News - September 2008

Sep 28 - Oct 4, 2008

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sep 21 - Sep 27, 2008

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EFG-Hermes Offers Foreign Investors Access to Saudi Market [Sep 25]
"EFG-Hermes Securities Brokerage now offers its foreign institutional investors access to the largest market in the Middle East & North Africa (MENA) region, Saudi Arabia, through its recently launched Abwab product. In line with the change in regulation from the Capital Market Authority (CMA), the Arab world�s leading investment bank has been granted permission to provide non-resident foreign investors with the ability to purchase Saudi Arabian equities through trade swap arrangements.. ..'The Tadawul accounts for over 25 per cent of MENA Market Capitalization and over 40 per cent of all MENA traded value. It has a market capitalization of USD390 billion and average daily traded value of USD2.5 billion. Abwab allows us to present our clients with the ability to access these vast opportunities.'.." [more]

Kingdom�s Financial Markets Healthy [Sep 25]
"The Saudi Arabian Monetary Agency (SAMA) has liquidity available if banks need it, but no lenders have so far stepped forward to request additional funding, its central bank governor said on Wednesday. 'SAMA has liquidity if needs from banks arise,' Hamad Al-Sayyari said. 'No bank has stepped forward to ask for additional liquidity.'He said Saudi banks were in a good position to weather a global downturn. 'Figures point to strong growth in loans, money supply, banks have liquidity, additional deposits. There is no scarcity in liquidity,' Al-Sayyari told reporters. 'Banks want to expand. This conflicts with our policy in limiting the increase in liquidity and the rise in inflation.' Al-Sayyari added that the Saudi central bank followed a conservative policy and did not invest in 'high-risk' assets abroad. Al-Sayyari ruled out any change in the Kingdom�s dollar-pegged foreign exchange policy.." [more]

Senior Saudi Sheikh: Oversee Issuance Of Fatwas [Sep 25]
"Saudi Shura Council member and advisor to the Saudi Justice Ministry Sheikh Abd Al-Muhsin Al-'Obikan has said that a religious body should be established to oversee the issuance of fatwas. He said that the body should include at least 100 Muslim clerics from all schools of Islam, who would examine the fatwas before issuing them. He added that sometimes the public does not know who issued a fatwa or what the source for it was, and thus it is not clear whether such a fatwa can be trusted.." [more]

