said the source familiar with Saudi thinking. 'Whenever there is demand it will be met by Opec,'.. ..Opec’s leading producer Saudi Arabia has been adjusting supply to match demand since August last year when prices were around $60 and it was pumping around half a million barrels per day less than now. Saudi Oil Minister Ali al-Naimi said earlier this month output would rise by 300,000 bpd and hit 9.45mn bpd in June.." [more]

Crown Prince Visits Spain Next Week [May 29]
"Crown Prince Sultan Bin Abdul Aziz, Deputy Prime Minister, Defense and Aviation Minister and Inspector General, is scheduled to start a three-day official visit to Spain next Thursday. Crown Prince’s visit comes at the invitation of the Spanish King Juan Carlos.. ..Crown Prince Sultan will sign two agreements on military cooperation between Spain and the Kingdom, he said. Prince Saud said the visit symbolizes the excellent relations between the two friendly countries. He said talks between the Crown prince and Spanish premier will focus on the enhancement of the already strong relations. Earlier, the Kingdom had announced establishment of a bilateral fund between the Kingdom and Spain with a total value of $5 billion supported by businessmen in the two countries.." [more]

GE Unit Wins $500 Million Saudi Power Contract [May 29]
"General Electric Co (GE.N: Quote, Profile, Research) said on Thursday that its GE Energy unit had won $500 million in contracts to supply gas turbines and generators to various power plants owned by the Saudi Electricity Co 5110.SE SEC is the leading electricity supplier in Saudi Arabia, where GE says demand for power is growing 8 percent annually. Saudi Arabia is one the fastest-growing markets for GE's power and water, transportation and health-care products. GE, the second-largest U.S. company by market capitalization, is also a member of one of four groups vying for a 30-year, $5 billion contract to build and operate a 1,100 km .." [more]

Invest in Japan, Saudis Urged at JCCI Meeting [May 29]
"A group of visiting Japanese executives held a meeting yesterday at the Jeddah Chamber of Commerce and Industry and urged Saudi businessmen to consider investing in Japan. Daisuke Matsushima, New Delhi-based senior director of the Japan External Trade Organization (JETRO), who headed the team, listed the advantages of investing in his country.. ..In his presentation, Matsushima outlined Japan's investment climate and also discussed how Japanese foreign direct investment could be directed toward Saudi Arabia. He also discussed the possibility of the "Triangle business alliance" involving the Kingdom, Japan and India through some major Japanese projects in India. Matsushima said that Japan's attractiveness as an investment destination was increasing, as the government had been working to improve the business environment.." [more]

~~~~~~~~ [ May 28] ~~~~~~~~~

Saudi Arabia Pumps Extra Oil to Match Demand [May 28]
" Top oil exporter Saudi Arabia has boosted supply to help meet the world's need for fuel and may further increase output later if needed, a senior Gulf OPEC source said on Wednesday. OPEC's 13 members, especially core Gulf producers, are taking their output cues from global oil demand rather than sticking to production targets, said the source familiar with Saudi thinking. 'Whenever there is demand it will be met by OPEC,' he said. 'The majority of OPEC producers definitely don't like this high oil price because it is neither in their interest nor in the interest of the global economy, and it's especially painful for the developing world.' U.S. crude hit a record above $135 a barrel last week, prompting consumer countries such as the United States to renew their plea for more oil from the Organization of the Petroleum Exporting Countries.." [more]

Top Cleric Lambasts Extremists Who Sow Seeds of Trouble [May 28]
"Saudi Arabia's Grand Mufti Shaikh Abdul Aziz Alu Al Shaikh underscored the need to intensify awareness campaigns among youth to prevent them from being lured into extremist and deviant ideologies. Attending a crowded open dialogue held at a mosque in Riyadh on Tuesday, the mufti lambasted the extremists, saying, 'They would neither learn any lesson nor use their wisdom. They are such people who have been subjected to brainwashing and are living in a world of hallucinations away from realities.'.. ..In response to a question about jihad [holy war], which is the most misunderstood word in the present context, the grand mufti said that there should be some conditions and rules for waging jihad, and that using a weapon is not a prerequisite for jihad. 'We can wage jihad through our tongues by promoting virtues and preventing vice. We can also wage jihad by using our heart and wealth,'.." [more]

Indonesia Pulls Out of OPEC [May 28]
"Indonesia is pulling out of Opec, because it is no longer a net oil exporter, the energy minister said on Wednesday. Purnomo Yusgiantoro told reporters it did not make sense for his oil-producing nation to be a member of the Organization of Petroleum Exporting Countries at a time when domestic reserves were drying up and consumption increasing. 'We are pulling out of Opec,' he said. 'I will sign the papers today.'.. ..Last month, Yudhoyono said his nation needed to concentrate on increasing domestic production, which has dropped to less than 1 million barrels a day compared to just over 1.5 million barrels a day in the mid-1990s.." [more]

Saudi Aramco's Output Falls 4.5% in 2007 [May 28]
"Saudi Aramco's oil output for 2007 fell by an average 400,000 barrels per day, or 4.5 per cent from 2006, after the world's largest oil exporter cut output in line with agreements at the Organisation of Petroleum Exporting Countries (Opec), data from the state-oil firm showed on Monday. Average daily oil production reached 8.5 million barrels per day in 2007, resulting in a total production of 3.11 billion barrels for the whole year versus 3.25 billion barrels in 2006, according to the figures.. ..Opec's largest producer, aims to increase crude output capacity to 12.5 million bpd by 2009 and to 15 million bpd at a later date.." [more]

Flow of Ideas a Priority: Al-Naimi [May 28]
"A two-day convention to formalize the Global Research Partnership that forms the underpinning intellectual structure of the King Abdullah University of Science and Technology (KAUST) opened yesterday. Academics and researchers from leading universities across the globe attended the event.. ..Al-Naimi said that KAUST would play a key role in the Kingdom’s overall economic development and would address challenges facing the Kingdom’s future prosperity, which includes a high dependency on oil and a high proportion of people below 18. The latter fact, he said, posed a challenge to employment and job creation, and necessitated the development of educational systems, training opportunities and social networks to provide skills for individuals to participate in a diverse and technologically advanced economy.." [more]

Women: Small Steps Taken Where Giant Strides Needed [May 28]
"Saudi women today celebrate the inauguration of women’s sections at the Riyadh and Jeddah mayoralties. One hundred and twenty women in each city now officially take charge of municipal services for women after being provided with extensive training to qualify them for their posts. The sections have started functioning in four municipalities in both Jeddah and Riyadh regions. This follows the successful initiative to allow women to sit in the board of the Jeddah Chamber of Commerce and Industry (JCCI).. ..We cannot afford to wait until our society can reach a consensus that allows women to be part of the decision-making process, and our government should have the will to act decisively and not wait for a delayed consensus.." [more]

~~~~~~~~ [ May 27] ~~~~~~~~~

Saudi Keen on Shielding Lebanon Against Internal Fighting, External Meddling [May 27]
"The Saudi cabinet has congratulated President Michel Suleiman on taking office and stressed its adherence to the unity of Lebanon and its national decision-making. The Saudi cabinet which met Monday under King Abdullah bin Abdulaziz also expressed its keenness to shield Lebanon against internal fighting and foreign interference. 'Protection against internal violence and foreign interference are the grounds for the new phase in the history of Lebanon and are those the Kingdom promotes and supports,' said Minister of Culture and Information Iyad bin Amin Madani at the end of the cabinet session.." [more]

Saudi Money Supply Growth Slows [May 27]
"Money-supply growth in Saudi Arabia slowed to 19.3 percent in April as the government moved to control inflation. M3, the broadest measure of money circulating in the Saudi economy, grew to 826.21 billion riyals ($220.3 billion) in the year to April 30, compared with 692.38 billion riyals a year earlier, Saudi Arabian Monetary Agency (Sama) data showed. Growth was 23 percent in March and 26.2 percent in February. Month-on-month, April money supply fell for the first time in at least a year.." [more]

Nuclear Energy Best Option for Gulf States [May 27]
" Nuclear power rather than renewable sources like the wind or sun are the best option for oil-rich Gulf Arab states to meet growing energy demands, especially if produced collectively, say regional experts. 'Renewable energies are (playing) only a very small part in supplying even those who started (developing them) a long time ago,' Saudi Electricity Company president Ali Saleh al-Barrack told a conference in the United Arab Emirates on Monday. He said that while Saudi Arabia was conducting research into renewable energies, options such as wind and solar power were either limited or less attractive for technical reasons. Given the high demand for power and the population growth in the Gulf region, 'I think the only immediate solution is nuclear energy,' which is the best option in economic and environmental terms, Barrack said.." [more]

