October 12-October 18, 2008

~~~~~~~~ [ Oct 12] ~~~~~~~~~

Opec May Fall Apart if Saudi Shuns Output Cut [Oct 12]
"Opec divisions could 'tear the organisation apart' as its biggest producer, Saudi Arabia, pursues a more moderate course than other members calling for supply cuts to revive oil prices, a London analyst said. 'Saudi Arabia has not joined the Opec hawks, led by Venezuela and Iran, in calling for another supply cut, and we think we could be witnessing the beginning of the end for the organisation,'.. ..Without a concerted Opec effort to reduce supply, prices are likely to drift to the marginal cost of $75 to $80 a barrel, or $60 to $70, when adjusting for a recession and lower service company costs, according to McMahon. 'Such an outcome would likely create an untenable situation within Opec and the potential for the organisation to cease to work as one body,'.." [more]

Saudi Govt Expected to Buy Falling Stocks [Oct 12]
"A member of Saudi Arabia's advisory Shura Council said he expected the government to buy into the falling local stock market, according to a local newspaper report. The government's intervention would be part of 'urgent and exceptional' measures in line with those taken by other countries such as Japan, the United States and the European Union, Okaz newspaper cited Abdul-Rahman Al-Zamil, a member of the Shura's economic committee and also a former government minister. The council will debate on Sunday the issue of the stock market, Al Zamil said. The Arab world's worst performing stock market closed on Saturday at its lowest level in more than four years amid concerns over the global financial crisis.. ..Shura Council's members are appointed by the king. Although its decisions are not binding, the council has become a more active platform of debate and proposition over the past few years, encouraged by King Abdullah's calls for reform in the absolute monarchy.." [more]

Saudi Inflation Hits 10.9% in August [Oct 12]
"Saudi inflation eased slightly in August but remained in double digits at 10.9 percent compared to 11.1 percent in July, official statistics showed on Sunday. Figures released by the Saudi Arabian Monetary Agency (SAMA), or central bank, showed that the consumer price index (CPI) reached 117.9 points in August compared to 106.3 points a year earlier. The increase was mainly spurred by an 18.5 percent year-on-year rise in rents and the water index and a 15.8 percent increase in foodstuffs and beverages, SAMA statistics showed.. ..'The Saudi economy is confronted with many fundamental challenges but the biggest challenge is the rate of inflation,'.." [more]

Crisis Will Not Affect Kingdom: Al-Assaf [Oct 12]
"Saudi Arabia’s development plans will not be affected by the current global economic crisis as they will be funded by reserves and oil receipts, Finance Minister Ibrahim Al-Assaf stated yesterday. 'Oil revenues will definitely cover these projects in addition to what we have in reserve,' the minister told Saudi Arabian Television Channel One. He said the Kingdom would be indirectly affected by the crisis but its impact would be temporary. Speaking about stock markets, Al-Assaf said: 'Markets in some countries like America and Europe were affected by real reasons but in other areas unjustifiable fear was the main reason.' He said many sectors in the Kingdom’s stock market, such as banks, were in excellent position.. ..He said the Kingdom was not facing any liquidity crunch as the continuing government spending would ensure adequate liquidity.." [more]

Saudi Arabia Cuts Repo Rate, Reduces Cash Reserve Requirement [Oct 12]
"Saudi Arabia reduced its benchmark repo rate by 0.5 percentage point, and lowered the amount of money commercial banks have to hold as reserves to 10 percent from 13 percent, as it seeks to address liquidity shortages. Saudi Arabia cut the repo rate to 5 percent and kept the reverse repo on hold at 2 percent, said John Sfakianakis, chief economist at Saudi British Bank, citing communication from the Saudi Arabian Monetary Agency, the country's central bank. Saudi Arabia has followed the last seven U.S. interest rate cuts with reductions in the reverse repo. Reducing the repo and the reserve requirement 'is a liquidity booster,'.. ..No Saudi bank is yet to use the repo window, SAMA Deputy Governor Mohamed al-Jasser told Al Arabiya television channel on Oct. 8. Local banks have access to as much as 150 billion riyals ($39.8 billion) from SAMA in the form of a repo agreement.." [more]

Suleiman for Saudi Arabia [Oct 12]
"President Michel Suleiman headed to Saudi Arabia on Sunday to express gratitude to the kingdom for its backing to Lebanon and upgrade bilateral relations. Sources accompanying Suleiman said the Lebanese President would not launch an initiative aimed at reconciling Riyadh with Damascus. Suleiman's talks in Saudi Arabia, including a meeting with King Abdullah, would cover the need to bolster pan-Arab solidarity. Suleiman heads a five-person ministerial team in his two day visit, including 
Deputy Premier Issam Abu Jamra, a member of Michel Aoun's Free Patriotic Movement. Abu Jamra, talking to reporters at Beirut's Rafik Hariri airport, said criticism by Aoun of Saudi Arabia on Saturday was not intended to sabotage President Suleiman's visit.." [more]

Saudi Arabia is Emerging as the Real Estate Market to Watch [Oct 12]
"Colliers International, the global real estate consultancy, has launched comprehensive Saudi Arabia Real Estate Overview that provides comparative key performance indicators across 4 areas - Riyadh, Jeddah, Mecca and the Eastern Province. According to the report, the demand-supply dynamic remains very positive with robust economic growth patterns set to continue underpinned by high oil prices and rapid industrial expansion promoted by accession to the World Trade Organization (WTO). 
Imad Damrah, Country Director Saudi Arabia, Colliers International, said, 'Saudi Arabia is an interesting market to watch because it has one of the most inwardly serving property sectors in the MENA region. The kingdom remains a prime opportunity for investors and developers offering the largest market in the GCC and a population set to grow from 25 million to 33 million by 2020.'.." [more]

The Muslim World - A Neutral View [Oct 12]
"Recently, I had the opportunity to attend an industry event and the good fortune to attend a presentation on Muslim attitudes across the world. The difference in this presentation is that the authors are Indians based in Dubai and not some western researcher based in New York. Here, I am pleased to share with you some of the findings of this research.. ..Summary of findings: a. While Family was paramount across the region, marital insecurity amongst women was high in some regions (MENA), b. There was an over-riding desire for traditions to adapt to changing times, c. There was almost universal emphasis on the Importance of education amongst both men and women, d. A large proportion of people felt that Individual opinions should be respected, e. A large proportion aspired to be a part of a social forum wherein they can voice their views and concerns, In other words, most of what Muslim world customers want is not significantly different from what the average household in New York, Tel Aviv or New Delhi wants.." [more]

October 5-October 11, 2008

~~~~~~~~ [ Oct 11] ~~~~~~~~~

Opec Members Divided Over Oil Price [Oct 11]
"This could be a difficult moment for Saudi Arabia. After urgent calls for a meeting of the Opec cartel by its more hawkish members, the organisation has agreed to get together next month to consider the precipitious fall in the oil price, now below $80 per barrel. The world is not looking good for oil exporters. The International Energy Agency yesterday again slashed its estimate of growth in demand for crude. In response to that signal and the general panic in the financial markets, Brent crude fell by $6 to $76 per barrel. Not all the Opec states are keen on the idea of an output cut to shore up the price. All the cartel members have grown used to lying on a cushion stuffed with cash, but the Saudis, the Kuwaitis and the Emirates are trying to diversify their economies away from oil and into industrial production that adds value and creates employment. A global recession would derail their plans and wreck their nascent financial markets.. ..Saudi Arabia needs a $100 per barrel oil price like a hole in the head. It is the weaker economies of Opec, such as Iran and Venezuela, that are demanding action, but the Saudis are even now putting more oil on the market.." [more]

Mideast Economies Face Cooling From Credit Crisis [Oct 11]
"Only in a region where developers are announcing $100 billion mega-projects even as their stock markets collapse could the global credit crisis been seen as a potential blessing in disguise. Some analysts say the current world financial meltdown could bring a needed cooling of the overheated economies of Gulf Arab nations, while their massive budget surpluses and non-oil sector growth help sustain them through the crisis. 'The fact that the liquidity issue is going to take some oomph out of growth in the region - particularly in the United Arab Emirates - in not necessarily a bad thing because it brings the economy down to a more manageable growth trend,' said Ben Faulks, London-based sovereign wealth analyst with Standard & Poors. Within the six Gulf Cooperation Council nations, 'the problem has been that growth has been too strong,' said Faulks, adding that currencies in most of those countries may be undervalued as they are pegged to the US dollar, meaning the various central banks there have to follow the Federal Reserve’s lead in interest rates.." [more]

Al-Arabiya.net Hacked [Oct 11]
"Alarabiya.net was hacked, which prevented Internet browsers from accessing the major Gulf news organization’s website on Thursday. The media organization reported that the hackers managed to divert traffic to an outside website that showed a burning Israeli flag and a message saying: 'If attacks on Shiite websites continue, none of your websites will be safe.'.."  [more]

