News - June 2008

Jun 29 - Jul 05, 2008

~~~~~~~~ [ Jul 5] ~~~~~~~~~

Saudi King to Launch Inter-Faith Forum in Madrid [Jul 5]
" King Abdullah of Saudi Arabia, whose country is home to Islam's holiest shrines, will launch an inter-faith conference in Spain later this month, the palace said Saturday. The Saudi monarch 'will inaugurate the international dialogue conference which will be held under his auspices in Madrid on July  16-18,' a statement carried by the official SPA news agency said. The agency said the king had left for Morocco on a private visit ahead of the conference due to be attended by Christians, Jews and Muslims.. ..The conference will 'discuss cooperation between communities from different religions and cultures over common human values,' the league's secretary general Abdullah al-Turki said. Leading Islamic scholars meeting in the holy city of Mecca in early June also proposed creating a centre to promote relations between religions. Despite such overtures, Saudi Arabia remains the only Arab Muslim country to ban all non-Islamic religious practices on its soil.." [more]

Saudi Minister: Politics Limiting Future Oil [Jul 5]
"The world has as much as five trillion to seven trillion barrels of oil yet to be developed, located in �challenging� areas or acreage closed to exploration, Saudi Arabian Oil Minister Ali al-Naimi said. 'The limits to future supplies have more to do with politics than with geology and resource availability,'.. ..Concern over supply could be overcome by allowing 'explorers to explore and find hydrocarbons where they aren't allowed,' he said. Oil prices have doubled in the past year, touching a record US$145.85 a barrel yesterday on concern that conflict with Iran over its nuclear programme would cut Persian Gulf supplies. Iran is the second largest member of the Organisation of Petroleum Exporting Countries (Opec).." [more]

Saudi Arabia Gets its First Film Club [Jul 5]
" Saudi Arabia's first film club was founded in the eastern city of Dammam. The club was created as a joint initiative of the Saudi Arts and Cultural Society and Dammam Literary Club. Main objective of the club, according to its founders yesterday, is to take care of the affairs concerning those working in the film industry.. ..Formation of the new club, the first of its kind in the kingdom, was regarded as a by-product of the ongoing cultural partnership between the Saudi Arts and Cultural Society and Dammam Literary Club. The credit for holding the first annual Saudi Film Competition goes to the society and the literary club. The five-day event, which enjoyed official patronage and funding, drew a huge crowd of viewers, including a considerable number of women last month.." [more]

Saudis Happiest of all Arabs: Survey [Jul 5]
"Saudis are the happiest people of all Arabs and rank 26th among the happiest people in the world, according to a study released recently by the World Values Survey, a global network of social scientists based at the University of Michigan. The yardstick of happiness according to the study was the contentment of a people with their living standard. The participants were asked questions such as if they were very happy, happy or not at all happy, Asharq Al-Awsat reported yesterday. The study ranked the Danes first among the people from 97 countries while Zimbabwe came at the bottom. The United States got 16th position and Guatemala came 17th.. ..The study contradicted the notion that people with high per capita income are invariably the happiest in the world. The survey also exploded the myth that freedom and sense of peace and security are the determining factors in making one happy.." [more]

Stock Market Turnover Falls to SR35.62bn [Jul 5]
"The Saudi stock market fluctuated last week and closed 1.19 percent lower at 9,467.68 points from 9,581.34 points previous week. Confusion regarding the performance of firms in the second quarter of the year was the major factor behind violent fluctuations. The TASI is currently 14.2 percent lower than the year�s start. According to the weekly report of the Riyadh-based Bakheet Investment Group (BIG), last week�s fluctuation of prices was attributed by the report to 'the varying view of investors as to the financial outlook of listed companies and the influence of rumors about the expected performance of firms' in the first six months of the year.." [more]

~~~~~~~~ [ Jul 4] ~~~~~~~~~

Intel to Open WiMAX Lab in Saudi Arabia [Jul 4]
" Intel CorporationIntel CorporationIntel Corporation Middle East and the King Abdulaziz City for Science and Technology (KACST)King Abdulaziz City for Science and Technology (KACST)King Abdulaziz City for Science and Technology in Saudi Arabia have announced an agreement to launch a research and development facility. The facility will be hosted by KACST in Riyadh and will be a development hub for the Middle East, Gulf, Turkey and Africa. According to KACST, R&D efforts will focus on networking deployment of WiMAX, and will offer services to telecom operators and systems integrators. The facility also will conduct limited interoperability testing for equipment, as well as performance studies and experiments for new services.Intel Chairman Craig Barrett said "research and development are the basis for future success and WiMAX is especially important in developing markets where wire-line technology is limited due to the lack of infrastructure. We are confident that this lab will provide an excellent platform for Arab scientists and scholars to be innovative in the field of telecommunications and in particular in the WiMAX and networking arena.." [move]

Masry is First Candidate Born in Saudi Arabia [Jul 4]
"She teaches American government and democracy, but was born in Mecca and educated in Cairo. She opposed the war in Iraq, yet her son served as an Army sergeant there for about 18 months and was threatened by Iraqi insurgents. She�s running for political office in a district that does not necessarily agree with her opposition to the war. Meet Ferial Masry � high school teacher, mother of a soldier, ambassador for a region halfway around the world and the Democratic nominee for the state�s 37th Assembly District. While Barack Obama is the first African-American presidential candidate from a major party, Masry hopes to be the first Saudi Arabian-American to be elected to office in the Nov. 4 general election.." [more]

Saudi Prince Warns Against Misuse of Media Tools [Jul 4]
"Prince Turki Al Faisal, chairman of the board of directors of the King Faisal Centre for Research and Islamic Studies, has warned against the misuse of modern media and communication tools to mislead the youth. Inaugurating the First Forum of Communications and Media organised by the International Association of Public Relations here on Wednesday evening, he stressed the need for optimum use of the media in the service of the religion of Islam as well as for the benefit of humanity.. ..He expressed satisfaction over the success of the Saudi security forces in foiling attempts by terror cells in this aspect to a great extent. 'Saudi Arabia is marching forward in taking Shariah as the basis to govern, to bring forth remarkable growth and development for the country, and realise the prosperity and welfare of its people. Islam calls for collective work, openness, tolerance and communication with others,'.." [more]

Critics Question Ambitious Saudi Cities Plan [Jul 4]
"The foundations are being laid and the building of four highly ambitious new cities in Saudi Arabia is under way, with the first, the King Abdullah Economic City, hoping to welcome residents at the end of this year. But as the multibillion -dollar mega-projects inch forward, questions are increasingly being raised about the viability of their concept, amid rising costs and queries about whether the cities will attract the required private sector investment - foreign and domestic - and the human resources needed to meet their heady goals.. ..Most observers expect the flagship King Abdullah city to be a success as it bears the king's name. Concerns surround the feasibility of the others, particularly Hail due to its remote location. Mr Dabbagh acknowledges that the cost of construction for the developers and private sector has risen at least 15 per cent, as a region-wide building boom has caused prices to rocket.." [more]

Saudi Aramco and Dow to Build $26b Chemical Plant in Kingdom [Jul 4]
"Saudi Aramco and Dow Chemical plan to spend $26 billion on building a petrochemicals complex in Saudi Arabia, said a banker with knowledge of the deal. Saudi Aramco and Dow, the biggest US chemical producer, will begin issuing bonds and loans next year to finance the project.. ..Aramco formed the joint venture with Dow last year to build a network of factories with the capacity to produce as much as eight million tonnes of chemicals a year, using raw materials from nearby oil and natural gas plants to cut costs. The country's oil ministry said yesterday that it plans to spend $250 billion on oil, gas, power and water production through 2012. The companies are equal partners in the Ras Tanura project.." [more]

Al-Qaeda Threat is Serious: Al-Asheikh [Jul 4]
"The grand mufti of Saudi Arabia yesterday urged citizens and residents to take the Al-Qaeda threat seriously and join hands with the Kingdom�s security forces in defeating the group. �The finding of weapons and dangerous explosives to carry out subversive acts and destroy economic installations... should not be taken lightly,� said Sheikh Abdul Aziz Al-Asheikh. The statement follows news last week of the arrest of 701 Al-Qaeda militants in the last six months for allegedly plotting to carry out terrorist attacks on oil facilities and other vital installations. Al-Asheikh called on young Saudis not to be enticed by militants. He further demanded coordinated action from Saudis and residents to uncover members of the group.." [more]

UNESCO to List Madain Saleh as World Heritage Site [Jul 4]
"Saudi Arabia will see Madain Saleh inscribed into the UN�s list of important cultural sites during the 32nd Session of the World Heritage Committee meeting, which started on Wednesday and continues through July 10, in Quebec, according to Prince Sultan bin Salman, the secretary-general of the General Commission for Tourism and Antiquities.. ..The potential of raising Madain Salaeh�s profile is of particular importance to the General Commission for Tourism and Antiquities, which has in recent years increased its efforts to promote Saudi Arabia as a tourism destination, especially for domestic travelers as well as religious pilgrims and visitors from neighboring countries who share the Kingdom�s traditions and values.." [more]