Landmark Saudi Move to Protect Abused Workers [May 27]
"In a major move to curb the mistreatment of foreign workers by their sponsors, the Saudi authorities have taken a landmark decision to take punitive measures against errant employers. The National Recruitment Committee at the Council of Saudi Chambers of Commerce and Industry decided on Sunday to furnish the Ministry of Labour with a detailed list of Saudi sponsors who have mistreated their workers.. ..'The Ministry of Labour will take appropriate measures against employers if allegations against them regarding mistreatment, delay of salaries or violation of any of the provisions of the labour contract signed with their employees, are found true and substantial,' he said.." [more]

Saudi Cloud Seeding Program Under Way [May 27]
"The Saudi National Centre for Meteorology and Environment Protection is currently implementing an ambitious project to induce artificial rains by seeding moisture-heavy clouds in the southern Asir province. Saleh Al Shahri, director general of the centre, told Gulf News that the successful experiment was launched early last month in the western and southern parts of the kingdom as part of a major drive to tackle water woes in various regions of the desert Kingdom. Saudi Arabia, which receives nearly 100 millimetres of rainfall annually, relies mainly on desalinated water and is the largest producer of desalinated water in the world.." [more]

Set Sights on Big Prizes, Al-Dossary Tells Women [May 27]
"As part of an annual recognition of the region’s business movers and shakers, Arabian Business Magazine awarded Nadia Al-Dossary the Saudi Achievement Award for 2008. There was only one small problem: Al-Dossary is a woman. It doesn’t matter if Al-Dossary heads an Alkhobar-based scrap metal empire with an annual turnover of SR500 million. It doesn’t matter that she’s been profiled in The Washington Post and that the Financial Times named her one of the top 25 economically influential women in the Middle East. When she arrived at the Four Seasons Hotel in Riyadh recently to attend the awards ceremony, she was turned away due to social restrictions (enforced by the religious police) prohibiting unrelated men and women from mixing, even in public. For her part, Al-Dossary seems unperturbed by the move. 'It was not a devastating incident for me, as I have been in the international news,' she said. 'We Saudi businesswomen do stand up and are being noticed, accepted and appreciated.'.." [more]

Time Running Out for Canadian Teenager Convicted of Murder [May 27]
"The family and friends of a Canadian teenager sentenced to death by a Jeddah court for killing another youth during a schoolyard brawl last year say they have new evidence to prove his innocence. Ali Kohail, father of Mohammed Kohail, who has been sentenced to death for killing Munzer Haraki, 19, maintained his son’s innocence. He said the death verdict would be appealed on June 7 — something that he came to know through reports in the Canadian press. If the appeal is rejected, Kohail could be beheaded.. ..When contacted by Arab News, Andrea Meyer, spokeswoman for the Canadian Embassy, said, 'We are greatly concerned. Since the case is going through a judicial process, it will be difficult for me to comment.' However, referring to the role of the Canadian government in the case, Bernard Patry, a Canadian member of Parliament, expressed concerns, saying that Ottawa should do more to save Mohammed.." [more]

Saudi Aramco's Oil Output Fell in '07 [May 27]
"Saudi Aramco, the world's largest state-owned oil company, said its crude output in 2007 declined 4.3 percent as reserves were unchanged at 259.9 billion barrels. The state-owned company produced 3.11 billion barrels of crude oil last year, down from 3.25 billion barrels in 2006. Average production was 8.5 million barrels of oil a day in 2007, down from 8.9 million barrels a day in the previous year, the company said Monday in a statement. Saudi Aramco is carrying out 'ongoing initiatives to locate additional proven reserves of crude oil,' CEO Abdallah Jum'ah said in the annual report. 'Our upstream mega-projects are geared to expand our maximum sustained crude oil production capacity to 12 million barrels per day by 2009.'.." [more]

~~~~~~~~ [ May 26] ~~~~~~~~~

First Saudi Film Festival Proves Shot in Arm for Young Directors [May 26]
"Kilo 500 won the Golden Palm award for the best short film in the first annual Saudi film competition, which concluded in Dammam on Saturday evening. The nascent film industry in the kingdom received a shot in the arm with the film festival. The five-day event, which enjoyed both official blessings and funding, drew a huge crowd of viewers, including a considerable number of women.. ..Speaking on behalf of young Saudi film directors, Faisal Al Harbi told the gathering the film festival was the best illustration of Saudi youths' capabilities and talents in producing original films within the perimeters of the conservative Saudi society by making use of its cultural heritage. 'Today, our dream has become a reality. It is a great moment for all of us.'.." [more]

US Warms Up to Gulf Currency Reforms [May 26]
"The US Treasury's recent report to Congress on International Economic and Exchange Rate Policies (FX manipulation report) hints at a potential US nod for currency reforms in the Gulf. Analysts said that the report points to a shift in the US Treasury's approach to Gulf countries' exchange rate policies in the context of rising inflation and upward pressure on real exchange rates. 'The US recognises significant appreciation pressures on the Gulf Cooperation Council (GCC) countries. From a fundamental standpoint, we believe the US authorities have hinted that there is a need for more exchange rate flexibility,'.. ..The report does not suggest any solution to the undervalued Gulf currencies. However, analysts believe that the very fact that the Treasury has admitted that the Gulf currencies are undervalued hints at political support for change.." [more]

Shoura Drafts Bill on Sexual Harassment [May 26]
"Shoura Council has taken the initiative to enact a law to protect both sexes from sexual harassment in the workplace. Earlier, Sheikh Saleh Bin Humaid, President of the Shoura Council, asked the Social Affairs and Family and Youth Commission at the Council to quickly issue a draft legislation to protect women’s rights, calling on the Commission to require women to wear ‘decent’ (or Muhtashim) clothes in workplaces. The draft law is in its final stages, said Faisal Ahmed Yamani, a legislator at the Shoura Council, according to Al-Riyadh. It would be submitted to the Council for approval, he told Al-Riyadh. The United Nations Development Fund for Women defines sexual harassment as 'unwelcome or unwanted verbal, non-verbal, physical or visual conduct based on sex or of a sexual nature; the acceptance or rejection of which affects an individual’s employment.' And so does the proposed law define it.." [more]

Sponsor Letters Not Needed for Visas for Foreign Businessmen [May 25]
"Foreign businessmen wishing to visit Saudi Arabia will now be able to secure visas without the need for a letter from a local sponsor in the Kingdom, a development that the Council of Saudi Chambers of Commerce and Industry say will help promote international trade. In a circular dated April 27, the Ministry of Foreign Affairs directed Saudi embassies to issue visas to foreign businessmen provided they are satisfied that they are genuine businessmen and coming to the Kingdom for business purpose. The circular adds that businessmen are not required to present invitations from local Saudi firms and the Kingdom’s Chambers of Commerce and Industry. 'We have intimated this message to all foreign missions in the Kingdom so they can inform their respective governments accordingly,'.." [more]

Saudi Aramco Plans to Invest $129bn in 5 Years [May 26]
"Saudi Aramco plans to invest $129 billion on new energy projects in the next five years, the company’s executive vice president of operations said yesterday. Saudi Arabia is the world’s largest oil exporter and Aramco is expanding to increase crude, gas, refining and petrochemical capacity. About $70 billion of the total would be spent by international and domestic joint ventures, and the remaining $59 billion on projects solely undertaken by Aramco, Khalid Al-Falih told Reuters. The $129 billion figure is nearly $40 billion higher than previous estimates given by Saudi official for expansion. 'We are updating our figures all the time. This figure includes more projects,'.." [more]

~~~~~~~~ [ May 25] ~~~~~~~~~

Education Is Key to Progress: Abdullah [May 25]
"Custodian of the Two Holy Mosques King Abdullah yesterday emphasized the importance of higher education in boosting the Kingdom’s development. He pledged the government’s full support to Saudi universities. 'We look at higher education as one of the basic pillars for achieving development and improving the capabilities of our youth and preparing them for the future,'.. ..King Abdullah stressed that higher education in the Kingdom should focus on domestic requirements while maintaining openness toward modern developments.." [more]

Saudization Top Priority: Naif [May 25]
"The government accords top priority to Saudization of vocational, technical and administrative jobs, Prince Naif Bin Abdul Aziz, Interior Minister, said here Friday night.. ..In efforts to Saudize more jobs, the government has expanded the general and higher education, as well as vocational education, Prince Naif said. He noted that Saudi universities and institutes have developed and diversified their programs and syllabi to meet the requirements of the labor market in a manner that realizes the ambitious development plans chalked out by the government and 'conform with our creed and traditions without neglecting the swift developments taking place in the contemporary world in all aspects of life,' he said.." [more]

Couple Forced to Divorce by Saudi Court Appeal for Help [May 25]
"A Saudi couple forced to divorce by an Islamic court have called for more international pressure to reunite them after Saudi authorities failed to fulfill a pledge to a U.N. body to do so. Fatima Azzaz and Mansour al-Timani were forced to separate in 2006 after her brothers persuaded judges her husband's tribal stock was not prestigious enough. It is one of a series of cases that have drawn international criticism of human rights in Saudi Arabia.. ..Yakin Erturk, the U.N.'s expert on violence against women, said during a visit to Riyadh in February that authorities had promised to allow the couple to reunite.." [more]