Saudi Shares Down 7% at Open [Oct 11]
"The Saudi stock market, the largest in the Arab world, on Saturday opened the week's trading down seven percent, diving below the 6,000-point mark. The Tadawul All-Shares Index (TASI) shed more than 450 points in the first minute before recovering some of its losses. It was later trading at around 5,873.66 points, down 4.7 percent.The market's 15 sectors and 124 firms whose stocks were being traded all suffered declines, led by the petrochemicals sector which dropped 7.8 percent. The Saudi market is the only Gulf financial market that opens on Saturday. The new decline came despite statements by Saudi Arabian Monetary Agency (SAMA) on Thursday that it was ready to inject more than 93 billion dollars into the kindgom's banking system. The banks index dropped by 5.8 percent.." [more]

~~~~~~~~ [ Oct 10] ~~~~~~~~~

UN Assembly to Discuss Abdullah’s Interfaith Initiative [Oct 10]
"The United Nations General Assembly will hold a session in the middle of next month to discuss Custodian of the Two Holy Mosques King Abdullah’s initiative to promote interfaith dialogue. This was announced by UN Secretary-General Ban Ki-moon while attending a ceremony marking Saudi Arabia’s National Day at the UN headquarters in New York. 'I have tremendous respect for King Abdullah and appreciate his leadership role in many initiatives,' the UN chief said.. ..Ban had described the Madrid conference as a symbol of unity among different faiths, adding that he hoped it would contribute to healing divisions and building a more secure and stable world. 'This event is itself a potent symbol of unity among different traditions. Our challenge is to see this expression of solidarity turned into a genuine force for good,' Ban said in a message to the conference. He added that the origin of many conflicts lies beyond the confines of faith. 'This unique gathering of religious leaders can help debunk the dangerous myth that religion, even when properly understood, inspires violence,'.." [more]

Riyadh Monitoring Global Finance Crisis Effects on Saudis [Oct 10]
"Saudi Arabia’s King Abdullah has ordered state bodies to look into limiting the effects of the global financial crisis on Saudis’ savings, the Saudi media reported yesterday.  'The king has entrusted a number of relevant agencies to study in depth how to deal with this issue,' Crown Prince Sultan told reporters in comments carried in Asharq al-Awsat and other newspapers. He was responding to a question about whether the government would take measures to protect the savings and investments of Saudis in light of the crisis on world financial markets. Saudi Arabia’s central bank said on Wednesday that there was no need to provide emergency funds to banks in the world’s largest oil exporter as the financial sector faced no shortage in liquidity.. ..He also said bank deposits were safe and economic growth healthy, adding that Saudi Arabia had no exposure to economies and companies suffering from the global credit crunch or subprime problems since most lending was local.." [more]

Karzai’s Brother Confirms Presence at Saudi Talks [Oct 10]
"A brother of President Hamid Karzai said on Thursday his visit to Saudi Arabia last month was part of an Afghan push for the kingdom to convene peace talks with the Taliban. Qayoum Karzai, the elder brother of the Afghan president, confirmed that no representatives of the militia were present at the meeting although the Afghan delegation had included former Taliban leaders. 'The Saudi king ... wants to help the people of Afghanistan in bringing peace so our trip was in that connection,' Qayoum Karzai told AFP. 'We briefed them about Afghanistan’s situation, we told them about what is going on here, about our misery and asked them to mediate as an impartial country,' he said. This follows denials by the Afghan government and the Taliban of media reports that the meeting had amounted to peace talks. Former Taliban members have confirmed they were there but said there were no peace negotiations.. ..President Karzai has long called for talks with the Taliban willing to lay down arms and accept the new government.."  [more]

Oil's Drop Squeezes Producers [Oct 10]
"Big oil-producing countries are showing signs of distress as the global credit crunch and falling crude prices begin to squeeze government budgets and delay projects. Fears that the boom days are fading appear strongest in Iran and Venezuela, whose governments have come to rely on oil prices to prop up otherwise shaky economies. Both countries this week led a chorus within the Organization of Petroleum Exporting Countries calling for an emergency meeting of the cartel, now set for Nov. 18, to weigh a production cut.. ..Some forecasters said that despite a strong thirst for oil in Asia and the Middle East, global oil consumption could flatten out next year, potentially ending nearly a decade of steady demand growth.. ..Oil exporters have racked up cash surpluses as prices soared to historic highs. Saudi Arabia, the world's largest exporter, is expected to record $138 billion this year, up from $95 billion last year. But government spending also has soared within OPEC and among other big producers such as Russia, based in part on the expectation that oil prices would remain high.. ..OPEC is likely to reduce production to defend prices from falling below $80 a barrel. But some analysts said that heightened costs elsewhere in the oil patch may keep prices from falling much further anyway.." [more]

Saudis Have No Excuse to be in Third World: Prince Khaled [Oct 10]
"A massive exhibition will be staged in Obhur, north of Jeddah, to showcase major development projects under way in Makkah province. Custodian of the Two Holy Mosques King Abdullah will open the show tomorrow. Makkah Gov. Prince Khaled Al-Faisal inspected the arrangements for the exhibition’s opening on Wednesday and said it was organized to highlight major projects taking place in the region during King Abdullah’s rule as well as growing investment opportunities in the region. He said Saudi Arabia’s development plans were aimed at making the Kingdom a first world country. 'We believe that this country and its people deserve to have a place in the First World, not in the Third World, and we have all the potentials to accomplish this objective,' he said.." [more]

Saudis Feature at Abu Dhabi Film Festival [Oct 10]
"Saudi Arabia will be represented by six films at the Middle East Film Festival, starting Saturday in Abu Dhabi. The event, scheduled to conclude October 19, will feature cinematic contributions from the Middle East and Europe, with the UAE, Bahrain, Kuwait and Saudi Arabia being the most prominent representatives from the Gulf.. ..'Saudi Arabian cinema has become well-known through various film festivals, and our filmmakers are creating a Saudi movie industry. We are seeing the birth of a new generation in the film industry presenting the identity of Saudi Arabia to the world,' Salem said. 'Saudi filmmakers are talented enough to deserve an international presence,'.." [more]

~~~~~~~~ [ Oct 09] ~~~~~~~~~

Kingdom Exploring Ways to Deal With World Financial Crisis: Sultan [Oct 9]
"Saudi Arabia is exploring ways to deal with the current crisis in global financial markets, Crown Prince Sultan, deputy premier and minister of defense and aviation, said yesterday. He was answering questions from reporters at the end of a function organized by the armed forces on the occasion of Eid celebrations in the Eastern Province. Asked if the Kingdom would take any measures to protect the investments of the Saudis affected by the present world economic crisis, Sultan responded: 'This is an international issue that does not concern us alone. However, Custodian of the Two Holy Mosques King Abdullah has entrusted a number of responsible agencies to make in-depth studies on how we can deal with this situation. If Allah wills matters will improve.'.." [more]

Uganda: Government Seeks Saudi Expertise in Oil Exploitation [Oct 9]
"The government has asked Saudi Arabia to offer her expertise in exploiting Uganda's oil resources. The Minister of State for Foreign Affairs, Mr Okello Oryem, said Uganda has to first draw lessons from countries already producing oil in order to position herself as a oil producing state in the region. 'Our relations between the Kingdom of Saudi Arabia should be enhanced by vibrant commercial relations. We would like to benefit from your experience in exploiting our oil resources in western Uganda given your expertise in this field,' he said. Mr Oryem made the appeal on Tuesday during celebrations to mark the 78th national day of the Kingdom of Saudi Arabia in Kampala.." [more]

Gulf States Poised to Weather Financial Crisis [Oct 9]
"Gulf stock markets are not immune to the global battering the current tornado of volatility has brought. In Saudi Arabia, there has been a 45% drop in share values this year and it is the same story in the United Arab Emirates' commercial capital, Dubai. It began with foreign investors pulling out. Local investors followed suit. Across the region - including in Saudi Arabia where 90% of those investing in markets are estimated to be locals - the plummet has continued as investors became nervous, more risk averse and felt the need to deleverage.. ..The Gulf markets are risky and volatile at the best of times; now with global volatility so high, events on the markets are playing out exponentially in this region. However, the fundamentals of the economy are solid, say the analysts. The Gulf has an advantage over other emerging markets such as India or China in that its main export is oil - something that, despite recent massive jumps and falls is still trading above average prices. Certainly demand slows in times of global recession, but the oil price has a long way to fall before that becomes a big worry for Gulf governments. These governments have a huge budget surplus. Indeed, the Gulf and the Middle East are being looked upon by others as a source of capital for the West. If problems develop closer to home, these surpluses can act as a cushion domestically.." [more]

Education Key to Tackling Problem of Saudi Poverty [Oct 9]
"No government in the world can eradicate poverty because part of the problem stems from behavioural and social attitudes, according to Dr Hatoon Al Fasi, assistant professor at the King Saud University, who made her comments on a documentary bout poverty in Saudi Arabia broadcast on the internet. However, she also stressed that there are no excuses for a government like that of Saudi Arabia, which witnesses the problem of poverty increasing in its own nation, while it maintains a position as one of 
the world's top world donors when compared to its Gross Domestic Production (GDP). Saudi Arabia spends more than 4 per cent of its total GDP annually on donations and humanitarian aid that reaches people in more than 110 countries around the globe. At the same time, nearly 30 per cent of its own nationals suffer from poverty.. ..Dr Aziza Al Nuaim, a professor at the King Saud University in Riyadh who specialises in poverty studies, said the picture of poverty in Saudi Arabia is bleak but there is some hope in a solution if proper measures are taken. She said part of the poverty problem lies with values instilled in young generations through the education process while another part lies with social norms that rich people are the only people are the ones who should fight it.." [more]

7 new subjects for girls’ colleges OK’d [Oct 9]
"Dr. Ali Al-Ghafeis, Governor of the Saudi General Organization for Technical Education and Vocational Training, has said that seven new specialized subjects have been approved for girls’ colleges. He described the move as opening the way for women to work in new sectors in the Saudi job market. He said that the organization had approved the subjects due to the demand from students and after an analysis of the market, spreading the seven subjects over eight training fields, including technical work, accountancy, small business administration, office machine and equipment maintenance, photography, jewelry manufacture, design, and small food businesses. Al-Ghufeis said that the organization’s programs had been tailored to suit the nature of women and the needs of the women’s work sector, saying that Saudi women will occupy tens of thousands of positions currently dominated by the foreign workforce.." [more]

~~~~~~~~ [ Oct 08] ~~~~~~~~~

Saudi Chemical Firm to Buy US Titanium Producer [Oct 8]
"Saudi industrial group Tasnee 2060.SE said on Wednesday its Cristal unit had won U.S. regulatory approval for a takeover of International Titanium Powder (ITP) for $110 million. A statement on the bourse website said the deal would be completed quickly. Tasnee, which says it is Saudi Arabia's second-largest petrochemicals company by output volume, said this year it planned industrial acquisitions and was likely to issue its first Islamic bonds, or sukuk, in 2009. Cristal said in May it had launched a $289 million takeover bid for Australian mineral sands producer Bemax Resources Ltd. Tasnee also plans a 2 billion riyal ($533.3 million) rights issue this year. International Titanium Powder, founded in 1997, produces titanium and titanium alloys.." [more]

Saudi Banks Say Not Hit by Mortgage Woes [Oct 8]
"Six Saudi banks launched a concerted effort to restore confidence yesterday, saying they had no direct exposure to toxic mortgages, as shares plunged on fears about the impact of the global financial crisis. The central bank joined the verbal barrage, assuring depositors that savings were safe, but warning that profitability in the booming financial sector was threatened by crisis that stemmed from the collapse of the US housing market and an increase in bad loans.. ..'Saudi Arabia is more immune to the credit crunch (than other markets) if high oil prices persist and because the central bank imposes stricter rules on lending,' Fahd al-Rasheed told Reuters on the sidelines of a real estate conference. 'Demand on properties will continue to be high as supply will not meet demand because more people will need housing.' Saudi Arabia needs more than 6mn units over the next 12 years and 65% of the population is under 30, according to Rasheed.." [more]

Tilghman to be Trustee of New Saudi University [Oct 8]
"President Tilghman will serve on the board of trustees of King Abdullah University of Science and Technology (KAUST), a new research university in Saudi Arabia, Princeton announced Monday. 'There is nothing comparable to [KAUST] right now in the Middle East,' Tilghman said, noting that she believes the opening of the nondenominational graduate-level research university will significantly increase opportunities for women. 'One of the reasons I have agreed to join the board is because they have made a strong commitment to educate women along with men,' she said, adding that women at the university won’t have to wear hijabs, and non-Muslims will study alongside Muslims. While the opening of the university will not change the fact that women in Saudi Arabia live by very different rules from men, Tilghman said she sees it as 'a promising beginning.'.. ..The new university, which will operate according to the American model, will be a unique institution in Saudi Arabian higher education.." [more]

Human Resources Forum Planned From Oct. 18 [Oct 8]
"The Ministry of Labor is aiming to change Saudi citizens from mere employees to productive citizens so they can compete with their counterparts in developed countries. Under the patronage of the Minister of Labor, Dr. Ghazi Al-Gosaibi, the Jeddah Chamber of Commerce and Industry will hold a human resources forum from Oct. 18.. ..The forum, under the theme “Toward Strategic Participation,” will discuss key issues such as the importance of the role of businessmen in improving and investment in human resources and the importance of training to reach strategic participation. 'The forum is also aiming to apply human resources in all organizations as an effective way to produce qualified employees,' said Dr. Sameer Hussain, the head of the forum. According to Dr. Hussain the forum will benefit from the previous experience of national and international companies in improving work standards.." [more]