High Oil Prices Worry Riyadh [Jul 4]
"The World Petroleum Congress wrapped up yesterday in the shadow of record crude prices, with concern growing about a third oil shock but with little consensus about what to do about it. After four days of meetings between the leading political and corporate energy bosses here, divisions between consumer and producer countries on what or who is to blame for the high oil prices appeared to sharpen. Saudi Arabia, the world�s leading oil exporter, expressed concern yesterday about new records for benchmark crude of over $146 a barrel and again said it was committed to dialogue between consumers and producers. Those discussions show no sign of finding a solution to market tension, however, with both sides citing different reasons: consumers are clamoring for higher supplies while producers blame financial speculators and the falling dollar.." [more]

~~~~~~~~ [ Jul 3] ~~~~~~~~~

Saudi Oil Minister Suggests No New Production Hikes Planned Soon [Jul 3]
"As supply fears helped set a new price record, Saudi Arabia's oil minister said Thursday that OPEC's dominant producer had no immediate plans to boost crude output because there was no need to do so. But Minister Ali Naimi said he was "concerned about the (price) level" and suggested Saudi Arabia is ready to raise production if the kingdom perceives that basics had changed, with supply no longer meeting demand. For now, 'all our buyers are satisfied and happy,' he told reporters on the fringes of the 19th World Petroleum Congress and against a backdrop of soaring oil prices that hit a trading record above US$145 a barrel. But he suggested it was ready to put more oil on the market 'if there is a buyer.'.." [more]

Iran Detains Saudi Fishing Boats Near Nuclear Plant [Jul 3]
"Iran said on Thursday that it has seized four Saudi fishing vessels crewed by Indian nationals in territorial waters near its first nuclear power plant, the Fars news agency reported. 'The Bushehr marine police seized four foreign fishing vessels for violating territorial waters and illegal fishing,'.. ..He said the boats were seized around 30 nautical miles (55 kilometres) from the Bushehr nuclear plant, which is being completed by a Russian firm and is due to go online later this year. The Islamic republic takes serious action against any illegal entry into its territorial waters. In June 2007 Iran arrested the crew of three Emirati boats it had seized for illegal entry and fishing in its territorial waters in the Gulf. In March 2007, Iranian naval forces seized 15 British sailors and marines in the Gulf.." [more]

Saudi Index Leads Gulf Marts Higher [Jul 3]
"Shares in Saudi Arabia, the Gulf�s largest market, led five out of seven regional bourses higher yesterday as investors continued to buy ahead of second quarter results.. ..Saudi shares rose 0.9% to 9467.68 at close, led by Saudi Basic Industries Corp (Sabic), up 1.2% to 143 riyals, Saudi Telecom, up 1.6% to 61.75 riyals, and Saudi Electricity, up 2% to 12.25 riyals. Earnings expectations are driving the markets, said an analyst. 'The buoyant outlook for earnings growth over the next few years underpins our positive view on Saudi Arabia over the second quarter 2008 and 2009,' said EFG Hermes in a Tuesday report on the kingdom. 'The subsequently positive retail investor sentiment will likely drive a recovery rally in the near term,'.." [more]

Young Saudis Say Websites Lured Them Into Extremism [Jul 3]
"Former extremists said during a Saudi television programme on Tuesday night that they were lured into extremism by those spreading false ideologies through websites. 'The easiest way to enter paradise is to take part in Jihad and you may get a golden opportunity for this through joining us,' was the core message of most of these sites, they said while taking part in a programme called Our Worries broadcast by Saudi television. The presenter of the programme said the number of websites spreading extremist ideas was no more than 12 during 1998.. ..Participating in the programme former extremists and detainees said that free time was the major factor that led young men and women to browse the internet.." [more]

Shoura Council OKs Mortgage Law [Jul 3]
"Saudi Arabia will soon have a full-fledged mortgage law as the consultative Shoura Council has passed the long-awaited law after completing debate on its four components.. ..The draft law, which has to be approved by the Council of Ministers, will allow more Saudis to own property and banks to diversify income sources by providing loans to build real estate projects. The four components of the law are: real estate financing system, system to monitor financing companies, lease financing system and real estate mortgage system.. ..He emphasized the importance of the law for the Kingdom�s economy and citizens. The law is designed to allow much wider access to property ownership in a country where only one out of five Saudis owns a home.." [more]

US Must Stop Harassing OPEC, says Al-Badri [Jul 3]
"The United States must stop harassing OPEC members, the organization�s Secretary-General Abdallah Al-Badri said in an interview published yesterday. 'As the world�s major power, I want them to stop harassing OPEC countries,' he told the Spanish newspaper El Pais, when asked about a move by the US Congress to allow the Justice Department to sue OPEC members for conspiring to restrict supplies or drive up prices.. ..The soaring price of oil is not due to 'the myth' of the lack of supplies as Western countries have said, but to speculation sparked by the subprime lending crisis in the United States, he said. 'In reality, it�s all quite simple to explain: the subprime crisis last summer in the United States had a bad effect on stock markets. Investors are looking for other (financial) products and commodities have become the most attractive for speculation,' he said.." [more]

~~~~~~~~ [ Jul 2] ~~~~~~~~~

Sumitomo to Join Saudi Arabia in Power, Water Project [Jul 2]
"Sumitomo Corp., Japan's third-largest trading company, will join a $6 billion project in Saudi Arabia to construct a power-generation and water-desalination facility. The Saudi Arabian government will own 40 percent of the venture while Sumitomo, Kuala Lumpur-based Malakoff Bhd. and Al- Jomaih Automotive Co. may each hold 20 percent, Michihiko Kanegae, deputy general manager at the company's power and social infrastructure division, told reporters today. Middle Eastern countries including Saudi Arabia are developing water and electricity projects because of an expanding population and faster economic growth spurred by record oil prices. Sumitomo aims to more than double its power- generating capacity to 6,300 megawatts by March 2011..." [more]

Saudi Foreign Reserves to Hit $595b in 3 yrs [Jul 2]
"The Chief Economist at EFG-Hermes Holding SAE said that Saudi Arabia's foreign reserves will increase 65 percent to $595 billion by the end of 2010 on record fiscal surpluses, Gulf News reported. She added that the Kingdom's fiscal surplus will peak at 23.5 percent of gross domestic product in 2008, and hold above 15 percent of gross domestic product (GDP) in 2009 and 2010. It was projected that net foreign assets will increase to 93.7 percent of GDP by the end of this year and 109.7 percent of GDP by the end of 2010.." [more]

Women Terrorists Abandon Extremism After Counselling [Jul 2]
"An official source at the Ministry of Interior announced that Saudi Arabia was not holding any women terrorists in its prisons. 'All those women who were detained for their extremist links have been released. All of them abandoned their deviant ideologies, thanks to the counselling programmes, organised by the authorities,'.. ..The source said that the counselling programmes, held at the women's homes in the presence of their family members, were a resounding success.. ..Among the women who repented for having extremist ideologies and returned to normal life was Ummu Osama, who was once the leader of Al Qaida women's wing in the kingdom. Saudi Television also carried a detailed story of Ummu Osama's harrowing experience with the terror cell.." [more]

Saudis Gear Up to Spend Holidays Abroad as Inward Tourism Suffers [Jul 2]
"As the summer vacation approaches, a large number of Saudi families are gearing up to spend their holidays at various overseas destinations. Some 3.5 million Saudi tourists are expected to spend about 35 billion Saudi riyals in the current year. Speaking to reporters here yesterday, Mohaideb Al Moheidab, chairman of the committee for travel and tourism offices at the Riyadh Chamber of Commerce and Industry, said that spending of Saudi families on tourism is three times higher than that of European tourists. 'A major chunk of Saudi spending is on foreign tourism. Of the expected spending of 35 billion riyals this year, domestic tourism is expected to fetch only 16 per cent,'.." [more]

Pirates Stealing Jobs From Saudis [Jul 2]
"Software piracy is not only harming the companies involved, it is also depriving Saudis of over a thousand jobs every year, according to a study done by an international market research company. Software developers sustain over SR500 million losses every year.. ..Software producing companies lose $170 million every year in Saudi Arabia, a number that is likely to increase by $5 million due to the number of PC users growing by 16 percent every year. The Saudi software market, despite being $4 billion strong, has only 10 Saudi companies with only three registered as members in the BSA. Foreign companies, well established across the globe, carry on easily and make huge money despite piracy losses due to their heavy market share in the growing Saudi software industry which is expected to be $7 billion strong within the next three years. The real losers are smaller Saudi companies.." [more]

~~~~~~~~ [ Jul 1] ~~~~~~~~~

Saudi King Urges Consumers to Get Used to High Oil Prices [Jul 1]
"King Abdullah of Saudi Arabia, whose nation is the world's number one oil exporter, called on consumer countries to get used to high prices in comments published on Tuesday. 'Consumer countries have to adapt to the prices and the mechanisms of the market,'.. ..'We have nothing to do with the current sharp increase in crude prices,' he said reiterating the Saudi position that 
speculation, rising demand and the taxation of oil products in consumer countries were to blame. 'These countries must reduce their taxes on fuel.. if they want to contribute to easing the burden on ordinary consumers,'.." [more]

Saudi Oil Project Brings Skepticism to the Surface [Jul 1]
"For mile after mile, there is nothing but flat and unrelenting sand on every side, with a few black camels wandering in the desert glare. Then, suddenly, it rises into view, like some vast industrial mirage. The Khurais oil field�s processing plant resembles nothing so much as an oversize Erector Set, its unlikely vertical tubes and steel scaffolding gleaming in the sun. But this remote patch of desert could hold the key to the soaring price of gasoline around the world. Khurais, about 90 miles east of Riyadh, the Saudi capital, is one of the planet�s last giant oil fields. The Saudis say that it holds 27 billion barrels of oil � more oil than all the proven reserves of the United States .. ..Some oil traders and analysts doubt that.." [more]

US Charges Saudi Man Over USS Cole Bombing [Jul 1]
"Almost eight years after American Navy destroyer the USS Cole was bombed in Yemen, the Pentagon has charged a Saudi Arabian man over the attack which killed 17 American sailors. The Pentagon has charged a Saudi man, Abdel al Rahim al-Nashiri, with murder and terrorism and it is seeking the death penalty. He has been held at the Guantanamo Bay military prison in Cuba since 2006.. ..A senior Pentagon official will decide if the charges should proceed.." [more]

Stop Retaining Passports, Saudi Study Recommends [Jul 1]
"A study, conducted by Saudi Arabia's human rights panel, has recommended scrapping the much-debated sponsorship system.In the report presented to King Abdullah Bin Abdul Aziz and the Ministries of Interior and Labour, the National Human Rights Society (NHRS) has sought to redefine the relationship between foreign workers and Saudi employers, which is 'not reasonable'.. ..In the study, the society called for banning employers from keeping the passports of the foreign workers. 'It also called for cancelling the regulation in the current sponsorship system that employees shall get permission of their employers to bring their families, perform Haj pilgrimage, marry, or visit their relatives living in other regions of the kingdom,'.." [more]

Japan Suggests Institute for Saudis [Jul 1]
"The Jeddah Chamber of Commerce and Industry yesterday welcomed a suggestion from a visiting Japanese delegation of establishing a high institute for providing vocational training in electronics and home appliances to young Saudis.. ..we have come up with a suggestion to start a high institute for providing training in electronics and home appliances here,' he added.The visit is a follow-up of an agreement signed during the Saudi Japanese Business Council meeting held in Riyadh in January. 
'We also understand that human resource is on top of the agenda of the Kingdom�s chambers of commerce and ndustry,' Nakamura said. Asked whether the high institute suggested is like the Saudi Japanese Automobile High Institute, which in the past few years has been training hundreds of Saudis in Jeddah, Japanese Consul General Toshimitsu Ishigure said: 'It is something like that, but the idea is to establish a high institute in Riyadh and its branch in Jeddah to cover the field of technologies related to electronics and home appliances.'.." [more]

Saudi Arabia: Muslim Scholars� Conference Aims for Islamic Unity [Jul 1]
"Informed sources in the General Secretariat of the Organization of the Islamic Conference (OIC) revealed to Asharq Al-Awsat that there is an impending conference planned to be held in the near future that will bring together Muslim scholars from various sects. The objective of the conference will be to confront the factors that cause divisions and disunity in religion, including ignorance, ethnic intolerance and extremism and the exploitation of sectarian conflicts as a means to achieve political goals.. ..The timing of the conference is critical as it coincides with a number of political conflicts in the region, most notably in the Lebanese and Iraqi arenas.." [more]