Saudi Banking Sector Most Profitable [May 25]
"The Saudi banking sector is among the most profitable and efficient in the region, according to a report. The banking sector in Saudi Arabia is in the midst of a structural upturn, revealed EFG-Hermes, the leading investment bank in the Middle East and North Africa (MENA) region, in its comprehensive research report. Low penetration and high profitability are two factors that characterise the prospects of the Saudi banking sector.. ..The report, entitled 'Best of Both Worlds!,' provides an in-depth analysis of Saudi Arabia’s banking sector, which is the second largest in the GCC region by asset size, currently estimated at $290 billion.." [more]

Saudi April Inflation Hits 10.5% [May 25]
"Annual inflation in Saudi Arabia accelerated to at least a 27-year high of 10.5 per cent in April from 9.6 per cent the previous month, fuelled by rents and food prices in the world's largest oil exporter. The cost of living index for the largest Arab economy was 115.2 points on April 30 compared with 104.3 points a year earlier, government data showed on Saturday. The rental index - which includes rents, fuel and water - surged 16.9 per cent, with rents soaring 20.4 per cent, while food and beverages cost surged 16 per cent, according to the data. Like most of its neighbours in the world's biggest oil-exporting region, Saudi Arabia pegs its riyal currency to the dollar, which has fallen to record lows against the euro and a basket of major currencies this year.." [more]

Saudi Savola is Gearing Up for Agribusiness Expansion [May 25]
"Saudi Arabia’s Savola Group has said it planned to spend at least $100mn to buy stakes in agribusiness firms in Ukraine, Brazil or Egypt to secure sugar and edible oil supply. 'It is to improve our margin and manage volatility,' chief executive officer Sami Baroum had told Reuters in an interview at the World Economic Forum in Sharm el-Sheikh, Egypt. 'When your downstream margins are squeezed, your upstream can make more money and in some areas there’s scarcity,'.. ..'We are talking about investments of hundreds of millions of US dollars and tens of thousands of hectares,' Baroum said. 'We are looking at Egypt, Sudan, Ukraine and Ethiopia ... We are (also) considering Brazil,' he said.." [more]

Tourism Officials Want Saudis to Stay Home for the Holidays [May 25]
"With the beginning of the 90-day summer break only a month away, the assistant deputy secretary-general for marketing for the Saudi General Commission for Tourism and Antiquities (SGCTA), Fahad Al-Jarboa, says that the prime goal of the commission is to target the Saudi domestic market and try to encourage more Saudis to vacation in the Kingdom this year. 'We choose to focus first and foremost on the local market for the obvious reason that Saudis, in particular families, have been targeted by competing destinations, such as Egypt, the United Arab Emirates and Bahrain,'.. ..'Our focus is primarily on family oriented tourism and our aim is to make Saudi Arabia inviting for couples and families who are seeking an authentic tourism experience within a social atmosphere that preserves traditional Islamic and Arab values and promotes family ties,'.." [more]

Rebound in Supply to Curb Runaway Oil [May 25]
"The perfect storm that has swept oil prices to above $US135 a barrel may subside over the coming months as rising crude supply from unexpected corners of the world finally comes on stream, just as the global economic downturn begins to bite. The forces behind the meteoric price rise are slowly receding.. ..The Geneva consultancy PetroLogistics says Iraq has added 300,000 barrels a day to a total of 2.57 million as security is beefed up in the northern Kirkuk region. 'There is a strong rebound in supply,' said the group's president, Conrad Gerber. Saudi Arabia is adding 300,000 barrels a day to the market in response to a plea from the US President, George Bush, and to placate angry Democrats on Capitol Hill - even though Riyadh insists there are abundant supplies for sale.. ..The world's finely balanced market for crude has been creeping into surplus for several weeks.." [more]

May 18 - May 24, 2008

~~~~~~~~ [ May 24] ~~~~~~~~~

Saudi Rights Activist Seized by Secret Police [May 24]
"Outspoken rights activist and Saudi professor Matrook Al Faleh has been taken into police custody, his wife said on Friday. Saudi Arabian secret police arrested Al Faleh on Monday at King Saud University in Riyadh, days after he publicly criticised treatment of two activists at a Saudi prison.  Al Faleh's wife, Jamila Al Uqla, said police informed her that he was in custody on Monday, but that police now denied this. 'I keep calling the secret police, but they keep denying they're holding him at their facility,' she told CNN. Human Rights Watch said Al Faleh was targeted for his comments on prison conditions.." [more]

$500mn Food Aid from Saudi [May 24]
"Saudi Arabia donated half a billion dollars to a UN World Food Programme appeal to battle the global food price crisis, helping it reach a $755mn goal, the WFP said yesterday. The agency said in a statement that 'high food prices represent the biggest challenge that WFP has faced in its 45-year history with about 130mn being pushed into hunger.'.. ..'The Saudi donation will keep many people from dying, others from slipping into malnutrition and disease, and will even help to stave off civil unrest,' Sheeran said. The agency said the Saudi donation puts the kingdom 'at the forefront of the large-scale, high-level, multilateral UN action by the global community.'.." [more]

Speculation, Caution Reign at Arab Stock Markets [May 24]
"Arab stock markets remained cautious as investors sought fresh moving factors, financial analysts said yesterday. 'Regional markets appear to be in a consolidation phase with wary investors searching for new clues to decide their future moves,'.. ..The Tadawul All Share Index of the Saudi stock exchange shed 1.1% this week, closing at 9,672.62 points from 9,783.19 points last week. The Tadawul is currently 12.4% lower than the year’s start, according to the weekly report of Riyadh-based Bakheet Investment Group (BIG). However, BIG expects the soaring oil prices which broke several record highs this week to have a positive impact on the Saudi stocks in the coming months, given Saudi Arabia’s status as the world’s largest crude exporter.." [more]

Naif: Justice Will Run Its Course in Terror Trials [May 24]
"Interior Minister Prince Naif said the trial of terror suspects under custody would take place soon after the completion of the related procedures. 'The counseling of the suspects is still continuing,' Prince Naif said, referring to the ministry’s efforts to reeducate terror suspects influenced by extremist ideologies.. ..The government announced on an earlier occasion its plan to deploy 35,000 well-trained officers to protect vital installations across the country, including oil refineries. The first group of 1,554 officers who were attending special training courses graduated in March. Saudi security forces have arrested 56 suspects of different nationalities for allegedly planning to attack various sites outside the holy cities of Makkah and Madinah during the Haj season last December. The men were reportedly in the process of rebuilding an Al-Qaeda network in the Kingdom to launch another wave of terror attacks across the country.." [more]

~~~~~~~~ [ May 23] ~~~~~~~~~

Qaeda Video Berates Saudi King Over Faith Dialogue [May 23]
"An al Qaeda leader has accused Saudi Arabia in an Internet video of giving in to Islam's Western enemies by calling for moderation and a dialogue with Jews and Christians. The message from Abu Yahya al-Libi came as Saudi Arabia was reported to be planning a conference of senior world 
Muslim clerics this year to promote moderation and fight extremism, after King Abdullah called in March for an inter-faith dialogue. 'He who is called the defender of monotheism by sycophantic clerics is raising the flag of brotherhood between religions ... and thinks he has found the wisdom to stop wars and prevent the causes of enmity between religions and peoples,'.. ..'By God, if you don't resist heroically against this wanton tyrant ... the day will come when church bells will ring in the heart of the Arabian Peninsula. And the case of Qatar is not far away from you,' Libi said. He was referring to Qatar's decision in March to allow the opening of the first church in the U.S.-allied Gulf Arab state.." [more]

US Role in Oil Installations Protection Limited to Technical Operations [May 23]
"Saudi Interior Minister Prince Naif Bin Abdulaziz has stressed to Asharq Al-Awsat that the advice program his ministry is implementing with detainees in Saudi jails who were influenced by the misguided ideology is continuing. Answering a question about the security agreement which 
Saudi Arabia signed with the United States for protecting the oil installations, Prince Naif said, 'The Americans' role is confined to technical operations, as the agreement stipulates. As to protecting Saudi oil installations, only God and then the Saudis protect them.'.." [more]

Florida Republican Denounces Proposed Saudi-U.S. Nuclear Pact [May 23]
"Fears that Iran's nuclear program will spark a dangerous regional nuclear race are intensifying, with a leading Republican in Congress criticizing a proposed nuclear deal between Washington and Saudi Arabia. 'The potential consequences of spreading nuclear technology, facilities, and know-how to yet another unstable regime in the Middle East are alarming,' Rep. Ileana Ros-Lehtinen of Florida, the ranking Republican on the House Foreign Affairs Committee, said in a statement yesterday. 'Nuclearizing the most dangerous region in the world poses an enormous and unnecessary risk that has few or no benefits for this country.'.." [more]