~~~~~~~~ [ Oct 07] ~~~~~~~~~

Afghan Govt Denies Saudi Meeting Was Peace Talks [Oct 7]
"Afghanistan on Tuesday denied there had yet been any peace talks with Taliban insurgents mediated by Saudi Arabia, despite a meeting hosted by the kingdom last month between Afghan government officials and former Taliban leaders. With casualties from the war in Afghanistan, which began on Oct. 7, 2001 and is now entering its eighth year, reaching record levels, military commanders and diplomats from NATO countries are calling for talks with the Taliban as the only way to end the fighting. Afghan President Hamid Karzai made a direct appeal for peace to Taliban leader Mullah Mohammad Omar a week ago and asked Saudi Arabia to help mediate in talks. But negotiations have yet to take place.. ..Karzai, he said, "has approached his Highness the Saudi king about playing a role ... in bringing peace to Afghanistan and he would welcome any effort from the Saudi side.." [more]

King Orders Assistance for Burkina Faso [Oct 7]
"King Abdullah, Custodian of the Two Holy Mosques, on Monday issued directives to extend assistance to Burkina Faso to enable the country to make additional serum available for the treatment of meningitis and vaccination against the disease. The gesture of King Abdullah comes in response to a message from Blaise Compaore, President of Burkina Faso, expressing appreciation for the assistance extended by the Kingdom to confront the menace of meningitis in his country. President Compaore said his country was in need of additional serum for carrying out the required vaccination campaigns. Earlier the Kingdom made 500,000 vaccination units against meningitis available to the African nation.." [more]

Saudi Admits Difficulty Managing Liquidity [Oct 7]
"Saudi Arabia admitted problems managing liquidity and at the same time controlling inflation on Tuesday, but said it may lower the benchmark lending rate if convinced the monetary system is running out of cash. 'There is a problem with liquidity management ... We are not sure about the impact liquidity has on inflation rates, which are currently high,' said Fadi Alajaji economist at the country's central bank, the Saudi Arabian Monetary Agency (SAMA), to Reuters. 'If the government sees the need to intervene and boost liquidity, I don't think it will be done through a direct injection of cash but through repo and reverse repo rates given their impact on controlling and managing liquidity in the banking system,'.. ..The kingdom, which pegs its currency to the dollar, has not lowered the repurchase rate, its benchmark lending rate, since February 2007. It stands at 5.5 percent.." [more]

Saudi Arabia Leads Losses in Gulf Markets [Oct 7]
"Gulf bourses fell sharply on Monday, with real estate and bank stocks the hardest hit as worries over the global economy persisted. Saudi Arabia's main index plummeted 9.81 per cent, its biggest one-day loss in at least 22 months. 'It's clear that the market is declining due to massive losses in the region and that's due to the falls in the US,' says Abdullah Al Aqeel, equity trader at Samba Financial Group. 'Everything is hit, banks, telecoms - everything is 'limit down'.. ..'Foreign institutions are heavily selling in the market. Some of them are exiting completely,'.." [more]

Sultan Donates SR22m to Build Housing Units for Armed Forces [Oct 7]
"Crown Prince Sultan, deputy premier and minister of defense and aviation, yesterday donated SR22 million to build 649 housing units for members of the armed forces in the Northwestern Region, it was announced yesterday. Earlier, addressing an Eid ceremony organized by the armed forces at King Abdulaziz Military City, the crown prince commended the successful completion of Saif Al-Salam military exercises. 'I am now convinced that the joint military operations are going on well as planned and the performance of the four sectors of armed forces was excellent,'.. ..In a previous statement, Prince Sultan had said that the routine military exercises had nothing to do with the growing tension in the region and that they were aimed at enhancing alertness and achieving the integration of different armed forces. The National Guard, the Border Guard, land, naval, air and air defense forces took part in the Saif Al-Salam exercise.." [more]

~~~~~~~~ [ Oct 06] ~~~~~~~~~

Saudi Hosts Afghan Peace Talks With Taliban Reps [Oct 6]
"In a groundbreaking meeting, King Abdullah of Saudi Arabia recently hosted talks between the Afghan government and the Taliban militant group, according to a source familiar with the talks. The historic four-day meeting took place during the last week of September in the Saudi city of Mecca, according to the source, who spoke on the condition of anonymity due to the sensitivity of the negotiations.. ..Taliban leader Mullah Omar was not present, the source said. It marks a significant departure by the Saudi leadership to take a direct role in Afghanistan, hosting some delegates who have until recently been their enemies. In the past, Saudi Arabia has generally dealt with Afghanistan through Pakistan. The desert kingdom's current foray marks a significant shift and appears to recognize the political weakness of Pakistan and the need to stem the growth of al Qaeda.." [more]

Saudi Stocks Plunge Almost 10% [Oct 6]
"The Saudi stock market, the largest in the Arab world, shed almost 10 percent halfway through trading on Monday and shares in other energy-rich Arab states in the Gulf also slumped amid the global financial turmoil. It was the first day of trading in Saudi Arabia after a week-long holiday for Eid al-Fitr holidays marking the end of the Muslim holy fasting month of Ramadan.. ..Saudi stocks were sent into freefall not only by the continuing uncertainty in global financial markets, but also by modest nine-month profits reported by a number of leading banks. The two factors combined to pull the market badly down, Saudi economist Ali al-Dakkak said. 'It's a panic from what's happening in the global market. Investors here are simply expecting the worst in the US and European markets and are anticipating a severe impact in Saudi Arabia and the region,'.." [more]

Meshaal Calls for Syria-Saudi Thaw [Oct 6]
" Exiled Hamas supremo Khaled Meshaal has called for a thaw in ties between Saudi Arabia and Syria during a recent visit to Saudi Arabia, an Arab diplomat said on Sunday. 'During meetings with Saudi officials, Meshaal raised the issue of Saudi-Syrian relations, which have long been tense, and stressed the importance of improving those ties,' the diplomat told AFP, requesting anonymity. Relations between Riyadh and Damascus have been tense since the February 2005 assassination of Lebanese former premier Rafiq Hariri, a close Saudi ally, in a bombing widely blamed on Syria.. ..Fresh tensions between Syria and Saudi Arabia surfaced after a deadly car bombing in Damascus last month that killed 17 people, with Syrian official media complaining that the Saudi authorities did not condemn the attack. Syrian authorities blocked the distribution of the Saudi-owned pan-Arab daily Al-Hayat after the September 27 car bombing, the paper's Beirut bureau chief told AFP on Thursday.." [more]

Value of Saudi Shares Traded Falls to SR1.64 Trillion [Oct 6]
"The Saudi stock market has continued to stay in negative territory so far this year after falling over 40 percent in 2007. Despite the Capital Market Authority’s (CMA’s) various confidence-building measures, at the end of the first nine months of this year, the Tadawul All-Share Index (TASI) closed at 7,458.50 points, down 354.62 points or 4.54 percent over the close of the same period of the previous year. On an YTD basis TASI lost 3,580.16 points or 32.43 percent. Highest close level for the index during the period was 11,697.01 points on Jan.12.. ..The CMA allowed recently authorized persons to enter into swap agreements with non-resident foreign investors whether institutions or individuals, to transfer the economic benefits of the Saudi companies’ shares listed on the Tadawul while authorized persons retain the legal ownership of the shares. In September, Tadawul has successfully implemented the new tick size with the three bands. According to the Tadawul report, total equity market capitalization at the end of the first nine months of 2008 reached SR1.45 trillion ($387.05 billion), increasing by 9.14 percent over the same period of the previous year.." [more]

OPEC Weekly Prices Continue to Drop [Oct 6]
"The weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) dropped to 90.01 U.S. dollars per barrel last week, the Vienna-based cartel said on Monday. As the international oil prices kept spiraling lower last week, the OPEC oil prices have plunged for five consecutive trading days from 94.09 dollars last Monday to 86.37 dollars last Friday. The global economic slowdown and the financial crisis of the United States largely contributed to the recent downward tendency of the international oil prices.. ..The prices on the European crude oil market are also expected to fall due to a decreasing crude oil demand of the European countries and their lowered expectation on economic growth.." [more]

~~~~~~~~ [ Oct 05] ~~~~~~~~~

US$7.2 Billion Project Planned Near Saudi Capital [Oct 5]
"Saudi Arabia's Al-Shoala Group and Dubai-based Emaar Properties have teamed up on a US$7.2 billion community project near the Saudi capital of Riyadh.. ..The community plan is the latest in a series of ambitious mega-projects in the region. Gulf Arab countries, flush with oil funds, are looking to revamp their landscapes with gleaming skyscrapers and full-service gated communities, while trying to diversify their oil-based economies. The push for new job creation in Saudi Arabia comes as the country struggles with rising unemployment that has in the past been blamed by some for radicalization of youths. Some economists and analysts, however, say such efforts fail to address education and other key areas requiring reform that are critical to sustainable economic growth in a country where the bulk of the work force are foreigners.." [more]