~~~~~~~~ [ Jun 30] ~~~~~~~~~

Three Years of Abdullah�s Ascension to Throne [Jun 30]
"King Abdullah, Custodian of the Two Holy Mosques, Monday witnesses the third anniversary of his ascension to the throne.. ..During the three years as monarch King Abdullah excelled as a statesman and a leader with a vision.. ..According to Al-Zolfah, the most important achievements in the recent years were the efforts to change the image of the Kingdom in the international media. 'Encouraging women to involve in many aspects of the Saudi community, combating terrorism, his call for dialogue and paving roads for political participation through municipal councils prove that King Abdullah is playing a major role to develop Saudi Arabia,'.." [more]

Alarm Over Oil Prices as Experts Set to Meet [Jun 30]
"One of the most important events in the oil industry was opening last night in Madrid as concern over soaring oil prices was mounting worldwide. The 19th World Petroleum Congress was expected to bring some 4,000 experts including the heads of Opec and the International Energy Agency, energy ministers and representatives of top oil companies from about 60 countries to the Spanish capital until Thursday. Yesterday�s schedule included an opening dinner, with the first plenary session planned for today. The congress under the motto �A world in transition: delivering energy for sustainable growth� was to discuss possible solutions to high oil prices a week after a meeting of oil producers and consumers in the Saudi city of Jeddah failed to bring them down. Oil prices have risen five-fold in six years, reaching a level which is hastening inflation, creating political turmoil and threatening the global economy with a recessionary impact.." [more]

30,000 Saudi Graduates to Enter Labor Market by 2015 [Jun 30]
"Skilled talent in the labor market is set to dynamically change as 30,000 Saudis are expected to graduate from prominent universities around the world by 2015. The Ministry of Higher Education for Foreign Scholarships Affairs released the estimate and said half of the students by then would complete their masters/post graduate studies while the other half would complete their bachelors. Almost half of them are expected to work in the upcoming universities here and form 30 to 40 percent of the teaching staff.. ..The Custodian of the Two Holy Mosques Program of Scholarships is now in its fourth phase and the ministry is all geared up for new initiatives and measures. The initiatives have been divided into sub-phases with the first one focusing on scholarships for students sent on various degree programs.." [more]

90% of Terror Suspects Were Saudis: Naif [Jun 30]
"Around 90 percent of people arrested by security forces in recent anti-terror sweeps across the Kingdom were Saudis plotting to attack oil facilities and other vital economic installations, Interior Minister Prince Naif said in remarks published yesterday.. ..Prince Naif�s comments came four days after the Interior Ministry announced the arrests of 701 suspected militants for plotting to carry out attacks on vital Saudi installations. 'Some of the detainees were planning to stage terrorist attacks on oil fields and installations,' said Maj. Gen. Mansour Al-Turki, the ministry�s spokesman. Prince Naif said there was no evidence to implicate any foreign country for terrorist activities inside the Kingdom. However, he did not rule out a foreign role. 'We make statements based on facts,' he said.." [more]

GCC Leaders Gather Today to Discuss Food Crisis [Jun 30]
"Food security, multimillion dollar agriculture projects and plans to ensure sufficient food supplies in the Kingdom and the Gulf states will top the agenda of an important meeting of the agriculture ministers from the six-nation Gulf Cooperation Council (GCC) tomorrow.. ..The ministers will also discuss launching of a regional office of Food & Agriculture Organization (FAO) in one of the Gulf states, which have renewed commitments to work with regional and international food organizations to deal with the new problems. Moreover, the meeting will finalize the formulation of a uniform regulation about the fishing boat operation in the Gulf waters. This meeting is important keeping in view the fact the Gulf states have intensified efforts to ensure food security in the region.." [more]

Editorial: Saudis Question Oil-for-Security Formula [Jun 30]
"Last week's oil conference in Saudi Arabia marked a turning point in U.S.-Saudi relations, raising doubts about whether the oil-for-security formula still guides this longtime alliance. With skyrocketing oil prices endangering U.S. economic stability, Saudi Arabia refused to increase production beyond a token amount. Saudi and U.S. officials bickered about whether the current price spike is because of market speculation or producers' greed. The brusque departure of U.S. Energy Secretary Samuel Bodman from the conference underscored the growing frustrations on both sides.." [more]

~~~~~~~~ [ Jun 29] ~~~~~~~~~

Saudis Pour Billions Into City of Knowledge on Holy Site [Jun 29]
"Saudi Arabia is pouring billions of dollars into Medina, burial place of the Prophet Mohammed and the cradle of Islam, to turn the religion's second holiest site into a high-tech bastion. The so-called Knowledge Economic City (KEC) is the fourth in a series of projects launched by the oil powerhouse in December 2005 aimed at attracting foreign investment and bolstering development. It is being promoted by the Saudi Arabian General Investment Authority (SAGIA) and financed by the private sector a few miles from the centre of Medina and the Mosque of the Prophet, a top pilgrimage destination.. ..KEC is the latest in a series of mammoth development schemes in the kingdom, where the first project known as King Abdullah Economic City is being built at Rabigh on the west coast. The KEC is being built around a special theme to promote knowledge and sciences with through education, health and information technology. The history of Medina was one of the reasons it was chosen to host the new city.." [more]

Saudi Electricity Eyes Sukuk [Jun 29]
"Utilities giant Saudi Electricity Co (SEC) is looking to sell sukuk in order to meet soaring demand for power in the kingdom and cope with rocketing contracting costs. The firm, which raised 5 billion riyals from the sale of its first Islamic bond about a year ago, will need to spend 26 billion riyals ($6.93 billion) on four planned power plants.. ..Islamic bonds do not pay interest, which is banned as usury under Islamic law. Instead, sukuk issues offer investors a share of profits from approved investments. The sukuk is structured to resemble a floating rate note. Only institutional and individual investors resident in Saudi Arabia and with bank accounts in the kingdom were allowed to buy the five-year bonds.." [more]

Saudi Tourism Strategy Takes Shape [Jun 29]
"A multi-billion dollar strategy to develop tourism in Saudi Arabia has been approved by the Council of Ministers in a move that could create a potential 15,000 new jobs and generate $650m worth of revenue within five years. Over a period of 20 years up to 60,000 jobs could be generated within an expanded tourism sector.. ..Plans for Saudi Arabia's first large-scale dedicated tourism development to be located in the Gulf coast area of Al-Auqair, south of Dammam, are already at an advanced stage. These could lead to $10bn of investment in the 100sqkm area which includes 15 kilometres of coastline.." [more]

Saudi Arabia: Justice Ministry Delegation to Study US Judicial System [Jun 29]
"A delegation from Saudi Arabia's Ministry of Justice will soon dispatch to the United States to study the US experience with judicial management. Saudi judicial management may adopt technology and training methods if the delegation deems the US system compatible. The decision to send the delegation was made during a meeting between Dr Abdul Malik bin Ahmad Al Sheikh, the senior adviser to the Saudi Justice Minister, and Erica Barks-Ruggles, US deputy assistant secretary of state for democracy, human rights, and labor, who is currently visiting the Kingdom. They discussed cooperation prospects through exchange of expertise of pre-litigation procedures, especially concerning training and technology. Al Sheikh told Asharq Al-Awsat: 'We may benefit from the US experience in the field of judicial management and we may not.' He explained that the Saudi delegation 'will become acquainted with and will learn about the systems there [in the US] in the field of judicial management while also considering the differences between the Saudi and US systems.' .." [more]

Oil Leaders Meet Again After Jeddah Failure [Jun 29]
"A week after failing to deflate record oil prices at a summit in Saudi Arabia, the world's biggest crude producers and consumers will get another chance to tackle the problem at a meeting this week. More than 3,000 delegates, including leading corporate and political figures, are to meet at the 19th World Petroleum Congress (WPC) in Madrid, which runs from Monday to Thursday after an official opening reception on Sunday.. ..The gathering follows a surge in oil prices Friday that took both New York light sweet crude and Brent North Sea crude to record levels beyond 142 dollars a barrel. The president of the Organization of Petroleum Exporting Countries, the head of the International Energy Agency and ministers from Nigeria, Russia, Venezuela, India, France and the Netherlands are expected to be present. They are to be joined by the bosses of major international oil groups ExxonMobil of the United States, CNOOC of China, Britain's BP and Shell, Rosneft of Russia and Total of France.." [more]

Saudi Wife Calls for Political Activist Al Faleh's Release [Jun 29]
"The wife of jailed political reform activist Matruk Al Faleh is calling for his immediate release. Al Faleh is detained in the high-security Haer prison�where militants are held�outside Riyadh.. ..She has sent letters to Saudi King Abdullah and the Interior Ministry. The US-based Human Rights Watch has also asked for Al Faleh's release. 'Matruk is not against the government, he is against violence. He is against radicalism and we want to fight together with the government against radicals,' Ukla said. Al Faleh was sentenced to seven years in jail in 2005 for organising a petition calling for Saudi leaders to set a timeframe for making a constitutional monarchy.." [more]

Saudi Inflation Stabilises, Food and Rents Soar [Jun 29]
"Annual inflation in Saudi Arabia eased slightly to 10.4% in May down from a more than 30-year high a month earlier, but rising rental and food costs continued to pressure the world�s top oil exporter. The cost of living index for the largest Arab economy was 115 points on May 31 compared with 104.20 points a year earlier.. ..The rental index which includes rents, fuel and water soared 18.5% while and food and beverage costs advanced 15.1%, the report said. 'The picture in the Gulf now is that main drivers of inflation are the costs of housing and food,'.. ..Dollar pegs force the Gulf Arab states, bar Kuwait, to track the US in cutting interest rates. With the dollar tumbling this year to record lows against the euro and a basket of major currencies, some imports have become more expensive.." [more]

Kingdom�s Business Environment Bright [Jun 29]
"Business environment in Saudi Arabia is making great strides as shown in this year�s Forbes list of 'Best Countries for Business,' in which it has been dramatically elevated to number 47 spot, up 37 slots from a year ago.. ..Saudi Arabia, despite higher inflation, has tackled inequities in its markets, expanding investor rights as it evolves from an oil producer to a center for investment in the Middle East. Low inflation and unemployment, an emphasis on entrepreneurship and lower taxes, plus high marks for innovation and technological savvy, were the primary criteria used by Forbes in the 3rd annual ranking of the Best Countries for Business (formerly the Forbes Capital Hospitality Index). The report covered and analyzed business climates in each of more than 120 national economies, focusing on degrees of personal freedoms, like freedom of expression and organization.." [more]

Jun 22 - Jun 28, 2008