Saudi Company Puts Roots Down on Teesside [Sep 25]
"IT is almost two years since the Saudi Basic Industries Corporation (SABIC for short) took over the former Huntsman UK Petrochemicals operation based on Teesside. The acquisition by SABIC of the UK Petrochemicals business in December 2006 was something of a historical milestone because it marked the first time a major Middle Eastern chemical company had put significant roots down on Teesside. SABIC has grown very rapidly in recent years and is now the world's fifth largest petrochemicals company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers. SABIC now operates in more than 40 countries across the world and has over 31,000 employees worldwide. In Saudi Arabia, birthplace of the company in 1976, SABIC has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu.." [more]

~~~~~~~~ [ Sep 24] ~~~~~~~~~

Change Marks Saudi Arabia's National Day [Sep 24]
"Saudi Arabia's National Day -- traditionally a day for reflections on self, religion and faith -- was marked Tuesday by an unexplained change in the traditionally conservative Saudi kingdom. Perhaps it was the kingdom's increasing access to the Internet, King Abdullah's efforts to reform and moderate his kingdom, general fatigue with the bad name imposed on Saudis by terrorists and other radicals who claim to represent them, or any combination of reasons. 'Unfortunately, the image of Islam is being tarnished by none other than Muslims themselves,' the monarch declared. He spoke clearly and repeated the word 'unfortunately' several times. 'If we want to be honest with ourselves, we have to accept this reality that the sons of Islam are the ones desecrating this pure religion,'  he said, adding, "Islam disowns them and disowns anyone who tries to give it a bad name.' His remarks were carried on Saudi TV channels as well as the Saudi-owned satellite channels, which can be viewed across the Middle East and as far away as Europe, the Americas and Asia.." [more]

Saud Al-Faisal meets to Discuss Madrid World Conference Recommendations [Sep 24]
"Saudi Foreign Minister Prince Saud Al-Faisal and Gulf Cooperation Council (GCC) Foreign Ministers held two meetings at the United Nations headquarters last night with the foreign ministers of the Rio group and the European Union Troika on the sidelines of the Sixty-third session of UN General Assembly. The Rio group represents South America, Latin America and Caribbean countries. During the two meetings, Prince Saud Al-Faisal spoke about the Madrid World Conference for Dialogue, held in July, and its recommendations which focused on the common humanitarian values which reject all forms of evil and call for good to mankind. Prince Saud said that the recommendations of the Madrid Conference responded to a real need to find a solution to a multitude of problems affecting societies worldwide such as: violence, extremism, intolerance, family disintegration and the spread of drugs.." [more]

OPEC Sept Oil Supply to Fall [Sep 24]
"OPEC's oil supply is expected to fall sharply in September because of lower output from members including Saudi Arabia and Iran, industry consultant Petrologistics said on Wednesday. The estimate boosted oil prices and indicates that the Organization of the Petroleum Exporting Countries was starting to cut supplies even before it agreed on Sept. 10 to trim output back to official targets. OPEC's 13 members are expected to pump 32.6 million barrels per day in September, down from a revised 33.4 million bpd in August when output was unusually high, Conrad Gerber, head of Petrologistics, told Reuters. 'Things have come back to normal,' Gerber said. 'This has nothing to do with the OPEC decision. That reduction will come later on.' Much of the cutback is coming from OPEC's two largest producers, Saudi Arabia and Iran, which supplied more oil than previously thought to customers in August.." [more]

Saudi C. Bank Says No Scarcity in Bank Liquidity [Sep 24]
"Saudi Arabia's central bank governor said on Wednesday there was no scarcity in liquidity in the world's top oil exporter and Saudi banks were in a good position to weather a global downturn. 'Figures point to strong growth in loans, money supply, banks have liquidity, additional deposits. There is no scarcity in liquidity,' Hamad Saud al-Sayyari told reporters.. ..Sayyari added that the Saudi central bank followed a conservative policy and did not invest in 'high-risk' assets abroad.." [more]

Saudi Arabia Has Highest Piracy Levels in ME [Sep 24]
"Saudi Arabia is stepping up efforts in their mission to curb software and copyright piracy of all kinds in the Kingdom by launching a website on ongoing anti-piracy cases.  Launched by the Ministry of Culture and Information, it aims to improve transparency after the International Intellectual Property Alliance (IIPA) recommended to move the Kingdom from its Watch List in 2007 to its Priority Watch List in 2008 as piracy losses continued to grow. The IIPA report stated that: 'Saudi Arabia is generally viewed as having the worst enforcement regime and, for most copyright industries, the highest piracy levels in the Middle East.'.. ..Working with the IIPA, Saudi Arabia has revealed that its plan for 2008 will focus on completing the transparency process, deterrent enforcement, the legal use of copyrighted software in the government and Saudi enterprises, and copyright law reform.." [more]

~~~~~~~~ [ Sep 23] ~~~~~~~~~

US Proud to Partner with the Kingdom [Sep 23]
"On behalf of the people of the United States of America, I congratulate King Abdullah, Custodian of the Two Holy Mosques, and the people of the Kingdom of Saudi Arabia on the occasion of their National Day. For more than 75 years, the United States and the Kingdom of Saudi Arabia have enjoyed a strong relationship founded on common interests and mutual respect. President Bush�s two state visits in 2008 highlight our continuing friendship, building on the first handshake between President Roosevelt and King Abdul Aziz in 1945 aboard the USS Quincy. Our relationship is deep and long-lasting, and it grows stronger every day.. ..I am honored to represent the United States of America in the Kingdom of Saudi Arabia. On behalf of the American people, I wish all a Ramadan Kareem and extend congratulations on the National Day. � The writer is the US Ambassador to Saudi Arabia.." [more]

