News - July 2008

Jul 27 - Aug 2, 2008

~~~~~~~~ [ Aug 2] ~~~~~~~~~

13 Saudi Students Pave Way in Quest for Women's Rights [Aug 2]
"Saudi women were barred from diplomatic careers, and until recently could not even study international relations or political science at Saudi universities. The Ministry of Foreign Affairs opened jobs to women in 2005, but few landed coveted foreign policy positions. That could soon change because of a unique partnership launched this year by The Fletcher School of Law and Diplomacy at Tufts University and Dar Al-Hekma College, the first private college for women in Saudi Arabia. This week, 13 Saudi women completed a crash course in international diplomacy, blazing a brazen path for the future of their country, where women still can't drive or vote - nor, in many cases, travel, work, or see a doctor without permission from a male guardian.. ..The six-month program - split between Dar Al-Hekma in Jeddah and the Fletcher School - is the first known journey by an American university into training Saudi women to become diplomats. The new opportunity for women to represent their country could spur further gains in women's rights in Saudi Arabia, a key US ally, and allow the kingdom to become more competitive in a global society, officials at both schools said.." [more]

Saudi Palaces Eyed for Tourist Hotels [Aug 2]
"Saudi Arabian tourism officials say they're considering turning some of the country's traditional palaces and buildings into luxury hotels. Officials of the Saudi Commission on Tourism and Antiquities, including Deputy Secretary General for Investment Salah Al-Bukayyet, returned this week from visits to such "traditional hotels" in Spain and Portugal and say it could be done in Saudi Arabia as well, the Saudi Gazette reported. Al-Bukayyet said his team's visits to the Baradors Hotels in Spain and Bosadas in Portugal showed the potential for turning archeologically preserved palaces and former royal buildings into destination tourism attractions. The Gazette said the SCTA's visit lasted six days as Saudi officials met with Spanish and Portuguese tourism leaders and traditional hotel operators. If such conversions were to happen in Saudi Arabia, it would be accomplished by a private sector-government partnership.." [more]

Women Can Issue Fatwas, be Muftis, says Senior Sheikh [Aug 2]
"A senior member of the Board of Senior Ulemas has said women are allowed to join the board in order to break the monopoly held by men. Sheikh Abdullah Al-Manea said women have the same Shariah obligations in creating religious edicts or ‘Fatwas.’ 'I don’t see anything in Shariah law which prevents women from becoming a scholar, mufti or working in any consultative body if she is courteous,' said Al-Manea in an Al-Watan interview. 'Women share in the responsibility of discussing social issues.' He said as long as they do not provide an opportunity for men to view them with lust there is nothing stopping them from becoming the head of an organization.. ..Abdul Rahamn Al-Zenadi an Islamic culture teacher at Imam Muhammad Bin Saud Islamic University in Riyadh said 'We have in the Kingdom several Saudi women who are authorities on Shariah law. ' 'Several law professors are stressing they are more capable of giving edicts than many muftis who appear on some satellite channels,'.." [more]

Saudis Invest in $9 Billion Oil Refinery Plant in Egypt [Aug 2]
"Egypt’s state-owned oil company - along with other unnamed investors -will spend $9 billion over five years to build an oil refinery complex in the north of Egypt, the country’s petroleum minister recently told Reuters. The refinery will have a capacity of 350,000 barrels per day (bpd) and should begin operations by 2010, said Minister Sameh Fahmy. It will be located either in the city of Port Said or the town of Gamassa. The minister declined to reveal the identity of investors that would join the state-run Egyptian General Petroleum Corporation (EGPC) in the project. 'Most probably, the non-Egyptian stake in the project will be held by Gulf oil investors, specifically from Kuwait and Saudi Arabia,' said Magdy Sobhi, senior economist at Al-Ahram Center for Strategic Studies. 'The general trend in the Gulf these days is to pour in oil investments overseas.'.." [more]

Saudi Bourse Ignores First Half Results [Aug 2]
"Saudi stocks resumed their downward trend last week after rebounding the previous week despite better than expected results for the first half of the year. The Tadawul All-Share Index (TASI) plunged 3.75 percent, closing at 8,740.74 points from 9,080.87 points in the previous week. TASI is currently 20.82 percent lower than the year’s start.. ..“The market has been influenced negatively by investors’ hesitancy resulting from external factors, foremost Iran’s conflict with the West and falling crude prices,” the BIG said. “Barring any adverse regional developments, the market is set to rebound, given the fall of stock prices to attractive buying levels,” it added. The stock market turnover was over SR38.78 billion last week.." [more]

~~~~~~~~ [ Aug 1] ~~~~~~~~~

Saudi Arabia May Invest $90b to Expand and Boost Power Network [Aug 1]
"Saudi Arabia will invest $90 billion to expand and enhance its power network.. ..It is studying a restructuring plan to develop its electricity industry area and open up the power market to the private sector and local investors. The government is also studying a plan to complete its national grid linking all the provinces by 2011.The Saudi Electricity and Cogeneration Regulatory Authority (ECRA) has already embarked upon a comprehensive plan to develop the industry to move to a competitive market where supply and demand controls the market process. The restructuring plan is based on international best practices after studying other countries' experiences. Saudi Arabia needs 2000 MW of electricity annually to meet its local demand which requires investments of SR10 billion. Demand for electricity and fresh water is expected to increase by 7 per cent annually.." [more]

Islam Has Nothing to do With Terror – UK Envoy [Aug 1]
"Islam has nothing to do with terrorism, said British Ambassador to Saudi Arabia William Patey in a meeting with reporters here Wednesday night. 'We distinguish between Islam and groups which adopt violence,' he said, praising the Saudi-British cooperation in combating terrorism. 'There is an excellent cooperation between the two countries in the field of information exchange and experts’ visits as well as training or technical knowhow,' Patey said. He rejected allegations that terror groups in some foreign countries were being financed from inside Saudi Arabia. 'The Government of the Kingdom of Saudi Arabia has succeeded in their quest to stop home financing of these groups,' the envoy added. Saudi Arabia has been fighting terror since May 2003. It foiled at least two major plots since 2006 to hit major oil facilities. Last April, more than 170 people were arrested for planning attacks on oil and industrial facilities, including some who had been training as pilots in preparation for possible suicide operations.." [more]

Last Cluster Bombs Destroyed in Lebanon with Saudi Aid [Aug 1]
"The last cluster bombs planted by Israel in the July 2006 war with Hezbollah were destroyed Wednesday with financing from Saudi Arabia. Saudi Charge D’Affairs in Lebanon, Fayez Wafa detonated the last remaining unexploded Israeli cluster bomb in the city of Tyre after speaking about the strong relations between Lebanon and Saudi Arabia.. ..The July 2006 conflict was sparked by the capture of two Israeli soldiers by Hezbollah. Israel responded with a 34-day military offensive and a blockade of all major entry points in and out of the country, killing around 1,000 Lebanese according to the BBC. Israel dropped an estimated 1 million cluster bomblets in southern Lebanon, 90 percent were dropped in the last three days of the conflict, a report from Landmine Action stated in July 2007.." [more]

~~~~~~~~ [ Jul 31] ~~~~~~~~~

Appeals Court Upholds Flogging and Jail Verdict for Researchers [Jul 31]
"A Saudi appeals court upheld a jail and flogging verdict against a biochemist and his female student whose research contact was ruled to be a front for a telephone affair that led her to divorce her husband. The biochemist, Khalid Zahrani, said yesterday he found out this week from the court offices that three judges had approved the verdict. He was sentenced last year to eight months in prison and 600 lashes and his student to four months in prison and 350 lashes for establishing a telephone relationship that the court said led her to divorce her husband. The man said the only recourse left to him was the Supreme Judicial Council, a court of cassation that only views cases if requested by King Abdullah Bin Abdul Aziz of Saudi Arabia. He also hopes for intervention from the government's Human Rights Commission.. ..Rights groups and Saudi reformers have criticised what they say is an arbitrary justice system, based on uncodified Islamic sharia law, unsuited to the needs of a country of 25 million people. There are less than 1,000 judges, all of them religious scholars.." [more]

Expectations Low as Businesswomen Ready for RCCI Vote [Jul 31]
"For the first time ever, Saudi businesswomen are preparing to be voted into the board of directors of the Riyadh Chamber of Commerce and Industry (RCCI). Following elections in Jeddah and the Eastern Province, this will be the third time that Saudi women will be able to run for office at a Saudi chamber. Businessmen and businesswomen will compete to grab 10 seats in the election scheduled on Oct. 15. Wafa’a Al-Sheikh, assistant director at the RCCI, said no businesswoman has so far officially nominated herself to partake in the poll.. .. Saudi women own nearly 70 percent of bank accounts in the Kingdom with deposits totaling SR100 billion. However, only SR60 billion of this money has been invested. There are also 34,000 trade records registered under the names of Saudi women, who own 20 percent of private companies in the Kingdom. Although the elections seem very exciting, some businesswomen, judging by the outcomes of previous elections, expressed doubt that women would win any seats in the upcoming vote.." [more]

Few Hopes for Palestine Peace [Jul 31]
"As the United States renews its peace efforts on Wednesday with both Palestinian and Israeli negotiators, officials from the two sides as well as analysts seemed sceptical of any possible achievement this year. In the latest in a series this year, US Secretary of State Condoleezza Rice planned to meet with Israeli Foreign Minister Tzipi Livni and then sit down with her and former Palestinian prime minster Ahmad Qurei for an extended discussion, on Wednesday. But remarks from both Olmert and Qurei about the possibility of a comprehensive deal this year painted a gloomy picture of a possible achievement. Olmert was quoted on Monday as saying a full agreement that includes occupied Jerusalem was not within reach this year but it was possible that differences over borders and refugees could be bridged.. ..'Facts on the ground and the American failure to invest enough in time and effort for the talks to success give the impression that no advancement will be recorded,'.." [more]

Saudi Bourse to Name Investors With 5% Stakes [Jul 31]
"The names of investors with stakes of 5 percent or more in firms listed in Saudi Arabia are to be published starting next month to boost transparency, the market operator said on Wednesday. Saudi Arabia’s stock market, TASI, the largest in the Arab world, is dominated by day traders and has been trying to improve transparency and gain more institutional investors since a market crash in 2006. Like other Gulf Arab exchanges, the Saudi market has been tainted by allegations of insider trading and manipulation of stock prices. A list of the largest shareholders in publicly traded Saudi firms would be updated at the close of trading each day beginning on Aug. 16, the operator, Tadawul, said in a statement on its website. 'This service by Tadawul aims to increase the level of transparency and disclosure in market dealings,'.." [more]

Kingdom’s Inflation Expected to Ease in 2009 [Jul 31]
"Saudi Arabia’s inflation fell slightly in May but is likely to average 11-12 percent this year and is expected to ease to around 10 percent in 2009. With government spending brisk, and the prospect of an early US interest rate hike receding, domestic liquidity growth is likely to remain pronounced, according to Samba Financial Group’s monthly monitor for August which was released yesterday. Recent official figures put 12-month consumer price inflation at 10.4 percent in May, down slightly on the 10.5 percent registered in April. The continued buoyancy of food prices and rents remains the most immediate cause of inflation. For Saudi Arabia, the key food variable is the price of rice, which has soared this year as a result of climatic events and export bans by key producers, though it has begun to moderate somewhat.." [more]

~~~~~~~~ [ Jul 30] ~~~~~~~~~

Fraud Office Wins Saudi Arms Appeal [Jul 30]
"The Serious Fraud Office (SFO) has been cleared of unlawfully surrendering to pressure from Saudi Arabia when it dropped a corruption inquiry into a lucrative arms deal.. ..The SFO was investigating allegations that BAE, one of the world's largest arms-makers, ran a £60 million 'slush fund' offering sweeteners to officials from Saudi Arabia in return for lucrative contracts as part of the Al-Yamamah arms deal in the 1980s. It took the case to the House of Lords after the High Court upheld a judicial review challenge brought by two campaign groups, Corner House Research and Campaign Against Arms Trade. Two judges in the High Court ruled that the Saudi threat was a 'successful attempt by a foreign government to pervert the course of justice in the United Kingdom'. Lord Justice Moses and Mr Justice Sullivan said the SFO and the Government made an 'abject surrender' to 'blatant threats'. But Lord Bingham said the director was confronted by 'an ugly and obviously unwelcome threat' from the Saudis and had to decide what, if anything, he should do. His eventual decision was one he was lawfully entitled to make.." [more]

Boeing Explores US-Saudi Aerospace Potential [Jul 30]
"US aircraft giant Boeing hosted a conference of aerospace suppliers in Riyadh on Monday. Seven Saudi and 16 US companies were represented at the event which was intended to introduce the US companies to Saudi aerospace companies and identify areas of potential industrial cooperation and future development. 'Boeing is excited about promoting aerospace cooperation between US and Saudi companies,' said Ahmed Jazzar, president of Boeing Saudi Arabia. 'Continued advances in Saudi industrial capability not only spur development in Saudi Arabia but opens new avenues for the US industrial base.' While the conference introduced interested US companies with counterparts in Saudi Arabia with the objective of exploring areas of cooperation and future work, the meetings helped familiarize US companies with their Saudi counterparts and Saudi Arabia's goals of 'Saudization' in the fledgling aerospace industry.." [more]

Saudi Arabia Says Games Team Will Not Include Women [Jul 30]
"When Saudi Arabia's Olympic team appears in Beijing next month, it will be conspicuous for the absence of women. Rashed al-Heraiwel, head of the Saudi delegation, confirmed no women would be in the lineup, apparently due to opposition by powerful clerics to women's participation in sport.. ..Three years ago, the Ministry of Education -- where religious conservatives hold sway -- rejected proposals to introduce physical education for girls in the school system. Women cannot join gyms unless they cater specifically for them, and there are few of those. They are not allowed entry to sports stadiums to cheer on teams.. ..,a Saudi opposition activist called for a strong response against Riyadh's stance on women participation. 'Bar countries that ban women athletes,' wrote Ali al-Ahmad in the International Herald Tribune in May, addressing the Olympic sports authorities.." [more]

Saudi Religious Police Ban Pet Cats and Dogs [Jul 30]
"Saudi Arabia's religious police have announced a ban on selling cats and dogs as pets, or walking them in public in the Saudi capital, because of men using them as a means of making passes at women, an official said on Wednesday. Othman al-Othman, head of the Commission for the Promotion of Virtue and the Prevention of Vice in Riyadh, known as the Muttawa, told the Saudi edition of al-Hayat daily that the commission has started enforcing an old religious edict. He said the commission was implementing a decision taken a month ago by the acting governor of the capital, Prince Sattam bin Abdul Aziz, adding that it follows an old edict issued by the supreme council of Saudi scholars. The reason behind reinforcing the edict now was a rising fashion among some men using pets in public 'to make passes on women and disturb families,' he said, without giving more details. Othman said that the commission has instructed its offices in the capital to tell pet shops 'to stop selling cats and dogs'.." [more]