Madain Saleh May Become Kingdom’s First World Heritage Site in July [May 23]
"The United Nations Educational, Scientific and Cultural Organization (UNESCO) may approve an ancient city north of Madinah as Saudi Arabia’s first World Heritage Site as early as the first week of July, an official affiliated with the organization told Arab News yesterday. 'We will be meeting in Quebec in early July to discuss, among other nominations, Madain Saleh,' said Veronique Dauge, the head of the World Heritage Center’s Arab States Unit, in a phone interview from UNESCO headquarters in Paris.. ..The Thamudis and Nabateans occupied Madain Saleh, with its 132 chambers and tombs carved into rocky outcroppings about 300km north of Madinah, between 200 B.C. and 200 A.D. Remnants of walls, towers, water conduits and cisterns are scattered across the premises.." [more]

New Saudi Labour Contract Aims to Curb Agents' Role [May 23]
" Saudi Arabia will start implementing a mandatory unified labour contract effective June 1. 'The unified contract, which is aimed at protecting the rights of all parties involved, will curtail the role of middlemen and agents in the process of hiring workers from abroad,'.. ..Al Kanhal said that almost all the countries where Saudi Arabia hires manpower from were briefed on the salient features of the new contract. He said the new contract contains necessary provisions to protect the rights of all parties involved, such as the worker, the local hiring office and recruitment office in the respective countries.." [more]

King to Launch SR68bn Projects in Jubail Today [May 23]
"Custodian of the Two Holy Mosques King Abdullah will launch 29 industrial and development projects worth more than SR68 billion in Jubail today, Prince Saud ibn Abdullah ibn Thunayan, chairman of the Royal Commission for Jubail and Yanbu announced yesterday. He said the new projects belonged to the Royal Commission, Saudi Basic Industries Corporation (SABIC) and the private sector. He said King Abdullah’s current visit would give a shot in the arm to the twin industrial cities of Jubail and Yanbu.. ..'This will result in achieving sustained economic progress, creating more job opportunities for Saudis and improving the condition of both Saudi individuals and companies,' he added. Al-Jashi said the Saudi economy has been making tremendous advancement in recent years. 'It is heading to become one of the largest economies in the world within the next 10 years.' He said the growing private sector participation as well as privatization of public corporations would strengthen the Kingdom’s economy.." [more]

There Is a Lot More Than What Meets the Eye! [May 23]
"With crude prices crossing $135 mark and no immediate end in sight to the market turbulence, the question what is pushing the markets to dizzying heights is very much up on cards. And things much beyond the very fundamentals, it is literally difficult to provide an explanation. William Engdahl, the author of “A Century of War: Anglo-American Oil Politics and the New World Order,” sheds very interesting light on the subject. Engdhal looks at the entire situation with a fresh perspective. Not shy of challenging the established theories, he comes up with fatal counter punches.. ..A June 2006 US Senate Permanent Subcommittee on Investigations report on 'The Role of Market Speculation in rising oil and gas prices,” noted, ' . . . there is substantial evidence supporting the conclusion that the large amount of speculation in the current market has significantly increased prices,”- and indeed who can deny!.." [more]

~~~~~~~~ [ May 22] ~~~~~~~~~

Blogging for Change in Saudi Arabia [May 22]
"Saudi Jeans is one of the most influential blogs in the Gulf region. It is run by pharmacy student Ahmad Al Omran, who through his blog hopes to 'be a part of the change that is taking place in Saudi Arabia.' Saudi Jeans focuses on topics such as freedom of expression, human and women's rights, as well as democracy and justice. Al Omran also runs the yawmyat blog in Arabic and is one of the co-founders of Saudi Blogs. In addition to that, he regularly appears in mainstream media through interviews granted to outlets ranging from CNN to the Saudi Gazette or Agence France-Presse.." [more]

Al-Zuman, 30, Unfurls Saudi Flag at the Summit [May 22]
"Thirty-year-old Farouq Saad Hamad Al-Zuman planted a Saudi flag on the summit of Mt. Everest on Wednesday, becoming the first Saudi to conquer the world’s highest peak, press reports said. The green Saudi flag was unfurled at 12.30 p.m. Saudi time.. ..Three members of the 10-person 
expedition failed to reach the top, with one Japanese climber dying on the way. Al-Zuman 'has now been fondly nicknamed the ‘Sir Edmund Hillary of Saudi Arabia’,' said Al-Zuman’s boss and sponsor, Sultan Al-Bazie, CEO of Attariq Communications. Al-Zuman, a black belt in Tae Kwondo and professional swimmer, had previously scaled Mt. Rainer in the U.S. state of Washington, Mt. Halealala in Maui, Hawaii, and Mt. Shasta in California.." [more]

High Expenditure Behind Inflation Spiral in Saudi [May 22]
"Saudi Arabia is stoking inflation in its own economy by keeping public expenditure high and the problem is putting pressure on the government to revalue its currency against the ailing US dollar, according to economists. As spending is projected to be even higher this year and government 
measures to tackle the problem have been ineffective, inflation could nearly double to more than eight per cent this year, the highest annual average in the Gulf Kingdom. While the worsening problem could force Riyadh to consider radical solutions such as a revaluation, economists believe such a move would not resolve the underlying causes of inflation, mainly soaring rents.." [more]

Prince Talal Fights Sub-Saharan Poverty [May 22]
"Saudi Prince Talal bin Abdul Aziz, Head of the Arab Gulf Programme for United Nations Development Organizations (AGFUND) announced a developmental initiative designed to contribute in fighting poverty in West Africa. The initiative will start by establishing a Bank for the Poor in Sierra Leone.. ..The model is a spin-off, based on Talal’s 'Banks for the Poor' project across the Arab World, which aims to activate governments roles in creating a convenient environment for small and micro enterprises, as well as offering non-financial services (such as preparations, technical support, networking funding institutions and nurturing). AGFUND is cooperating with Professor Muhamad Yunis, founder of Grameen Bank, as well as private sector partners, so as to implement the model in a number of Arab states such as Jordan, Bahrain, Yemen, Egypt and Syria.." [more]

Saudis Free to Discard Their Tribal Surnames [May 22]
"The Saudi Ministry of Interior has responded positively to calls made by some prominent academic and religious figures in the kingdom that tribal surname be replaced with the family names of citizens.. ..Speaking to the local media, the official said it was not mandatory for citizens to produce 
certificates showing their tribe in order to complete the procedures for issuing new IDs with their family names. 'Citizens need different surnames to distinguish them from one another,' the official said.. ..The official's clarification came in response to an appeal made by a group of academics, writers and officials from the southern province of Al Baha to the Ministry of Interior that tribal surnames be dropped from IDs and be replaced with family names. They cited some examples of the misuse of tribal surnames by some people to display tribal supremacy and arrogance.." [more]

MWL Prepares for Interfaith Dialogue [May 22]
"A three-day international Islamic conference will begin at the Muslim World League (MWL) headquarters in Makkah on May 31 in preparation for the interfaith dialogue called for by Custodian of the Two Holy Mosques King Abdullah.. ..The MWL chief expressed hope that the conference would succeed in its objectives. He called on Muslim intellectuals to give their ideas for the successful conduct of the dialogue. Meanwhile, Islamic cultural centers in different parts of the world have welcomed King Abdullah’s call for interfaith dialogue. 'The Islamic societies and organizations in Spain support the king’s call for dialogue as it will contribute to promoting understanding between Muslims and others,' said Dr. Ibrahim Al-Zaid, director of the Islamic Cultural Center in Madrid.." [more]

Saudi Arabia to Expand Oilfield to Meet Crude Demand [May 22]
"Saudi Arabia is pushing ahead with a costly project to expand its giant Manifa offshore oilfield, which will add nearly 900,000 barrels per day of heavy crude and meet an expected sharp growth in global demand for this type of crude. The project is part of a programme to lift the world oil superpower's crude output capacity to 12.5 million bpd at the end of 2009 from around 11.3m bpd currently to maintain its position as the dominant oil supplier. The project has already prompted plans to build two large refineries with a combined output capacity of 800,000bpd to handle heavy crude, while work is under way to construct a 41-kilometre causeway to link the field to the hub of the Gulf Kingdom's hydrocarbon industry on the eastern coast.." [more]

Bush’s Visit Fails to Jump Start Middle East Peace [May 22]
"US President George Bush’s recent visits to Israel, timed to coincide with that country’s 60th anniversary celebrations, and to the World Economic Forum, held in the Egyptian resort of Sharm El-Sheikh, were meant to consolidate the Middle East peace process. At least, that’s what White House spokespersons tell us. Instead, it served to expose his partisanship like never before. Whereas the US president’s pro-Israel bias is well-known, during previous visits to this region, he has sought to maintain a flimsy façade of being an honest broker. In the past, he has used diplomatic-speak to persuade major players that he wants the best for all concerned and is sincere about getting the peace process back on track. On this occasion, he didn’t even bother to keep up the pretence.." [more]