~~~~~~~~ [ Jun 28] ~~~~~~~~~

University to Host Global Conference on Terrorism [Jun 28]
"Dr Mohammad Al Oqla, director of the Islamic University in Madinah, announced that King Abdullah Bin Abdul Aziz has granted his endorsement to the university to hold an international conference against terrorism. Several key figures, including leading Islamic scholars, thinkers and intellectuals from various parts of the world will be invited.. ..The Madinah conference is aimed at exerting efforts to root out terrorism as well as to drain its financial sources, said Dr Al Oqla. The conference is also part of the kingdom's initiative to tackle the malicious campaign being waged against Islam, its Prophet and its holy book, he said, adding that there will be a serious attempt to present the true picture of Islam and Muslims.." [more]

SR10 Billion Approved to Build 300 Tech Colleges [Jun 28]
"The Technical and Vocational Training Corporation (TVTC) will build 300 technical colleges and institutes at a cost of SR10 billion in five years, said TVTC Governor Dr. Ali Bin Nasir Al-Ghufais. These will include 36 higher institutes for girls at a cost of SR2.5 billion all over the Kingdom. The capacity to admit high school graduates will rise from 150,000 to 450,000, he said. The money for the purpose has already been approved and construction has begun, Al-Ghufais said. TVTC is expected to admit 50,000 trainees next year, out of 72,000 who applied online this year. But technical colleges were not able to admit more than 15,000 for the first semester because of the lack of seats.Al-Ghufais said technical and vocational graduates can find jobs easily.." [more]

Aramco Installations are Safe � Official [Jun 28]
"All Saudi Aramco installations are safe and foolproof security measures are in place to thwart any militant attack, a senior Aramco official has said. Joint patrols by Saudi security forces and the company�s Industrial Security Administration have been beefed up and barriers and security checkpoints at all installations are on full alert, the official added. The Ministry of Interior has recently warned of plans by terrorists to seek jobs at oil installations. All contractors supplying manpower to Aramco have taken strict measures to ensure that no unscrupulous elements sneak into their employment rolls. Nasser Al-Hajri, chairman of the Contractors Committee in the Eastern Province, has asked all contractors to tighten control over companies carrying out some Aramco projects. He also called for implementation of the fingerprinting system for all its workers. Saudi Aramco employs about 60,000 people.." [more]

Saudi Investors Ready to Invest $2b in Jakarta�s Agro Industry [Jun 28]
"Eight Saudi large companies have set aside US$2 billion to develop Indonesia�s agro industry, a Saudi executive said. �Saudi Arabia has allocated huge funds for investment in the agro industry. Eight Saudi companies are ready to cooperate with Indonesian partners which are serious in establishing such cooperation,� Chairman of Saudi Arabia�s Global Unions Company Khalid S. Al-Musa said at the Indonesia-Middle East Business Forum here on Thursday. Indonesian companies had not much benefited from the Saudi market, he said adding the chance for Indonesia�s non-oil/gas products particularly rice to penetrate the Saudi market was wide open. The current global food crisis had worried the Kingdom so that it decided to invest in the agro industry sector abroad and Indonesia endowed with abundant natural resources was considered suitable for the development of food industry.." [more]

Scholars Want Action Against Extremists [Jun 28]
"Reacting to the recent disclosure by the Interior Ministry that terrorist organizations were exploiting Haj and Umrah facilities to bring in foreign Al-Qaeda cadres into the Kingdom, several religious scholars have stressed the need to deal firmly with extremists. 'The Saudi government tries its best to ensure excellent facilities to Haj and Umrah pilgrims and so it is the duty of all pilgrims not to violate the sanctity of the holy cities and not to create law and order problem. Any act or ideology that aims to disrupt law and order in the Kingdom, which is the home to Makkah and Madinah, is an unpardonable crime,'.. ..Al-Khodairy added that extremists coming to the Kingdom in the guise of pilgrims are not real Muslims, Al-Eqtisadiah daily reported yesterday.." [more]

~~~~~~~~ [ Jun 27] ~~~~~~~~~

Saudi Varsities to Absorb 86% High School Grads [Jun 27]
"Eighty-six percent of secondary school graduates will get seats at Saudi universities this year. Higher Education Minister Dr. Khaled Al-Anqari has given his instructions to universities in this respect. 'This is the highest university intake in the world. In most countries a maximum of only 50 percent secondary school graduates get to universities,' the minister said. The tremendous increase in intake comes with the opening of 12 new universities and several colleges in different parts of the Kingdom. During the last four years the number of government universities in the Kingdom rose from eight to 20. Al-Anqari said some 5,000 students would be sent abroad for higher studies, especially for master�s and doctoral courses and fellowships, in the fourth phase of King Abdullah Scholarship Program. More than 40,000 Saudi students are currently pursuing higher studies in universities and institutes in Europe, America, China, Japan, Singapore and South Korea.." [more]

Saudi Arabia Plans Water and Power Projects Worth $12b [Jun 27]
"Saudi Arabia has planned more than $12 billion worth of water and power projects that will supply an additional 2.24 million cubic metres of water per day and 2,750 mega-watts of power in the next few years, a government official said. The country is also set to privatise key government-owned assets and expects the total capital and operation investments value of desalination privatisation projects to hit $43 billion over the next 20 years, according to Fehied Al Sharif, governor of Saudi's Saline Water Conversion Corporation (SWCC) and chairman of the Privatisation and Restructuring Team.. ..Al Sharif said the projects will boost the water and power supply in the country, which will need 8.3 million cubic metres of fresh water per day and 70,000 mega-watts of power capacity by 2024. So far, at least four independent water and power projects (IWPP) have been approved by the Supreme Economic Council.." [more]

Oil Could Hit $170 a Barrel This Summer [Jun 27]
"The president of OPEC, Algerian Energy Minister Chakib Khelil, forecast yesterday that oil prices could rise to $150 to $170 a barrel during the Northern Hemisphere summer. If there were real demand for extra oil, the Organization of Petroleum Exporting Countries would do what is needed to satisfy it, he said, affirming that there was enough oil in the world for about the next 50 years. 'I predict probably prices of 150 to 170 dollars this summer. It (the market) will probably fall a bit toward the end of the year,' he said in an interview with the France 24 television channel. Khelil said he did not expect prices to hit $200 a barrel, barring a major market crisis such as a halt in production in Iran. In that case, he added, prices could possibly surge to '200, 300, 400 dollars.'.." [more]

~~~~~~~~ [ Jun 26] ~~~~~~~~~

Terrorist Groups Destabilizing Saudi Arabia [Jun 26]
"During the last six months, Saudi security forces have arrested 701 militants for allegedly plotting to carry out terrorist attacks on oil facilities and other vital installations across the Kingdom, the Interior Ministry announced yesterday. 'Some of the arrested suspects were planning to stage terrorist attacks on oil fields and installations,' Maj. Gen. Mansour Al-Turki, spokesman for the ministry told Arab News. He said the militants � Saudis and foreigners � were trying to regroup and strengthen the Al-Qaeda terror network in Saudi Arabia. 'The exact involvement of these new detainees, who were apprehended during the last six to eight months is not immediately known,' the spokesman said. 'However, the five terror groups mentioned in the statement are not linked to one another.'.." [more]

Shoura Demands Explanation for Ongoing Water Crisis [Jun 26]
"Outraged by the aggravating water crisis in the Kingdom, several Shoura Council members demanded that the concerned minister and the top official of the water desalination corporation should be called to the council.. ..The members, who described the water situation as catastrophic, made the demand while discussing a report submitted by the council�s Water and Electricity Committee on the ministry�s performance in its last meeting presided by Assistant Chairman Abdul Rahman Al-Barrak.. ..Various cities, including Riyadh, Jeddah, Taif and Abha, have been suffering water shortages and people have been made to wait for several hours for a truck of water in front of water distribution centers. Some had to get water from the black market after paying as much as SR400 for a tanker, which normally costs SR114. Sometimes, the price goes up as high as SR800. There have been reports of people waiting more than 10 hours at the center to obtain a delivery truck.." [more]