Saudi Urges Importers to Increase Rice Stocks [Jul 30]
"The Saudi government has proposed that rice importers consider raising their stocks of the grain by 50%, two importers said yesterday, but it was not immediately clear if the industry will heed the call. Inflation in Saudi Arabia is just off a three-decade peak. It imported 958,000 tonnes of rice in 2007, making it the world's sixth-largest buyer, according to the US Department of Agriculture. 'This is just an idea that the commerce and industry ministry floated at a recent meeting with rice importers,'.. ..The government said in May it would swiftly provide land for stockpiling basic staples and would increase global investments to ensure its long-term food security.." [more]

Oil Falls to $121, Lowest Since May [Jul 30]
"Oil fell more than $3 a barrel towards $121 on Tuesday, touching the lowest price since mid-May, as signs of weakening demand outweighed a disruption to Nigerian oil output. The drop also coincided with a firmer US dollar, which may have reduced the appeal of commodities to some investors, and comments from OPEC’s president that oil could fall to $70 or $80 in the long term.. ..The president of OPEC, Chakib Khelil, on Tuesday called the current price 'abnormal' and said he did not think the producer group should consider cutting output should prices continue to fall as markets were now balanced. Khelil said oil could fall to $70 to $80 in the long term, if the US dollar continued to strengthen and geopolitical concerns eased. Oil has fallen from a record peak of $147.27 on July 11, pressured by signs that high prices and an economic slowdown are curbing demand especially in the US.." [more]

Indonesian Embassy Concerned Over Surge in Maid Abuse Cases [Jul 30]
"The Indonesian Embassy reported yesterday that it logged 102 reported sexual assaults of Indonesian maids in the first half of 2008. 'This is in addition to 156 cases of physical torture reported to the embassy from January to June this year,' said Sukamto Javaladi, labor attaché at the Indonesian Embassy. 'The Indonesian Embassy is seeing a steady upward trend in the number of reported cases of sexual assaults, while thousands of our women also suffer working inhumane hours for almost no pay with many enduring abuse by their Saudi employers.'.. ..Javaladi said the embassy had been assured by senior Saudi officials that they would take stern action, including imprisonment, against those employers who violate maids’ rights. 'The problems faced by these women workers are not limited to the Kingdom. Rather, complaints abound in all Gulf countries, or even beyond,' said a report released by the Indonesian Migrant Workers Association recently. According to the report, more than 1.5 million Indonesians are currently working in the Middle East, 90 percent of them as housemaids.." [more]

Saudi Arabia Aims to Wrap Up National Power Grid by 2011 [Jul 30]
"Saudi Arabia is studying a restructuring plan to develop its electricity industry and open up the electricity market to the private sector and local investors. The government is also studying a plan to complete its national grid linking all the provinces by 2011. It will invest $90 billion to expand and enhance its power network. The Saudi Electricity & Cogeneration Regulatory Authority (ECRA) has already embarked upon a comprehensive plan to develop the industry to move to a competitive market where supply and demand controls the market process. The restructuring plan is based on international best practices after studying other countries’ experiences. Saudi Arabia needs 2000 MW of electricity annually to meet its local demand which requires investments of SR10 billion. Demand for electricity and fresh water is expected to increase by 7 percent annually.." [more]

~~~~~~~~ [ Jul 29] ~~~~~~~~~

Qaeda Wants Saudi King Killed Over Interfaith Call [Jul 29]
"A key al Qaeda figure has said Saudi Arabia's King Abdullah should be killed for calling for an interfaith dialogue that amounted to joining a Western crusade against Islam. 'Hurrying to kill this wanton tyrant (King Abdullah) who has announced himself to be a leader of atheism would be among the most pious acts,' Abu Yahya al-Libi said in a video posted on Monday on Islamist websites often used by al Qaeda supporters. The message followed a groundbreaking Saudi-sponsored interfaith conference in Spain this month in which King Abdullah called on followers of the world's major faiths to turn away from extremism and seek reconciliation.. ..'This in fact is a call to turn one's back on Islam and ... to look for commonalities with Judaism and Christianity so whatever the three agree on would become the new modern religion which would be allowed to be propagated,' Libi said. Libi frequently issues messages on behalf of al Qaeda which appears to be grooming him as a top group spokesman since he escaped 
from a U.S. jail in Afghanistan in 2005.." [more]

Saudi Arabia to Keep Fuel Oil Exports on Ice After Summer [Jul 29]
"Saudi Aramco won't sell any spot fuel oil after its peak summer demand season, on rising requirements from domestic utilities and new secondary refining units, traders said on Tuesday. Saudi Arabia's state oil firm, which typically offers at least two 80,000 tonne parcels of fuel oil onto the spot export market monthly outside the summer period, will absorb these parcels for its domestic market. This could further tighten the fuel oil crack against Dubai crude, which has halved since the start of the month on prospects of smaller flows from the West. 'We are hearing that they will not be offering the usual one or two cargoes in the spot market because of growing domestic demand from the power sector,'.. ..Apart from Qatar, all Gulf states are short of gas. Traders said they were still uncertain how long the halt on fuel oil exports would last.." [more]

Call for Women-only Industrial Areas in Saudi Arabia [Jul 29]
"A leading Saudi Arabian businessman and member of the country’s Shura Council has called for the creation of women-only industrial zones to generate more jobs for Saudi women. 'Many Saudi women are now involved in small-scale industries,' the Arab News newspaper quoted Abdul Rahman Al-Zamil as telling the Al-Madinah Arabic daily.'Women can play a big role in light industries, such as gold, jewellery and foodstuffs,' he said. Stating that women should be given production areas within and near cities, Al-Zamil said women were usually recruited for light industries, and asked: 'Why don’t we develop women-only industrial zones for this purpose?'.. ..According to him, the women-only industrial areas initiative would be crucial not only in terms of creating jobs for women but also boosting Saudi Arabia’s non-oil revenues.." [more]

KSA Urges Darfur Political Settlement [Jul 29]
"Saudi Arabia on Monday backed an Arab League initiative for a political settlement to the Darfur problem. Chairing the weekly Council of Ministers’ session, HRH Crown Prince Sultan, who recently met with Ali Othman Muhammad Taha, Sudanese Vice President and special envoy of the Sudanese President, said that an important agreement on giving the political initiative priority has resulted from last week’s meeting between Arab League Secretary General Amr Moussa and Sudanese President Omar Hasan Al-Bashir.. ..As per Resolution 1593, the situation prevailing in Darfur since July 1, 2002 was recently referred to the prosecutor of the International Criminal Court (ICC).." [more]

Rules Restrict Saudi Women’s Studies Abroad [Jul 29]
"The Ministry of Higher Education has been unmoving in its policy to require that a male relative accompany a female student on a scholarship to a university in a foreign country. Women who are attending universities at their own expense are not required to have a mahram. But every female student on a scholarship is not only required to have a male relative with her, but to have the man present his passport to the Saudi embassy to have it recorded and approved. All of this ensures that the woman has an appropriate guardian but also that the tuition money is used properly. Unfortunately, this policy leaves many women unable to attend a Western university.. ..more and more women are now able to go abroad for their undergraduate studies or to pursue their master’s or doctorate degrees. With more women entering the workplace and the Saudi government easing its restrictions on gender segregation, women see a wide horizon in employment opportunities. But at the same time it is counterproductive to have stringent rules in place that deny many Saudi women an opportunity to enjoy the benefits of a foreign education that their fathers and brothers experienced.." [more]

Human Rights Body to Study Plight of Stateless Tribes [Jul 29]
"The Human Rights Commission (HRC) has decided to study the problems of certain “stateless” tribes living in the Kingdom without citizenship, Al-Watan newspaper reported. 'Over the coming months, a high level committee of HRC officials will look into complaints of these people, who call themselves Saudi Bidoons,' said HRC spokesman Zuhair Al-Harithy. The word Bidoon comes from the Arabic expression, 'bidoon jinsiya,' which literally means 'without nationality.' 'The HRC will hold a meeting to discuss the committee’s findings and then submit a final report to concerned government departments so that the Bidoons can get their rights in full,' he said, adding that the group’s major demands include obtaining Saudi citizenship and a right to own property.." [more]

~~~~~~~~ [ Jul 28] ~~~~~~~~~

Saudi Aramco to Sell 41 pct More Crude Oil to Sinopec This Year [Jul 28]
"Saudi Aramco is expected to sell 41 pct more crude oil to China Petroleum & Chemical Corp (Sinopec) this year, the official China Daily reported. Mohammed Al-Madi, regional vice-president and chief representative of Saudi Aramco in Beijing, was quoted as saying that Saudi Aramco is looking to deliver 32.4 mln tons of crude, equivalent to 650,000 barrels per day, to Sinopec, compared with nearly 23 mln tons in 2007. The Saudi company expects to increase exports to 1 mln bpd by 2010 and 1.5 mln bpd by 2015, he said. Saudi Aramco is an equity partner in Sinopec's 5 bln usd Fudian refinery and chemical project, due to enter operations in early 2009.." [more]

Looming Labor Crisis Economists Say [Jul 28]
"Economists, contractors and recruiters cautioned that the private sector in the Gulf and in Saudi Arabia in particular, will face a labor shortage in the coming years, Al-Hayat Arabic Daily reported. Economists like Abdulaziz Al-Daghistani said low wages have remained constant in the region for the last three years and will force laborers to leave the Kingdom and will most likely not return. Laborers are more likely to move to European countries where they are offered better wages as well as better benefits than in the Gulf and Saudi regions. Countries like France and Britain have laws which protect laborers from abuse and exploitation something the Gulf region countries do not enforce strongly, he said. He said the problem is already apparent in Dubai.." [more]

Riyal Revaluation Would Be Positive Step, Say Experts [Jul 28]
"..In an article published recently in The Financial Times written by Martin Feldstein, professor of economics at US-based Harvard University, the author provided evidence of how revaluating or even de-pegging could be a prime solution against inflation. In the report Feldstein states, “The riyal’s peg to the US dollar is raising Saudi inflation by increasing the cost of imports as the dollar declines relative to the euro, the yen, and other global currencies. The 15 percent decline of the dollar relative to these currencies during the past year meant that the prices paid by the Saudis for the goods that they bought from Europe, Japan, and elsewhere rose by more than 15 percent. He added that the large US trade deficit is likely to continue to force the dollar to decline against major currencies resulting in a continuation of imported inflation in Saudi Arabia and other countries that tie their currencies to the dollar.." [more]

Ethiopia Invites Saudis to Invest in Tourism [Jul 28]
" Ethiopia, with its vast investment potential in tourism, holds bright prospects for investors. 'We want Saudis and other Arabs to explore the country and develop its tourism at a time when the number of overseas visitors is on the increase,' Mohamoud Dirir, Ethiopia’s culture and tourism minister, told Arab News in an interview here last week. 'We encourage Saudi investors to visit and explore, as we don’t consider them as foreigners. After all, our cultural ties are historically strong,'.. ..United States Agency for International Development (USAID) has meanwhile launched its new multi million dollar ecotourism program, with a view to contributing to the development of Ethiopia’s unique and potentially very “lucrative” ecotourism sector. The five-year program will protect natural resources and cultural heritage sites, as well as improve the livelihoods and quality of life of local communities. Up to $14 million will be available for it.." [more]

~~~~~~~~ [ Jul 27] ~~~~~~~~~

Smart People and Smart Ideas are Key to Saudi Arabia's Future [Jul 27]
"Combining smart people with smart ideas is the key to the future of Saudi Arabia, Craig R. Barrett, Chairman of Intel Corporation, a leading advocate for improving education, said in an exclusive interview in The Report: Saudi Arabia 2008.. ..'Saudi Arabian global competitiveness will come about in three ways: by setting aside the oil resources, the human resources and the investment in education and R&D,' he explained. 'The type of things that are happening in King Abdul Aziz City for Science and Technology will be integral. It's all about putting smart people together with smart ideas.' He said that in visits to the Kingdom he had seen necessary steps being taken to ensure young Saudis are being adequately equipped to work the ICT field.." [more]

Saudis Face Soaring Blood-Money Sums [Jul 27]
"Badr al-Hasnani was 18 when he got into a fight with a soccer rival and fatally stabbed him. He confessed and was sentenced to death by beheading, as prescribed by sharia, or Islamic law. For more than two years, Hasnani has been in a juvenile detention center awaiting execution while his family has tried to save him. The parents of the victim, Majid al-Mahmoudi, have three options under sharia: to demand punishment, to spare Hasnani's life to receive blessings from God, or to grant clemency in exchange for diyah, or blood money. The Mahmoudis agreed to accept diyah, setting the sum at $2 million in cash, much more than Hasnani's family can afford. Hasnani's case highlights the growing trend of exorbitant blood-money demands, which many say are fueled by greed and tribal rivalries. Last month, tribal leaders in the central city of Kharj demanded nearly $11 million to pardon a man who had killed a member of their tribe. Officials, clerics and writers have spoken out against the excessive requests, saying an ancient Islamic practice meant to financially support those who lose loved ones has been corrupted.. ..To deal with the problem, the government recently set up the Reconciliation Committee, which works to lower the diyah requests and find wealthy donors to help the families of death row inmates unable to pay. Using a combination of religious preaching and mediation by influential tribal sheiks and prominent clerics, the committee says it has spared nearly 150 lives since its inception.." [more]

Soap Opera Shakes Arab Customs [Jul 27]
"Every evening for the past four months, a tall young man with soulful blue eyes has been stealing hearts across the Middle East, from the refugee camps of the Gaza Strip to the gated mansions of Riyadh. But it's not just the striking good looks of Mohannad, hero of the hugely popular Turkish TV soap "Noor," that appeal to female viewers. He's romantic, attentive to his wife Noor, supportive of her independence and ambitions as a fashion designer — in short, a rare gem for women in conservative, male-dominated surroundings.. ..Some Muslim preachers in the West Bank and Saudi Arabia have taken notice, saying the show is un-Islamic and urging the faithful to change channels. But all the same, the show may be planting seeds of change.. ..In Saudi Arabia, the only country with ratings, about three to four million people watch daily, out of a population of nearly 28 million, according to MBC, the Saudi-owned satellite channel that airs the show dubbed into Arabic for Middle East audiences.." [more]

College Admission Rate Up By 22 Percent [Jul 27]
"This year’s college admission rate of seconday school graduates will increase by 22 percent to enhance the number of graduates in fields needed by the labor market, Al-Watan reported Saturday. The Undersecretary of Education Affairs at the Ministry of Higher Education, Muhammed Bin Abdul Aziz Al-Auhali, said the increase brings the total of admitted applicants to 86 percent and is set for professional colleges such as pharmacy, IT, engineering, medicine and dentistry. Last year the percentage of applicants was increased by 10 percent for the same reasons, he said.." [more]

New Line of Defense for Saudis Abroad [Jul 27]
"Saudis now have a new line of defense in case they are arrested abroad. Saudi Embassies and Consulates will work to help the defendant financially. A set of measures has been endorsed by Kingdom authorities which define procedures to be undertaken in case a Saudi is held by foreign officals abroad such as Embassies offering legal counsel reported Al-Madina Arabic daily on Saturday. Embassies will be required to provide legal advice and legal representation in court, especially in contract disputes or issues pertaining to civil status. If the Saudi is not able to afford the court expenses, the Ministry of Foreign Affairs is to bear the brunt of the expenses after a review of the charges.If the charges stem from undisciplined or negligent behavior the ministry will inform the Saudi ahead of time that they will not cover the expenses.. ..This decision comes after the Ministry of Higher Education which has granted 17,268 Saudi students scholarships to study abroad, as part of the King Abdullah Scholarship Program on Friday.." [more]

Saudi Arabia to Spend $20bn on ICT Sector [Jul 27]
"Saudi Arabia has become the top investor in Information and Communications Technology (ICT) with projections to spend $20 billion on ICT sector this year. Overall, Europe, the Middle East and Africa (EMEA) is set to spend $73 billion on ICT which will reach over $95 billion in the next three years and the region is projected to overtake the US in ICT spending, the figures released by the Global Insight suggested. During 2008, purchases of ICT products and services within will overtake the US, according to a recent report by international research company, Global Insight. As the economy in the United States slows down, due in part to the weak dollar, businesses in the Middle East are experiencing 5 percent growth, compared to 4 percent in the US, with the Middle East and Asia-Pacific becoming the two fastest growing regions in the world.." [more]

Arab Aid to Palestinians Often Doesn't Fulfill Pledges [Jul 27]
"..Now, even with oil prices more than six times higher and the Palestinian Authority bordering on financial ruin, only a handful of Arab countries are sending even a small portion of the money they promised, according to data examined by The Washington Post. Out of 22 Arab nations that made pledges, only three -- Algeria, Saudi Arabia and the United Arab Emirates -- have contributed funds this year, while oil-rich countries such as Libya, Kuwait and Qatar have sent nothing and still owe the Palestinian government more than $700 million in past-due pledges. The Palestinian Authority uses the contributions to help pay salaries for civil servants, health-care specialists and other workers in the Palestinian territories. European governments, the World Bank and the United States have provided more than three times as much money as Arab countries this year to keep the government afloat, but officials said the Europeans and the World Bank have virtually depleted their resources, leaving a funding gap of about $800 million for the rest of 2008.." [more]

OPEC Chief: Oil Prices May Fall to $70 [Jul 27]
" Oil should be trading at between about 70 US dollars to 80 dollars per barrel if the dollar strengthens and the Iranian nuclear crisis is defused, Chakib Khelil, rotating president of the Organization of the Petroleum Exporting Countries (OPEC), said Saturday. He made the prediction in his brief remarks to reporters, noting "there could be volatility ... but normally long-term oil prices should move in that lower direction without the interference of geopolitics or of the US monetary policy." He said the recent meeting between senior US diplomat William Burns and Iran's chief nuclear negotiator Saeed Jalili in Geneva and the strengthening of dollar were the main factors that helped push the oil prices down rather than changes in supply and demand. 'I do not see a fall in demand ... (and) supply is the same,' said Khelil who is also Algeria's Minister of Energy and Mines.."  [more]

Jul 20 - Jul 26, 2008