~~~~~~~~ [ May 21] ~~~~~~~~~

Saudi Backs Lebanon Deal [May 21]
"Saudi Arabia's ambassador to Lebanon, whose country backs the Beirut government, said on Wednesday that Riyadh supports the agreement reached between rival leaders in Qatar to end an explosive political crisis. 'Saudi Arabia announces its support for the agreement between the
Lebanese in Doha. We are very happy that this accord has been reached,' Abdul Aziz Khoja, who is currently in Riyadh, told AFP. Regional powerhouse Saudi Arabia backs the cabinet of Prime Minister Fuad Siniora, who also has the support of the United States and other Western powers.." [more]

GCC Leaders Emphasize Commitment to Peace Plan [May 21]
"GCC leaders held a consultative meeting here yesterday and emphasized their commitment to the Arab Peace Initiative. The peace plan, originally proposed by Custodian of the Two Holy Mosques King Abdullah, offers Israel normal ties with Arab states in exchange for its withdrawal from all occupied Arab territories and for the establishment of a Palestinian state with Jerusalem as its capital. The leaders of Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the UAE warned against the danger posed by Israel’s lukewarm attitude toward Arab and global peace overtures, its defiance of UN Security Council Resolutions, the expansion of Jewish settlements and the Israeli siege of Gaza. The GCC statement comes after US President George W. Bush’s announcement that a Middle East peace settlement could be reached by the end of this year.." [more]

Does Opec Have Too Much Power [May 21]
"As consumers continue to encounter rising living costs and higher prices at the petrol pumps, Gordon Brown has heaped some of the blame on Opec, the cartel of oil producing countries which produces around 40 per cent of the world's crude oil.. ..But while it may seem like Opec has the world over a barrel, other factors are at play. Some would argue that Brown's attack contains more than a hint of wishful thinking. After all, it is much more reassuring to think Opec is holding back the supply of oil, than to believe that the world's oil fields are simply running dry. If the latter is true, there would be little Opec could do to tackle high oil prices.." [more]

Saudi Arabia Cancelled Results of Tender Won by RZD [May 21]
"Saudi Arabia has cancelled results of the tender won by Russian Railways, RZD, RIA Novosti reported with reference to RZD CEO Vladimir Yakunin. “It isn’t the problem of technology or RZD. It is the problem of international relations,” Yakunin explained. Together with partners, RZD counted on laying in Saudi Arabia the rails of 2,400km worth roughly $2 billion. The project headlined North-South is the most large-scale in the Middle East. Saudi Arabia needs the rails to develop phosphate and bauxite deposits in the north of the country and reduce oil dependence of economy. The preliminary tender for the railway construction was held in April of 2006. Eighteen companies bid at it together with RZD.." [more]

Saudi Company to Invest in $250 Million Construction Project in the West Bank [May 21]
"The organizer of a Palestinian investment conference says a Saudi company will invest in a $250 million construction project in the West Bank. Conference organizer Hassan Abu Libdeh says the project would formally be announced Thursday. He identified the Saudi company as Al Ard Al
Qabeda. Company official Fawaz Abdel Hadi says the construction will include office and apartment towers, malls and a hotel in the West Bank town of El Bireh, adjacent to Ramallah. Abu Libdeh and Abdel Hadi say the Palestinian Investment Fund will be a partner in the project.." [more]

HRW Demands Immediate Release of Saudi Activist [May 21]
"Human Rights Watch has demanding the immediate release of a Saudi rights activist after the university professor was arrested in Riyadh on Monday. The New York-based advocacy group said on Wednesday that Saudi secret police apprehended Matrook Al-Faleh on the premises of King Saud University where he teaches political science. The arrest took place after he publicly criticised conditions in a prison where two other Saudi human rights activists are serving jail terms.. ..Al-Faleh’s fellow activists, Abdullah Al-Hamid and Isa Al-Hamid, are serving prison sentences for supporting a demonstration in front of Buraida prison by relatives of long-term detainees held there without charge or trial.." [more]

SAGIA Chief Reaches Out to Canadian Investors [May 21]
"Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA), wound up a four day trip to Canada recently, which began in Vancouver and passed through the country's four major commercial centers. The aim of the trip was to strengthen trade ties between the two countries and highlight Greenfield opportunities in Saudi Arabia, as the Canadian government begins its initiative of expanding its foreign investment base and looking beyond its traditional trade markets such as the US to markets which share the same synergies. 'We had fourteen meetings in Montreal alone in just one day, the interest from Canada is so strong,'.." [more]

Saudi Arabia Celebrates 75 Years of Aramco [May 21]
"Custodian of the Two Holy Mosques King Abdullah yesterday opened Saudi Aramco’s 75th anniversary celebrations at its premises here and commended the company’s role in providing adequate oil supplies to ease the international energy crisis. 'This Saudi company has been trying efficiently to support the Kingdom’s international policy in the field of providing suitable energy to confront global crises and, God willing, it will continue to play the same role,' the king said in his opening address at the ceremony.. ..Abdullah also referred to the historic decision taken by King Abdul Aziz to sign the concession agreement between Saudi Arabia and Standard Oil of California in 1933, protecting the Kingdom’s interests including training and employing Saudis. He said the government’s flexible policy toward Saudi Aramco had played a big role in its tremendous progress.." [more]

~~~~~~~~ [ May 20] ~~~~~~~~~

Oil Heads Towards $128 Despite Saudi Move [May 20]
"The oil price rose back to more than $127 a barrel yesterday while oil ministers from other Organisation of Petroleum Exporting Countries (Opec) criticised Saudi Arabia’s decision to raise its output. Oil ministers from Iran, Iraq, Libya and Qatar said that Saudi Arabia’s decision to increase oil output by 300000 barrels a day was unjustified.. ..Saudi Oil Minister Ali al-Naimi said in Riyadh following a meeting between US President George Bush and Saudi Arabia’s King Abdullah on Friday the kingdom would raise output by 300000 barrels a day, or 3,3%, to 9,45-million barrels a day next month. Some experts say Saudi Arabia, the world’s largest oil exporter, made a nominal output increase to meet orders and not because of US prompting. Bush said on Sunday in the Egyptian Red Sea resort of Sharm el-Sheikh, where he attended the Middle East gathering of the World Economic Forum, that the Saudi response was insufficient to address US energy needs and help bring inflation under control.." [more]

Dollar Fall Sends Saudi Tourists to US, Asia [May 20]
"The weakness in the US dollar will push more Saudi holidaymakers to turn to the US and Asian countries instead of European destinations this summer, a leading Saudi travel operator said yesterday. Some 5mn Saudis are expected to travel abroad this summer but many will avoid Europe because of high prices after the Saudi riyal declined with the dollar.. ..Record inflation in nearby destinations such as the United Arab Emirates, popular with Saudis seeking to escape the austere lifestyle in the strict Islamic kingdom, is backing this trend.. ..The dollar’s fall has, however, led to growing interest by Saudis for countries like the US, India, China, South Korea, Australia and Hong Kong. 'These are new markets that never existed before on the average Saudi traveller’s map,'.." [more]

Relief Goods From Saudi Arabia Arrives in China [May 20]
"The first batch of relief goods donated by Saudi Arabia arrived in Chengdu, capital city of the earthquake-hit Sichuan Province Tuesday afternoon, the Chinese Foreign Ministry said. According to the Ministry, the relief goods include 14,000 tents and blankets, instant food, milk powder for 
children and rescue tools. They are badly needed in the quake-hit area. The relief materials delivered Tuesday is part of the 10 million U.S. dollars worth of goods provided by Saudi Arabia. Three more batches are to follow. Saudi Arabia has decided to donate another 85,000 tents, 400,000 awnings and 500,000 blankets Tuesday following the previous donations of 50 million dollars in cash and 10 million dollars worth of relief materials for China's quake zone.." [more]

Saudi Arabia Talks With India to Procure Rice [May 20]
"Saudi Arabia is in touch with Indian authorities seeking lifting of the ban on rice exports to the Gulf nation following shortage of the commodity. 'The Council of Saudi Chambers of Commerce and Industry is currently in touch with Indian officials on the issue of rice imports,'.. ..India had banned exports of all non-basmati rice in March this year to meet domestic demand. Even as they negotiate with India to secure rice imports, importers from both Saudi Arabia and the United Arab Emirates (UAE) have approached Thailand to secure rice imports.. ..One of the top rice buyers in the world, Saudi Arabia imports about 625,000 tonnes of basmati annually, of which 575,000 tonnes come from India.." [more]

US Visa Extended to 5 Years [May 20]
"Effective from May 17, the United States has agreed to extend the validity of visa issued to Saudi citizens from two years to five years in a joint agreement on reciprocal basis, an official source at the Foreign Ministry told Saudi Press Agency (SPA) on Monday. The new 5-year multiple entry 
US visa will be granted to Saudi students, businesspeople, and tourists.. ..The new US visa policy for Saudis would help Saudi students by traveling between the Kingdom and the US with peace of mind throughout the expected duration of their stay in the US for school, one year for English language classes and four years for the academic program.." [more]

Al-Zuman Is Just 24 Hours Away From Making History [May 20]
" In another 24 hours, Farouk Al-Zuman will make history when he becomes the first Saudi to climb to the summit of Mount Everest, the highest mountain in the world. 'This has been my dream,'.. ..'The mission and ambition of my life has always been to unfurl Saudi Arabia’s flag on the summit of Everest one day,' he said. 'I want to set an example for Saudi youth. My team and I are making good progress. We hope to reach the summit in the early hours of May 21.'.. ..Thirty-year-old Al-Zuman is an economics graduate and studied at Oregon State University in the US. While in the US, he scaled Mount Rainer (4,300 meters) in Washington. 'Since then, I have been looking forward to scaling Mount Everest.'.." [more]