Rights Report Sparks Indignation in Saudi Arabia [Sep 23]
"Saudi politicians, researchers and intellectuals have closed ranks in defence of the country's treatment of its citizens and described a newly released Human Rights Watch (HRW) report alleging a 'pattern of discrimination against the Ismailis' as a document that has blown things out of proportion. The initial reaction of the Saudi intelligentsia - many said they have not had a chance to examine the report in detail or ascertain the sources on which it bases its assessment - varied greatly but suggested a general consensus that things were not as bad as HRW had made it out to be. Some sought to rebuff the perceived bias while others accused Iran of exacerbating Sunni-Shiite tensions in the region by instigating Shiite groups to speak against their governments.. ..According to HRW, several hundred thousand, 'perhaps as many as one million' Ismailis live in the Najran province of Saudi Arabia on the southwestern border with Yemen. Saudi Arabia took control of Najran from Yemen in 1934, incorporating into the kingdom the local Sulai-mani Ismaili community, a Shiite offshoot.." [more]

Saudi Arabia Seeks UN Meet on Israeli Settlements in West Bank [Sep 23]
"Saudi Arabia on Monday formally called for an urgent ministerial meeting of the UN Security Council to discuss Israeli settlement activities in "the occupied Palestinian territories." Following up on a letter from Saudi Foreign Minister Prince Saud al-Faisal early this month, Saudi Arabia's UN mission sent a letter to the president of the Security Council in which he requested 'an urgent meeting of the Council at the ministerial level to address the issue.' Speaking at an Arab ministerial meeting in Cairo September 8, Prince Saud charged that Israel was 'undermining the conditions of the peace process by intensifying the construction of settlements to change the situation on the ground.'.." [more]

IBM Building Saudi Terascale Supercomputer [Sep 23]
" IBM and a Saudi Arabian university announced Monday a joint project to build the kingdom's most powerful computer initially capable of 222 trillion calculations per second. In a joint press statement, the two entities said the King Abdullah University of Science and Technology (KAUST)/IBM Center for Deep Computing Research project currently underway will see the completion next year of the Shaheen supercomputer, a 16-rack IBM Blue Gene/P System, whose 65,536 processor cores allow it to perform 222 Teraflops or 222 trillion operations per second.. ..With Shaheen, Saudi Arabia will be ranked the sixth country in the world that has a supercomputer with a teraflop capability. The computer will be upgraded in the next two years to become capable of petascale operation or quadrillion calculations per second and further developed to become an exascale machine, which can process more than a million trillion calculations per second.." [more]