~~~~~~~~ [ Jul 26] ~~~~~~~~~

Saudi Medical Mission to Perform Cardiac Surgeries for Yemeni Children [Jul 26]
" A Saudi medical mission, led by the head of the cardiac surgery department at the prince Sultan Cardiac Center Huwaida al-Qathami, has arrived in Yemen to perform cardiac surgeries for Yemeni children with congenital heart defects.. ..She made clear the surgeries to be carried out would be of those related to Congenital heart defect corrective surgeries for children, newborns and young who still suffer from congenital heart defects. She added that about 160 patients have been examined and over than 180 would be medically examined to be treated at the al-Thowra General Hospital. The mission comprises of 39 cardiac surgery specialists from the Saudi Defense and Health ministries.." [more]

Saudi Arabia To Expel Longtime Egyptian Resident [Jul 26]
"An Egyptian national living in Saudi Arabia for the past 44 years is due to be expelled from the Islamic nation despite calls from human rights groups to stop the decision. The Arabic Network for Human Rights Information (ANHRI) said on Saturday that the move is a violation of freedom of speech. 'The decision of the Saudi authorities to expel Abdullah Al Khayat - an Egyptian who has been a resident of Saudi Arabia for 44 years - for his writings in newspapers and on the Internet is a blatant violation of freedom of opinion and expression,' the pan-Arabic organization said in a press statement.. ..Khayat has been a resident of Saudi Arabia since 1966, when he became one of the first Egyptians to move to the oil rich nation. But when he went to renew his residence permit on July 21 he was refused a renewal and authorities in the kingdom informed him of the decision to expel him within one week. There were no official reasons provided by the Saudi government for his expulsion, nor was there an investigation into whether he had broken any law.." [more]

17,000 New Scholarships Granted to Saudi Students [Jul 26]
"The Ministry of Higher Education said 17,268 students have been granted scholarships through the King Abdullah Scholarship Program. The scholarships cover bachelors, masters and doctoral degrees as well as medical fellowships. The applicants form the fourth group to be awarded scholarships under the program. Of the candidates selected, 10,250 are males and 7,018 females.. ..The scholarship program was started in 2006 by King Abdullah, Custodian of the Two Holy Mosques. It started with 15,000 students who were sent to study in the US and in Asia, according to the Royal Embassy of Saudi Arabia web site. The program came after a drop in Saudis traveling abroad for educational purpose following 9/11.." [more]

Kingdom’s Clothing Retail Market Grows Strongly [Jul 26]
"The Saudi apparel retail industry is one of the high-growth markets in the Arab region especially in the women and children segments as the business grew rapidly over the last several years as people became more fashion-oriented, Kuwait-based Global House Investment said in its report on the 'Saudi Apparel Retail Market.' The growth in the sector is attributed to high young population and increasing purchasing power in the backdrop of recent economic boom. Growth of this sector is evidenced by the growth of fashion retailers.. ..with the maturing of the market, there has been a shift towards branded apparel sold through international retail chains. Sales of braded apparels are estimated to be around 25-30 percent of total apparel sales. Its share continues to increase as evidenced by the expansion of the number of outlets and the number of malls specialized in international retail chains.." [more]

~~~~~~~~ [ Jul 25] ~~~~~~~~~

Critics Question Ambitious Saudi Cities Plan [Jul 25]
"The foundations are being laid and the building of four highly ambitious new cities in Saudi Arabia is under way, with the first, the King Abdullah Economic City, hoping to welcome residents at the end of this year. But as the multibillion-dollar mega-projects inch forward, questions are increasingly 
being raised about the viability of their concept, amid rising costs and queries about whether the cities will attract the required private sector investment - foreign and domestic - and the human resources needed to meet their heady goals.. ..The scheme is designed to ease the serious demographic, economic and social pressures faced by the kingdom, which has a growing young population; an economy dependent on the highs and lows of oil cycles and high unemployment. Most observers expect the flagship King Abdullah city to be a success as it bears the king's name. Concerns surround the feasibility of the others, particularly Hail due to its remote location.." [more]

OPEC Supply to Rise This Month [Jul 25]
"OPEC's oil supply will probably increase in July by 200,000 barrels a day, or 0.6 percent, as Saudi Arabia fulfils its pledge to boost production, according to preliminary estimates from PetroLogistics Ltd.. ..Saudi Arabia, the world's largest oil exporter, pledged on June 22 to increase output by 200,000 barrels a day in July, on top of a previous 300,000-barrel-a-day boost scheduled for June. `'The Saudis can produce more but they can't sell it,' Gerber said in a telephone interview. `'The demand's not there.' The Saudi kingdom increased supplies to world markets to 9.45 million barrels a day this month, from 9.32 million a day in June, according to PetroLogistics. Still, Saudi Arabian supplies to customers in July are well short of the 9.65 million a day produced in June as the Gulf kingdom is unable to find buyers for its sulfur-heavy crude types.." [more]

Cal Poly Signs Controversial Deal With Saudi Arabian University [Jul 25]
"Cal Poly has signed a contract to help establish a new engineering program in a Saudi Arabian university, and a top university official expects the Saudi officials will sign the contract soon. The deal would pay Cal Poly $5.9 million to help set up a program in four engineering fields at the state-run Jubail University College in Saudi Arabia. The proposed contract has been inked by Cal Poly Corp., a nonprofit, private arm that supports the university, after legal review and awaits the signatures of officials at the new Jubail University College.. ..The proposal has been criticized by many Cal Poly faculty and students who say Saudi Arabia’s poor human rights record could lead to discrimination in the hiring of Cal Poly faculty who are minorities or women.." [more]

Saudi Arabian Warships on Maiden Visit to India [Jul 25]
"Signalling improvement in defence ties between the two countries, two Saudi Arabian naval warships will arrive in India on their maiden visit Monday, a Indian Navy official said here Friday. 'The Saudi Arabian ships have been visiting Pakistan. But it is the first time that the country’s warships are coming to India,' the navy official said. The two warships will arrive July 28 at Mumbai on a four-day friendly port call. 'The visit by the Saudi Navy ships is a result of the Indian Ocean Naval Symposium organised by India recently. Saudi Arabia is an important country in the Indian Ocean Rim and the port call is an indication how countries look at India in the emerging world scenario,'.."  [more]

Saudi Embassy Security Concerns Over Development [Jul 25]
"The Saudi Arabian Embassy is objecting to a six storey unit development in southern Canberra and seeking an extension of time to lodge an appeal. The Saudis have raised security concerns about the 114 unit development on the Embassy Motel site in Deakin. In a written objection to the ACT 
Planning and Land Authority (ACTPLA), the Saudis say the unit development would give direct line of sight into the embassy, compromising security.. ..The head of the ACTPLA, Neil Savery, says the Saudi Embassy's concerns were taken into account. 'We have, however, added a condition to the 
approval which requires the retention of trees on unleased Territory land between the Embassy Motel site and the Saudi Embassy which would prevent any direct line of sight,' he said. 'We also believe that if there are security issues they are more pronounced in other locations such as Adelaide Avenue.' But in its written objection, the Saudi Embassy says it remains concerned about the trees. The Embassy further notes its severest reservations that the proposed retention of trees currently in place, or the planting of additional and/or new trees between the proposed buildings and Adelaide Avenue would provide any shielding for the Saudi Embassy site.." [more]

~~~~~~~~ [ Jul 24] ~~~~~~~~~

Oil Prices Likely to Increase Despite OPEC's Measures [Jul 24]
"Current fluctuations in crude prices are unprecedent since oil was discovered in the first half of the 19th Century. The first major hike from $2.5 to $11 was in the 1970s, but that seems insignificant compared to the current leaps that brought oil up to nearly $150 per barrel. Today, oil prices go up and down by as much as $11 during the course of one trading session. Such fluctuations have left their print on global economies.. ..The series of hikes, which began three years ago, is different than earlier ones, as it has affected all aspects of life. It has resulted in international crises and imbalances, which have led to food price increases and record inflation rates. Accordingly, oil importing and poor countries have been exposed to social instability. Developed countries have been affected as well.." [more]

Rabigh Gasoline Unit Expected to Come on-Line By October 2008 [Jul 24]
"The new 60,000-barrel-per-day gasoline unit at the Rabigh refinery in Saudi Arabia is expected to come on-line between September 2008 and October 2008. The refinery is part of the $10 billion PetroRabigh petrochemical complex being jointly developed by Saudi Aramco and Sumitomo Chemical, according to Reuters. The PetroRabigh refinery's capacity will be increased to 400,000 barrels per day (bpd) following the beginning of operations at the new gasoline unit. The news source reported that the Rabigh complex was capable of producing all varieties of oil products except for gasoline, before this expansion project. The gasoline produced from the new unit is expected to satisfy domestic demand, while exports are not being ruled out.." [more]

Embassy Bomber Wasn’t Saudi [Jul 24]
"Saudi Arabia’s ambassador to Pakistan denied an Al-Qaeda claim that a suicide attacker who bombed the Danish embassy in Islamabad last month was a Saudi. 'No Saudi was involved in the terrorist attack against the Danish embassy in Pakistan,' Ali Awadh Assiri said quoted by Al-Hayat. 'The attacker was not even Arab. According to documented official information, the features of the attacker were not close to Arab features,' he said. A senior Al-Qaeda leader said in a television interview aired on Monday that the suicide attacker came from Saudi Arabia.. ..The June 2 embassy bombing killed six Pakistanis, one of them with a dual Danish nationality, and came amid anger in the Muslim world over cartoons of the Prophet Muhammad (pbuh) first printed in Danish newspapers in 2005. Saudi Arabia has been battling suspected Al-Qaeda militants since they launched a wave of bombings and shootings in the Gulf Kingdom in May 2003.." [more]