Sunni Saudi Cleric Visits Shi'ites to Ease Tension [Jun 26]
"A prominent Sunni Muslim Saudi cleric met with minority Shi'ite Muslim leaders this month in an attempt to soothe anger over an edict by radical sheikhs calling Shi'ism a heresy, Shi'ite sources said on Thursday. They said Mohammed al-Nujaimi met last week with leading Shi'ite cleric Hassan al-Saffar and other religious and community leaders in the Shi'ite area of Qatif in the Eastern Province, where most of Saudi Arabia's Shi'ites live. A group of 22 Sunni clerics issued a fatwa -- or religious edict -- this month saying Lebanon's Shi'ite Hezbollah movement was posturing against Israel to hide an anti-Sunni agenda and said Shi'ism had "infidel precepts".. ..Sunni and Shi'ite Islam are the two main branches of the faith. Saudi Arabia, which practices an austere form of Sunni Islam called Wahhabism, has a substantial Shi'ite minority of between 10 and 15 percent.." [more]

$500m Industrial Zone Planned in Prison Complex [Jun 26]
"Saudi Arabia plans to set up an "industrial zone" to the value of 2 billion riyals ($500 million) behind the walls of a prison complex. The head of Haer prison and the government's Industrial Cities Authority signed a contract to attract private sector investment, which would provide 3,000-5,000 jobs, apparently for prisoners, Saudi media said yesterday. Haer is a high-security prison near Riyadh. "The project will rehabilitate and train inmates of the facility to undertake jobs that will help everyone," a statement by the authority said. However, it was not clear what industries would be targeted inside the zone.." [more]

Saudi Business Delegation in Ethiopia [Jun 26]
"A 10-member Saudi business delegation, headed by Commerce and Industry Minister Abdullah Zainal Alireza, assessed investment opportunities in Ethiopia during its three-day visit that ended yesterday. The delegation was given a warm welcome in Addis Ababa when it arrived at Bole International Airport on Monday.. ..Saudi investors are engaged in various sectors in Ethiopia, he said, adding that they are also keen to explore the prospects of investment in the agriculture sector. The delegation held discussion with Ethiopian senior government officials on investment promotion and protection. Ethiopian ministers told the visiting Saudi delegation that their country was endowed with rich agricultural resources and also had a favorable investment policy.." [more]

~~~~~~~~ [ Jun 25] ~~~~~~~~~

Free Health Care for Pilgrims a Major Challenge: Al-Manie [Jun 25]
"The government�s public health care sector provides 80 percent of medical services in the Kingdom, said Health Minister Dr. Hamad Al-Manie yesterday while delivering a speech on the third day of the Knowledge Economy Forum in Madinah. 'Investment in health care is a direct investment in citizens. The government spends more money on health care, because this indirectly contributes to the growth of the country�s GDP,' Al-Manie said. He said that once the 97 hospitals, which are currently being built at a cost of SR17 billion, are completed in 2012 the number of hospitals run by the Ministry of Health would reach 350. 'One of the major challenges facing the Saudi health sector is the free health care offered to the 3 million Haj and 10 million Umrah pilgrims who visit the Kingdom annually. For instance, many pilgrims suffer from heart problems, which require expensive medical equipment and expert care,'.." [more]

Saudi-Japan Relationship Grows Stronger [Jun 25]
"Saudi Arabia and Japan enjoy a warm, longstanding relationship with the Kingdom supplying most of Japan�s oil needs and many Japanese companies partnering in multibillion dollar projects here. But the relationship goes beyond business.. ..�Cooperation between our two countries on petroleum issues has a long history, and covers many different facets of the oil business,� Al-Khayyal said, noting that Saudi Aramco has maintained offices in Japan for more than two decades. He added: �As Japan�s largest supplier, we are proud of the role that our petroleum has played in Japan�s tremendous economic success over the last half century, and we remain committed to supplying the crude oil and petroleum products that Japanese consumers need to maintain their way of life.� He also discussed current challenges the oil industry faces.." [more]

Top Saudi Official: Ball in Israel's Court if it Wants Peace With Us [Jun 25]
"Prince Tourki M. Saud al-Kabeer, Saudi Arabia's assistant deputy minister for political affairs, said Wednesday that "the ball is in Israel's court," when asked of the possibility of establish full diplomatic relations between the two countries.. ..The prince added that the prospect of striking a separate peace deal between Israel and Saudi Arabia before arriving at such an agreement with other Arab states is out of the question. Tourki said that Saudi King Abdullah's 2002 Arab peace initiative "offered Israel concrete things," but that Jerusalem had failed to give a positive response. He slammed Israel's continued settlement activity in the West Bank, and said that peace was an impossibility so long as the separation fence harms the fabric of Palestinian life. "Good will has to come from the Israeli side,".." [more]

Saudis Hold 520 Terror Suspects [Jun 25]
"Saudi Arabia is holding 520 suspected militants following raids across the kingdom this year, its interior ministry says. They are accused of links to what it called the "deviant group" - a term used for al-Qaeda by Saudi officials. They said the accused were of various nationalities and had been plotting attacks in and outside Saudi Arabia. Officials said a further 181 suspects detained in 2008 had been released because of a lack of evidence. The militant arrest figures are thought to be the largest and most comprehensive ever released by the Saudi authorities. The ministry said one group of suspects was detained close to an oil export terminal and major petrochemical plants in Yanbu, on the Red Sea coast. The authorities said another alleged cell, which included Africans, was broken up in eastern Saudi Arabia after trying to gather information about oil facilities.." [more]

Swiss Gov't Approves Controversial Weapons Exports [Jun 25]
"The Swiss government on Wednesday approved exports of weapons to Saudi Arabia, South Korea and Egypt totaling 3.58 million Swiss francs (about 3.45 million U.S. dollars). The decision followed a campaign to ban such transactions by the pacifist group Switzerland without an Army, the official Swissinfo website reported. South Korea will receive assemblies and spare parts for anti-aircraft systems in the amount of 1.3 million Swiss francs (about 1.25 million U.S. dollars), according to a statement by the economics ministry. Saudi Arabia has purchased 879,000 Swiss francs (about 84,5000 U.S. dollars) in machine guns and weapons accessories, and the Egyptian defense ministry has procured machine guns, grenade launchers and accessories worth 1.4 million Swiss francs (about 1.35 million U.S. dollars). The Swiss government said it would monitor the use of the weapons by the three countries.." [more]

~~~~~~~~ [ Jun 24] ~~~~~~~~~

AGFUND Joins Fight Against Human Trafficking [Jun 24]
" Prince Talal, president of Arabian Gulf Program for United Nations Development Organization (AGFUND), signed an agreement recently to finance and sponsor a project to fight human trafficking. The project will cost $400 million and the International Labor Organization will be involved to make sure that labor rights are not violated. This project is one of the global initiatives of the international program to fight human trafficking. According to the United Nations, 600,000 to 800,000 people are traded annually across international borders; most of the victims are women and children. Human trafficking includes deceptive recruitment practices that lure laborers into working in foreign countries under false pretenses.." [more]

EADS Near $1 bln Saudi-Iraq Border Deal [Jun 24]
"A consortium led by European aerospace group EADS is favourite to win a $1 billion contract to build a border fence shielding Saudi Arabia from Iraq, executives at the Saudi business partner said. Saudi Arabia, the world's largest oil exporter, wants to build a razor-wire fence along the 900-km (560 mile) frontier with its northern neighbour, with thermal imaging and radar equipment. An official at Al-Rashed Trading & Contracting, who declined to be identified, told Reuters the Saudi group had received a letter of intent for the work and was "working and completing some requirements for the client". The two companies comprise the consortium.. ..Officials at Saudi Arabia's Ministry of Interior could not immediately be reached for comment. Jacques Bourgeois, general delegate for EADS in Saudi Arabia was not available when contacted. Two contractors bidding for the project told Reuters in September the project would cost about 4 billion riyals ($1.07 billion) and was part of a wider defence plan to secure the country's 6,500 km (4,000 miles) borders.." [more]

~~~~~~~~ [ Jun 23] ~~~~~~~~~

Knowledge Forum Opens in Madinah [Jun 23]
"Madinah Governor Prince Abdul Aziz ibn Majed opened an international knowledge forum here yesterday and emphasized Saudi Arabia's efforts to further enhance its investment climate and create more educational and training opportunities to its citizens.  Addressing the opening session, Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA), stressed his organization's strategy to attract international investment to knowledge-based industries at Madinah's Knowledge Economic City (KEC). KEC also aims at attracting leading scientific institutions and Muslim scientists and intellectuals from different parts of the world to Madinah, he said. 'KEC is set to become a major driving force of the national economy. It will also create more job opportunities for Saudis,' .." [more]

New Field to Give Saudis 500,000 bpd Capacity Boost [Jun 23]
"Saudi Arabia will start adding 500,000 barrels a day of oil to total capacity when the Khursaniyah field comes on stream in August, an official at state-run oil company Saudi Aramco said. The kingdom also expects to start production at its 1.2 million-barrel a day Khurais oil field by June 2009, Amin al- Nasser, senior vice president of exploration and production at Saudi Aramco, said today. The Khurais field has a reserve of 27 billion barrels, he said. Saudi Arabia, the world's biggest oil exporter, plans to increase production for a third straight month in July and further boost output as needed to curb record prices. The country will raise daily crude output by 200,000 barrels to 9.7 million barrels next month.." [more]

Saudi Arabia Pledges to Pump More Oil [Jun 23]
"Saudi Arabia has pledged to increase oil production to a level not seen in more than 25 years. The pledge by Saudi officials came as welcome news to many. At an international oil meeting Sunday, the kingdom vowed to increase oil production to its highest rate since 198 -- from 9 to 9.7 million barrels a day. Saudi officials warned that prices may not fall in the near future. "It will be, I think, unfair to gauge the success or failure of this meeting by how prices in the short term will perform," said Deputy Oil Minister Prince Abdel Aziz bin Salman.. ..The Saudi pledge comes as U.S. officials on both sides of the aisle argue their own solutions to the nation's oil and gas crisis. Last week President Bush asked Congress to combat rising prices by lifting the ban on offshore oil and gas drilling.." [more]