New in Gulf: Bigger Role for Some First Ladies [Sep 23]
"The first lady of Qatar walked up to the podium in a luxury hotel banquet room and sized up the crowd of mostly wealthy businessmen. 'Do not be afraid to take risks and to try,' she told them. 'Think out of the box.' Sheikha Mozah bint Nasser Al-Missned took on a very untraditional role in rallying the men to support a $100-million initiative to tackle unemployment. Like her counterpart in Dubai, Oxford-educated Princess Haya, Mozah is taking up the Western 'first lady' model � activist, globe-trotting and involved in public affairs. The emergence of high-ranking wives on the public stage is part of the booming Gulf states� efforts to appear more in sync with the West as they seek investment, political clout and even big-name sporting events like the Olympics.." [more]

~~~~~~~~ [ Sep 22] ~~~~~~~~~

Al-Qaeda Threatens British and Saudi Embassies [Sep 22]
"Demanding the release of Al-Qaeda's militants held by Yemeni authorities, the organization of Islamic Jihad declared the responsibility for the US embassy attack that killed 17 people, including soldiers and normal citizens. The six attackers were also killed in the attack. In its statement, Islamic Jihad, allegedly part of Al-Qaeda Organization in Yemen, called for the shutting the U.S. and British Embassies in Yemen and pledged to launch more attacks against foreign interest, foreigners and Yemeni high-ranking officials. Islamic Jihad spokesman in Yemen Abu Al-Ghaith Al-Yemani demanded Yemeni authorities to release Al-Jihad followers. He demanded U.S. and British diplomats to leave the country immediately. He also threatened to launch an attack on the Saudi Embassy.. ..In related news, the Saudi Al-Riyadh newspaper revealed that Yemeni security forces seized last Wednesday a vehicle loaded with weapons near the Saudi Embassy.." [more]

Saudi Trims Oil Supply to Majors [Sep 22]
"Top oil exporter Saudi Arabia has trimmed oil supplies to international majors and U.S. refiners since the start of September, industry sources said on Monday. The kingdom had already throttled back on supplies even before it signed up to an OPEC deal earlier this month to reduce supplies that exceeded the producer group's targets, industry sources said. 'They were marketing their crude very aggressively from June through August, but they slowed it down for September and October,' said one industry source at a major oil company on condition of anonymity. Saudi supply to international oil majors was down around 5 percent in September from August.. ..Demand in top consumer the United States has fallen at the fastest rate since the oil shock of the early 1980s, and global financial turmoil has increased concern that the slowdown in fuel demand will become even more pronounced. But lower Saudi supply to majors and the U.S. was partly compensated by an increase in supply to China.." [more]

Top Security Official Warns Iran Against Involving GCC in Nuclear Conflict [Sep 22]
"A top security officer warned Iran against involving the GCC in any conflict with the West, saying that the GCC will react strongly to any threat against its stability. In a rare reaction to Iranian leader's threats, Lt.Col Dahi Khalfan Tamim, Commander-in-Chief of Dubai Police, told Gulf News that Gulf countries respect Iran as a neighbouring Muslim country, but will not accept any hostility that has direct impact on the lives of people in the region.. ..Khalfan said Iran's conflict with the US over its nuclear enrichment programme should not involve the GCC. 'We are in favour a peaceful resolution because this would be in the interest of all people in the rim of the Arabian Gulf, including Iranians. The wise leaders of Iran should try to come out of this confrontation with a minimum damage. This doesn't mean that they [Iranians] can cut the life vein of the region just because they can't confront the US directly,' Khalfan said.." [more]

Kingdom Invited to Attend Human Rights Meeting [Sep 22]
"The UN High Commissioner for Human Rights, Navi Pillay, has invited Saudi Arabia to attend the Nairobi human rights meeting next month. The invitation came in Pillay�s meeting with Dr. Zaid Al-Hussein, head of the Saudi delegation to the ninth Human Rights Council session and vice president of the Saudi Human Rights Commission, in Geneva on Friday. During the meeting Al-Hussein outlined the workings of the commission and described its awareness campaign to spread the culture of human rights. Human rights, he said, would also form one of the priorities of the next National Dialogue sessions.." [more]

Saudi Inflation Eases to 10.9% [Sep 22]
"Annual inflation in Saudi Arabia eased off from a peak of at least 30 years to 10.9 percent in August as gains in key components � rent and food prices � steadied in the largest Arab economy, official data showed yesterday. The Saudi cost of living index was 117.9 points on Aug. 31, according to Central Department of Statistics data carried by the Saudi Press Agency. That compared with 106.3 points a year earlier. Food and beverage prices gained an annual 15.8 percent in August, down from 16 percent a month earlier, while the rental index � which includes rents, fuel and water � added 18.5 percent, down from 19.8 percent in July. 'The property market fundamentals still provide for more rises in rent prices because it�s an under-supplied market,' said John Sfakianakis, chief economist at SABB bank. Inflation of 11.1 percent in July was the highest in at least 30 years. The annual increases of food and rent prices in August are the lowest since June.. ..Inflation is a key challenge across the Gulf Arab region, where most states peg their currencies to the dollar, a fact that has contributed to inflation as weakness in the US currency drove up import costs.." [more]

Kingdom Foundation Donates $356,500 to 'Deworm the World Initiative' [Sep 22]
"Kingdom Foundation, chaired by Prince Alwaleed bin Talal, donated $356,500 to the "Deworm the World Initiative." The Young Global Leaders Education Taskforce at the Davos World Economic Forum presented the initiative early this year. The initiative aims at spreading school-based treatment of parasitic worms as an education intervention. Treating children for parasitic worms has been shown to increase their access to education by as much as 15 percent. Deworm the World intends to reach over half a million children at risk of infection. Through Deworm the World, the Young Global Leaders are working with governments, international agencies, private foundations, and nongovernmental agencies to scale up school based treatment for parasitic worms.. ..Despite the existence of a simple and cheap treatment, these parasitic worms still infest 400 million children across the world, cause malnutrition, absenteeism from school, and lower productivity as adults.." [more]

Gulf Industry Investing $300 Million in Software [Sep 22]
"With Arabian Gulf countries embarked on major investment in expanding the domestic manufacturing sector, demand is growing for industry-related software - a market forecast to hit $300 million by next year, according to industry observers. 'Recent years have seen huge expansion in the economies of the Gulf Co-operation Council countries fuelled by oil and gas revenues and successful moves into large scale property development and tourism ventures,'.. ..'The manufacturing sector expansion, particularly in Saudi Arabia and the United Arab Emirates, is leading to increasing demand for what are known as enterprise resource planning (ERP) software solutions,' he added. 'Research indicates ERP spending in the GCC rising faster than the projected world average to around $300 million by 2009 and leading IT companies are competing for a share.'.." [more]

OPEC Could Bail Out Russia [Sep 22]
"The biggest non-OPEC oil exporter, Russia, is considering 'a new format' of cooperation with the Organization of the Petroleum Exporting Countries and will send a high-level delegation to the oil cartel�s next meeting in Algeria on December 17, Russian Energy Minister Sergei Shmatko said. Russia has long attended OPEC meetings as an observer, but lent further impetus to the cartel�s conference this month by sending its highest level delegation, headed by influential Deputy Prime Minister Igor Sechin, who has spearheaded boosting energy ties with Venezuela. Russia supplies one-third of Europe�s energy needs, while OPEC accounts for nearly 40 percent of global oil production. Together they produce half the world�s oil. That would be a force to be reckoned with. But is Russia really serious about joining OPEC?.. ..Smith said Saudi Arabia can very quietly start producing at quota again and bring a substantial amount of oil off the market. Takin said Russia may benefit from closer ties with fellow producer countries, as well as put pressure on the US and the West. He said Russia�s interest in OPEC is partly a reflection of the current politics.." [more]