Scholars Stress Need for Women’s Sport [Jul 24]
"Religious scholars participating in the ongoing Abha Cultural Forum stressed the need for opening sports clubs for women and developing their skills just as men develop their skills. 'However, women should take care that they do not violate the religious regulations while indulging in health-related activities,' Muhammad Al-Oraify, a preacher, said. Al-Oraify read a fatwa in favor of women's participation in sports in exclusive clubs on the ground that Shariah approves of physical activity. There are no public sports facilities for women in the Kingdom and physical education is currently not allowed in girls schools. Private sports clubs for women available in large cities are out of the reach of lower-income Saudis.." [more]

~~~~~~~~ [ Jul 23] ~~~~~~~~~

Saudi Arabia - Continued Assistance in the Modernization of the SANG [Jul 23]
"The Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Saudi Arabia of continued assistance in the modernization of the Saudi Arabian National Guard (SANG) as well as associated equipment and services. The total value, if all options are exercised, could be as high as $1.8 billion. The Government of Saudi Arabia has requested a possible sale for the continuation of the United States supported effort to modernize the SANG by providing the following defense services: training, professional military advice and assistance, management assistance, contract administration, construction oversight, transportation of equipment, personnel training and training equipment, light armored vehicle training, spare and repair parts, management of repair and return of components, automation program support, and other related elements of logistics support. These support services would be for the period 1 January 2009 through 31 December 2013.." [more]

Saudi’s Shura Panel Block Revaluation Plan Discussion [Jul 23]
"Members of Saudi Arabia’s Shura Council Inflation Committee this week blocked out a discussion on the proposal to appreciate the Saudi riyal against the weak US dollar by at least 20%. 'The proposal wasn’t put on this week’s agenda for discussion. I expected us to discuss it either Sunday or Monday, but it was ignored by the Inflation Committee,'.. ..The Shura Inflation Committee is responsible for putting forward proposals for discussion by Shura Council members. If a proposal is approved after discussion it is then passed on to the Cabinet and King who can either enforce it as law or reject it. Mansour Abdel-Ghaffar, head of the Inflation Committee, declined to comment when Zawya Dow Jones phoned yesterday and asked him why the committee didn’t put forward the proposal to revalue the riyal against the US dollar this week.. ..Analysts said the move to block discussion this week on revaluing the riyal or de-pegging from the dollar could be the government trying to limit speculation in currency markets.." [more]

High Commission to Lay Bases for Shariah Verdicts [Jul 23]
"The Council of Ministers is to form a Special Higher Commission of judicial experts charged with writing laws that will serve as a basis for Shariah court verdicts, legal sources told Arabic daily Asharq Al-Awsat. According to the sources, the Commission, which will be independent and directly responsible to the Custodian of the Two Holy Mosques, King Abdullah, will issue three types of laws: financial transaction laws, civil status laws, and penal code laws. The creation of a Commission with the power to write such laws was stipulated in legislation on the organizational arrangements of the judiciary and courts for the settlement of disputes which was endorsed by King Abdullah on April 3, 2005.. ..As of now, judges have complete discretion to set sentences, except in cases where Shariah outlines a punishment, such as capital crimes. This means no two judges would likely hand down the same verdict for similar crimes. The move to form a Special Higher Commission is seen as part of judicial reforms initiated by KingAbdullah last October.." [more]

Deal For New Jeddah Airport Signed [Jul 23]
"King Abdul Aziz International Airport (KAIA) in Jeddah will have a new state-of-the-art terminal with 74 jet bridges to receive both foreign and Saudia planes, Abdullah Ruhaimy, president of the General Authority for Civil Aviation (GACA), announced yesterday. Speaking to reporters after signing an agreement with Aéroports de Paris Company of France to provide design and engineering services for the first phase of KAIA’s development project, Ruhaimy said the new airport terminal is designed to receive 30 million passengers annually and would be ready by 2012.. ..'The main objective of this airport development project is to make KAIA a central airport that would link the Kingdom’s east with the west, and become a major hub for the distribution of passengers,' Ruhaimy said. 'It will also meet the requirements of the new generation of giant aircraft,'.." [more]

Prince Fawaz Passes Away [Jul 23]
"Prince Fawaz bin Abdul Aziz, who had been governor of Riyadh and Makkah, died yesterday outside the Kingdom following a prolonged illness, the Royal Court announced. He was 74. Funeral prayers for the late prince will be held at the Grand Mosque in Makkah after Maghreb prayers today.." [more]

Saudi Telecom Seeks Oman Stake in Regional Expansion [Jul 23]
"Saudi Telecom 7010.SE (STC) said on Wednesday it wants to buy the 25 percent stake Oman is selling in Oman Telecommunications Co OTL.OM (Omantel), after it spent more than $6 billion in foreign expansion in 13 months. Shares of both firms jumped more than 3 percent after the largest Arab telecom firm by market value said it would seek to set foot in its second Gulf market outside of Saudi Arabia. Pre-qualified bidders will be announced by the end of this month.. ..STC has spent in excess of $6.5 billion since June 2007 as it sought to catch up with regional rivals, such as Etisalat, in expanding abroad while facing greater competition in Saudi Arabia, where penetration hovers around 100 percent. STC made its first foreign acquisition in June 2007 when it bought 25 percent of Malaysia's Maxis for $3 billion, opening markets in India, Indonesia and Malaysia.." [more]

~~~~~~~~ [ Jul 22] ~~~~~~~~~

Dawn of Interfaith Peace [Jul 22]
"The Council of Ministers said Monday that the Madrid Declaration issued at the conclusion of last week’s world interfaith Conference on Dialogue has the content to help peoples the world over arrive at common understanding and peaceful coexistence. A Cabinet statement said the conference initiated by King Abdullah, Custodian of the Two Holy Mosques, has received worldwide praise for bringing to the table the noble principles and morals at the core of all religions, and which bind peoples together. HRH Crown Prince Sultan who chaired the Cabinet session said King Abdullah’ inaugural speech, in which he had stressed that Islam is a religion of moderation and tolerance and that its message calls for constructive dialogue among the followers of all religions, has become an official document of the conference. 'It promises the opening of a new page for mankind, in which concord replaces conflict,'.." [more]

Women’s Rights in Kingdom [Jul 22]
" There are conflicting reports about the participation of women in the 2009 municipal elections. According to some government officials, there are still many challenges that make it difficult for Saudi women to participate in the decision-making process of their country. This sorry situation is due to 
several major factors that continue to harm Saudi women and deprive them of the right to manage and lead organizations. The most obvious ones are the long absence of any resistance toward blatant discrimination and women’s sad acceptance and resignation to their unfortunate fate. They make no 
demands to take charge of their lives or to reject the continued abuse and unjust policies. Moreover, the indifference of the educated elite and acquiescence of the more moderate religious scholars who remained silent for decades contributed to ignorant and shortsighted restrictions that have excluded women from all spheres of public life. However, this is no longer the case.." [more]

EU-GCC Al-Jisr Project Announced [Jul 22]
" A major research project, the first of its kind to focus on the two regional blocs — the six-nation Gulf Cooperation Council (GCC) and the European Union — has been launched by a Gulf think tank with an aim to contribute to the policy making process of the GCC and EU and also to boost links between them. The project promoter Gulf Research Center (GRC) has signed an agreement with the European Commission to work on this two-year project. 'The research project has been titled as ‘EU-GCC Al-Jisr Project for Public Diplomacy and Outreach’, which will mainly focus on the EU and GCC-EU relations,' said Abdulaziz Sager, a Saudi businessman, who is the founder chairman of the Dubai-based GRC, an independent research institute. The GRC seeks to pursue politically neutral and academically sound research works on the GCC countries and disseminate their findings and knowledge as wide as possible.." [more]

Saudi Arabia's Real Oil GDP is Set to Increase by 5.6% [Jul 22]
"Saudi Arabia's economy is heading for robust growth despite the less benign global economic outlook and it is unlikely to be affected by the global financial turmoil. Oil prices, which have reached a record high of $147 a barrel recently, are likely to remain high as demand from emerging market economies is expected to support world demand for oil even if economic growth in advanced economies slows.. ..The Kingdom's real GDP growth is expected to accelerate to 5.1 percent this year in line with increase in crude oil output, while private investment in the non-oil sectors is expected to gather pace. The oil sector remains the core of economic activity in Saudi Arabia, providing the financial underpinning for government expenditure plans and broader economic confidence. Despite oil production cuts in late 2006 and early 2007, real GDP growth slightly increased to 3.4 percent in 2007 from 3.1 percent in the previous year.." [more]

~~~~~~~~ [ Jul 21] ~~~~~~~~~

Mideast Deal is Doable: Brown [Jul 21]
"British Prime Minister Gordon Brown insisted yesterday that the gap between Israel and the Palestinians can be bridged and that a landmark Middle East peace deal is achievable. After talks in Jerusalem and Bethlehem with leaders from both sides, Brown said he was confident that all outstanding issues preventing an agreement could be hammered out. Asked by AFP whether he was confident that a deal could be reached on schedule, Brown said: 'When I say the difficulties can be bridged, that the problems that I have had described to me I believe can be solved, then I think there is an opportunity within our grasp. There is a sense from what I have heard today that people feel that they can get to a solution'.." [more]

Dell Granted Licence for Saudi Office [Jul 21]
"Dell has finally put down roots in the Saudi market after gaining a commercial licence from the Saudi Arabian General Investment Authority (SAGIA) to operate an office in Riyadh. The PC and server vendor will use the new facility to manage its business in the Kingdom and oversee local relationships with channel partners and customers. It will also implement phase two of Dell branded services, which it launched last year, from the office.. ..Dell claims to occupy the number one position in Saudi Arabia with a 26% market share based on first quarter IDC numbers. The firm says it will follow up the office opening with a recruitment drive to source local talent.." [more]

Indonesia Invites Saudi Firms for Show [Jul 21]
"Saudi Arabia and Indonesia are all set to enter into a new vision of commercial relation with two-way trade showing 70 percent increase during the first two months of the current year. Jakarta, on the other hand, has invited a large number of Saudi businessmen to visit a major trade exhibition later this year,” said Sintoyo, who heads the commercial section of the Indonesian embassy, here yesterday. 'The five-day trade exhibition to be hosted by Jakarta will showcase the whole range of export products ranging from industrial, mining, agricultural to crafts and commodities of daily use,'.. ..The trade exhibition will run across Oct. 21 to 25.." [more]

Cut in Soaring Saudi Inflation Rate Urged [Jul 21]
"A study has recommended reducing the current high rates of inflation by improving the financial policy through decreasing expenditure and through issuing of bonds that will 'dwindle the liquidity.' The Saudi Arabian Monetary Agency (SAMA) may issue bonds of various maturities to absorb the current high liquidity. This may cut down inflation," said the study conducted by Arbah Financial Company (AFC). Citing the problems of the world economy arising from the high prices of energy, the rising prices of food, the crisis of real estate credit in the United States, the study recalled that inflation has become a worldwide problem not only limited to the third world countries but has hit the industrial countries as well. The study said that internal and external factors have combined to push inflation in Saudi Arabia to an unprecedented level.." [more]

~~~~~~~~ [ Jul 20] ~~~~~~~~~

Saudi Oil Price Summit Under Way [Jul 20]
"A crucial meeting of oil producing and consuming nations to discuss soaring prices is under way in Saudi Arabia. The US and other consumers have urged producers to boost supply, blaming lack of capacity for the recent price surge. Top world supplier Saudi Arabia has made slight increases but says market speculation, not lack of supply, has driven prices to nearly $140 a barrel. Several nations have faced protests as rising fuel costs have hit industries and helped push up food prices. Energy ministers from more than 30 countries, as well as senior executives from the world's largest oil companies, are attending the conference in the city of Jeddah amid concerns that recent record oil prices are helping tip the US and other major economies towards recession. They have announced a follow-up meeting will take place in London in October.." [more]

Gulf States Look to Harvest Food From Foreign Investment [Jul 20]
"Faced with a scarcity of fertile land, water shortages and surging world food prices, wealthy Arab states in the Gulf are seeking to secure their food supplies by investing in agriculture abroad. Saudi Arabia and the United Arab Emirates, the top food importers among Arab countries in the Gulf, are 
now looking to Asia and Africa as opportunities for agricultural investments.. ..Although these nations have huge oil reserves they are among the world's poorest in natural water resources and arable land -- just two percent of the vast Saudi desert kingdom and one percent of the UAE. GCC food imports cost 10 billion dollars in 2007, said the GRC study, although some press reports put the figure much higher. Saudi Arabia, with a population of about 24 million, remains the largest food importer.. ..For Saudi Arabia investing in agriculture abroad marks a shift from its own costly crop self-sufficiency scheme. 'In the 1970s and 1980s Saudi Arabia developed its own agricultural sector for food security,' said Monica Malik, economist at the Dubai-based EFG-Hermes investment bank. 'However the sector had to be highly subsidised by the government for it to be economically viable given the climatic conditions,'.." [more]

Arab League Slams ICC Prosecutor [Jul 20]
"The Arab League yesterday criticized the International Criminal Court’s prosecutor for seeking the arrest of Sudan’s president on genocide charges, saying diplomacy should be given a priority to solve the conflict in Darfur. Arab foreign ministers, holding an emergency meeting in Cairo, said Arab League Secretary-General Amr Moussa would head to Khartoum today to inform the Sudanese leadership of a plan to defuse the crisis. Moussa said he would announce the details within two days. The chief prosecutor of the International Criminal Court (ICC), Luis Moreno-Ocampo, has asked the court for a warrant for President Omar Bashir on suspicion of masterminding crimes against humanity in his country’s troubled Darfur region.. ..Before yesterday’s meeting, a source said the ministers would discuss a proposal urging Bashir to surrender Harun and Kushayb to the ICC in return for asking the UN Security Council to defer prosecution of Bashir for at least a year. Such a suspension, which is indefinitely renewable, is necessary because the penal process against Bashir 'reduces the chances of peace in Darfur,' a diplomat said.." [more]

Saudi Arabian Airlines Sets Privatisation Strategy [Jul 20]
"Saudi Arabian Airlines, the world's fifteenth largest carrier, is accelerating expansion of its fleet and enhancement of its operating systems in a strategy designed to prepare the airline for privatisation. A range of new aircraft have been procured and delivered in the last 18 months with the latest order 
announced at the Farnborough air show in the UK for Airbus medium range airliners.. ..Saudi Arabia Airlines privatisation strategy is to be a staged process. In January, Al Molhem announced that the state-owned airline's aviation services could be privatised within two years. The process for other units of the business has already started.." [more]

Saudi's Mobily Profit Soars 47% [Jul 20]
"Etihad Etisalat (Mobily), Saudi Arabia's second-largest mobile phone company by market value, reported a 47.4 per cent rise in second-quarter net profit, almost double the rise in earnings from operations. Mobily, an affiliate of Emirates Telecommunications, said net profit was 448 million Saudi riyals ($119.5 million) for the three months to June 30, compared with 304 million riyals in the year-earlier period.. ..Mobily competes with Saudi Telecom, the second-largest Arab telecom firm by market value, for mobile phone users in the kingdom. Zain Saudi Arabia, an affiliate of Kuwait's 
Mobile Telecommunications (Zain), plans to start operations this year after selling shares to the public in the first quarter.." [more]

No Jobs Force Youth To Take Up Smuggling [Jul 20]
"Security authorities have said that unemployment in the border regions has become a threat to the security of the Kingdom. These unemployed young Saudis are being recruited and exploited by smugglers and criminals.. ..Unemployed youth are being employed to smuggle contraband substances such as drugs and qat as well as weapons. Security analysts in the Kingdom have compared this growing problem to a ticking time bomb. Over the last several years there have been many reports of gangs being formed to smuggle illegal substances and also to smuggle in people. Official statistics released by the Ministry of Economy and Planning said the unemployed constitute 11 percent of the workforce, equaling half a million young Saudis.." [more]

Stocks Rebound on Corporate Results [Jul 20]
"The Saudi stock market rebounded yesterday after falling 1.52 percent last week. The market was volatile last week due to turbulence at the global equity markets and expected results of the blue-chip Saudi companies. The Tadawul All-Share Index (TASI) jumped 212.57 points or 2.4 percent on expectation of strong Saudi Basic Industries Corp. (SABIC) second quarter results. SABIC later said it made a net profit of SR7.54 billion in the three months to June 30 compared with SR6.47 billion in the second quarter of 2007. Its shares also surged 1.66 percent to SR137.25.. ..The BMG Saudi index increased 2.5 percent to 498.2 points yesterday. The market’s total turnover surged almost by two folds witnessing a strong 86.1 percent increase to SR5 billion ($1.3 billion), compared to SR2.7 billion ($719 million), registered in Wednesday’s trading session. All sectors experienced gains yesterday, with the best performance achieved by the telecommunications sector.." [more]

Over 60 International Films for JFF [Jul 20]
"Several dozen films from the Kingdom, the Gulf, Japan and the US will be shown over four days as part of the Third Jeddah Film Festival. The festival will be launched by Mayor of Jeddah Adel Faqeeh July 22. '50 directors from Saudi Arabia, Bahrain , Qatar, Kuwait, USA and Japan will show some of the 67 films, however Japanese actors will display animated films only,' said Mamdoh Salim, supervisor of the film festival.This year will be the first time Saudi women will be allowed to show their own films. Two Saudi female film makers will be making their debut at the festival.. ..The festival will be divided into three different categories; fiction, documentaries, and animation. Salim said the longest film is 100 minutes long, whereas the shortest film will be less than 10 minutes long. This year’s festival, unlike previous festivals will have three categories of prizes at the end; best story, best performance, and best cinematography.." [more]