~~~~~~~~ [ Jun 22] ~~~~~~~~~

China is a Key Partner: Sultan [Jun 22]
"Crown Prince Sultan and Chinese Vice President Xi Jinping held talks here yesterday and signed a joint declaration to strengthen strategic cooperation between the two countries. 'We in Saudi Arabia consider China an important and effective partner,� Prince Sultan said at the outset of his meeting with the Chinese leader. �We look forward to a bright future in our relations against the backdrop of our two countries� historic and cultural heritages and huge economic and cultural potentials,' the Saudi Press Agency quoted the crown prince as telling his Chinese guest. In his speech, Xi said Beijing had given the utmost importance to its relations with Saudi Arabia.." [more]

Sultan Outlines Kingdom�s Tourism Goals [Jun 22]
" Prince Sultan bin Salman, secretary-general of the General Commission for Tourism and Antiquities (GCTA), said yesterday that the commission aims to make Saudi Arabia one of the most-favored tourism destinations in the region. Prince Sultan was speaking at a luncheon meeting organized to launch GCTA�s summer tourism program. The tourism plan, Prince Sultan said, has details of the events, fun and frolics, traditional arts, folklore skits and sporting events that will be organized by local companies and tourism organizations in cooperation with the GCTA in different parts of the Kingdom this year. 'Our aim is to ensure sustainable growth of tourism sector and to offer the best tourism products and services with an aim to promote domestic tourism,'.." [more]

Kingdom Has No Magic Wand: Abdulaziz [Jun 22]
"Saudi officials said yesterday that the Kingdom has no 'magic wand' that will resolve the skyrocketing oil prices. Addressing a press conference ahead of tomorrow�s International Energy Conference here, Deputy Minister of Petroleum and Mineral Resources Prince Abdulaziz bin Salman said: �There are political, economic and regulatory factors involved. 'The soaring oil prices require immediate intervention by everyone. Combined solutions are needed where roles are defined.' Echoing a commonly held view that market speculation has at least as much of a role in current pricing as supply, the prince said that no single factor is in play and that it is in Saudi Arabia�s interests to see a stabilization of the market.." [more]

Saudi Arabia Will Raise Oil Output 2% in July to Curb Prices [Jun 22]
"Saudi Arabia, which convenes a meeting of government and business leaders today to discuss world energy markets, said it will raise its oil production by 2 percent in July in a bid to curb record prices. Production will increase by 200,000 barrels a day to 9.7 million barrels starting in July, Saudi Oil Minister Ali al- Naimi told reporters in Jeddah, Saudi Arabia, yesterday. State- owned Saudi Aramco will soon add 500,000 barrels, or 4.6 percent, to the kingdom's total capacity with its Khursaniyah field. Oil doubled in the past year, touching a record $139.89 a barrel on June 16, as investors bought  commodities to hedge against a weakening U.S. dollar and concern mounted that demand is growing faster than supply. The advent of $4 a gallon gasoline in the U.S. sparked concern the economy may slip into recession.." [more]

Jun 15 - Jun 21, 2008

~~~~~~~~ [ Jun 21] ~~~~~~~~~

Jeddah Oil Summit: The World�s Watching [Jun 21]
"The world will be closely watching the oil price summit set for tomorrow in Jeddah. Saudi Arabia is the world�s only 'swing producer,' meaning that it maintains excess capacity so that shocks in the oil market can be softened by an increase in Saudi production. However, there is no clear agreement on the cause of the rising prices, with some blaming a global shortage of refining capacity and others pointing to excessive speculation in the futures market while others contend it is just a consequence of the increase in Asian demand, which could also be called globalization. The one thing upon which most pundits agree is that the price spike is jeopardizing global prosperity, from farmers� fields to the runways at international airports.." [more]

Other OPEC Members May Join Saudi Oil Output Hike [Jun 21]
" OPEC members with any capacity to spare will discuss boosting output together with top oil exporter Saudi Arabia at an emergency meeting to try to tame record oil, a senior Gulf OPEC official said on Saturday. Saudi Arabia has said it will pump 9.7 million barrels per day in July, the fastest rate in decades. No other producer from the Organization of the Petroleum Exporting Countries (OPEC) has followed suit, and some member countries have reacted coolly to the Saudi plan. But a senior Gulf OPEC official told Reuters that other members of OPEC, supplier of more than a third of the world's oil, would consider cranking up supplies if there is demand for their oil. "The short-term policies to be discussed include the proposal that those OPEC countries that have spare capacity should boost supply, just like Saudi Arabia has announced it will do in July," the official said. Some OPEC members may commit at Jeddah to increasing their crude production capacity in the long-term.." [more]

U.S.: Oil Production Has Not Met Demand [Jun 21]
"Oil prices are hitting record highs because production has not kept pace with increasing demands, U.S. Energy Secretary Samuel Bodman said Saturday. "All nations must be better at conservation, and the U.S. is at the top of that list," said Bodman, who is attending a international meeting of oil producing and consuming nations focusing on high oil prices in Saudi Arabia on Sunday. Although some have blamed speculators for driving up oil prices, Bodman said he did not believe that they are the cause. Since 2003, he said, global demand for oil has increased because of industry in China, India and the Middle East. But from 2005 to 2007, there was very little increase in supply. Nations need an additional supply of energy to market, whether that energy is nuclear, coal, fossil fuels, solar or wind power, Bodman said.But, "we spent 30 years digging ourselves into this hole," he said. "It won't be solved soon.".." [more]

~~~~~~~~ [ Jun 20] ~~~~~~~~~

Forum to Promote Madinah as a Beacon of Knowledge [Jun 20]
"Custodian of the Two Holy Mosques King Abdullah is likely to open a three-day international knowledge forum, which will bring together prominent scientists from across the world, at the Le Meridien in Madinah on June 22. 'King Abdullah has cordially accepted the invitation to honor the forum,' said Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA), the main organizer of the event. Prominent scientists from across the world � including Dr. Afzal Hossain and Stein Sture from the United States, Professor Sar Sardy from Indonesia, Dr. Musa M. Nordin from Malaysia and Dr. Anis Ahmed from Pakistan � are expected to attend the event, entitled �Noor� (Light). 'The primary objective of the annual forum is to promote human civilization from the land of Madinah by attracting investors, scientists, scholars and pioneer institutions to the Knowledge Economic City, which is set to become an international center for knowledge,'.." [more]

Saudi Aramco, Total Deal Set [Jun 20]
"The International Energy Summit, which opens here on Sunday, will witness the signing of an agreement between Saudi Aramco and Total to establish a refinery in the eastern Saudi industrial city of Jubail, informed sources said. The move reflects Saudi Arabia�s desire to meet the growing energy requirements of countries around the world. The new refinery will have a capacity to supply 400,000 barrels per day and will begin operation by the end of 2012. Last month the two companies announced their decision to go ahead with the project, which will process Arabian heavy crude to high-quality refined products. The refinery will benefit from the proximity to the Arabian heavy crude supply system and King Fahd Industrial Port.." [more]

~~~~~~~~ [ Jun 19] ~~~~~~~~~

Officials Close to Uncovering Financiers of Terror: Naif [Jun 19]
"Interior Minister Prince Naif has announced that security officials are close to uncovering the sources of terror funding in the Kingdom. 'We have found things (related to terror funding) ... that can be used as evidence against Al-Qaeda�s financial backers,' Prince Naif told Asharq Al-Awsat daily in an exclusive interview published yesterday. 'Without financial backing, terrorists could not have moved as they did,' Prince Naif said. He added that further investigations were needed in order to get a complete picture. He expressed hope that the findings of the investigation would soon be made public. Prince Naif said the Kingdom was committed to confronting Al-Qaeda, regardless of the group�s change of tactics and methods.." [more]

Saudi Arabia's Dual Identity [Jun 19]
"With Saudi Arabia now earning more than $1bn (�500m) a day in oil revenues, its rulers are under increasing pressure to speed up the process of social change. The auto mall in Jeddah is a temple to the car and consumerism. The glitzy showrooms are filled with gleaming motors. Only a few are sensible family vehicles. Most are gas-guzzling monsters. With petrol selling at five pence (10 US cents) a litre, Saudi Arabia is the place to buy that Hummer you have always dreamed of. But nothing in the auto mall prepared us for the fleet of modified cars that a group of young enthusiasts calling themselves the Jeddah Boyz had brought to show us.." [more]

US Moves Against Saudi-based Charity [Jun 19]
"The Bush administration moved Thursday to clamp down on a Saudi-based charity accused of funneling money and other support to al-Qaida. The Treasury Department's action covers 'the entirety' of Al Haramain Islamic Foundation, including its headquarters in Saudi Arabia, the government said. The action means that any assets found in the United States belonging to the charity are frozen. Americans also are prohibited from providing donations or otherwise doing business with the charity. The United States � between 2002 and 2004 � had previously taken action against 13 branches of the charity, including locations in the United States, Afghanistan and the Netherlands.Saudi Arabia joined the United States in putting some of the charity's branches on an asset-blocking list. And actions by Saudi authorities have largely precluded the charity from operating under its own name.." [more]

~~~~~~~~ [ Jun 18] ~~~~~~~~~

King to Open Jeddah Energy Conference [Jun 18]
"Custodian of the Two Holy Mosques King Abdullah will open an international energy conference here on June 22 to discuss ways to curb rising oil prices and stabilize international market. The conference of oil producing and consuming countries was called by Saudi Arabia to discuss what it called an unjustifiable increase in oil prices, affecting economies around the world. As many as 38 countries, four international organizations and 30 oil companies have agreed to attend the conference, which has received world attention as people across the globe think it would contribute to slashing prices. British Prime Minister Gordon Brown, US Energy Secretary Sam Bodman, Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Abdullah Al-Badri, and ConocoPhilips Chief Executive James Mulva are among the likely participants.." [more]