~~~~~~~~ [ Sep 21] ~~~~~~~~~

Iraq Sends Convicted Prisoners Back to Saudi [Sep 21]
"Baghdad has sent back to Saudi Arabia eight of its citizens jailed in Iraq ahead of a new extradition treaty between the two countries, a spokesman for the Saudi interior ministry said on Sunday. The official SPA news agency quoted the spokesman as saying that under the accord, the Saudi authorities were preparing to send back 16 Iraqis jailed in the kingdom.. ..The new treaty stipulates 'the exchange of convicted prisoners... so that they serve the rest of their sentences close to their families,' SPA on September 10 quoted the interior ministry spokesman as saying. At the time he did not elaborate on how many Saudis were being held in Iraq, where Saudis are among foreign fighters who have joined Sunni Arab insurgents battling Iraqi forces and their US-led backers.. ..Saudi Arabia, citing the lack of security in Iraq, has yet to reopen its embassy in Baghdad more than four years after the neighbours restored diplomatic relations in July 2004. Iraq reopened its embassy in Saudi Arabia in February 2007 after it had been closed in December 1990 on the eve of the 1991 Gulf War when ties were severed by the regime of executed dictator Saddam Hussein.." [more]

Saudi Refinery Projects Delayed [Sep 21]
"Three refinery projects in Saudi Arabia have been delayed, according to the Middle East Economic Survey (MEES). Saudi Aramco and Dow Chemical's joint expansion of the Ras Tanura complex faces delays because the project is believed to be too large for contractor KBR and needs to be divided with another company, MEES reported.According to earlier statements by officilas, it had been expected that the expansion would be operational in the first quarter of 2012. The expected cost of the project is believed to be around US$8 billion. Bids for investment in the Jazan facility have been delayed by nearly a year to March 2009 while an incentives package is prepared MEES said. The start-up of a plant to be operated by Rabigh Refining & Petrochemicals will probably be pushed back to the first quarter of 2009, MEES said. Rabigh warned this may occur in a statement to the Saudi bourse on 7 September.." [more]

Tadawul Rebounds But Still Off Peak [Sep 21]
"The Tadawul in Saudi Arabia registered a strong rebound yesterday, regaining 2.7% of its total weekly losses, which had reached 9.1% or SR136bn of its market value. The biggest stock market in the region, it is trying to get back to previous highs, following a series of sharp declines after the world financial crisis left a negative impact on the region's markets.. ..During last week's trading, its share fell below the nominal value of SR10 and closed yesterday at SR7.70.. ..The rise of the banking, petrochemical and telecoms sectors pushed the index above the 7,500 benchmark, after falling below 8,000 points last week.. ..According to Kasb's weekly report, the sharp market decline last week was linked to the turmoil in internationals market and the Lehman Brothers collapse. Kasb expects the Tadawul to rise to around 8,000 points before the start of the Eid vacation.." [more]