Jul 13 - Jul 19, 2008

~~~~~~~~ [ Jul 19] ~~~~~~~~~

GCC Inflation Forecasts Weigh on Dollar Pegs [Jul 19]
"With inflation expectations for Gulf Co-operation Council countries on the rise, political disagreement is mounting about whether to let local currencies appreciate the dollar.. ..Between January and May, Saudi Arabia, whose currency, the riyal, is pegged at 3.75 to the dollar, was forced to match Fed rate cuts aimed at jump-starting the US economy, even though data released in January showed Saudi inflation was running at 4.1% in 2007.. ..In just five months, Saudi Arabia’s central bank, the Saudi Arabian Monetary Agency (Sama), cut its key deposit rate, the reverse repurchase rate, by a total of 150 basis points to 2%. The latest government figures put Saudi annual inflation at a 30-year-high of 10.4% in May 2008, a far cry from 2.64% a year earlier. But Saudi authorities are struggling to balance inflation-fighting with addressing the country’s social inequalities.." [more]

Restore the Dignity of Women [Jul 19]
"A call by theologians and scholars for restoring the dignity of women led to an unscheduled speech at the inter-faith World Conference on Dialogue that ended here Friday. The unscheduled speaker was a woman – the only one to address the ground-breaking Saudi-sponsored conference.. ..Dr. Makkiah Al-Najjar, professor of International Relations at Universidat Autonama de Madrid (UAM), pointed out that women should be included in any inter-faith dialogue and that without their participations no such dialogue would ever succeed. She also noted that, in Islam, women are given the right 'to participate and speak in all aspects of life and community.' The issue of discrimination against women was brought to the round-table Thursday when one delegate asked, 'Where are the women?' To this, Saleh Bin Humaid, chairman of the Saudi Shoura Council replied, 'You theologians don’t usually include women in your hierarchy. Include them and then we will invite them.'.." [more]

Prince Muhammad University to Open in Damman Next Month [Jul 19]
"A new university focused on engineering, nano-technology and computer science is set to open next month in Dammam.. ..The university will have mechanical, electrical and civil engineering colleges besides colleges for IT and business administration. There will be separate engineering colleges for 
girls.. ..Prince Muhammad, who has signed a SR69 million contract for the university’s computer network and database, said the university aims to provide quality education for which it has approached 39 prestigious foreign universities to develop its curricula and benefit from their academic experience.." [more]

Mizuho Financial to Open Brokerage in Saudi Arabia [Jul 19]
" Mizuho Financial Group Inc. applied to Saudi Arabia's monetary authorities for a brokerage business license, the Asahi newspaper reported today, without saying where it obtained the information. Mizuho plans to set up the brokerage in the Saudi capital Riyadh in the first half of next year to tap demand for asset management services among wealthy investors, the report said. Mizuho is the second major Japanese financial institution to advance into Saudi Arabia after Nomura Holdings Inc., the report said. Nomura, which obtained a license in May, plans to set up a subsidiary in Riyadh by the end of this year, the Asahi said.." [more]

~~~~~~~~ [ Jul 18] ~~~~~~~~~

Saudi Inter-faith Conference Urges Global Anti-terrorism Pact [Jul 18]
"Representatives of the world's great monotheistic religions Friday called for an international agreement to combat terrorism, at the end of a landmark Saudi-organised conference. The Islamic, Christian and Jewish leaders also appealed for a UN special session to promote dialogue and prevent 'a clash of civilizations.' 'Terrorism is a universal phenomenon that requires unified international efforts to combat it in a serious, responsible and just way,' the three-day World Conference on Dialogue said in a final statement. 'This demands an international agreement on defining terrorism, addressing its root causes and achieving justice and stability in the world.'.. ..The participants called on the UN General Assembly to call a special session to support the recommendations of the conference 'in enhancing dialogue among the followers of religions, civilizations and cultures.'.." [more]

University Challenges Conservative Ideals [Jul 18]
"..When finished next year, King Abdullah University of Science and Technology will offer coeducation classes, Western professors, a curriculum in English and other features loathed as dangerous liberalism by fundamentalists. The campus outside an ancient fishing village is recognition that the country needs the likes of the University of Southern California, Oxford University and the Massachusetts Institute of Technology to survive globalisation.. ..'Saudis are beginning to realise they are not the centre of the universe,' said Tariq Maeena, a writer and aviation expert. '[King Abdullah 
Bin Abdul Aziz] hopes that a young Saudi will be in a class with an American professor. The king is jabbing the conservatives from all sides. He's not doing it with a massive decree, but incrementally, and all the radicals can do is roll their eyes and say, 'Uh-oh, we're losing more power'.." [more]

Gulf Economies to Soar 35% on Oil Windfall [Jul 18]
"Gulf Arab economies will surge 35 per cent this year on an oil price windfall, ING said on Thursday, drastically raising its average economic growth forecast for the six oil producers from 10 per cent in February.. ..Top global oil exporter Saudi Arabia should witness nominal gross domestic product growth of 30.8 per cent this year, compared with 6.7 per cent last year, ING said in a note. Its previous forecast for Saudi economic growth was 5.8 per cent. 'We updated our forecast for the Gulf countries in light of a substantial upward revision in our oil projections,' ING said, raising its estimate for 2008 oil prices to an average $119.6 a barrel from $74 a barrel.." [more]

Of Myth of a Shortage and Saudi Capacity [Jul 18]
"Crude demand-supply balance is definitely tight, no one argues. The spare cushion has perilously gone down to two percent from six percent a few years back. Galloping consumption in the emerging economies of Asia coupled with rising demand within the Arab Gulf has contributed to tight markets. Skepticism appears ruling the sentiments. Pundits continue churning out various, cooked and semi-cooked, theories about the Saudi capacity to sustain and increase its production from the current levels. Matthew Simmons and his disciples term the Saudi announcement to take production to 12.5 million bpd by next year, and 15 million bpd, if and when required as 'a bunch of empty boasts.'.. ..It was perhaps in this perspective that the Secretary-General of the Organization of Petroleum Exporting Countries (OPEC), Abdallah Al-Badri, recently denounced the 'myth' of an oil shortage and blamed the crisis on speculation sparked by the subprime lending crisis in the United States. 'Seventy percent of crude contracts on the Nymex are held by speculators... Some form of regulation is needed,' he emphasized, adding, 'The market has no shortage of physical crude.'.." [more]

Interfaith Meet Signals Thaw in Saudi Hostility Toward Israel [Jul 18]
"In an apparent easing of traditional Saudi hostility toward Israel, King Abdullah has urged followers of all the world's leading religions to embrace reconciliation. 'We must tell the world that differences don't need to lead to disputes,'.. .. Rabbi David Rosen, who is also the Chief Rabbinate's adviser on 
interfaith dialogue, had been invited to the conference as Chairman of IJCIC, the International Jewish Committee on Interreligious Consultations. The conference organizers knew he was Israeli, following media reports to that effect last week. He met King Abdullah, told him he was a rabbi from Jerusalem and even received his blessing. Saudi Foreign Minister Prince Saud al-Faisal told Rosen that his participation in the conference was important and following his recommendation, Rosen was interviewed by the country's official television channel. Rosen told Haaretz on Thursday that Saudi Arabia was very interested in creating calm in the region but as is their custom, they proceed slowly. 'This event is historic because it's the first time that a Saudi king initiated such a move. The Saudis want to reduce the risks to the region's stability, including the Holy Land. This will be tested in the continuity of the contacts,'.." [more]

~~~~~~~~ [ Jul 17] ~~~~~~~~~

Text of the King’s Speech [Jul 17]
"Quoting from the Holy Qur’an, and after salutations to Prophet Muhammad (pbuh) and all the prophets and messengers, the Custodian of the Two Holy Mosques King Abdullah began his speech Wednesday opening the three-day inter-faith World Conference on Dialogue. At the outset, he thanked King Juan Carlos and the Spanish people for convening the conference on 'a land that has a historic and civilized heritage among the followers of religions, and which has witnessed coexistence between people of differing ethnicities and religions and cultures, and contributed, with other civilizations, to the advancement of humanity.' Following is the text of the King’s speech:.." [more]

Al-Jazirah Becomes First Saudi Newspaper to Commit to BPA Auditing [Jul 17]
"In a landmark decision for the media industry in the Middle East, Al-Jazirah, the Saudi daily newspaper, has become the first of its kind to commit itself for audit under internationally recognised BPA Worldwide standards. BPA Worldwide is the only global auditor of media.. ..As for the reasons behind the newspaper's decision to apply for BPA membership Mr. Al-Ateeq said:' It is a move in our adherence to transparency as well as a continuation of Al-Jazirah's recent declaration of its distribution figures. A step we have been calling on other titles to take since 2005 but we had to take separately'. Mr. Al-Ateeq sees an increasing demand from within Saudi Arabia for audited data. In this respect he added: 'It is beyond no doubt that the enrolment of Saudi Arabia in the membership of the World Trade Organization (WTO), and the everlasting growth it witnesses in the different economic, political, educational, and social aspects, as well as the necessity to cope with such remarkable and amazing developments, have made it inevitable for the printed media to respect its readers and advertisers, who are becoming more intelligent and would not accept any declared data unless they are verified by concerned international bodies.." [more]

Political Support for Dollar to Bar Saudi Revaluation [Jul 17]
"Saudi Arabia's monarchy is set to reject any call from the influential Shura advisory body to revalue the dollar-pegged riyal, as the economic case for reform takes second place to a political pledge to support the dollar. Bids on Saudi riyal one-year forwards rose to their highest in more than a month after Shura Council member Waleed Arab Hachem told Reuters on Tuesday the body that advises King Abdallah was set to recommend a revaluation to fight inflation.. ..But analysts say Saudi Arabia, the world's top oil exporter and a staunch US ally, is reluctant to deal any further blow to a dollar already battered by concerns over the health of the American economy as political tensions over nearby Iran mount. 'The decision to revalue now - and add further losses to the US dollar - does not fit with recent US official efforts to garner international support,' ING said in a note to clients.." [more]

GCC Should Seek Regional Security Strategy [Jul 17]
"GCC states must reinforce their ability to deter intervention in their affairs by large regional neighbours and extra-regional powers such as the US and the UK, according to a book published by a UAE think-tank. Of 21 countries in and around the Gulf, only 3 do not have any overt military presence. The US has a presence in 13 of these countries, the UK in 9 and other external powers also have military presences in 9 countries, according to the book titled Arabian Gulf Security: Internal and External Challenges.. ..The Gulf states, the book says, must recognise that their dependence on the US as a security umbrella and economic partner is a relatively minor part within larger US global security concerns. The authors believe the foreign military presence in the GCC states is 'an inescapable reality.'.." [more]

Oil Prices Dive More Than $5 [Jul 17]
"Crude oil prices dropped sharply for the second day yesterday after a US government report showed a surprise increase in inventories and continued weak demand in the world's top consumer nation. The decline in prices, which marked the biggest two-day loss in percentage terms since January 2007, helped stocks on Wall Street regain some of the ground lost in recent days on fears over the health of the US banking sector.. ..US Energy Information Administration reported crude inventories rose by 3.0 million barrels last week - countering expectations for a decline.. ..The widely watched government report also showed US oil products demand running two per cent below year-ago levels, another sign that soaring prices are cutting into consumer demand for fuel. Adding to pressure on oil prices, a senior US official said Tuesday the United States was planning to send an envoy to talks this weekend between Iran and major powers over Tehran's nuclear program.." [more]

Lung Cancer Breakthrough by KSU Team [Jul 17]
"King Saud University (KSU) announced here Wednesday the discovery of a specific lung cancer biomarker to identify lung cancer, which greatly simplifies early diagnosis of lung cancer. The breakthrough was the result of collaboration between a KSU team of scientists and students, headed by Prof. Vadevel Masilamani of Laser Group of College of Science, Dr. Elango of Thendrel, Inc. a biotech enterprise, based in Virginia, USA, and MCD, a cancer diagnostic center in India. Making the announcement at a press conference, KSU Director Dr. Abdullah Al-Othman announced a reward of SR50,000 and a gold medal for scientific research for each member of the KSU team.. ..The breakthrough is to be patented in the United States and a Chair for Laser Diagnosis of Cancer will be created at KSU. Cancer biomarkers are certain proteins found highly elevated in blood plasma, due to abnormal metabolic activity of cancer cells. A biochemical approach is used to measure biochemicals.." [more]

Boeing Modifies Saudi AWACS [Jul 17]
"The Boeing Company has completed a major communications upgrade on the first of five Saudi E-3 Airborne Warning and Control System (AWACS) aircraft as part of a $49.2 million contract. Installation and checkout of the aircraft were performed at the Boeing Military Flight Center in Seattle. The enhancement, known as Link 16, is a secure, jam-resistant, digital data link that allows military aircraft, ships and ground units to exchange tactical pictures in near real time. Link 16 also supports the exchange of text messages and imagery data and provides additional channels for digital voice.The Link 16 AWACS upgrade is the first in a series of anticipated technology upgrades to the Saudi AWACS fleet.."  [more]

Diplomats Welcome Abdullah’s Timely Initiative for Dialogue [Jul 17]
"Foreign diplomats based in the Kingdom have welcomed the World Conference on Dialogue, which was inaugurated by Custodian of the Two Holy Mosques King Abdullah in Madrid yesterday, saying the event would lead to greater understanding among followers of different religions.. ..Jan Thesleff, ambassador of Sweden, said his country considers the initiative to be very important, as an Islamic nation is leading it. He added that Sweden, like Saudi Arabia, has for a long time worked to develop dialogue. 'This dialogue that King Abdullah has proposed and launched in Madrid, we think, is a very, very timely one,' he said. Thesleff said it was too early to predict the conference’s outcome, although expectations are very high. 'I think King Abdullah’s initiative is a very good sign for globalization... we all, as ethnic and religious groups, live together, so the issues of dialogue, cooperation and coexistence are very important,'.." [more]

~~~~~~~~ [ Jul 16] ~~~~~~~~~

Saudi King Wants Lower Oil Price [Jul 16]
"The world's top oil exporter Saudi Arabia wants to see lower oil prices, Saudi King Abdullah said in an interview with Italian newspaper La Repubblica. The price of oil hit a record of $147.27 a barrel on Friday and has doubled in a year, sparking fuel protests worldwide and stoking inflation. Asked whether Saudi Arabia wanted to "soften the price" of oil, the Saudi monarch was quoted as saying. 'Of course that is the case: we did not want and do not want the price to be this high'.. ..'Listen to me. I am speaking for myself and for the Kingdom of Saudi Arabia. When the price of oil hovered around $100 a barrel, we were already unhapy. Imagine what we feel like now, when there is talk of $200,' the Saudi ruler said. Speculation was the main factor behind the surge of oil prices, Abdullah reiterated in the interview.." [more]