~~~~~~~~ [ May 19] ~~~~~~~~~

Oil Prices Creep Up Despite Higher Saudi Output [May 19]
"World oil prices crept toward the 127-dollar level in Asian trade Monday amid predictions of costlier crude despite Saudi Arabia's disclosure that it had boosted production, analysts said.. ..Saudi Arabia's oil minister, Ali al-Nuaimi, said Friday the kingdom had increased oil production by 300,000 barrels per day from May 10 in response to orders from customers, mostly from the United States, and will pump 9.45 million barrels per day in June. But Nuaimi reiterated OPEC's long-standing view that global oil supply was balanced with demand and that market fundamentals were sound. Saudi Arabia is the biggest producer in the 13-nation Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 percent of the world's oil. Iran, another major producer, said on Saturday that any output hike by OPEC as requested by the United States would not affect prices.." [more]

Clothes Giant Plans Female Only Store in Saudi Arabia [May 19]
"H&M, the Swedish retailer, will open the first women-only department store in Saudi Arabia as part of moves to bring more women into the country’s workforce. The store, which will be H&M’s first in the country, will be staffed entirely by women in what is understood to be a landmark concession by the Saudi Government. Saudi Arabia has strict laws that prohibit the public interaction of women with men other than their husbands. These extend to restrictions on working and driving. As the store will be staffed by women, the Government has insisted that only females will be able to shop there. Small female-run stores already exist in Saudi Arabia but H&M, otherwise known as Hennes & Mauritz, will be the first major retail outlet to be staffed by women.." [more]

Gulf Rethinks Currency Ties [May 19]
"If there's one message the Bush administration has been trying to hammer home to Chinese leaders, it is this: A major country with a huge trade surplus and rising prices should let its currency strengthen with market forces. So why is the administration nearly silent about the fixed exchange rates of Saudi Arabia and other Persian Gulf oil fiefdoms? After all, like China, the big powers in the Gulf -- Saudi Arabia and the United Arab Emirates -- link their currencies to the U.S. dollar, export far more than they buy abroad, and now face inflation imported from overseas.. ..There are good reasons for the Gulf Cooperation Council countries -- Saudi Arabia, the U.A.E., Bahrain, Kuwait, Oman and Qatar -- to move away from the dollar. Inflation is high and getting higher in the region: almost 10% in Saudi Arabia, close to 15% in the U.A.E. and 9% in Kuwait. A stronger currency tends to help fight inflation by making imported goods cheaper. A weak currency does the reverse, and the Gulf countries have tied themselves to the weak dollar.." [more]

Dammam Readies for GCC Summit [May 19]
"The Eastern Province of Saudi Arabia is witnessing three major events within a few days. All preparations are in place for the 10th Consultative Summit of GCC leaders, oil giant Saudi Aramco's 75th anniversary celebrations and a whirlwind week-long tour by King Abdullah Bin Abdul Aziz.
The GCC Consultative Summit, scheduled to be held in Dammam on Monday, is significant in the wake of the latest developments in the region, especially in Lebanon.. ..The Consultative Summit, ahead of the regular annual summit in Muscat next December, will strive to iron out a unified GCC position on major issues and the latest developments in the Arab region, especially in Lebanon, Sudan, Yemen, Iraq and Palestine.." [more]

Saudi Arabia's Health Insurance Sector Grows 62% in Two Years [May 19]
"The volume of Saudi health insurance sector soared 62 per cent over the past two years, reaching to over to 2.7 billion Saudi riyals at present. Health insurance, which makes up 32 per cent of the burgeoning Saudi insurance market, tops other insurance sectors in terms of annual growth.. 
..cooperative health insurance, a form of health insurance, has been made mandatory in the kingdom. 'The system aims at making healthcare available for expatriates and their families under an agreement signed between insurance companies and the concerned companies and firms.' The system is currently expanding to cover Saudi citizens.. ..At present, nearly three million Saudis and foreigners are beneficiaries of the health insurance system.." [more]

Saudi Student Wins Intel Prize [May 19]
A Saudi student stood out as one of the world’s best scientists “Uniting the World Through Science” in Atlanta, Georgia, USA at the Intel International Science and Engineering Fair 2008 (Intel ISEF) May 11-16, 2008. Bagging his second win in this renowned international competition, Saudi students Ahmad Al-Nuaimi won the fourth place in Intel ISEF 2008 in social behavior sciences. Students’ works have been judged by professional scientists. The judges have looked for a communicative presentation, and more importantly, for the basic understanding the students have of their research and for new knowledge the student has gained through the process. Al-Nuaimi, a student of Al-Ansar private school in Dammam, represented King Abdul Aziz and His Companions Foundation for the Gifted.." [more]

Al-Angari Blames Ignorance of Rights for Women’s Plight [May 19]
"Ignorance, lack of awareness about their rights and lack of appreciation by society are why Saudi women are in their current situation. This was emphasized by Al-Jowhara Al-Angari, vice chairman of the National Society for Human Rights (NSHR).. ..Al-Angari’s wide-ranging discussion covered most aspects concerning women and she exhorted them to take an active role in making a difference. 'When a door is locked, it is not going to open on its own. You’ve got to bang on it, on and on for it to open,' said Al-Angari. 'Women are afflicted with ignorance. We can’t claim our rights unless we know them.' Al-Angari said that women in Islam have legal, social, political and civil rights. Islamic tolerance should not be confused with social norms and traditions.." [more]

Welsh Trade Team Here [May 19]
"..International Business Wales (IBW) has recently visited Jeddah on a Trade Mission.. ..IBW brought a diverse delegation of nine companies to the Kingdom, headed by Vice President of IBW (Middle East), Lee Jennings, who visited Saudi Arabia and Bahrain to underline Wales’ intention to build stronger ties with the Kingdom and the region. Welsh companies from different industries will be regularly visiting Jeddah to meet with leading local companies, government officials and the Jeddah and Riyadh Chambers of Commerce and Industry to promote bilateral trade relations. 'Saudi Arabia has been a very consistent trading partner for us. And for the last five-six years, it has been in top three trading partners list,' said Jennings. 'We are also looking for trade and investment between the investors of Wales and Saudi Arabia,'.." [more]