Saudi Money Supply Continues to Soar [Oct 5]
"Annual growth in Saudi money supply, an indicator of future inflation, rose for the first time in three months to 21.8 per cent in August from 20.85 per cent in July, the central bank said on Sunday. M3, the broadest measure of money circulating the Saudi economy, hit 885.77 billion riyals (Dh866bn) at the end of August, compared with 727.15bn riyals a year earlier, the Saudi Arabian Monetary Agency said in a monthly report on its website. Like other Gulf countries, Saudi Arabia is struggling to contain inflation, which recently hit a 30-year peak of 11.1 per cent in August. Slowing food and rent prices have slightly reduced this to 10.9 per cent in July.. ..The central bank’s total net foreign assets hit 1.56 trillion riyals at the end of August compared with 930.7 billion riyals a year earlier.." [more]

Saudis Extend Jazan Refinery Deadline to 2015 [Oct 5]
"The Jazan refinery in Saudi Arabia is expected to come online in the first quarter of 2015, the Petroleum and Mining Ministry said on Friday, after reports of fresh delays hitting the planned export-oriented refinery. MEED magazine last week reported that bidders lining up to build the refinery have been issued a fresh construction deadline of 2015 - a two-year delay to the original schedule. State news agency SPA carried an apparent denial of reports of delays, citing an unidentified official from the petroleum ministry.. ..Civil engineering and detailed planning as well as the financing of the project will take 18 months at the latest and construction works will take a maximum four years, he said. 'Commercial operations will be in the first quarter of 2015,' it added.." [more]

Saudi Students Work to Teach Culture [Oct 5]
"Somewhere between the terrorist attacks of Sept. 11, 2001 and the wars in Iraq and Afghanistan, the way some Americans view those of Arab descent became a bit skewed. Just ask Kevin Coker. He’s an American from Pleasanton, but he’s good friends with a man from Saudi Arabia. Coker said his friend is a 'good guy' and 'just like everyone else,' but Coker’s American friends aren’t always so sure.. ..Coker, a history and political science major at Pittsburg State, said ethnic profiling has been on the rise since the terrorist attacks against New York and Washington D.C. 'I think we stereotype Muslims,' he said. 'I think we have a tendency to think everyone is an extremist.'.. ..Coker and Keegan were among many Americans who attended Friday night’s Eid Al-Fitr Celebration and National Day event conducted by the Saudi Student Association from PSU.. ..Badar Alburaidi, SSA’s president, said many Americans don’t have a good grasp of the Saudi Arabian culture and thus tend to make assumptions based on stereotypes. Part of the goal of Friday’s celebration at Pittsburg Memorial Auditorium was to help provide a more solid understanding of the country and its people.  'We want to change the way people think,' he said. 'We want to show our cultures, our customs. Some people tend to think Saudi Arabia is just desert with camels, but that is not the case.' A fellow Saudi native, Talal Alharbi, said it’s important to provide as much information about the country as possible and Friday’s celebration was a good
avenue to do just that.." [more]

Mideast Peace Process Could be Forgotten [Oct 5]
" French Foreign Minister Bernard Kouchner said on Saturday he feared the world may forget the Middle East peace process while distracted by US elections, a government change in Israel and tension with Iran.. ..'My concern is, and what I do not want to see, is that the change in the US administration, and the formation of a new government in Israel, as well as the preoccupation with Iran would push everybody to forget the peace process in the region,' Kouchner said. Israeli Foreign Minister Tzipi Livni is Israel's chief negotiator in talks with the Palestinians. Palestinian and Israeli officials and Western diplomats have said it was most unlikely Israel and the Palestinians could meet the target date of the end of 2008 for a deal set by US President George W. Bush.." [more]

OPEC Chief Says Will Seek to Balance Market [Oct 5]
"Supply and demand alone will set oil prices in coming months and OPEC will seek to balance the market at its December meeting after recent declines, OPEC President Chakib Khelil said in remarks published on Sunday. Prices had recently fallen from levels created by 'perverse' speculative practices, Algerian government newspaper El Moudjahid quoted him as saying.. ..He said demand had declined by an estimated three million barrels per day as a result of falling requirements in the main consuming countries, while supply had remained steady, the paper said, referring to the impact of financial turbulence on the global economy. The newspaper reported Khelil as saying that an appropriate decision to manage the effects of the crisis on oil prices would be taken at OPEC's next meeting in Oran, Algeria, on December 17. The newspaper did not elaborate. But the independent Quotidien d'Oran newspaper reported Khelil as 'not ruling out' a reduction in output limits by the export group in order to guarantee a balance in the market.." [more]

Saudi Seize Drugs, Arms in Shootout With Smugglers [Oct 5]
"Saudi border guards have seized more than 1.2 tonnes of hashish as well as weapons along the border with Yemen during a shootout with drug traffickers, a senior official said on Saturday. Border guards also arrested two suspects during the incident on Friday, said General Mohammed Zahrani, the chief of border guards in the southern Saudi border city of Najran, according to the official SPA news agency. The guards seized more than 1.2 tonnes of hashish, automatic weapons, munitions and military uniforms which the suspects had hidden in their car, SPA quoted Zahrani as saying. The ultra-conservative Muslim kingdom of Saudi Arabia imposes the death penalty on people convicted of drug trafficking.." [more]

Saudi Arabia Donates to the Needy [Oct 5]
"The Kingdom of Saudi Arabia, popularly known as the kingdom of humanity, has generously donated to the needy in Tanzania during the just ended Holy Month of Ramadhan, Idd el Fitr celebrations. The kingdom commemorates its national day on Tuesday. The Kingdom’s Ambassasdor to Tanzania, Mr Ali Al Jabour, has said that benefactors in Saudi Arabia through their King, His Majesty King Abdullah and through the Saudi Arabia Embassy in Dar es Salaam provided iftar (meal to break the fast)
to 3,700 people in 17 districts in towns and villages locations. The beneficiaries included orphans, the needy and general members of the community. Iftar was also served in 21 mosques in Dar es Salaam city, covering prisons, centre fot the blind, and the sick in some of Dar es Salaam hospitals. The iftar items included foodstuffs and dates.. ..'As the acronym of the Kingdom goes - that is 'the Kingdom of Humanity' - our people are brought up in culture of offering and helping others. Apart from this being a Muslim way of life, the culture is also within the Saudi people, thanks to his Majesty King Abdullah who has upheld the tradition brought down through our long history,’' the Saudi envoy said.." [more]

Sep 28 - Oct 4, 2008

~~~~~~~~ [ Oct 04] ~~~~~~~~~

Prince Turki Wins Legal Battle against French Channel [Oct 4]
"Prince Turki Al-Faisal, former Saudi ambassador in Washington, has won a legal battle against the French TV channel France 3 that had accused the prince in a documentary program two years ago that he had prior knowledge of the terrorist attacks against the United States on Sept. 11, 2001. 'The French Appeals Court rejected on Wednesday an appeal filed by the channel on a previous convicting verdict issued by the Court of First Instance,' said an official statement carried by the Saudi Press Agency late Thursday. The appeals court upheld the verdict of the Court of First Instance, increased the compensation that should be paid by the channel to the prince, and ordered the channel to telecast a frank apology at the beginning of its main news bulletin within one week of the issuance of the ruling, the statement added.." [more]

Saudi Investors Suffer Losses Due to US Crisis [Oct 4]
"Many Saudi and Gulf investors suffered heavy losses after some American and Gulf banks used their funds to buy risky mortgage bonds just before the subprime mortgage crisis erupted in the US. 'At least 35 Saudi investors are facing semi-bankruptcy as a result of purchasing US mortgage bonds,' Al-Riyadh Arabic daily said quoting business sources. However, the paper said it was not yet clear how much would be the total losses caused by the US economic crisis to Gulf banks. It also said that some Gulf banks had played the role of intermediaries for US banks and companies to sell high-risk mortgage bonds to Gulf investors in lieu of attractive commissions.. ..'The Saudi stock market lost 30 percent of its value in 2008 while Dow Jones lost only 22 percent,' he pointed out.. ..Meanwhile, economists predicted that the Saudi stock market index would decline further as a result of the effect of global economic crisis. They said the Eid Al-Fitr holidays had saved stock dealers from major losses.." [more]

US Group Allowed to Establish Iran Office [Oct 4]
"The US has granted rare approval to a US-based group to establish an office in Iran, the State Department said on Thursday, stressing however that US policy towards the Islamic Republic has not changed. The American Iranian Council (AIC), a research and policy think tank devoted to improving ties between the two arch enemies, was given a licence to establish a presence in Tehran by the US Treasury Department’s Office of Foreign Assets Control (OFAC), officials said. 'We understand that a licence has been granted to the American-Iranian Council but would refer you to the Office of Foreign Asset Control at the Treasury Department for any information regarding OFAC licences,' the office of State Department spokesman Sean McCormack said. The OFAC enforces US sanctions against countries such as Iran, Sudan and Cuba. Treasury Department spokesman Robert Saliterman said the department 'does not confirm or deny the issuance of licences.' But, he added that 'licences for NGOs are based on foreign policy guidance.' McCormack’s office explained that US policy towards Iran 'has not changed' with the approval given to AIC.." [more]

Bechtel Wins Saudi Smelter Deal [Oct 4]
"US-based Bechtel, one of the world's premier engineering, construction, and project management companies, has clinched a key aluminium smelter project in Saudi Arabia, said a media report. Betchel has been appointed as the engineering, procurement and construction management contractor for Al-Zabirah smelter project at Ras al-Zour, Meed reported, without saying how it got the information. The smelter is being developed by Alumco, a joint venture of Saudi Arabian Mining Company (Maaden) and the British-Canadian company Rio Tinto Alcan.." [more]

Sri Lanka Targets Saudis for Tourism [Oct 4]
"Citizens and expatriates from Saudi Arabia have been increasingly visiting or traveling through Sri Lanka. 'There has been a 30 percent jump in tourist and business traffic from Saudi Arabia and we are going to focus more on the Kingdom and the rest of the Middle East as they have great spending capacity, especially in the wake the economic boom,'.. ..This year alone, from January to date, 5,000 Saudis and 10,000 expatriates from the Kingdom visited Sri Lanka, he said, adding that his country is planning a series of road shows in Riyadh, Jeddah and Dammam later this year to focus on its potential as a tourist resort for Saudi families. 'Saudis are increasingly realizing that the Indian Ocean island is a value-for-money holiday resort, and what interests them is the availability of halal food all over. The island’s starred hotels, which offer 15,000 rooms, all display Qibla direction signboards in rooms,' Musthapha said. The country has a 10 percent Muslim population and is dotted with mosques.." [more]