Saudi-backed Interfaith Meeting Starts [Jul 16]
"King Abdullah of Saudi Arabia was kicking off an interfaith conference in Madrid on Wednesday — an effort to bring Muslims, Christians and Jews closer together amid a world that often puts the three faiths at odds. Spanish King Juan Carlos was also addressing the gathering — which the Saudis have billed as a strictly religious affair. There's to be no mention of hot-button issues like the war in Iraq, the Israeli-Palestinian conflict, Iranian nuclear ambitions or rising oil prices. Abdullah has made reaching out to other faiths a hallmark of his rule since taking over the oil-rich kingdom following the death of his half brother in 2005. He met with Pope Benedict XVI late last year, the first meeting ever between a pope and a reigning Saudi king.." [more]

Saudi Arabia Offers Russia Arms Deals [Jul 16]
"Saudi Arabia has offered to award major arms contracts to Russia in return for Moscow curtailing cooperation with Iran, Russia's Kommersant newspaper reported on Tuesday, citing unidentified diplomatic sources. The Kremlin declined to comment immediately on the report, as did Saudi 
Arabia's embassy in Moscow. Saudi Prince Bandar Bin Sultan met Russian President Dmitry Medvedev and Prime Minister Vladimir Putin in Moscow for talks on Monday that focused on widening bilateral cooperation.. ..'The kingdom's leadership advised Moscow to phase out cooperation with Tehran and in return promised attractive contracts with Saudi Arabia,' said the paper, one of Russia's most respected dailies. 'In essence, Russia was offered to become a major partner in the Middle East.'.." [more]

Kingdom to Set Up Firm With SR20bn Capital [Jul 16]
"Saudi Arabia will set up an investment firm, Sanabil Al-Saudia, as a joint stock company with a capital of SR20 billion that will invest in stocks, bonds, real estate, foreign currencies, minerals and commodities. The new firm, which has been approved by the Cabinet, will also manage investment 
portfolios for other parties, the Saudi Press Agency said. Despite this announcement, the Saudi stock market fell heavily following rout at the global equity markets yesterday. The Tadawul All-Share Index (TASI) plunged 4.31 percent yesterday, making its sharpest single-day decline in almost 6 months after the stock market said it was introducing a new trading mechanism. The index closed 392.43 points down at 8,706.77.." [more]

King Abdullah City Urban Model for Saudi [Jul 16]
"The King Abdullah Economic City will be a model community for a country with unemployment, poor urban planning and infrastructure problems despite its famed oil wealth, its developer said this week. Fahd Al-Rasheed, chief executive of Emaar Economic City, the developer, said current investment of $34.7 billion was set to expand, especially when investors and Saudis see the City begin to take shape on the ground in 2010. 'Absolutely it will increase - $35 billion has been the fruit of a few months of work. Certainly over the next six to 12 months we are expecting a lot more than that,'.. ..'We are now in discussion with at least 10 internationally branded names...As you are developing it becomes easier because people are seeing it and the services are there. Those who were not sure how long it will take [would] start coming.' The plans are that by 2010 up to 10,000 housing units will be completed, with around 500 of them inhabited, and 10 percent of the city - a mix of industrial zone, financial centre, residential quarters and beachside resort - constructed.." [more]

~~~~~~~~ [ Jul 15] ~~~~~~~~~

Saudi's Shura Council Urges Riyal Revaluation [Jul 15]
"Members of a Saudi Arabian council that advises the king have renewed a call for the Gulf oil producer to revalue the dollar-pegged Saudi riyal as a way of fighting inflation. An internal committee of the Shura Council, whose members are appointed by King Abdullah, wrote a report urging the world's top oil exporter to revalue the riyal.. ..The newspaper said currency reform was among recommendations in the report to offset the impact of the surge in prices on development projects in the kingdom, where the economy is surging on a seven-fold rise in oil prices since 2002.." [more]

Saudi Aramco Will Not Be Able to Pump Over 12m bpd by 2010 [Jul 15]
"Saudi state oil firm Aramco's long-term sustainable oil output level will be 10.4 million barrels per day after 2010, far below its maximum capacity of 12 million bpd, the BusinessWeek magazine reported. Saudi Arabia has said it will pump 9.7 million bpd this month, its highest rate in over three decades and 550,000 bpd more than in May, and has pledged to keep pumping at that level for the rest of the year if customers demand the extra oil.. ..The kingdom has said it is ready to take total capacity to 15 million bpd in coming years in a bid to tame roaring prices fuelled in part by growing fears over limited global supplies. But BusinessWeek, citing a field-by-field breakdown of output it obtained from an oil industry executive, said that Aramco would be unable to pump at 12 million bpd for long.." [more]

Hope, Skepticism Precede Saudi-Sponsored Interfaith Conference in Spain [Jul 15]
"A Saudi-sponsored conference that will bring together Israeli and American rabbis with clerics from the strict Wahhabi sect of Islam _ as well as global religious leaders of nearly every persuasion is either a rare opportunity for dialogue or a cynical publicity stunt. It all depends on who you ask.. ..The conference opening in Madrid on Wednesday is the brainchild of Saudi King Abdullah, who has cast it as a way to ease tensions between Islam, Christianity and Judaism part of an effort to reposition oil-rich Saudi Arabia as a force for moderation in the region. To have a dialogue, just to start talking to each other, is an accomplishment in itself, said Saudi Ambassador to Spain Saud Bin Naif Bin Abdulaziz Al-Saud. At this point in time the whole world needs to start talking to each other. This is what we hope we can achieve. Saudi Arabia has presented the conference as a strictly religious initiative _ not a political one. But it also has political implications, coming from a Mideast heavyweight that does not have diplomatic ties with Israel.Abdullah has made headlines recently by reaching out to leaders of other faiths.." [more]

Review Finds Slurs In '06 Saudi Texts [Jul 15]
"A Saudi-funded academy in Fairfax County used textbooks as recently as 2006 that compared Jews and Christians to apes and pigs, told eighth-graders that these groups are 'the enemies of the believers' and diagrammed for high school students where to cut off the hands and feet of thieves, a Washington Post review of the books has found. Saudi officials acknowledged that the textbooks used at the Islamic Saudi Academy had contained inflammatory material since at least the mid-1990s but said they ordered revisions in 2006. School administrators said that they have been scrambling to change the texts and that all potentially offensive passages will be gone by the coming academic year. But, they said, teachers have always been told to avoid inflammatory material in the classroom.. ..The academy, founded in 1984, has about 1,000 students in pre-kindergarten through grade 12 and is separated into boys' and girls' schools. It is the only Saudi-funded school in the United States. About 70 percent of the academy's students are U.S. citizens drawn from the region's Muslim communities. About a quarter are Saudi.." [more]

New Saudi Traffic Law Does Away With Gender of Driver [Jul 15]
"There is no provision in the new traffic law, which came into force on Monday, that prevents women from driving vehicles, says Maj Gen Fahd Al Bishr, director general of Saudi Traffic Department. 'The new law speaks only about driver of the vehicle, and there is no specification of either man or woman. As far as driving of women are concerned, we are not bothering about it,'.. ..Maj Gen Al Bishr said that the traffic officials are just enforcing the directives issued by the higher authorities in this respect. 'There were directives from the [religious] authorities preventing women from driving. Subsequently, the traffic officials have no right to allow them to drive,' he said, adding that 'we can let them drive vehicles if the directives were issued permitting them to drive'.." [more]

Saudi Mufti Takes Stand on Infidel Issue [Jul 15]
"Saudi Arabia’s top cleric has taken a rare stance against colleagues who brand some writers as infidels, a charge that can be used to justify violence against them, media reported yesterday. Grand Mufti Sheikh Abdulaziz Al al-Sheikh said in a lecture last week that clerics should be careful before 
rushing to denounce writers as apostates from Islam, a practice known as takfeer and which Al Qaeda uses to condemn many Muslim rulers. Sheikh Abdul-Rahman al-Barrak, a highly revered independent cleric, said in March that two newspaper columnists should be put to death if they did not renounce their 'heretical articles' in public.. ..'Perhaps someone wrote what he did out of ignorance or misinformation ... We should not rush to call people infidels, except if their articles are a result of invalid belief and bad intentions,' he said. The Mufti’s statement came days before a Saudi-sponsored 'inter-faith dialogue' in Spain this week.." [more]

Russia Hopes to Boost Ties With Saudi Arabia [Jul 15]
"Russia hopes to further boost ties with Saudi Arabia, Russian Prime Minister Vladimir Putin said Monday during talks with Saudi Arabia's Security Council chief Prince Bandar bin Sultan. 'Our relations are developing well, the trade turnover is growing though in absolute terms it still looks modest, but considering our good ties, we have good perspectives and a good basis,' Putin said.. ..Relations between Russia and Saudi Arabia have warmed recently after a period of tensions because of accusations by Moscow that Riyadh tolerated Muslim charity groups funding separatist rebels in the southwestern Russian province of Chechnya. Trade turnover between the two countries grew up to 437 million dollars in 2007, with Russia exporting metals, paper, cartons, wood and cargo trucks.." [more]

Saudi Extends Chevron Deal [Jul 15]
"Saudi Arabia's cabinet yesterday authorised the extension of an oil concession held by US major Chevron in its Neutral Zone shared with Kuwait.The concession is the only oil production agreement that survived the Saudi nationalisation of the oil industry in the 1970s. 'The cabinet approved 
authorising the petroleum minister to sign a project of agreement to extend and amend the Saudi government and Chevron Saudi Arabia concession at the neutral zone,' Saudi state news agency SPA said.." [more]

~~~~~~~~ [ Jul 14] ~~~~~~~~~

Economics Confirm Oil Price Pressure [Jul 14]
"World oil prices continue to reach record levels. Crude oil over the last few days has risen to above $147 per barrel, with the latest surge driven by ongoing geopolitical concerns over Iran, an Opec member, and its recent missile tests.. ..Following pressure from the US, Saudi Arabia is in the process of increasing production from 9.4 million barrels per day (bpd) in June to 9.7 million bpd in July, a 27-year high for the Kingdom. Despite this, oil prices have not eased. Supply losses in Nigeria, as well as tensions between Iran and Israel, raise new concerns about future supplies. Moreover, while the Saudi action adds supplies to the market, remaining available surplus production capacity during the third quarter of 2008 is at the low level of about 1.2 million bpd, all concentrated in Saudi Arabia, according to the Energy Information Agency (EIA).." [more]

Saudi Arabian Airlines Signs Airbus Deal [Jul 14]
"Saudi Arabian Airlines signed a contract with Airbus Monday for eight of the European plane maker's A330-300 wide body aircraft. The carrier, Saudi Arabia's national airline, said the deal is part of its fleet modernization program. There was no immediate price given on the contract. Saudi Arabian Airlines director general Khalid al Molhem said the deal would enable the carrier to meet 'rising passenger demand and expectations.'.." [more]

Soaring Saudi Divorce Rate Sparks New Law [Jul 14]
"Saudi Arabia’s Shura Council is considering implementing a law to halt the surging numbers of divorces in the kingdom. Talal Bakri, head of the committee for family affairs at the council, told media the authority is set to begin deliberations on various provisions of a draft divorce law.. ..The law would prevent husbands from pronouncing divorce in the absence of their wife, while divorce would only be valid if it was registered in a courtroom in the presence of the estranged couples. The number of divorces is increasing in the kingdom, with nearly 62 percent of marriages ending in divorce.  According the newspaper, there are more than 1.5 million spinsters in Saudi Arabia.." [more]

Kingdom Releases 8 Bahraini Detainees [Jul 14]
"Eight Bahrainis, who were arrested in February for entering a restricted military zone in the Kingdom, have been released under the orders of Crown Prince Sultan, press reports said yesterday quoting Bahrain’s Ambassador to Riyadh Moussa Al-Naeemi. 'The Bahrainis will not face further questioning when they return home,' Al-Naeemi said. 'The issue was resolved after King Hamad met Prince Sultan recently,' he said. Al-Naeemi said administrative procedures are being completed to hand over the seven teachers and an engineer to their relatives. According to one report, the eight men were arrested on suspicion of spying. But the Bahrainis rejected the allegation and said they had lost their way.." [more]

~~~~~~~~ [ Jul 13] ~~~~~~~~~

Iran Releases Five Saudi Fishing Boats, Crews [Jul 13]
"The Border Guard said yesterday that Iran released five Saudi fishing boats and their Indian crews that had strayed into Iranian waters. The move followed the freeing earlier this week by the Kingdom of two Iranian vessels that had entered the Kingdom’s territorial waters.. ..Saudi Arabia announced on Wednesday that it had released two Iranian fishing boats that strayed into its waters and said it hoped the gesture would lead Iran to do the same with the Saudi vessels. Iranian media said on July 3 that Tehran had seized the fishing boats in territorial waters near its first nuclear power plant that is currently under construction in Bushehr. In June 2007, Iran arrested the crew of three Emirati boats it had seized for illegal entry and fishing in its territorial waters. In March 2007, Iranian naval forces seized 15 British sailors and marines in the Gulf, claiming they had entered Iran’s territorial waters but Britain insisted they had been engaged in anti-smuggling operations in Iraqi waters.." [more]

Madrid Forum Won’t Discuss Controversial Topics: Al-Turki [Jul 13]
"More than 200 prominent personalities from 54 countries have agreed to take part in the international interfaith conference, to be opened by Custodian of the Two Holy Mosques King Abdullah in Madrid on Wednesday. Abdullah Al-Turki, secretary-general of the Muslim World League (MWL), the main organizer, said the conference would not discuss controversial religious and political issues. 'It will focus on common human values,'.. ..Shoura Council President Saleh Bin-Humaid said the conference was called at the right time as the world is replete with conflicts. 'Dialogue is the best way to reach an amicable settlement, and the world is badly in need for such forums to avert wars and conflicts that obstruct progress and harmony,' he said. Bin-Humaid urged the participants to work for positive results that would serve the humanity at large.." [more]

90% Support End to Saudi Driving Ban [Jul 13]
"An Arabian Business poll has revealed widespread support for the ban on women driving in Saudi Arabia to be lifted immediately. We asked visitors to vote on the subject following news that a Saudi government official has hinted the ban could end soon. Saleh Al-Turki, the chairman of the Saudi 
Chambers of Commerce and Industry (SCCI), told a documentary maker with British broadcaster the BBC that women were playing a more and more active role in the kingdom and it is only a matter of time before they are allowed to drive. And more than 90 percent of respondents applauded the move saying it was time to change the law.. ..Al-Turki said that increasing numbers of women entering the workforce will act as a catalyst to other changes. Only one in 20 women currently work.." [more]

Kingdom Signs Agreements Worth $6 Million With UNRWA [Jul 13]
"The Saudi Committee for the Relief of the Palestinian People signed four agreements worth $6 million with the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) in Jeddah today. The Saudi Committee is headed by Minister of Interior Prince Nayef bin Abdulaziz.  The Saudi donation includes $5 million in cash and in-kind to assist with food aid, medicines, medical equipment and fuel for Gaza. The Kingdom is also donating medicines and medical supplies worth $1 million to UNRWA for Palestinian refugees in Lebanon. 'These generous donations from His Royal Highness Prince Nayef bin Abdulaziz and the Saudi Committee are deeply appreciated, as they will help alleviate the suffering of Palestine refugees in Gaza,'.." [more]

Jul 06 - Jul 12, 2008