SR2.6 Billion Chemical Firm to be Launched in Jubail [Jun 18]
"Saudi Arabia has announced plans to set up a SR2.6 billion chemical manufacturing facility, which will be the first of its kind in the Middle East. Senior executives of the National Industrialization Company (Tasnee), Sahara Olefins Company (TSOC) and the US-based Rohm & Haas Company, who toured some of the Tasnee and Sahara production sites in Jubail, made the announcement. The facility is expected to produce 250,000 metric tons of acrylic acid and related esters. �The Saudi Acrylic Monomers Company will be a joint-venture that will start operation in 2011,� said Mubarak Abdullah Al-Khafrah, chairman of Tasnee, while speaking at a press conference yesterday.." [more]

~~~~~~~~ [ Jun 17] ~~~~~~~~~

Develop Red Sea Tourism Projects: Cabinet [Jun 17]
"The Council of Ministers yesterday approved a strategic tourism development plan, which aims to boost the Kingdom�s growing tourism sector by making use of its Red Sea coast. 'The plan aims to tackle the problems that obstruct optimum and sustained use of the Red Sea�s tourism potentials, especially in economic, environmental and heritage areas,' said the Cabinet meeting, which was chaired by Custodian of the Two Holy Mosques King Abdullah. According to officials at the General Commission for Tourism & Antiquities (GCTA), plans have been made to establish a large number of tourism projects along the Red Sea at a cost of nearly SR150 billion.." [more]

$80bn Plan to Raise Oil Output [Jun 17]
"Saudi Arabia is planning to invest $80 billion in increasing its oil output to 12.5 million barrels per day and expanding its refining capacity by 43 percent to six million bpd within the next few years, according to an economic report unveiled yesterday. The report, which was issued by the Federation of GCC Chambers of Commerce and Industry, expects that the gross GCC domestic product will grow by 27.9 percent this year to reach $1 trillion with the increase in oil prices. The federation believes that the Gulf Cooperation Council of Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman will achieve a 31.2 percent surplus in their current accounts in 2008, compared to 28 percent last year.." [more]

Credit Suisse Launches Research Coverage of Stocks in Saudi Arabia [Jun 17]
"Dubai Credit Suisse is pleased to announce today it has initiated research coverage of 13 stocks in Saudi Arabia, effective May 1. This expansion of the Bank�s research coverage provides investors with the first comprehensive analysis of stocks in Saudi Arabia, representing approximately 65% of the equity market in Saudi Arabia. Economic growth coupled with strong corporate earnings outlook and M&A activity underscore the importance of the region's capital markets in a global context. The Middle East is a key focus area for Credit Suisse and for the Bank�s research product more specifically. The London and Dubai based Middle East Equity Research team will continue to expand its coverage of Middle Eastern stocks.." [more]

~~~~~~~~ [ Jun 16] ~~~~~~~~~

Oil Price Drops as Saudis Pledge More Production [Jun 16]
"Global oil prices have fallen slightly after an announcement by the UN Secretary-General, Ban Ki-moon, that Saudi Arabia will increase oil production. New York's main oil futures contract, light sweet crude for July delivery, dropped 77 cents to 134.09 dollars per barrel, as the European trading day began. After meeting Saudi leaders in Jeddah, Mr. Ban said the Saudis had agreed to produce an extra 200,000 barrels a day in July - about 2 per cent of current output. This comes on top of a promised hike of 300,000 barrels per day in June. 'They will respond positively whenever there is a request from their customers, so there is no shortage,' Mr Ban said. He says the Saudis 'don't want to be blamed' for high oil prices.." [more]

Saudi Aramco and Total Confirm $10 Billion Refinery Construction Project [Jun 16]
"Saudi Arabia's national oil company, Saudi Aramco, and the French energy company Total S.A. (NYSE:TOT) (Paris) have confirmed their investment in a 400,000-barrel-per-day refinery in Jubail, Saudi Arabia. The $10 billion refinery will process heavy crude oil from Saudi Arabia into high-quality oil products that meet stricter environmental standards. The refinery is scheduled to be completed by the end of 2012.." [more]

Jordan, Saudi Slam Project [Jun 16]
" The leaders of Jordan and Saudi Arabia yesterday condemned Israel�s expansion of settlements in East Jerusalem and the rest of the West Bank as jeopardizing peace and stability in the region. Jordan�s King Abdullah II paid a brief visit to Jeddah where he and Saudi King Abdullah discussed the latest developments in the peace talks between Israel and the Palestinians and the situation in Iraq and Lebanon. 'The two leaders considered Israel�s building of new settlements and the expansion of settlements in East Jerusalem as a threat to security and stability in the region,' a joint communiqu� said. 'They also asserted that real peace lies in the establishment of an independent Palestinian state on the entirety of the Palestinian land,'.." [more]

Al-Huraisi Family Sues Okaz, Al-Riyadh for Libel [Jun 16]
"A defamation case was filed yesterday against two Saudi newspapers by the lawyer representing the family of Salman Al-Huraisi, 28, who was allegedly beaten to death by members of the Commission for the Promotion of Virtue and Prevention of Vice in May last year. Lawyer Abdul Rahman Al-Lahem, told Arab News that the newspapers � Al-Riyadh and Okaz � have �slandered the deceased and his family,� and aimed to influence court proceedings on the case. Al-Lahem has filed the case after the two newspapers published a report last month that commission members had arrested a group of men, identifying one man in particular as Al-Huraisi�s brother, for selling alcohol.. ..In his complaint, Al-Lahem has asked for the two newspapers to publish apologies and corrections giving them the same space. Arab News contacted the office of Al-Riyadh newspaper�s Editor In Chief Turki Al-Sudairi who declined to comment and referred us to the paper�s lawyer.." [more]

Kingdom Combats Money Laundering [Jun 16]
"Saudi Arabia and several member countries of the Financial Action Task Force (FATF) have intensified efforts to combat money laundering on the local, regional and international levels. 'The Kingdom is among the first few countries, which gave special attention to counter money laundering by committing to and complying with many rules and international conventions, and putting them into practice,' said Dr. Ibrahim Al-Assaf, minister of finance, here yesterday. 'A FATF working group on financial measures, comprising 32 countries and two regional bodies including Saudi Arabia and the Gulf Cooperation Council (GCC), had been exerting extensive efforts in this area and issued 40 recommendations to combat money laundering in addition to the nine issued earlier,'.." [more]

~~~~~~~~ [ Jun 15] ~~~~~~~~~

Rare Show of Islamic Unity in Saudi Arabia [Jun 15]
"In a rare gesture of unity and amity with their brothers in Islam, a delegation of Sunnis performed Juma prayers at one of the Shiite Mosques in the eastern city of Qatif, the only part of Saudi Arabia where Shiites are a majority. Observers see it as an unprecedented move to soothe the feelings of alienation among the Shiite minority in the Kingdom of Saudi Arabia.. ..During the talks with the Shiite community, Shaikh Al Shamri proposed that a similar delegation of Shiites would come over to one of the Sunni mosques in Al Khobar next Friday. This move was regarded as a bold initiative from the part of the majority Sunnis to bury the hatchet and show their reciprocal respect to fellow members of the community. This also comes as part of repairing the damage caused by a statement issued two weeks ago by some 22 Sunni clerics blaming Shiites. In their statement, radical Sunni clerics accused Shiites of destabilising Muslim countries and humiliating Sunnis.." [more]

Saudi Maaden Secures Loans for Phosphate Project [Jun 15]
"Saudi state-owned mining company Maaden, which plans an initial public offering next month, said on Sunday it had secured loans worth several billion dollars from Saudi and Korean institutions for its phosphate project. A statement on the official Saudi Press Agency (SPA) said the financing included direct loans of $1.07 billion from the Public Investment Fund and $135 million from the Industrial Development Fund. The facilities included a loan from the Export-Import Bank of Korea (KEXIM). It has also signed a contract for insurance coverage for 16 years.." [more]

Saudi Arabia's Oil Production Up in July [Jun 15]
"According to UN Secretary General Ban Ki-moon, currently on a visit to the country, Saudi Arabia increased oil production in July by 200,000 barrels per day, bringing its daily output to 9.45 million barrels. Mr Ban Ki-moon also said Saudi Arabia thinks that the cost of oil is "abnormally high" and that it is prepared to do what it can to bring the price back down. As the world's greatest exporter of oil, Saudi Arabia has profited enormously from the current boom in value. At the same time, it is also concerned about the negative influence of such a boom on economic growth, which actually results in a decrease in demand for oil. On Friday, the Organisation of Oil Exporting Countries (OPEC) adjusted its forecast for the worldwide demand for oil downwards.." [more]

Police Stop Saudi Woman Flouting Driving Ban [Jun 15]
"Saudi police have detained a woman for violating rules banning women from driving in the conservative Muslim country, a newspaper said on Sunday. The woman from Buraida north of Riyadh was stopped by a police patrol after driving 10 km to collect her husband.. ..Saudi Arabia is the only country in the world that forbids women from driving on the basis of fatwas, or religious opinions, from clerics who say it is un-Islamic. Saudi media has reported a number of cases over the past year where women flouted the ban, which some civil rights activists have begun lobbying the government publicly to lift.." [more]

King, Ban discuss Key Issues [Jun 15]
"Custodian of the Two Holy Mosques King Abdullah held talks here yesterday with UN Secretary-General Ban Ki-moon on major regional and international issues, including rising oil prices and the Middle East peace process. 'The talks focused on the latest regional and international developments, most importantly those relating to the Palestinian issue and the Middle East peace process, as well as the situation in Iraq, Lebanon and Sudan,'.. ..He thanked King Abdullah for his contributions to UN aid projects, including a $500 million donation to the UN World Food Program to battle global food price problems. He also lauded the king for striving to help settle the Israeli
-Palestinian conflict and the Lebanon crisis, and for an initiative to foster dialogue among Muslims, Christians and Jews.." [more]

Jun 08 - Jun 14, 2008

~~~~~~~~ [ Jun 14] ~~~~~~~~~

Jeddah Talks to Seek Solution to Cool Prices, Says Al-Naimi [Jun 14]
"Top world oil exporter Saudi Arabia said yesterday a meeting of consumers and producers it will host on June 22 should seek a solution to high oil prices which could hurt the world economy. Minister of Petroleum and Mineral Resources Ali Al-Naimi, speaking to state news agency SPA, also reiterated that market fundamentals, such as supply and demand, do not justify current prices, which were trading near $135 a barrel yesterday.. ..'The Kingdom called this meeting based on its positive role in international relations ... and its commitment to the world economy and a balanced global oil market...,'.." [more]