~~~~~~~~ [ Oct 03] ~~~~~~~~~

Saudi Arabia Can Rein in the Taliban and al-Qaeda [Oct 3]
"Far removed from the global credit crunch, another international crisis continues to inflict a different kind of carnage on the security and stability of the West.. ..Next week it will be seven years since the war on terror was officially launched when the US military, with British support, unleashed a devastating bombardment on 31 al-Qaeda and Taliban targets in Afghanistan. But despite the heroic efforts of coalition forces and the deployment of vast resources, the West appears no closer to achieving its long-term objective of eradicating the threat posed by Islamist groups and helping to turn failed states into ones capable of sustaining democratic government based on the rule of law.. ..Which makes this week's suggestion that the Afghan government is seeking Saudi Arabia's help in negotiating a peace deal with the Taliban all the more encouraging.. ..If any country has the ability to rein in the murderous activities of the Taliban and al-Qaeda, it is Saudi Arabia, a point that needs to be reinforced when Prince Turki makes an official visit to London this month to discuss bilateral security issues.." [more]

Saudi Arabia's Economic Cities Ease Grip of Religious Power [Oct 3]
"..If all goes to plan, the King Abdullah Economic City and three sister developments in Hail, Jizan and Medina will by at least 2020 be vibrant communities in a country with high unemployment and an over-reliance on oil. Allowing women to drive cars and possibly permitting cinema houses, they may also add to the few bubbles of freedom in Saudi Arabia -- where suffocating gender restrictions have been eased in recent years, to the ire of many religious conservatives.. ..In the 'economic cities,' many expect the clerics to be kept at a distance from social life, the workplace and education. 'Society has changed fundamentally and the measure of it is that the official fatwa [religious edict] of old no longer has the hold it had,' said reformist cleric Abdelaziz al-Gasim. He said social and political taboos had been broken, citing women revealing their faces in some public places and popular participation in 2005 municipal elections, diluting the idea maintained by the clerics of absolute obedience to the ruler.. ..But adding to concerns is a sense that the future of the cities is tied up with the fate of social and political reforms. Many liberals fear the king's successors will be less concerned with openness and relaxing clerical control.." [more]

The Saudi-Syrian Cold War Unfolds in Tripoli [Oct 3]
"The Cold War between Syria and Saudi Arabia playing itself out in the northern Lebanese city of Tripoli is taking the Lebanese crisis into unchartered territories where all the microcosms of inter-Arab animosity are vying for power in Lebanon. Saudi Arabia seems reluctant to accept the implications of the May 7 clashes which broke out on the streets of Beirut when the main Sunni force in Lebanon, the Future movement led by Saad Hariri, suffered a swift blow from Hezbollah, the Syrian and Iranian backed Shiite group.. ..both Saudi and Syrian regimes have one thing in common: a vague structure of security power not conducive to analyze the rationale behind their policies. Riyadh's political options are predictable and built on the premise of a Sunni-Shiite divide, while the Syrian leadership, existing in a more complex environment, muddled along in somewhat of a state of disarray since 2001, where a the political line followed by Damascus remains blurred.." [more]

Oil Falls Near $94 on Concerns of Weakening Demand [Oct 3]
"Oil fell more than $4 towards $94 a barrel on Thursday, as the US dollar rose and as the US Senate's approval of a $700 billion bailout of the financial sector failed to allay concerns over weakening fuel demand in the world's top energy consumer.. ..The Senate's approval of the rescue plan initially reassured European stock markets, but US stocks fell sharply after weak US economic data. The dollar's advance to a near 13-month high against the euro and a basket of major currencies put pressure on oil. But oil's fall also reflected a shift in sentiment to focus more on falling demand in industrialised countries.. ..'Expect crude to track firmer equity markets for a little while longer,' said Edward Meir, of broker MF Global. 'But we expect the two to eventually decouple.' 'On its own, we think crude will not fare as well, and will be particularly vulnerable heading into the fourth quarter," he said. "We would not be surprised to see $75-$80 on WTI (US crude) by the end of the year.'.." [more]

Shariah Courts to Try Terror Suspects: Naif [Oct 3]
" Interior Minister Prince Naif announced late Wednesday night that all suspected militants arrested for plotting to carry out terrorist attacks in the Kingdom would be transferred to Shariah courts shortly to take action against them. 'God willing, they all will be transferred to the judiciary to give its verdict on them in accordance with what God has ordained to prevent sedition. ... We don’t punish anybody except on the basis of a court verdict,' the prince said.. ..Last June, the Interior Ministry announced the arrests of 701 suspected militants for plotting to carry out terrorist attacks. Some of the detainees, according to Maj. Gen. Mansour Al-Turki, the ministry’s spokesman, were planning to stage terrorist attacks on oil fields and other vital installations. 'You know that Islam is targeted and your country with all its honor and pride is an Islamic country with Qur’an and Sunnah being its constitution... and we depend on ourselves after God the Almighty,'.." [more]

Saudi Overspends by $23bn to Meet its Social Obligations [Oct 3]
"Saudi Arabia overshot its budgeted expenditure by nearly $23 billion (Dh84bn) in 2007 as the Kingdom was again tempted by a surge in oil prices to meet its civilian and defence obligations,official figures showed yesterday. But the budget again recorded a massive surplus although it was much lower than the record actual positive balance in the 2006 budget.. ..The decline was caused by a drop of around 400,000 barrels per day in the Kingdom's crude output from nearly 9.2 million bpd to 8.8 million bpd. Saudi Arabia has largely exceeded budgeted spending over the past few years as oil prices have surged far above its conservative forecasts of $40 a barrel. The Opec de facto leader, which controls a quarter of the world's extractable crude deposits, has used its massive fiscal surpluses to slash soaring public debt and rebuild its foreign assets after a sharp fall in late 1990s due to persistent budget deficits and relatively low oil prices. The public debt hit a record SR690bn to exceed the country's gross domestic product in 1999.." [more]

~~~~~~~~ [ Oct 02] ~~~~~~~~~

Beijing, Riyadh Buttress Oil Prices [Oct 2]
"Two stalwart forces are still standing between the world's slumping economies and a steep drop in oil prices: China and Saudi Arabia. The credit crisis and fears of a recession have sparked some predictions in recent weeks of an imminent plunge in crude prices. A global recession could clobber demand, causing a surplus in supply and a swift fall in oil prices, the argument goes. But so far, prices have been surprisingly resilient, bobbing around $100 a barrel for weeks, despite the U.S. stock-market turmoil and congressional wrangling over a financial-rescue package. Two of the main forces keeping oil aloft, analysts say, are China's continuing thirst for oil and the ability of Saudi Arabia to tighten the spigot on world supplies when it pleases.. ..The big question now is how much China's economy will cool over the next several months as it absorbs the pain from the travails in its chief export markets in North America and Europe. There are already signs of an economic slowdown in China.." [more]

Below the Poverty Line! [Oct 2]
"It is sad to be thirsty when you are only a few steps away from a river. It is painful to go to bed hungry in a place where good food is plentiful. It is appalling to suffer from poverty while everything around you is a sign of wealth. These words come to our mind when we read newspaper reports everyday about the vacillation of some government institutions in dealing with the problems of poverty and of those of the needy in Saudi Arabia. The Ministry of Social Affairs does not think that it is the only party concerned with the issue of poverty. It might be right. The Ministry of Labor, for instance, is supposed to be concerned with this case too, but it is tolerating a state of laissez-faire and, as a result, 'some' private sector operators have been exploiting man's need for work, failing to set minimum wages, and paying the lowest prices for using people's energies.. ..There is no explanation for the wavering of some government institutions that are concerned with tackling poverty. They have no excuses either, given the personal interest that King Abdullah Bin Abdulaziz has shown in this issue. This good king considers tackling poverty as one of the priorities of his reign and as one of his important objectives. As for those who are trying to play down the size of the problem by saying that it is 'limited and mostly confined in isolated areas,' they should revise the meaning of the word poverty.." [more]

Bahrain for Forum of Arabs, Israel [Oct 2]
"The foreign minister of Bahrain has called for the creation of a regional grouping of Arab states with Israel, as well as Iran and Turkey, a newspaper reported yesterday. 'Israel, Iran, Turkey and Arab states should sit together in one organisation,' Sheikh Khaled bin Ahmed al-Khalifah was quoted in the pan-Arab daily Al Hayat as saying. 'Aren’t we all members of a global organisation called the UN? Why not (come together) on a regional basis? This is the only way to solve our problems. There’s no other way to solve them, now or in 200 years.' Al Hayat, which interviewed the Bahraini chief diplomat in New York, said he had proposed the establishment of a regional bloc in a speech to the UN General Assembly. The Gulf kingdom is a major ally of the US and has a free trade agreement with Washington. It also hosts the US Navy’s Fifth Fleet....Earlier this year, Bahrain appointed the Arab world’s first Jewish ambassador as its envoy to Washington. Only two Arab countries — Egypt and Jordan — have full fledged peace treaties with Israel. Forging ties with Israel without a solution to the Palestinian-Israeli conflict is generally unpopular among ordinary Arabs.." [more]

Renowned Writer Al-Jifri is Dead [Oct 2]
"Famous Saudi writer and novelist Abdullah Al-Jifri died yesterday after a prolonged illness. He was 69. His body will be buried in Makkah after funeral prayers at the Grand Mosque this afternoon. Al-Jifri enriched Arab culture and heritage by writing more than 60 novels and thousands of literary and informative articles. Al-Jifri completed his secondary education in Makkah and worked as a civil servant in different government departments before joining the Ministry of Information.. ..He also wrote articles in Sayidaty magazine and Al-Hayat Arabic daily and supervised the cultural file of Al-Majalla magazine. His columns under the title 'Shades' attracted a large number of readers — Saudis as well as non-Saudis.. ..In 1984, he received a prize from the Arab Educational, Cultural and Scientific Organization before winning the Ali & Mustafa Ameen Journalism Prize in 1992. He received another award in 1998 during the second conference of Saudi men of letters.." [more]

Oil May Fall to $50 in Global Recession [Oct 2]
"Crude-oil prices may fall as low as $50 a barrel next year, about half current levels, in the ``unlikely'' event of a global recession, weighing on shares of petroleum producers, Merrill Lynch & Co. said. Such a scenario, where global growth in Gross Domestic Product falls to 1.5 percent, isn't the base-case forecast, the bank said today in a report. Merrill cut its 2009 average price estimate for West Texas Intermediate, the U.S. benchmark oil grade, by 16 percent to $90, citing falling demand and the start of new fields in Organization of Petroleum Exporting Countries. Crude-oil future prices have fallen almost a third in New York since reaching a record $147.27 a barrel on July 11, driven by concerns a worsening financial crisis in the U.S. is crimping energy demand. U.S. oil use is declining faster than expected, while European consumption is falling.. ..A decline in prices to $50 would impede investment decisions on projects.." [more]