~~~~~~~~ [ Jul 12] ~~~~~~~~~

Al-Jubeir Stresses Importance of Interfaith Conference [Jul 12]
"..The announcement of the interfaith dialogue has sparked intense interest from Jewish and Christian groups around the world, and came after the Saudi king held talks with Pope Benedict at the Vatican last year. The aim of the meeting is to reinforce the common values shared by these faiths, said Saudi Ambassador to the US, Adel Al-Jubeir who met with members of the US media at the Saudi Embassy in Washington Thursday to discuss the upcoming conference. 'The idea (for the conference) stemmed from King Abdullah’s view that there are universal values that are common to all faiths, and that if we focus on those universal values there is a lot more that binds us as human beings than divides us. If we adhere to those values we will be able to overcome adversity, we will be able to achieve peace, we will be able to protect the structure of the family, we will be able to maintain values in our society and our life and essentially make our world a better place,'.." [more]

New Saudi Arabia University Will Have a Western Feel [Jul 12]
"..Steel flashes and blowtorches glow as 20,000 workers build a $10-billion university ordered up by a king who hopes Western ingenuity will revive the economy of this ultraconservative Muslim nation. When finished next year, King Abdullah University of Science and Technology will offer coed classes, Western professors, a curriculum in English and other touches loathed as dangerous liberalism by Islamic fundamentalists. The West may be dependent on Saudi crude, now as high as $145 a barrel, but this campus outside an ancient fishing village is recognition that the country that is home to Islam's holiest shrines needs the likes of USC, Oxford University and the Massachusetts Institute of Technology to survive globalization.." [more]

Saudi Nears $65m Indonesia Rice Farm Deal [Jul 12]
"A group of Saudi Arabian businessmen is close to signing a deal to invest millions of dollars in cultivating rice in an isolated region of Indonesia, said an Indonesian government official. The 15 investors are reportedly planning to pump $65 million into the venture to develop about 150,000 hectares of paddy fields in the Merauke area of Papua. The cost of rice has soared on world commodity markets this year. Saudi Arabia and other Gulf nations are scouring the globe for agricultural investments to lock in supply of key crops like wheat, corn and rice. An official from the Saudi Agriculture ministry would not say when work on the project might begin but confirmed negotiations were in the latter stages.." [more]

Iran Releases Five Saudi Fishing Boats [Jul 12]
"Iran has released five Saudi Arabian fishing boats and their Indian crews which had strayed into Iranian waters, Saudi border officials said Saturday.The move followed the freeing earlier this week by Saudi authorities of two Iranian vessels which had entered the kingdom's territorial waters.. ..Saudi Arabia announced on Wednesday it had released two Iranian fishing boats which strayed into its waters and said it hoped the gesture would lead Iran to do the same with the Saudi vessels. Iranian news agency Fars said on July 3 that Tehran had seized the fishing boats in territorial waters near its first nuclear power plant which is currently under construction in Bushehr. In June 2007, Iran arrested the crew of three Emirati boats it had seized for illegal entry and fishing in its territorial waters.." [more]

Saudi Keeps August Crude Supplies Steady to East Asia [Jul 12]
"Saudi Arabia, the world’s top oil exporter, will supply full contracted volumes of crude in August to East Asia, steady to July, as refiners continue to shun extra barrels, sources with seven refiners said yesterday. The market has been looking for signs of where incremental volumes are headed since the oil kingdom pledged to boost production by 550,000 bpd from May to July to 9.7mn bpd, its highest in more than 30 years. But little appears to have come to East Asia as refining margins in the region continued to deteriorate. 'We got the full allocation as we requested. Saudi Aramco did not ask us to lift more than that,'.." [more]

~~~~~~~~ [ Jul 11] ~~~~~~~~~

Chinese Company Wins Construction Contract in Saudi Arabia [Jul 11]
"China's Guangdong Overseas Construction Group Co. Ltd signed a 612 million U.S. dollars contract with Saudi Arabia's King Khalid University Thursday. The agreement was inked by Ma Ruixin, chairman of the board of the Chinese company, and Saudi Arabian Higher Education Minister Khalid Bin Mohammad al-Ankary.. ..Dr Abdullah al-Rashid, president of the university, said that the company had been selected through a strict bidding process and believed that the project would be soon completed with joint efforts from the two sides. The project, the largest the Chinese company has undertaken since the signing of a cooperation memorandum between the two countries in June 2007, will cover an area of 550,000 square km and has a construction period of 36 months.." [more]

Saudi's Plastics Industry Needs a Boost [Jul 11]
"The news that petrochemicals producers in Saudi Arabia are considering selling their output to local manufacturers at a discount will provide a welcome boost to the kingdom's nascent plastics industry. It may not have issued any direct orders, but Riyadh will clearly be happy if producers pass on some of the benefit of the cheap gas feedstocks they receive to their customers. Until now, international firms have been reluctant to invest in the sector. Unlike basic chemicals producers, which have cheap gas to make them competitive, there have been few obvious advantages to setting up downstream plastic facilities in the Gulf.. ..The prospect of cheap polymer and olefins output may be enough to alter the economics of plastics manufacturing and kick start Saudi Arabia's industrial diversification programme. In turn, it will provide a boost to Riyadh's job creation strategy.." [more]

KSA Refutes Reports of Arming Lebanese [Jul 11]
"The Saudi embassy in Beirut has refuted news reports that Saudi Arabia was handing out weapons and sparking Sunni-Shiite sedition in Lebanon. The Saudi embassy issued a statement calling the accusations as groundless and perpetrated to incite hatred against the Kingdom.. .. 'We are surprised that some individuals claim to support a new era (in Lebanon) while still bent on fanning the flames. We want to remind them that Lebanon is about to step towards a new beginning and that everyone must work to clear the air and create a favorable climate. Those who claim that we are supporting sedition must show evidence and announce it publicly.'.." [more]

Kingdom Zephyr Raises $325m for PAIP II [Jul 11]
"Kingdom Holding Company (KHC) chaired by Prince Alwaleed bin Talal has announced that Kingdom Zephyr Africa Management II (KZAM) has successfully raised $325 million for the second Kingdom Zephyr fund (PAIP II) after the astounding success of the first Kingdom Zephyr fund (PAIP I) with an IRR of 92 percent. PAIP II is managed according to the same mandate governing the earlier fund PAIP I which was launched in 2003 and was seeded by KHC with $35 million and raised a total of $122.5 million of funds from various international institutions. PAIP II is targeting up to $500 million in capital commitments of which KHC is planning to inject 50 percent of the total commitments or $250 million, and will make growth capital investments in profitable, growing businesses throughout Africa that operate or plan to operate in more than one African country.." [more]

Saudi Arabia to Present New Image at Madrid Forum [Jul 11]
"Saudi Arabia hopes to showcase a new more liberal face of its austere version of Sunni Islam at an unprecedented forum that will bring together Muslim, Christian and Jewish clergy in Spain next week. The three-day meeting will be opened next Wednesday by King Abdullah, who won the backing of Sunni and Shi'ite clerics to go ahead with the ground-breaking meeting in Mecca last month. The interfaith idea has sparked interest from Jewish and Christian groups around the world, coming after the Saudi king held talks with Pope Benedict at the Vatican last year. It marks a new direction for Saudi Arabia, whose "Wahhabi" Islam has come in for criticism internationally after the September 11 attacks of 2001 in the United States, Riyadh's main ally and guarantor of security since the 1940s.." [more]

~~~~~~~~ [ Jul 10] ~~~~~~~~~

Qatar Frees Death Row Saudi [Jul 10]
"Qatar has freed a Saudi sentenced to death for involvement in an attempted coup d’etat in 1996, the Saudi newspaper Asharq Al Awsat reported yesterday. Pardoned by HH the Emir Sheikh Hamad bin Khalifa al-Thani after spending nearly 12 years in prison, Wabran al-Yami was released and returned home on Tuesday, the report said. His freedom followed an approach by Saudi Interior Minister Prince Nayef bin Abdulaziz, the newspaper added. Yami was the only Saudi among 19 people sentenced to death after an attempted coup the Qatari authorities said was foiled in February 1996.." [more]

Saudis on the Highway to Change [Jul 10]
"Saudi Arabia is the only country in the world where women are not allowed to drive.. ..'This problem of women driving is an Anglo-Saxon question,' said Saleh al-Turki, the Chairman of the Saudi Chambers of Commerce.. ..Mr Turki argues that before the driving ban is lifted more women must enter the workforce. At the moment just one in 20 is employed. 'Once the rest of the society realise that allowing women to work is not a challenge to anybody, it is to the benefit of society, to the benefit of the family, driving will not become a problem in my opinion,' said Mr Turki.. ..This remains though a deeply conservative Muslim country dominated by tribes and a clerical establishment and until the government officially lifts the ban few other women are likely to get behind the wheel.." [more]

Saudi Oil: A Crude Awakening on Supply? [Jul 10]
"The Saudis say they can ramp up production to 12.5 million barrels a day. But a field-by-field breakdown obtained by BusinessWeek shows that's not likely.. .. it appears that for at least the next five years, and possibly longer, the Saudis are likely to produce less crude than promised, according to fresh data on the kingdom's oil fields obtained July 9 by BusinessWeek.. ..But the detailed document, obtained from a person with access to Saudi oil officials, suggests that Saudi Aramco will be limited to sustained production of just 12 million barrels a day in 2010, and will be able to maintain that volume only for short, temporary periods such as emergencies. Then it will scale back to a sustainable production level of about 10.4 million barrels a day.. ..Saudi Aramco officials in the kingdom could not be reached for comment.." [more]

Swiss Widen Probe Into BAE Arms Deal [Jul 10]
"Swiss authorities have widened a corruption investigation linked to arms deals by the British aerospace company BAE Systems PLC, prosecutors said. Federal prosecutors are conducting three criminal investigations into possible money laundering linked to the company, spokeswoman Jeannette Balmer told The Associated Press late Wednesday. Previously prosecutors had confirmed only one investigation and Balmer declined to comment on what prompted Swiss authorities to open two additional investigations. The investigations center on allegations that BAE used Swiss bank accounts to pay millions of pounds (dollars) in bribes to officials from Saudi Arabia in return for contracts. BAE has always said it acted lawfully.. ..Swiss prosecutors were alerted to possible wrongdoing on BAE's part by the Swiss money-laundering authority. She declined to say whether money linked to the investigation has been frozen in Swiss accounts.." [more]

Non-Opec Output Unable to Meet Surging Demand [Jul 10]
"Oil supplies from non-Organisation of Petroleum Exporting Countries (Opec) will be far smaller this year than previously expected and unable to keep  up with growing global oil demand, putting upward pressure on petroleum prices, the US government's top energy forecasting agency said.. ..Non-Opec oil supplies are projected to rise by only 230,000 barrels per day this year and by 830,000 bpd in 2009, the US Energy Information Administration (EIA) said in its new monthly forecast. That is way down from the agency's estimate at the beginning of this year that non-Opec supply would grow by 860,000 barrels per day in 2008 and by over 1.5 million bpd next year. 'Faster declines in older fields and delays in expansion projects have limited supply growth,'.." [more]

TASI Plummets Below 9,000 Points [Jul 10]
"The Saudi stock market continued to plunge yesterday. The Tadawul All-Share Index (TASI) dropped below 9,000 points for the first time since April 1. The index plummeted 3.18 percent or 295.17 points, its biggest one-day fall since Feb. 9, to close at 8,998.28 points yesterday after dropping 2.35 percent on Tuesday. The index declined 5.53 percent in two days. Only six stocks were in the black as 108 companies suffered fall in their stock prices. The stock market turnover increased yesterday to SR8.50 billion from SR7.89 billion on Tuesday.." [more]

~~~~~~~~ [ Jul 9] ~~~~~~~~~

NGOs Urged to Name Abdullah for Nobel Peace Prize [Jul 9]
"Saudi citizens and expatriates have commended Custodian of the Two Holy Mosques King Abdullah’s efforts to promote world peace and urged international bodies to recommend him for this year’s Nobel Peace Prize. They said the international interfaith conference in Madrid called by King Abdullah would contribute to peaceful coexistence of nations and strengthening world peace.. ..Dr. Mohammed Badahdah, assistant secretary-general of World Assembly of Muslim Youth, noted King Abdullah’s outstanding efforts for world peace and hoped that international NGOs would recommend the king’s name for the Nobel prize. Abdullah Al-Saihati, a leading businessman in the Eastern Province, called for the conferring of the international peace prize on the king. 'Our king deserves more than that,' he told Arab News.." [more]

Saudi Arabia to Put an End to Abuse of Maids [Jul 9]
"Saudi Arabia has reiterated its determination to put an end to the reported cases of abuse meted out to domestic workers. Ahmad Al Zamil, undersecretary at the Ministry of Labour, said that the authorities had taken all necessary measures to prevent the mistreatment of housemaids in the
kingdom.. ..'There are laws with provisions of stringent punishment in the kingdom that will be applied in the cases of those employers who are found guilty of abusing their maids or depriving them of their basic rights,'.. ..The ministry official was reacting to the US-based Human Rights Watch report released yesterday. The report asked Saudi Arabia to implement labour, immigration, and criminal justice reforms to protect domestic workers from serious human rights abuses that in some cases amount to slavery.." [more]

Saudi Credit Boost as Oil Prices Rocket [Jul 9]
"Fitch Ratings on Wednesday upgraded Saudi Arabia's sovereign ratings on the back of record oil prices, but warned a sharp correction in the market could threaten its creditworthiness. The ratings agency upgraded Saudi's long-term local and foreign currency issuer default ratings (IDRs) to 'AA-' from 'A+'. The outlooks have been revised to stable from positive.. ..'At today's oil prices, Saudi Arabia is earning around $1 billion a day from oil exports, reinforcing an already strong external balance sheet and creating a buffer against future shocks,' Charles Seville, associate director in Fitch's sovereign team, said in a statement. The agency said Saudi's main credit strengths were its very low indebtedness and large domestic and external assets. General government debt, all of it domestic, fell to 7.2 percent of GDP at end-2007, while the wider public sector, represented mainly by profitable state-owned firms, has little external debt.." [more]

Construction Costs in GCC up 50% in First Half of ’08 [Jul 9]
"The real estate development sector currently faces several challenges, chief among which is the lack of contractors who are able to deliver projects on time and to specification, due to a severe shortage of skilled labor and the soaring cost of building materials. Inflationary pressures in the GCC have
increased the cost of building materials price, leading skilled and unskilled laborers to leave the country and resulting in a labor shortage that has fuelled soaring building costs in the region. The costs of building in the Gulf region increased at an estimated rate of at 30 percent in 2007 alone, and a further 50 percent in the first half of 2008.." [more]

Saudi Arabia Plans to Open 17 New Colleges [Jul 9]
"A plan to transfer 45 health colleges and five health institutes for girls from the Ministry of HealthMinistry of HealthMinistry of Health to universities in respective cities has been approved. Higher Education Minister Dr Khaled Al Anqari said on Monday that Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz has approved the plan and added that the King has also approved the establishment of 17 new colleges in different parts of the country. Al Anqari said the newly approved colleges were designed to meet labour market requirements.." [more]

Perks of Penance for Saudi Jihadis [Jul 9]
"In a small compound on the outskirts of Riyadh, the Saudi government is exploring new ways to combat extremism. This is still a prison, run by the Ministry of Interior and housed inside secure premises with high perimeter walls and barbed wire, but the Saudi authorities prefer to call it a 'care centre" and refer to prisoners as beneficiaries'. This is not what you would imagine when you think of a typical Saudi jail. Inside, prisoners enjoy access to wide-ranging recreational facilities including their own swimming pools, video games and table tennis. In return for the more relaxed environment, prisoners have to attend religious education classes where Islamic scholars challenge their views. The thinking behind the new initiative is to fight al-Qaeda's ideology by convincing militant Islamists they have a distorted view of Islam.. ..'You cannot defeat an ideology by force. You have to fight ideas with ideas,' says Abdul-Rahman Hadlaq, ISU director. But the centre goes beyond just debating ideas.." [more]

Five Saudi National Teams to Compete in Beijing Olympics [Jul 9]
"The Saudi Arabia National Olympic Committee is to send five national teams that met qualifying standards to the 2008 Beijing Olympics from Aug. 8 to 24, culminating the four years of hard work, training camps in the country and abroad and stints at world championships. These teams are
equestrian, athletics, shooting, swimming and weightlifting. In addition, both athletic and weightlifting teams with special needs also qualified to compete in the Paralympic Games from Sep. 7 to 17.. ..In addition, a Saudi cultural delegation will join the Olympic team. This, according to Al-Heeraiwel, will help right the wrong misconceptions about Saudi society through cultural presentations and folklore.." [more]

Saudi Stocks Take a Nose Dive [Jul 9]
"Following the global stock market rout, the Saudi stock market also plunged yesterday. The Tadawul All-Share Index (TASI) plummeted 223.86 points or 2.35 percent to close at 9,293.45. Out of 120 companies traded, shares of 103 firms were in the red while 12 were in positive. Territory. The stock market turnover was over SR7.89 billion yesterday. Except hotel and tourism, all other sectors declined yesterday. Agriculture and food industries, banks and financial services, petrochemical, transport and real estate development companies suffered badly. Saudi Hollandi Bank shares dropped by 5 percent, Bank Albilad by 4.90 percent, Riyad Bank by 4.16 percent and Al-Rajhi Bank by 2.52 percent yesterday.." [more]