May 18 - May 24, 2008

~~~~~~~~ [ May 18] ~~~~~~~~~

Saudi Arabia to Increase Oil Production [May 18]
"Saudi Arabia has said that it will increase its oil production to the highest level in two years, following the second visit by President Bush to the kingdom this year. Production will increase by 3.3 per cent to 9.45 million barrels per day. Oil minister Ali al-Naimi said: 'In the future, if the need appears, Saudi Arabia has no objection to producing more.' The extra production is intended to alleviate some of the pressure on the oil price.. ..Despite the news, US investment bank Goldman Sachs has forecast that the oil price would average $141 a barrel for the second half of this year.." [more]

Bush Presses Middle East Leaders to Isolate Iran [May 18]
"US President George W. Bush on Sunday called on Middle East governments to stop Iran and Syria from 'supporting terrorism'. 'Every peaceful nation in the region has an interest in opposing Iran's nuclear weapons ambitions,' Bush said in remarks prepared for a speech in Egypt. 'To allow the world's leading sponsor of terror to gain the world's deadliest weapon would be an unforgivable betrayal of future generations,' Bush said. Iran has repeatedly defended its right to uranium enrichment, saying its nuclear programme is for peaceful purposes. Bush also called on nations to 'confront Hamas', which he said is 'attempting to undermine efforts at peace with continued acts of terror and violence.'.." [more]

Bush Reassures Abbas on Palestinian State [May 18]
"US President George W. Bush on Saturday pledged to Palestinian leader Mahmoud Abbas his determination to help achieve the “dream” of a Palestinian state, despite stagnant peace talks. 'I commit to you once again that my government will help achieve a dream, a dream that you have, 
and the truth of matter is, a dream that the Israelis have, which is two states living side by side in peace,' Bush told Abbas.. ..Bush, who is in the Egyptian Red Sea resort of Sharm el-Sheikh for talks with world leaders before addressing the Middle East World Economic Forum, said 'it breaks my heart to see the vast potential of the Palestinian people really wasted.' The WEF meeting, dubbed the Davos of the Middle East, will bring together 1,500 people, including heads of state, business leaders and ministers from 55 countries, under the theme 'learning from the future.'.." [more]

BAE Bosses Detained by US Investigators Over Saudi Case [May 18]
"Two senior executives at Britain's biggest defence company were detained last week by American authorities investigating corruption allegations.. ..The detentions are part of an investigation by the US Department of Justice into allegations surrounding the £43 billion al-Yamamah arms deal with Saudi Arabia. BAE has been accused of making tens of millions of pounds in illegal payments to Saudi officials, although the company maintains it has always acted lawfully. In December 2006 the Government announced that the Serious Fraud Office was dropping its investigation into the al-Yamamah deal, prompting political controversy. America is continuing its inquiries.." [more]

Saudi Importers Threaten Action Against Indian Rice Exporters [May 18]
"Saudi importers have threatened lawsuits against Indian rice exporters for default on commitments and have started negotiating with Pakistan and Thailand for its rice requirements. Domestic exporters have been faltering on commitments following imposition of export duty on basmati rice by the Indian government, a top industry official said. With a view to discourage exports, the Indian government imposed an export duty of Rs 8,000 a ton on basmati rice exports. It has also lowered the minimum export price (MEP) on export from USD 1,200 to USD 1,000 a tonne.." [more]

Universities Get Saudi Grant for Study of Islam [May 18]
"Two of the Britain’s best known universities are to set up research centres aimed at promoting a better understanding of Islam. Cambridge and Edinburgh universities will share a £16mn endowment from Prince Alwaleed bin Talal Abdulaziz al-Saud, a member of the Saudi royal family and chairman of the Kingdom Foundation, a charitable and philanthropic foundation set up to alleviate suffering around the world. Both universities, members of the 20-strong Russell Group, which represents the leading research institutions, will set up study centres with the aim of fostering better understanding between the Muslim world and the West.." [more]

Saudi Embassy in US Celebrates Graduation of Class 2008 [May 18]
"The Saudi Arabia Cultural Mission in the United States will celebrate the graduation of class 2008 of about 400 Saudi students in the US. It is the first batch of students sent on the Custodian of the Two Holy Mosques Program for scholarships. Saudi cultural attaché in the US, Dr. Mohammad Al-Esa, said more than 17,000 Saudi students have been studying in the US on the King’s scholarship program majoring in medicine, engineering, law, accounting and management. There are still 3500 girls and 3883 men in the first stage of learning English, 7,983 students halfway with their bachelor’s degrees, 3,021 students are working on their master’s degrees, in addition to 687 students registered in the doctoral programs.." [more]

The Story of Oil in Saudi Arabia [May 18]
"As the oil empire Aramco celebrates its 75th anniversary on May 20 graced by King Abdullah, its success story stands out quite unprecedented in the history of mankind. A trip to a single Aramco oil installation in the harsh desert can give one an idea of the power, the glory, and the sheer uniqueness of Saudi Aramco. It has been a hugely profitable enterprise that underpinned Saudi Arabia’s might after its unification by late King Abdul Aziz. Now the country has more than a quarter of the world’s total proven reserves, over 264 billion barrels, and is also the largest producer and exporter on the planet. It was a story of adventure and bridging of cultures starting in 1933 when the Kingdom granted oil concessions to Standard Oil of California.." [more]

May 11 - May 17, 2008

~~~~~~~~ [ May 17] ~~~~~~~~~

Bush Says Saudi Oil Boost `Not Enough' to Ease Prices [May 17]
"President George W. Bush said Saudi Arabia's decision to raise oil output 300,000 barrels a day is ``not enough' to ease U.S. energy prices and that more domestic oil exploration and refining capacity are needed. '``It's not enough, it's something but it doesn't solve our problem,' .. ..Saudi Arabia, the world's largest oil exporter, said yesterday, while Bush was in Riyadh, that the country's daily output will rise to 9.45 million barrels a day in June. Saudi Oil Minister Ali al-Naimi told reporters the kingdom took the step in response to demands from customers. Oil prices have doubled in the past year on surging demand.." [more]

Palestinians Have the Right to Exist as Well: Saud [May 17]
"..Prince Saud described King Abdullah’s talks with Bush as 'comprehensive, deep and candid.' He said the Kingdom had followed 'with concern' Bush’s speech in the Israeli Knesset. 'All of us realize the special relationship that exists between the United States and Israel and its political dimensions. However, it is also important to confirm legitimate historical and political rights of the Palestinian people according to international law which have been hijacked by Israeli occupation forces.'.. ..'We believe that the right to the existence of one nation does not eliminate the legitimate right to the existence of another nation,'.." [more]

Saudi Market Gets Week Off to Disappointing Start [May 17]
"Saudi Arabia's main index got the week off to a disappointing start on Saturday, with poor performances from banks pulling the benchmark down to a lower close.. ..The benchmark declined 1.21% to 9,664.54 points. The index is down 12.58% this year to Saturday's close, making it the Gulf Arab region's worst-performing measure. Saudi Arabia is the only Gulf market to trade on a Saturday.." [more]

Saudi Authorities Keep Mum Over Detention of Bahrainis [May 17]
"The Bahraini embassy in Riyadh has yet to receive new information about eight Bahrainis who have been held in a prison near Riyadh in a case steeped in secrecy. 'We are following up letters submitted by relatives of the eight detainees to the Bahraini ambassador and the Saudi authorities, but we have nothing new on the case,'.. ..The detention of the detainees, most of whom are teachers, has baffled Bahrain in the absence of formal charges or official explanations from the Saudi authorities. Bahraini officials said they were closely monitoring the case. A Bahraini human rights watchdog last week expressed concern that the detention of eight Shiite Bahrainis in a Saudi jail may be motivated by sectarian tension plaguing the region.." [more]