~~~~~~~~ [ Oct 01] ~~~~~~~~~

Saudi Arabia Eyes Healthcare Privatisation [Oct 1]
"Saudi Arabia is planning to privatise large swathes of its healthcare sector to meet surging demand for medical services better, according to a senior Saudi official. As oil revenue trickles down into the economy and increases household wealth, demand for better healthcare services is rising in the kingdom. But even oil-rich Saudi Arabia is blanching at the spiralling prospective costs and is welcoming private sector involvement.. ..The government finances more than three-quarters of the healthcare industry, which was 'unsustainable given population growth projections, as well as spiralling healthcare costs,'.. ..The move to involve the private sector is part of a trend in the region. Khaled Jaouni of Ithmar Capital, a Dubai-based private equity firm, said authorities throughout the Gulf were gradually moving towards being a regulator of medical services rather than a provider.." [more]

Saudi Blogging Round-up [Oct 1]
"Blogging in Saudia Arabia can carry risks. The Saudi authorities detained one blogger, Fouad al-Farhan, for four months this year after he called for political reform. But people are still speaking their minds online. Topics in this selection of posts include a fatwa, repressive Arab regimes, religion as empowerment, and menswear with a twist.. Ahmed Omar, an engineer from Dhahran, discusses the recent fatwa issued by his country's most senior judge. Sheikh Salih Ibn al-Luhaydan said it was permissible to kill the owners of satellite TV channels which broadcast immoral programmes.. ..Fouad al-Farhan was the blogger imprisoned by Saudi authorities earlier this year. He is known as the 'dean' of Saudi bloggers, as he was the first to write using his real name.. ..Aysha is a Saudi Arabian script writer who has recently returned to her country with her husband and child, after two years in the US.. ..Saudi Jeans is the blog of Ahmed al-Omran, a student in Riyadh. His first post was written on Saudi Arabia's national day.." [more]

Saudi Arabia's Grand Mufti Talks to Asharq Al-Awsat [Oct 1]
"Saudi Arabian Mufti Sheikh Abdulaziz Al al-Sheikh warned against the dangers of the Al-Qaeda organization and its leader Osama Bin Laden and emphasized that this organization has brought nothing but 'chaos and destruction' to the Muslim world. In an interview with Asharq Al-Awsat, Al al-Sheikh emphasized the insincerity of Bin Laden's call and said: 'A Muslim should not be deceived by propaganda and his position on any call should be based on reflection and on close scrutiny of its outcome'. He described the Al-Qaeda organization as 'a bloody and corruptive organization that sows corruption in the ummah [Community of Islam] and destroys property'. The Grand Mufti of Saudi Arabia is not totally satisfied with the steps being taken to repulse the danger inherent in the ideology of the terrorist organization, saying that 'there is delinquency' in this regard. He said that ideological terrorism is 'dangerous and a prelude to practical terrorism'. He emphasized that the war on deviant thoughts should be the strongest.. ..The text of the interview is as follows.." [more]

Saudi, Most Neighbours Start Eid Feast [Oct 1]
"Saudi Arabia, the birthplace of Islam, and most of its neighbours started to celebrate the Eid al-Fitr feast yesterday to mark the end the holy fasting month of Ramadan. Bahrain, Kuwait, the United Arab Emirates, Qatar and Yemen also started the holiday yesterday, media reports said. The timing of Eid can vary in different countries depending on the sighting of the new moon, which marks the start of the month in Islam’s lunar calendar. Regional stock markets are closed during the holiday. The Saudi bourse, the Arab world’s largest, has the longest break and will re-open on October 6.." [more]

Color, Glitter Enliven Saudi Women's Black Abayas [Oct 1]
" For years, the only thing sold openly in Saudi stores selling women's cloaks were of the all-black, drab covering variety. Now, streaks of vibrant color, bands of glittering crystal — even sheaths of sexy leopard skin prints — are showing up on the racks. And that's not all. Women are snapping them up and even sometimes wearing them in public. For stores to openly stock the new generation of cloaks, or abayas, and for some women to wear them in public are not just fashion statements. They are risky acts of defiance in a nation where the powerful religious police have for years raided stores to confiscate "illegal" abayas as part of their mandate as guardians of the kingdom's rigid interpretation of Islamic teachings.." [more]

~~~~~~~~ [ Sep 30] ~~~~~~~~~

Karzai Pleas for Saudi Peace Role [Sep 30]
"Afghan President Hamid Karzai has said that he has made repeated efforts over the last two years to engage Saudi Arabia in peace talks with the Taleban. The president said there had not yet been any direct negotiations, only requests for help. He said that Afghan officials had travelled to Saudi Arabia and to Pakistan to kick-start the process. The comments came during the president's traditional message to the Afghan people during the Eid holiday.. ..'The preparation for negotiations is going on, on a daily basis. Our envoys travelled many times to Saudi Arabia and to Pakistan, but the discussions have not started yet. We hope that it happens soon.' Saudi Arabia was one of the few countries to recognise the Taleban government when they ruled Afghanistan before being overthrown by US forces in 2001. President Karzai has in the past urged Taleban fighters to lay down their weapons and return to their homes.. ..Our correspondent says that many Afghan and western officials believe that the insurgency cannot be defeated militarily and that a political accommodation must be reached, but there has been fierce disagreements between Western countries and the Afghan government as to how this process should proceed.." [more]

Saudi Oil Policy 'Linked to Western SWF Moves' [Sep 30]
"Saudi Arabia is increasingly linking its policy of how much oil it should pump to measures in the West against sovereign wealth funds (SWFs) given its fast growing foreign assets, a leading Saudi bank said yesterday. The Kingdom could decide on higher oil production if it feels that return from its oil revenues is high enough in the long term, the Saudi American Bank (Samba) said in its latest monthly bulletin. The report said Riyadh's oil policy is determined by its perception of the fact that oil is an exhaustible resource with a finite revenue stream, and a source of national wealth which presents intergenerational equity issues. 'Essentially the Kingdom faces a choice between extracting or preserving oil reserves. Amongst the many complex and interlinked factors influencing this choice is the rate of return available on reinvesting the proceeds of extracted oil'.. ..'if these returns are high there is an increasing incentive to produce more oil and transform the proceeds into other forms of wealth which can be enjoyed by future generations,' the bulletin said. 'Conversely if returns are low, there is more of an incentive to leave oil in the ground. This issue has become more topical as it touches on the mounting public concern expressed in some OECD countries over the activities of SWFs.'.." [more]

Arabtec Looks to Expand into Saudi as Liquidity Dries Up in Dubai’s Market [Sep 30]
"Dubai’s Arabtec Holding is looking to expand into Saudi Arabia as it looks to mitigate any potential slowdown in the UAE real estate sector. The UAE’s largest construction firm by market value has been looking to diversify from its core business and expand into new markets over the last year and chief executive Riad Kamal said in an interview yesterday it was now turning to Saudi Arabia. The firm expects to win three contracts in the kingdom next year worth in total as much as 3bn riyals ($800mn), Kamal told Reuters. “'audi Arabia has a very big and solid market and there are a limited number of contractors there but huge projects being developed,' he said. Fuelled by a more than fivefold rise in oil prices since 2002, the world’s largest oil exporter has been developing multibillion dollar projects to attract foreign investment and fill a shortage of housing units for the local market.." [more]

Iraq: Saudi Arabia Hands Over 16 Detainees [Sep 30]
"Iraq says Saudi Arabia has handed over 16 Iraqi detainees as part of a prisoner exchange between the neighboring countries. The Iraqi government says 16 of 443 Iraqis detained in Saudi Arabia were handed over Tuesday. A statement from National Security Adviser Mouwaffaq al-Rubaie says the Iraqi judiciary will investigate them. Authorities have not given reasons for their imprisonment. Iraq's government said earlier that eight Saudi detainees already have been returned to their country. The exchange is the outcome of a joint security operation between the two countries. It comes amid indications of a decrease in tension between the Shiite-led government and Iraq's predominantly Sunni Arab neighbors.." [more]

~~~~~~~~ [ Sep 29] ~~~~~~~~~

Arab Nations Will Reject Any Partial Peace Deal With Israel [Sep 29]
"Arab nations will totally reject any partial or interim solution to the Israeli-Palestinian conflict because historically such arrangements have become permanent, Saudi Arabia's foreign minister said on Saturday. While supporting current Israeli-Palestinian negotiations to reach 'a comprehensive final solution', Prince Saud Al Faisal said 'the least we expect from Israel during these negotiations is that it should halt all colonisation operations.' 'The continuation of colonisation activity in the occupied Arab territories renders the negotiations meaningless and makes it difficult for us to convince our peoples of the feasibility and benefits of achieving peace,' he said.. ..Prince Saud said the colonisation problem continued to be the 'one issue that threatens to bring down the whole peace process.'.." [more]

Saudi Arabia Backs Doha Agreement [Sep 29]
"Saudi Arabia's foreign minister praised over the weekend Lebanon's efforts to implement the Doha agreement, as his Egyptian counterpart said his country's diplomatic efforts had allowed feuding Lebanese to reach the accord. Saudi Foreign Minister Saud al-Faisal said during his speech at the United Nations General Assembly on Saturday that the kingdom supported the Doha agreement, which paved the way for improved relations between Lebanese parties. Faisal said he hoped that the Lebanese would agree to halt the internal use of weapons. He also praised the recent agreements reached between Syria and Lebanon regarding diplomatic exchanges and border demarcation. He added that he supported efforts to undertake national dialogue, and underlined the importance of the Lebanese state having the ability to assert its authority throughout the country.." [more]

Saudi Kayan Enters US $6 bn Financial Deal for New Complex [Sep 29]
"An affiliate of the Saudi Basic Industries Corporation (SABIC), the Saudi Kayan Petrochemical Company (SAUDI KAYAN), entered into US$6 billion financing arrangements (SR 22.5 billion ) for 15 years with a group of banks and financial institutions to finance part of the expenses of building its new (Saudi Kayan) complex in Jubail Industrial City. The complex will be the world's largest integrated petrochemical complex. The financing package is diverse and includes local, regional, international, Islamic and export credit agency debt. Saudi Kayan was advised by Arab Banking Corporation, BNP Paribas and Samba. The initial Mandated Lead Arrangers are ABN AMRO Bank N.V., Arab Banking Corporation, BNP Paribas, HSBC Bank plc and Samba Financial Group.. ..The SAUDI KAYAN complex, currently under construction, is expected to go on-stream in 4th Q 2010 .." [more]