~~~~~~~~ [ Jul 8] ~~~~~~~~~

US Navy in Gulf Exercise [Jul 8]
"The US Navy said yesterday it was carrying out an exercise in the Gulf, days after vowing that Iran will not be allowed to block the waterway which carries crude from the world’s largest oil-exporting region. 'The aim of Exercise Stake Net is to practise the tactics and procedures of protecting maritime infrastructure such as gas and oil installations,'.. ..The head of Iran’s Revolutionary Guards said in remarks published late last month that Tehran would impose controls on shipping in the Gulf and the strategic Strait of Hormuz if it was attacked. Speculation about a possible attack on Iran because of its nuclear programme has risen since a report last month said Israel had practised such a strike.." [more]

Saudis Urged to Curb Maid Abuse [Jul 8]
"The New York-based organisation Human Rights Watch has called on Saudi Arabia to do more to protect Asian domestic workers from mistreatment. It says some cases amount to slavery, with employers going unpunished for withholding wages, forced confinement, or physical and sexual violence. HRW says some workers are imprisoned or lashed on spurious charges such as theft, adultery or witchcraft. Thousands take shelter with the Social Affairs ministry or foreign embassies. A spokeswoman for Saudi Arabia's National Society for Human Rights said the report was unfair and one-sided. Saudi households employ an estimated 1.5 million domestic workers, mainly from Indonesia, Sri Lanka, the Philippines and Nepal, as well as other Asian countries and parts of Africa. The report, entitled As If I Am Not Human: Abuses against Asian Domestic Workers in Saudi Arabia, says efforts to reform laws and improve conditions have fallen far short of protecting domestic workers.." [more]

Al-Haramain to Sue US Govt Over Phone Tapping [Jul 8]
"The Al-Haramain Islamic Foundation (AHIF) — a Saudi-based charity whose assets were frozen by Washington — announced yesterday plans to re-submit a lawsuit after a US federal court judge threw out an earlier one challenging the US government’s decision to tap the phones of AHIF officials.The move comes close on the heels of an important court hearing, which is to take place on Thursday in Oregon, on the decision to freeze AHIF’s assets.. ..At the heart of the suit, which was originally filed on Feb. 28, 2006, is a confidential log of calls, proving that the US government’s terrorist hunters listened to telephone conversations between the lawyers and their clients in the Kingdom. The log was accidentally handed to AHIF’s lawyers by the US Treasury Department. The lawyers say the Bush administration lacked the authority to authorize wiretaps that circumvented the Foreign Intelligence Surveillance Act.." [more]

Swiss Bank UBS Expands Mideast Operation to Saudi Arabia [Jul 8]
"UBS AG said Tuesday that Saudi authorities have conditionally approved the Swiss bank's plans to set up operations in the kingdom. The bank said it planned to begin operating in Saudi Arabia by the end of the year pending final approvals from the Saudi investment authority and the ministry of commerce. UBS will focus its Saudi operations on investment banking, wealth and asset management." [more]

Governor NWFP Lauds Saudi Arabia’s Efforts for Balakot Affectees [Jul 8]
"Governor NWFP, Owais Ahmed Ghani, has lauded the efforts of Saudi Arabia in providing relief, rehabilitation and reconstruction of quake-hit areas.. ..Regional Director, Saudi Public Assistance for Pakistan Earthquake Victims (SPAPEV), Dr.Khalid M. Othmani briefed the media about the project of  4000 houses which was completed at a cost of 18.5 million US dollar to resettle the Balakot quake affectees. The Regional Director told that keys of most of the houses have been handed over to displaced families of Balakot and the remaining would be handed over shortly.." [more]

~~~~~~~~ [ Jul 7] ~~~~~~~~~

Sleeping Terrorist Cells Still at Large, Warns Saudi Minister [Jul 7]
" Saudi Arabia's Minister of Islamic Affairs, Endowments, Call and Guidance Shaikh Saleh Alu Al Shaikh has called upon mosque imams to exert all effort to counter extremism and deviant ideologies. He also warned against many 'sleeping terrorist cells,' which are still at large and threaten society and said there should be intensified efforts to combat them.." [more]

Oil's Climb Defies Saudi Bid To Talk Prices Down [Jul 7]
"Oil markets are dealing a blow to Saudi Arabia's efforts to calm prices with assurances of future supplies. Benchmark crude prices set an intraday record near $146 a barrel Thursday in New York, a gain of more than $15 a barrel, or 11.5%, from an intraday low of $130.80 on June 10 after Saudi Arabia's King Abdullah called for a hastily arranged producer-consumer summit. August light, sweet crude on the New York Mercantile Exchange settled Thursday at a record $145.29 a barrel, up $1.72.. ..The problem for Saudi Arabia and others trying to corral prices is that when the market focuses on the Middle East these days, it is with a nervous eye over increasingly tense Iran-Israel relations, not Saudi oil flows.." [more]

SFO Contests Saudi Deal Decision [Jul 7]
"The Serious Fraud Office (SFO) has begun an appeal against the ruling that it acted unlawfully in dropping its investigation into a Saudi arms deal. The SFO argued that national security would have been undermined if it had continued with its corruption inquiry. But the High Court decided the SFO had given in to Saudi threats that it would end co-operation on security matters.. ..According to the Campaign Against Arms Trade and the Corner House, who had both campaigned for a judicial review of the decision, the director of the SFO had failed to convince the court that he had done all in his power to resist the Saudi threat and uphold the rule of law. They believe the SFO's appeal will be unsuccessful.." [more]

Saudi-Qatar Deal to Finalise Border [Jul 7]
"Saudi Arabia and Qatar have agreed to complete the demarcation of their border and establish a joint council to bolster bilateral relations.. ..The move to finalise borders is expected to impact gas pipeline projects in the Gulf region.. ..'The formation of the [joint] council reflects the keenness of the two countries to work at further cementing bilateral relations as well as to develop more cooperation to realise the aspirations of the leadership of both the countries,' a joint statement said. 'It will also enhance the march of the GCC and realise coordination and integration among the member states.' The council will be chaired by Saudi Crown Prince Sultan Bin Abdul Aziz and his Qatari counterpart Shaikh Tamim Bin Hamad Al Thani.." [more]

Saudi Official Denies Israeli Rabbi Invited to Forum [Jul 7]
"A Saudi official has denied reports that Saudi Arabia extended an invitation to an Israeli rabbi to attend the inter-faith conference to be held in Madrid this month to be launched by Saudi King Abdullah Bin Abdul Aziz. The official said the invitation was restricted to Jewish rabbis from outside Israel as well as to those opposing Zionism and the establishment of the Zionist state. The official refuted the claims of David Rozan, an Israeli rabbi, who said that he had received an invitation from the Makkah-based Muslim World League (MWL), the main organiser of the event. 'The MWL has not and will not invite any rabbi with Israeli citizenship to take part in the inter-faith dialogue.." [more] 

Gulf States Urged to Rethink Dollar Pegs [Jul 7]
"Gulf Arab oil producers preparing for monetary union should reconsider a policy of keeping their currencies pegged to the weak dollar and look instead at a basket of currencies, an Abu Dhabi government body said. Saudi Arabia, the United Arab Emirates and three other states in the world’s biggest oil-exporting region have agreed to keep their dollar pegs intact until they achieve a single currency by an increasingly unlikely 2010 deadline. But as oil prices soar, the dollar tumbles to record lows against the euro and a basket of major currencies and inflation spirals, maintaining this policy has become problematic.. ..'This pegging was adopted when oil prices were low and the greenback was at the height of its strength,' the department said. 'Today, the dollar is falling relentlessly and oil prices are skyrocketing. This new reality calls for a rethink of monetary policies.'.." [more]

~~~~~~~~ [ Jul 6] ~~~~~~~~~

Saudi King to Open Inter-Faith Meeting [Jul 6]
"King Abdullah of Saudi Arabia, whose country is home to Islam’s holiest shrines, will launch an inter-faith conference in Spain later this month, the palace said yesterday. The Saudi monarch 'will inaugurate the international dialogue conference which will be held under his auspices in Madrid on July 16-18,' a statement carried by the official SPA news agency said. The agency said the king had left for Morocco on a private visit ahead of the conference due to be attended by Christians, Jews and Muslims.. ..Last month the Makkah-based Muslim World League said the Madrid meeting would bring together representatives from the 'followers of God’s messages and other cultures.' The term 'other cultures' appeared to refer to non-monotheistic religions. The conference will 'discuss co-operation between communities from different religions and cultures over common human values,'.." [more]

Saudi Cuts Aug Light Crude Prices to Asia and U.S. [Jul 6]
"Saudi Arabia cut its official selling prices for August for light crude oil to customers in the United States and Asia, state oil firm Saudi Aramco said late on Saturday. The kingdom cut the price of Arab Light to U.S. customers by 55 cents a barrel to WTI minus $3.00 a barrel. It cut the Arab Light price for customers in the Far East by 70 cents to the Oman/Dubai average plus $1.35 a barrel.." [more]

Saudi and Qatar Move to Seal Ties [Jul 6]
" Gulf neighbours Saudi Arabia and Qatar are to demarcate their border and set up a joint council to develop relations after years of tension.. ..In 1992 differences over the frontier sparked an armed clash at a border post that killed two people. The incident prompted the creation of a joint committee aimed at solving the dispute, but little progress was made. Ten years later Riyadh withdrew its ambassador from Qatar in 2002 amid fury at criticism of the Saudi royal family aired in a talk show by the Doha-based television channel Al-Jazeera.. ..SPA reported that the joint coordination council to oversee relations would be co-chaired by the Saudi and Qatari crown princes. It said the council would develop 'bilateral relations in the political, security, financial, economic, trade, investment, cultural and information domains.'.." [more]

Saudi Arabian IT Market Will Reach $5 Billion by 2012 [Jul 6]
"The Saudi Arabian IT market is currently witnessing an unprecedented growth, with projections for the booming sector to reach $5 billion by 2012 as companies in the oil and gas, telecoms, real estate, financial and retail industries continue to reinforce their IT infrastructure. The Kingdom’s efforts to promote the growth of its non-oil verticals present IT vendors with extensive opportunities to leverage this market, which accounts for 40 percent of the Middle East’s IT spending. In line with this, Netgear has partnered with ICC, an established IT company in KSA, to leverage the burgeoning demand for networking products in the country.." [more]

$33 Billion Middle East Seaport Expansion Underway [Jul 6]
"Gulf neighbours challenge dominance of Dubai's Jebel Ali – one of the world's biggest container ports – with major building programmes. Massive economic growth is driving major seaport expansion in the Middle East worth in excess of $33 billion. The others are: King Abdullah Economic City Seaport, Saudi Arabia ($5 billion); Khalifa Port and Industrial Zone, Abu Dhabi ($2.5 billion); Sirte Port, Libya ($2 billion); Ras Laffan Port, Qatar ($1.2 billion); Duqm Port, Oman ($1.1 billion); Bubiyan Island, Kuwait ($1 billion); Ras Al Zour Port, Saudi Arabia ($700 million); Red Sea Gateway Terminal, Jeddah Islamic Port, Saudi Arabia ($450 million); and Port Sultan Qaboos, Oman ($400 million). 'Middle East optimism in the maritime industry is founded on increasing demand for oil and gas worldwide, the vital role the region plays as a strategic trading hub as the link between Europe and the Far East, and the continuing strength and vibrancy of regional economies,'.. " [more]

SR1b Project to Overhaul KSA Education System [Jul 6]
"Education managements across the Kingdom have signed an agreement with the Ministry of Education for the application of King Abdullah’s project for development of education, launched earlier this year. Abdul Wahhab Al-Mackenzie, public relations director of the project said the SR1 billion project will have four main programs and aims to improve education through, 'curriculum development, environmental improvement, outdoor and extra curricular activities, and training for teachers during the summer.'.. ..The four programs of King Abdullah’s project include: 200,000 classes in all schools, smart board and projector facilities, documental camera and integrating electronic systems in classrooms.." [more]

New Law to Abolish Sponsor System, says Al-Gosaibi [Jul 6]
"A new law abolishing the sponsorship system and streamlining the relationship between employers and their workers will be issued 'very soon,'.. ..'Labor Minister Dr. Ghazi Al-Gosaibi told a Shoura session that his ministry had presented its viewpoints regarding cancelation of the sponsorship rules and that the law would be issued very soon,' the Shoura member said. In a close-door session of the 150-member Shoura, Al-Gosaibi disclosed his ministry’s plan to establish specialized companies to organize foreign work force and supervise the signing of contracts between employers and workers.. ..Saudis and expatriates have welcomed the plan to abolish the sponsorship system saying that it would give more freedom to guest workers and attract foreign investment.." [more]

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