French Companies Look for Slice in Economic Cities [May 17]
"The French were in town to boost trade ties with the Kingdom through Jeddah Chamber for Commerce and Industry (JCCI) with an eye fixed upon the new mega economic cities planned in the Kingdom. A delegation of French companies which will take part in building the new mega economic cities in the Kingdom recently held talks with the officials at JCCI.. ..These companies will be invited to assess their experience in Jeddah through workshops. These companies have already visited the King Abdullah Economic City in Rabigh, showing interest in investing in the infrastructure of water networks, security, and road construction in the city, Marini said. The two sides have planned to exchange tours within the next few months to finalize more deals.." [month]

~~~~~~~~ [ May 16] ~~~~~~~~~

Bush in Saudi Arabia to Discuss Oil [May 16]
"President Bush, on a one-day visit to Saudi Arabia, is taking a second stab on Friday at getting the oil-rich nation to increase production and drive down the soaring gasoline prices hurting U.S. consumers.. ..the president got a red carpet welcome on the tarmac and was warmly greeted by Saudi leaders as a military band played the U.S. national anthem, slightly off-key. Bush was spending the day with Abdullah at his horse farm outside Riyadh, talking mostly out of public view over three tea services and two meals. The White House says the president's visit is intended, in part, to celebrate 75 years of formal U.S.-Saudi relations. It will mark the conclusion of several agreements, laying out intentions to cooperate on nuclear energy, infrastructure protection and nonproliferation. But the rising price of oil undoubtedly will overshadow the talks.." [more]

US to Help Saudi Arabia Develop Nuclear Energy [May 16]
"The United States said on Friday it has agreed to help Saudi Arabia protect its oil resources and to develop peaceful nuclear energy. Both countries will cooperate in 'safeguarding the kingdom's energy resources by protecting key infrastructure, enhancing Saudi border security, and meeting Saudi Arabia's expanding energy needs in an environmentally responsible manner,' the White House said in a statement. The two countries will sign a memorandum of understanding in peaceful civil nuclear energy cooperation, according to the White House.." [more]

Saudis, US Grapple With Iran Challenge [May 16]
"..Conceivably, the Saudi foreign minister had reason to feel frustrated. The entire Saudi political stratagem in Lebanon has backfired. The Saudi backing for the Foud al-Siniora government's moves to drag Hezbollah into a civil war stands badly exposed. A most awkward detail known to the "Arab street" is that Saudi intelligence and diplomacy was acting hand-in-glove with the United States in the dubious business of emasculating Hezbollah. The ultimate US-Saudi intention was to curtail Hezbollah's dominating stature on Lebanon's political and security landscape.." [more]

Saudi Envoy Calls Beirut Embassy Shooting Deliberate [May 16]
"Saudi Ambassador to Lebanon, Dr. Abdulaziz Khoja has asserted that the shots fired at the Saudi Embassy in Beirut during the past days "was a deliberate action" and ruled out the possibility of 'stray bullets.'.. ..Asked if the shots at the embassy were a "message of resentment" by parties which do not wish the situations to calm down, he said: 'This could be the case. But the question is why this resentment of an action aimed at calming the situations?' He added that he would return to Lebanon soon, calling his recall by the Saudi Government "something normal" and said: 'It is normal to have 
consultations between the ambassador and his government. I will return to Lebanon.'.." [more]

Exxon Chief Criticizes U.S. Oil Policy [May 16]
"Exxon Mobil Corp. Chairman and Chief Executive Officer Rex Tillerson says he finds it "astonishing" that President Bush is asking Saudi Arabia to pump more oil rather than working harder to clear the way for more oil production at home. In an interview Thursday, Mr. Tillerson called it "terribly upside down" that Mr. Bush would lobby members of the Organization of Petroleum Exporting Countries to boost production when much of the U.S.'s coastal waters remains off-limits to drilling. Mr. Bush, in the Middle East this week, plans to talk with Saudi King Abdullah about raising production and other ways to lower global oil prices.. ..The federal government controls drilling in offshore U.S. waters and is prevented from leasing these areas to oil companies by both a congressional moratorium and a presidential order signed by the first President Bush in 1990 and renewed by President Clinton in 1998. The current President Bush has deferred to the governors of California and Florida, who have opposed offshore drilling.." [more]

Al-Naimi Expects Big Oil Demand From Asia [May 16]
"Petroleum and Mineral Resources Minister Ali Al-Naimi said yesterday that Asian oil consumption was projected to increase by 20 million barrels per day by 2030, accounting for 60 percent of growth in world demand. 'Some 80 percent of this increase in demand will be met by supplies from the Middle East,' Al-Naimi said while delivering a speech at Seoul National University, where he was awarded an honorary doctorate. Al-Naimi said Saudi Arabia was carrying out investment projects, worth $90 billion, to boost oil and gas production capacity as well as refining facilities.. ..The Saudi minister reiterated that financial markets, rather than fundamentals, were influencing current oil prices.." [more]

What Saudi Parents Want [May 16]
"The burning issue here at home is that first, we have a chronic state of unemployment; secondly, our school system is disconnected from the developments of the rest of the world; and thirdly, our general education policies are in direct opposition to those of our higher education ones. So long as we ignore these three facts, we will never be able to intervene in time to compete in the global race for national prominence and prosperity.. ..For decades now, many financially able, law-abiding, patriotic Saudi parents are left with no choice but to bridge this educational gap by sending their children off to foreign countries in pursuit of an education system that will secure them a bright future on their return home. This self-imposed exile is not new. It started some 40 years ago in the 1960s and 1970s when Saudi Arabia had just began its modernization process and schools back then were still a rarity. However today, in spite of the abundance of schools Kingdom-wide, this phenomenon still exists. One wonders why.." [more]

Italian Navy on Jeddah Call [May 16]
"A two-ship Italian naval group paid a three-day courtesy visit to Jeddah this week. The group, commanded by Capt. Giorgio Gomma, consisted of Italian Navy’s first Logistic Support ship the ITS Etna and the offshore patrol vessel ITS Comandante Borsini. The group was returning to its home port of Tarranto after a four-month plus tour of duty in the Gulf, Arabian Sea and the Somali Basin. 'Our tour of duty was part of Operation MEDAL,” said Gomma. He explained that MEDAL was an ongoing plan whose primary objective was to meet and foster cooperation with other navies operating in “the wider Mediterranean sea.'.." [more]

~~~~~~~~ [ May 15] ~~~~~~~~~

Saudi-US Relations Hit Rocky Road [May 15]
"..Bilateral ties between the two countries have rebounded from the nadir to which they sank after Sept 11 2001. And as long as oil and security are top priorities, the long-standing US-Saudi relationship will remain an important one to both. Still, something in the relationship has fundamentally changed during the Bush years, diplomatic and Saudi analysts said. One long-time observer likened it to that of a married couple no longer in love but staying together for the sake of the children. On the Saudi side, these observers said, there is a new lack of trust and confidence, as well as disillusionment with Washington’s refusal to heed Saudi advice. They adamantly opposed the US-led invasion of Iraq and their pleas for the Bush administration to seriously tackle the Israeli-Palestinian conflict has fallen on deaf ears. 'The strength of the bonds between the United States and Saudi Arabia are not what they used to be'.." [more]

Saudi King Abdullah Invites Iran's Rafsanjani to Saudi Arabia [May 15]
"Saudi Arabia's King Abdullah invited former Iranian President Ali Akbar Hashemi Rafsanjani to visit the kingdom later this month, the state-owned Saudi Press Agency reported. The invitation to Rafsanjani to attend an Islamic conference in Mecca was extended because of the former president's ``influence' in the Islamic world, the news agency reported, citing the Saudi ambassador to Tehran Osama al- Sanoosi. ``Disunity in the Muslim world is in the interest of enemies, and Iran and Saudi Arabia can resolve differences in the Muslim world," [more]

Security Beefed Up in EP for Summit [May 15]
"Security has been beefed up in the Eastern Province ahead of the 10th consultation meeting in Dhahran of the leaders of the Gulf Cooperation Council countries (GCC) on May 20. The leaders who are going to meet in Dhahran for the first time at the invitation of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz will attend the celebration of Saudi Aramco 75th anniversary. President Bush is expected to be present to commemorate the anniversary.. ..Although the consultation meetings are usually held without agenda, the leaders will largely focus on the region’s hot issues especially the current developments in Lebanon, the US efforts to restart talks between the Palestinians and Israelis, as well as the situation in Iraq.." [more]

Saudi Arabia Provides Boost for 30,000 Women and Children in Syria [May 15]
"The United Nations World Food Programme (WFP) today welcomed a donation from the Kingdom of Saudi Arabia of 680 metric tons of dates, worth $605,000, to help feed thousands of vulnerable people in Syria.. ..WFP’s three-year programme in Syria aims to provide food assistance to some 285,000 women and children in marginalized and food-insecure areas of the country, at a total cost of US$6.7 million. Until this latest contribution from Saudi Arabia, the operation was facing a 91 percent shortfall in funding. Saudi Arabia is an increasingly important contributor to WFP operations worldwide. It donated about US$57 million between 2000 and 2007.." [more]

Pact With Saudi on Border Travel [May 15]
"Qatar and Saudi Arabia citizens now just need to show their nationality identity cards to cross the border on either side. The Minister of State for Interior Affairs HE Sheikh Abdullah bin Nasser al-Thani and Saudi Arabia’s Interior Minister Prince Naif bin Abdul Aziz al-Saud signed an agreement yesterday to ease travelling on the border. GCC secretary general Abdulrahman bin Hamad al-Attiyah welcomed the agreement, saying it would revive the trade across the border.. ..The GCC secretary general said that a similar agreement would be signed between Saudi Arabia and Kuwait very soon, which would pave the way to say 'good bye to the passports'.." [more]

Middle East Franchise Market to Grow 25% [May 15]
"The franchise industry in the Middle East is seeing prolific growth as international and local brands look for greater market penetration. Seen as an ideal business model for small to medium enterprises (SMEs), the Middle East’s franchise industry is estimated to be worth $30 billion, with an average annual growth rate of 25 percent. Fuelling this growth is the mammoth retail explosion currently being witnessed across the region, as more and more shopping malls and entertainment centers open up. High-class malls such as Dubai’s Mall of the Emirates have provided the perfect platform for a number of international and regional brands.. ..'The franchise market is maturing in the Middle East and will now  diversify into more services-based franchise systems, where traditionally there has been more focus on the retail and food sectors,'.." [more]

~~~~~~~~ [ May 14] ~~~~~~~~~

US Senators Threaten Saudi Arms Deal Over Oil Prices [May 14]
"A group of Democratic Senators Tuesday threatened to block a multi-million dollar US arms deal with Saudi Arabia, unless the kingdom ups oil production and helps cut soaring gasoline prices. The senators introduced a resolution of disapproval on the arms sale, as President George W. Bush prepared to head for Saudi Arabia, partly on a mission to contain runaway oil prices. 'We are saying to the Saudis that, if you don't help us, why should we be helping you?'.. ..The resolution, expected to be fast-tracked to the senate floor, would prohibit the mammoth arms sale unless Saudi Arabia agrees to increase oil production by one million barrels per day. Schumer, speaking as the price of a barrel of crude oil hit a record 126.98 dollars, said the extra Saudi oil could bring down the price of a gallon of gasoline at the pump by 50 to 75 cents.." [more]

Saudi Arabia: Iran Accused of Backing Hezbollah [May 14]
"The Saudi government accused Iran of backing what it called a coup d’état by Hezbollah fighters in Lebanon. Prince Saud al-Faisal, the Saudi foreign minister, said at a news conference that Iran’s relations with Arab countries would be affected by its support for Hezbollah. President Mahmoud Ahmadinejad of Iran responded that his country was the only one not interfering in Lebanon’s internal affairs.." [more]

Saudi Aramco, Total to Go Ahead With New Refinery [May 14]
" State oil giant Saudi Aramco and France's Total have