Saudis Invest More Than $2 Billion in Joint Projects with Lebanon [Sep 29]
"The head of the Saudi-Lebanese Business Council has said that the body will launch in the near future projects worth $2.67 billion between Saudi Arabia and Lebanon after a two-year standstill. The Council 'will soon launch projects worth 10 billion Riyals ($2.67 billion) in the fields of trade, agriculture, industry, tourism, and real state between the two countries,' Abdul Muhsin al-Hkeer told alaswaq.net website on Sunday. 'The stabilizing situation in Lebanon pushes Saudis' to invest in Lebanon, he said, adding that 'the security and political stability constitute a fundamental investment factor.' 'Everybody here (Saudi Arabia) feels comfortable and is optimistic about the positive developments' in Lebanon, al-Hkeer told the site. He said the announced projects come after a two-year standstill as a result of the deteriorating situation in Lebanon.." [more]

Saudi Shares Fall 14.8% in Ramadan and 20.2% in Q3 [Sep 29]
"Despite its rebound by 6.6% yesterday, Saudi shares ended Ramadan trading with a sharp decline of 14.8%. Saudi shares also ended the third quarter down 20.2%, becoming the worst performer among all Gulf stock markets with a decline of 32.4% since the beginning of the year. One day before the start of the Eid vacation, Gulf markets registered a strong rise on the approval of the rescue package by the US Congress estimated at $700bn to save the financial institutions. The Saudi market saw the biggest rebound, of 6.6%, after a series of declines which pushed the index down below 6.900 points for the first time in 15 years.." [more]

~~~~~~~~ [ Sep 28] ~~~~~~~~~

No Interim Peace Deal With Israel, Saudi Says [Sep 28]
"Arab nations will totally reject any partial or interim solution to the Israeli-Palestinian conflict because historically such arrangements have become permanent, Saudi Arabia's foreign minister said Saturday. While supporting current Israeli-Palestinian negotiations to reach 'a comprehensive final solution,' Prince Saud Al Faisal said 'the least that we expect from Israel during these negotiations is that it should halt all settlement operations.' 'The continuation of settlement activity in the occupied Arab territories renders the negotiations meaningless and makes it difficult for us to convince our peoples of the feasibility and benefits of achieving peace,' he said. At a Security Council meeting Friday on Israeli settlements, held at Saudi Arabia's request, Saud said the settlement problem is the 'one issue that threatens to bring down the whole peace process.'.." [more]

Concerns Grow Over Saudi’s $26bn Economic City [Sep 28]
"Envisaged as the largest real estate project of its kind in Saudi Arabia, the $26bn King Abdullah Economic City is intended to transform the west coast port area of Jeddah into a centre for foreign investment. But three years after the project was announced leading analysts are growing sceptical of its future, with many now questioning the economics of the venture. Roughly the size of Washington DC, King Abdullah Economic City (KAEC), is intended to be a cornerstone for diversifying the economy away from oil.. ..Saudi lags behind more moderate Gulf business hubs in attracting foreign investors because of its draconian investment rules and tightly regulated bureaucracy. Al Qaeda’s continued presence in the kingdom, where the group has repeatedly targeted foreign workers and interests makes the project even less appealing for international investors. KAEC is the first concerted effort by the kingdom’s rulers to redress this by creating a foreigner-friendly enclave modeled on tax-free business parks in the UAE and governed by its own regulations and laws. 'Although nothing has been said officially about increased liberties, behind the scenes people are saying that the cities will have to open up to attract foreign investment,'.." [more]

Saudi Call to Meet Nuclear Obligation [Sep 28]
"Saudi Foreign Minister Prince Saud al-Faisal yesterday called on Iran to comply with its nuclear obligations to spare the Middle East region 'devastating conflicts, futile arms races and serious environmental hazards.' 'We take very seriously the undertakings of Iran to fully and strictly respect its obligation to prevent the proliferation of weapons of mass destruction,' he said in written remarks circulated at the 192-member UN General Assembly. 'We hope that this obligation will be put into practical effect in such a way as to ensure a peaceful and rapid solution to the problem of the Iranian nuclear programme and save the region from devastating conflicts, futile arms races and serious environmental hazards,' he added. His remarks were released as the UN Security Council met to consider a short draft resolution reaffirming existing sanctions against Tehran over its refusal to suspend sensitive nuclear fuel work which could be used to build a nuclear weapon.." [more]

Saudi Stocks Hit 1-Year Low [Sep 28]
"Saudi Arabian shares fell, with the benchmark index closing at its lowest in almost 15 months, on concern that the US banking crisis will affect local lenders and liquidity ahead of the Eid al-Fitr holidays. The Tadawul All Share Index declined 2% to 6,993.13 in Riyadh, its lowest level since July 3, 2007. The index has dropped 7.8% in four trading days. Of the stocks in the index, 96 fell, 21 rose and eight were unchanged. 'Investors are worried the events in the US will have an impact on banks here; I am sure  we are exposed slightly,’' said Waleed Madani, vice president at investment bank Financial Transaction House. 'Sentiment is bad, there is little liquidity in the market and we are in the final days before the holidays.’'.." [more]

Kingdom’s ‘Economic Freedom Index’ Raised [Sep 28]
"Saudi Arabia is the world’s 60th freest economy, and is ranked 6th out of 17 countries in the Middle East-North Africa region, according to this year’s 'Index of Economic Freedom' report by The Heritage Foundation, a Washington-based think-tank and The Wall Street Journal. The Kingdom’s overall score is above the regional average, the report said. It’s economy 'is 62.8 percent free (and) … overall score is 1.2 percentage points higher than last year, reflecting improved scores in four of the 10 economic freedoms,' the report said. Saudi Arabia scored very well in fiscal freedom, labor freedom, and business freedom. Except for a 2.5 percent Islamic zakat charitable contribution, the government imposes no taxes on personal or corporate income. The labor market is flexible, the report noted. In the most recent year, overall tax revenue as a percentage of GDP was 5.1 percent.." [more]

Kingdom’s Current Account Surplus to Reach SR517.5bn [Sep 28]
"Saudi Arabia’s current account surplus, because of high oil export revenues, is expected to reach an all-time high of SR517.5 billion ($138 billion) this year compared to SR356.25 billion ($95 billion) in 2007. According to the National Commercial Bank’s (NCB’s) Saudi Economic Perspectives report, July 2008, which was released recently, the Kingdom’s oil export revenues are expected to increase by 26 percent to a new record of around SR971.25 billion ($259 billion) in 2008. Non-oil exports are also expected to grow at a slightly slower pace of around 8 percent to SR112.50 billion ($30 billion). Nevertheless, total exports are forecast at around SR1.08 trillion ($289 billion) in 2008, compared to SR873.75 billion ($233 billion) in the previous year.. ..However, the government will most likely exceed budgeted expenditures by an average of 13-15 percent to reach around SR507 billion. The government’s inflation alleviation package, which includes a public sector pay rise and direct subsidies on foodstuffs, building materials, and other consumer goods will probably be one factor for the government’s overspending this year.." [more]

Saudi Arabia Helping With Secret Taliban Peace Talks [Sep 28]
"Saudi Arabia is helping arrange secret peace negotiations with the Taliban aimed at reducing violence in Afghanistan, according to newspaper reports. The Observer reports that the British and Afghan governments had held talks with the rebel group, that was deposed from power in the 2001 invasion, in Pakistan's city of Quetta, which involved a list of demands from both sides. Discussions, with logistic and diplomatic support provided by Britain, are said to be taking place with district-level Taliban officials and Afghan president Hamid Karzai is also aware of the negotiations, it is thought.. ..A Foreign Office spokesman told the Observer he had no knowledge of the Saudi initiative but stated that the British government supported the Afghan state's policy of reconciliation.." [more]

Oil Prices and the GCC: Could the Region be Stoking Oil Prices? [Sep 28]
"With constrained supply and growing demand, the exportable surplus from the GCC has fallen for the first time and this appears to be unavoidable, rather than intentional. Record oil prices are no longer driving GCC growth, but GCC growth may be driving up oil prices.. ..The specific case of the oil-surplus GCC shows that domestic demand growth has exceeded supply growth, and as a result the exportable surplus of oil has fallen in 2007. With record economic growth reflected in rising energy demand, the shrinking exportable surplus is likely to stoke oil prices. Hence, having once been the swing producer of oil, the GCC may no longer be able to play a role in rectifying the global imbalance.. ..Saudi’s ability to step into the void, as it had in the past, has been missing in recent years.. ..The special relationship that the US has with Saudi Arabia is contingent on an uninterrupted supply of oil at a reasonable price. In exchange for this, we believe the US maintains a security umbrella on the GCC, which explains why it acted so swiftly after Iraq invaded Kuwait in 1990.." [more]

Sep 21 - Sep 27, 2008

~~~~~~~~ [ Sep 27] ~~~~~~~~~

Saudi Fashion Falls Foul of Religious Guardians [Sep 27]
"In an attempt to reassert their power, Saudi Arabia's religious police have ordered shopkeepers in central Riyadh to get rid of all adorned abayas, the black robes worn by women in the kingdom, as shopping picks up ahead of the Eid holiday next week. Salesmen in al-Maagaliah market, just across the block from the headquarters of the religious police, or mutawa'a , this week were turning away frustrated shoppers who wanted abayas with a hint of colour or decoration, telling them that shopowners could face fines or prison. In recent years, the signature flowing robe that covers Saudi women from head to toe started to show some form, with trimmed sleeves, beads or colour, a sign of relaxation of the strict social norms in the kingdom. Though the changes were subtle, abayas provoked a tug of war between the liberal voices lobbying to give women more choice and conservative religious institutions determined to impose their austere ways through the religious police.. ..Women's rights activists, however, are concerned that the crackdown on the abaya marks a setback after early symbolic gains achieved since King Abdullah came to power in 2005.." [more]

Arab TV Tests Societies’ Limits [Sep 27]
"Many Arabs were shocked and appalled earlier this month when a prominent Saudi cleric declared that it was permissible to kill the owners of satellite TV stations that broadcast 'immoral' material. But the comment, by Sheik Saleh al-Luhaidan, was only the most visible part of a continuing cultural controversy over Arab television.. ..Arab governments have long tried to stifle the development of critical news coverage, especially on television. This year, they renewed that effort, with most of the Arab information ministers signing an agreement in Cairo to impose restrictions on the satellite channels that have done so much to free up the airwaves in the past decade. The recent controversy over muselselaat, as the soap opera-style serials are known, suggests that Arab authorities, whether religious, tribal or political, are also anxious about the shows’ extraordinary public reach and their power to challenge accepted ideas or traditions. Perhaps the best example is 'Noor,' the popular Turkish series that ran over the summer. The show violated Arab cultural taboos in a number of ways: besides having Muslim characters who drank wine with dinner and had premarital sex, one of the male protagonist’s cousins had an abortion.. ..The show and the liberties it displayed prompted unusual condemnations from hard-line clerics throughout the Middle East, including Sheik Abdul Aziz al-Asheik, Saudi Arabia’s leading cleric, who instructed Muslims not to watch it. But the show appears to have been the single most popular television drama ever shown in the Arab world.." [more]