Saudi Arabia to Invest in Overseas Agricultural Projects [Jun 14]
"Saudi Arabia has outlined its plans to develop large-scale overseas agricultural projects to secure food supplies, revealing that Riyadh is in discussions with Ukraine, Pakistan, Sudan, Turkey and Egypt. Abdullah Al Obaid, the deputy agriculture minister, told the Financial Times the government was planning to set up projects of at least 100,000 hectares in several countries to grow crops such as wheat, corn, rice, soyabeans and alfalfa, a feed for livestock. The move, which is also aimed at building up strategic reserves, comes as food prices have doubled over the past two years and a series of trade restrictions by exporting countries have limited the oil-rich kingdom's ability to secure supplies.." [more]

Opec Cuts 2008 Oil Demand Forecast to 86.88m Barrels [Jun 14]
"The Organisation of Petroleum Exporting Countries (Opec) cut its 2008 global oil demand forecast for a fifth month as record fuel prices curb consumption and said the world has enough crude. Oil demand this year will rise 1.1 million barrels a day to 86.88 million barrels, Opec said in its monthly oil market report yesterday. The forecast is about 60,000 barrels a day lower than last month's estimate of 86.95 million barrels a day. Saudi Arabia has said it will produce an extra 300,000 barrels a day in June to curb prices that reached a record $139.12 a week ago. Slowing demand and higher Saudi Arabian production will cause a higher-than-average global stockpile increase in the third quarter, said Opec, whose members supply more than 40 per cent of the world's oil. The trend will continue in the last three months of the year.." [more]

Saudi Arabia Down Singapore To Clinch Top Two Spot [Jun 14]
"Saudi Arabia became the latest team to move into the final round of Asian qualification for the 2010 World Cup with a 2-0 win at Singapore on Saturday. The result also means that Singapore�s faint hopes of reaching South Africa are officially dead. The win was a good start to Nasser Al Johar�s return to the Saudi hotseat as Brazilian Helio Dos Anjos was fired earlier in the week.. ..Saudi Arabia took the lead ten minutes before the break however. Saad Al Harthi fed Abdoh Autef and the midfielder made no mistake in shooting home. Despite the best efforts of Singapore, the Saudis sealed the win with 14 minutes remaining.." [more]

International Olympic Committee Could Ban Saudi Arabia Unless Women Can Compete [Jun 14]
"In 1962, the International Olympic Committee made a powerful condemnation of Apartheid by expelling South Africa. Half a century later, the IOC may make another powerful condemnation of another form of apartheid by expelling Saudi Arabia. The BBC reports that the IOC is putting increasing pressure on the government of Saudi Arabia to allow women to participate in sports -- and that the IOC could even tell Saudi Arabia that if the 2012 Games in London don't have Saudi women, they may have no Saudi athletes at all.." [more]

~~~~~~~~ [ Jun 13] ~~~~~~~~~

Saudi Arabia's Naimi Says Meeting to Stabilize Market [Jun 13]
"Saudi Arabian Oil Minister Ali al- Naimi said a summit of oil producers, consumers and companies this month will stabilize oil prices 'unjustified' by supply and demand fundamentals. Saudi Arabia, the world's top exporter, has invited nations including the U.S., the U.K., China, Germany, India and Japan to the June 22 meeting in the coastal city of Jeddah, al-Naimi said in statement published today by the Saudi Press Agency. OPEC members and other producers including Russia will attend.. ..Saudi Arabia proposed a summit between producers and consumers after prices more than doubled in a year to reach a record $139.12 a barrel on June 12. The country is likely to propose asizable increase in oil production at the meeting, the Middle East Economic Survey reported today, without saying where it go the information . Current oil prices threaten the global economy.." [more]

Saudi Women Vie for Olympic Rights [Jun 13]
"..Saudi Arabia is one of the few countries that does not allow women to take part in the Olympics, or any other major sporting event.. ..Sport is banned at girls state schools. There is no federation that organises women's sport and few stadia that are open to them. However, there are pioneers. 'We we are not official or approved of,' says Danaya al-Maeena co-founder of Jeddah United basketball team. 'It is a challenge and it is the beginning of something that we really believe in.'.. ..The women of Jeddah United exemplify how reform is slowly coming - led young people who want the country to modernise in a way consistent with the teachings of Islam. 'We are not asking for something against our culture or our religion,'.. ..The most senior Saudi clerics do not seem to agree. In March the Grand Mufti ordered a Riyadh university to cancel a women's marathon. Religious leaders banned a football match last year. But things are changing.." [more]

Saudis Plan to Develop Agriculture Projects in Turkey [Jun 13]
"Saudi Arabia has unveiled its plan to develop large-scale agricultural projects in Turkey together with four other countries at a time when the Finance Minister invited Arab countries to increase their investments in the country. The first answer to Turkey's call for Arab countries to grow crops in Turkey in order to form strategic crop reserves came from Saudi Arabia. Saudi Arabia unveiled its plans to develop large-scale overseas agricultural projects to secure food supplies and revealed that they were in discussions with Turkey, Ukraine, Pakistan, Sudan, and Egypt according to a report published in the Financial Times on Friday. 'The Saudi government plans to set up projects of at least 100,000 hectares in several countries to grow crops such as wheat, corn, rice, soybeans and alfalfa, a feed for livestock,' Abdullah al-Obaid, the Saudi Arabian deputy agriculture minister was quoted.." [more]

Monetary Union Deal Finalised: Al Suwaidi [Jun 13]
"Gulf central bankers 'more or less' finalised a monetary union deal this week that will be presented to finance ministers in September, the UAE central bank governor said yesterday. The draft agreement that will pave the way for Saudi Arabia and four of its neighbours to launch a single currency is 'more or less final, except for some typing errors', Sultan Nasser Al Suwaidi told reporters in Dubai.. ..Central bankers and finance ministers would hold a joint meeting in Jeddah, Saudi Arabia, in September, to take a final look at the deal, Al Suwaidi said. Gulf rulers are expected to sign the agreement at their meeting in November, Salim Al Gudhea, head of the monetary union unit at the GCC Secretariat, said this week.." [more]

Saudi Crude Sale to Asia Limited By Low Grades [Jun 13]
"Saudi Arabia may find itself unable to fully serve its crude oil customers in Asia, the most important market for Middle East producers, as refiners are reluctant to accept the grades being offered. Asian refiners want increased supplies of the lighter grades of crude to produce more expensive cleaner-burning fuels while Saudi Arabia is offering more of the heavy, high-sulphur grades. Despite a surprise announcement by Saudi Oil Minister Ali Naimi about three weeks ago that the kingdom had ramped up output by 300,000 bpd or more than 3% from May 10, none of the additional barrels are likely to have been loaded onto tankers bound for Asia.. ..Saudi Aramco is Asia�s top crude supplier and, like Iran and Kuwait, sells its cargoes only under term contracts. Refiners, however, aren�t keen to buy more of the high-sulphur or �sour� cargoes that make up the bulk of output from these producers, due to poor margins for fuel oil and heavy products.." [more]

Best Western Building 25 Hotels in Gulf States [Jun 13]
"Best Western, an international hotel chain, has announced that it is currently developing as many as 25 hotels in Gulf Cooperation (GC) countries which will lead it to become the most extensive hotel chain in the Middle East within 2011.. ..'The economies of the Middle East are in the midst of a phenomenal growth phase which is fully supported by their governments and which involves a particular emphasis on tourism development, an area where they have considerable resources and potential,' said Glenn de Souza, vice president, International Operations Asia, Best Western International. 'Acting on these strong signals, the hospitality sector is expanding accordingly,' he added,Best Western�s primary focus will initially fall on the UAE, Kuwait, Saudi Arabia, Bahrain, Oman and Qatar.." [more]

New AP Bureau Set to Widen Coverage [Jun 13]
"In a move to boost its regional presence and ensure wider coverage of the Kingdom, The Associated Press has opened a multimedia news bureau in Riyadh and appointed veteran Middle East correspondent Donna Abu-Nasr as bureau chief. Kathleen Carroll, senior vice president and executive editor, arrived here from New York to attend the opening ceremony. 'We are absolutely delighted to be here,' said Carroll. 'AP has fulfilled all necessary regulatory provisions to open its bureau and we thank the local Saudi government agencies for extending all necessary support.' AP has 243 bureaus in 97 countries around the world. The reception to mark the bureau�s opening was attended by a number of Saudi officials, royal family members, Shoura Council members, local diplomats, PR executives and a number of local newsmen.." [more]

World Begins to Back OPEC�s Contention [Jun 13]
"With Morgan Stanley and Goldman Sachs projecting the next oil price spike just round the corner, Riyadh was almost forced into action � announcing to hold a consumer-producer summit and inviting all the stakeholders to the moot. Every one needs to be on board! It�s been too long that the onus to prove innocence has been on the accused � the OPEC. In convening the producer-consumer summit and by inviting all the stakeholders, Saudi Arabia has underlined once again that producers cannot tame the Bull. It is beyond them. Market fundamentals are no more in control and others need to put in their weight rather than pointing fingers. The move was made as panic set in with oil prices posting their biggest ever one-day surge last Friday, leaping more than $10 to a record high above $139 a barrel. And for a change, the G8 energy ministers, meeting the next day also looked inward, touting the need for domestic efficiency rather than piling pressure on �poor� OPEC to pump more crude.." [more]

~~~~~~~~ [ Jun 12] ~~~~~~~~~

OPEC President Rules Out Oil Output Increase at Saudi Summit [Jun 12]
"OPEC President Chakib Khelil said the oil-producer group won't raise output at a summit with consuming nations in Saudi Arabia later this month. 'Supply is more than enough, there won't be a change,'' Khelil said in an interview today in Algiers. OPEC won't consider any change to its output target before its next scheduled meeting in September, he said. Record oil prices can be pinned on Israel's threat to attack Iran if the Islamic Republic continues its nuclear- development program, as well as the dollar's weakness, according to Khelil, who is also Algeria's oil ministe