|
More News this Week
~~~~~~~~ [ 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]
|