Saudis Using Oil as a Weapon Against Iran? [Sep 27]
"A Business Week article on Saudi Arabia portrays a kingdom eager to pump oil far above its OPEC quota despite a rapid decline in the price of oil on the world markets. This places them in an adversarial relationship with Iran and Venezuela - two allies. Why might the Saudis engage in this practice? One, is they want to prevent a collapse in demand that might bring about a harsher collapse in prices. However, there might be another reason: to destabilize Iran, an arch-foe of Saudi Arabia. Iran is a Shiite power intent on achieving hegemony throughout the Middle East. Saudi Arabia sees itself as the leading Sunni power and a protector of two of the holiest sites of the Sunni branch of Islam (Mecca and Medina). The article states that the Saudis would like to see oil at $90 a barrel.. ..Are the Saudis engaging in economic warfare against Iran-a nation already beset by an economic crisis and with an election coming up in a few months? The past may be prologue. The Saudis engaged in overproduction to collapse the price of oil during the Reagan presidency in order to weaken the Soviet Union that had invaded Afghanistan and threatened stability in the Muslim world.." [more]

Prince Saud Calls on UN for Action on Israel [Sep 27]
"Minister of Foreign Affairs and head of the Saudi delegation at the ministerial meeting at the UN Security Council, Prince Saud Al-Faisal, stressed that the Israeli settlements are changing the geographic and demographic reality of the occupied Palestinian state and contradict international law, UN resolutions, the Road Map commitments and the Annapolis process. 'Settlement makes the creation of a viable Palestinian state impossible and it makes it difficult for any Palestinian government to work effectively or convince the Palestinians on the possibility of achieving peace. It is unethical to impose sanctions on people suffering under occupation while the occupation authorities are carrying out settlement activities safe from any accountability,' Prince Saudi said. He also said his statement was not demanding anything that Israel had not previously promised to do, including the promises made at Anapolis.. ..At the end of his statement Prince Saudi said that he was not demanding that a resolution be drafted on the issue.." [more]

Water & Power Forum to Discuss Privatization [Sep 27]
"More than 3,000 experts from within the Kingdom and abroad will attend the fourth Saudi Water & Power Forum (SWPF), 'Change, Innovation and Sustainable Development' at Jeddah Hilton from Nov. 2 to 5. Makkah Gov. Prince Khaled Al-Faisal will open the event. The forum will discuss the privatization of water and power sectors, the impact of tariff policy on utilities, ways to achieve sustainability through innovation, water reuse and wastewater management. 'The holding of this annual international forum reflects the Kingdom’s keenness to develop the water and electricity sectors,'.. ..SWPF 2008 seeks to attract companies and investors that aim to capitalize on additional 30GW of power generating capacity targeted by the Ministry of Water and Electricity for 2020, Bushnak said. This figure will double the current capacity of 29.1GW which is produced at a cost of $100 billion. The development of water and electricity sectors is essential in the light of an expected 45 percent increase in population to 36.4 million by 2020. Total water supply in the Kingdom is now estimated at 52 million cubic meters a day.." [more]

~~~~~~~~ [ Sep 26] ~~~~~~~~~

GCC Asks Iran to Cooperate With the IAEA  [Sep 26]
"The foreign ministers of the Gulf Cooperation Council, Egypt, Jordan, Iraq and the United States called on Iran to honor its promise of cooperating with the IAEA, its commitment to develop peaceful nuclear power, and its assurance that it is not seeking production of nuclear weapons. In their joint statement issued jointly on Thursday by participating foreign ministers after a meeeting of GCC, Egypt, Jordan, Iraq, and United States in New York city, the ministers urged Iran to cooperate fully with UN security council resolutions mandating Iran to suspend all enrichment-related and reprocessing activities.. ..The ministers reiterated their support for the full exercise of navigational rights in the Strait of Hormuz, an international waterway vital to global commerce, in accordance with international law. The participating ministers underlined the importance of mutual respect for the sovereignty, independence, and territorial integrity of all states. They condemned all acts of terrorism in all its forms, extremism, sectarian violence, and sectarian agendas.." [more]

Saudi Clerics’ Outbursts Hurt Image of Islam [Sep 26]
"When the head of Saudi Arabia’s Supreme Court recently declared that media officials responsible for airing immoral television programmes could be killed, his remarks provoked what has become a familiar response around the world. Ridicule and scorn for Saudi Arabia, and more 'proof' for Islamophobes of the 'backwardness' of Islam.. ..There were other less frightening, but sometimes silly, pronouncements that caused non-Muslims to wonder why representatives of such a profound and spiritual religious tradition as Islam concern themselves with trivialities.. ..In a meeting with Islamic scholars in Mecca on Monday, King Abdullah spoke frankly about the challenges facing Islam, saying that 'unfortunately, the image of Islam is being tarnished by none other than Muslims themselves'. 'If we want to be honest with ourselves,' he said, 'we have to accept this reality that the sons of Islam are the ones desecrating this pure religion. Islam disowns them and disowns anyone who tries to give it a bad name.'.." [more]

Hike in US Visas for Saudis This Year [Sep 26]
"There has been an increase of 28 percent in the number of US visas issued to Saudi students this year, according to a press release from the American Embassy in Riyadh.  Erin Pelton, Deputy Press Attaché at the US Embassy, informs in the statement that the number of Saudi nationals receiving US visas has increased to 67,000 this fiscal year – a 20 percent rise on the previous year - while the number of student visas issued to Saudi citizens has increased by 28 percent.. ..Saudi students face less frequent visa delays than before. 'Only three percent of Saudi visa applications take longer than three months, and almost 50 percent are issued within two weeks of the interview.' 92 percent of visa applications are successful, and the statement also reveals the embassy’s desire to increase the number of Saudis students and visitors to the US. 'We are very encouraged by these numbers,' it reads.." [more]

Oil Hovers Just Above $109 [Sep 26]
"Oil fell and hovered just above $109 a barrel on Tuesday as some investors took profits after prices rallied over $6 in the previous session on weakness in the U.S. dollar and an improved outlook for U.S. energy demand. Analysts said traders were likely to wait for details on the U.S. government's $700 billion Wall Street bailout plan before making their next move, adding that a speedy approval of the rescue plan would give psychological support to financial markets, while delays could add doubts and shake markets further.. ..Since hitting record highs above $147 a barrel in mid-July, oil prices had tumbled as evidence mounted that high energy costs and economic woes were undercutting global fuel demand. U.S. oil demand is running about 4 percent below last year, according to the latest government data. But news of Saudi Arabia trimming its supply to oil majors, ongoing unrest in Nigeria, and higher-than-expected Chinese imports would be supportive for oil, BNP Paribas' Harry Tchilinguirian said in a research note. Top oil exporter Saudi Arabia has trimmed oil supplies to international majors and U.S. refiners since the start of September, industry sources said on Monday.." [more]

Saudi Arabia Helps Rebuild Hospital [Sep 26]
"The Saudi government would help reconstruct and equip the District Headquarters (DHQ) Hospital Mansehra and Earthquake Rehabilitation and Reconstruction Authority had issued a no-objection certificate to the provincial government. 'The provincial government has agreed to give Rs1 billion for reconstruction of the hospital,' sources said Thursday. The hospital’s various wards, emergency and administration blocks had been destroyed by the October 8, 2005 earthquake. Saudi government had pledged to reconstruct and equip the hospital with an amount of Rs1 bill.. ..The hospital, having capacity of 246 beds prior to earthquake, now squeezed to 150 beds only as it works in the shelters and nursing hostel. Because of the delay in the reconstruction of the hospital, the population of Mansehra, Battagram and Kohistan districts was deprived of the modern treatment facilities.." [more]

~~~~~~~~ [ Sep 25] ~~~~~~~~~

Saudis See $100 Oil as Too High, Says Study [Sep 25]
"Saudi Arabia may believe oil prices at $100 are too high as they could depress crude demand amid the current global financial crisis, a study said yesterday. Despite a sharp decline in oil prices over the past few weeks, their climb to a record high of nearly $150 in July has already affected growth in demand and the latest financial crisis could push it down further, said the study by the London-based Centre for Global Energy Studies (CGES), which is run by former Saudi Arabia's oil minister Sheikh Ahmed Zaki Al Yamani. The centre's monthly oil report, sent to Emirates Business, said the Kingdom appears not in a hurry to cut its crude output in line with a collective Opec agreement this month to reduce production by 520,000 barrels per day (bpd). 'The outlook for oil demand is weakening almost daily, shifting the sentiment of oil markets from bullish to bearish. More hawkish members of Opec have certainly put pressure on Saudi Arabia to defend a $100 oil price, but this may be too high for the Kingdom'.."  [more]

Mid-East Quartet Has Lost Grip [Sep 25]
"The Quartet of international powers has 'lost its grip' on the Middle East peace process which it is meant to foster, a group of aid agencies says. In a damning report, the agencies say the Quartet - Russia, the US, the EU and the UN - is failing in its mission. Conditions for Palestinians, which it was meant to improve, have worsened since peace talks recommenced under US sponsorship in 2007, the agencies say. In the West Bank there was an increase in Israeli settlement and travel curbs. The report was issued ahead of a Quartet meeting in New York on Friday. 'The Annapolis process [launched by the US in November 2007] was meant to herald a new dawn for the Middle East peace process,'.. ..'The Quartet is losing its grip on the Middle East peace process.' There has been no immediate response from the Quartet, whose representative in the region is former UK Prime Minister Tony Blair.." [more]

EFG-Hermes Offers Foreign Investors Access to Saudi Market [Sep 25]
"EFG-Hermes Securities Brokerage now offers its foreign institutional investors access to the largest market in the Middle East & North Africa (MENA) region, Saudi Arabia, through its recently launched Abwab product. In line with the change in regulation from the Capital Market Authority (CMA), the Arab world’s leading investment bank has been granted permission to provide non-resident foreign investors with the ability to purchase Saudi Arabian equities through trade swap arrangements.. ..'The Tadawul&nbs