President Saleh to Visit Saudi Arabia [Sep 21]
"Well-informed sources said that President Ali Abdullah Saleh is going to visit Saudi Arabia on Sunday. During his visit, President Saleh would visit the holiest places in Mecca to perform the Umrah (minor hajj) and meet the Saudi King Abdullah bin Abdulaziz Al Saud. According to Saudi Press Agency that King Abdullah would discuss with President Saleh bilateral relations between Yemen and Saudi Arabia and ways of strengthening them in various fields in addition to regional and international issues of common concern.." [more]

Boost for Saudi, Malaysian Trade Ties [Sep 21]
"THE strong bilateral relations between Kuala Lumpur and Riyadh was boosted with the launch of the Jeddah chapter of the Malaysia-Saudi Arabia Friendship Society (MSFS) yesterday. Its goal is to build greater cooperation between the peoples and investors of both countries, said prominent Saudi entrepreneur A. K. Saeed, who was named the first president of the chapter. There were many areas in which both governments and the private sectors could work together, especially in education, tourism, banking and construction. Speaking to the Malaysian press, he said the Saudi authorities were embarking on major development programmes which could benefit both sides in the long term.. ..'Education is one of the fields in which we can work on as many Saudi students go to America and Europe. Perhaps we can send more student to Malaysia soon,' said Saeed, who is involved in diversified ventures in the Middle East and Europe.." [more]

Sep 14 - Sep 20, 2008

~~~~~~~~ [ Sep 20] ~~~~~~~~~

Saudi Arabia Donates 44 Million Dollars to Support Lebanon Schools [Sep 20]
"Lebanon's Prime Minister Fouad Seniora announced Saturday that Saudi Arabia donated 44 million US dollars to support public schools students. The announcement was made after a meeting between Seniora and Saudi Arabia ambassador to Lebanon Abdul Aziz Khoja at the governmental palace. The donation was to cover tuition fees and books for public school students from Kindergarten through Grade 9 for the academic year 2008-2009, Seniora said. A smaller part of the funds would be set aside to support the educational body, he added. 'Saudi Arabia has always supported Lebanon's economy as well as its stability and development,'.." [more]

Neutrality is Not an Option for GCC [Sep 20]
"The crisis over Georgia should give the GCC states a reason to be concerned. Far from being confined to its immediate neighborhood, the crisis between Russia, Georgia and the international community has broader and emerging geopolitical implications as well. One immediate area of concern is Iran�s continued march toward a military nuclear capability and the role of Russia in this equation. This has direct consequences for the security of the entire Gulf region. As a result, the Arab Gulf states cannot afford to stay quiet in the current discussions and they must make their concerns known and state their policy positions clearly. A strategy of not taking sides, maintaining strict neutrality, and avoiding a clear position in fact can have counterproductive results.." [more]

Credit Crunch Catches up With Oil-Rich Persian Gulf States [Sep 20]
"Cracks appeared Thursday in the economies of the oil-rich Persian Gulf states where banks are finally reining in lending in the wake of the biggest crisis to hit Wall Street since the Great Depression. Cushioned by record oil earnings Saudi Arabia, the United Arab Emirates and four other Arab sheikdoms have so far been impervious to the global credit crunch that claimed this week Lehman Brothers Holdings Inc. (LEH) and American International Group Inc. (AIG) as its latest victims. 'Liquidity in this region is not available as it used to be months earlier,'.. ..Bankers say the oil-rich region is teetering on the brink of its own liquidity crisis that could threaten economic growth and unravel $2.3 trillion worth of spending on infrastructure and real estate. 'There's a systemic breakage in the money markets right now,' said Sehgal, adding that foreign banks are not lending and all players are looking at covering their own positions.." [more]

Oprah a Hit With Women in Saudi Arabia [Sep 20]
"In Saudi Arabia, women also watch Oprah, and with far more attention than I ever did. Oprah, according to this article in the New York Times, is a bit of a life-line for many Saudi females. The article starts by describing one woman who writes to Oprah Winfrey every month even though Oprah has yet to write back. Nayla said that Oprah gives her hope and energy, and that Oprah is the only one who understands her. This feeling is echoed with Saudi women of all ages, but particularly with younger women. Part of what the women relate to is Oprah's own struggles that she has overcome. As women in Saudi Arabia struggle to find their voice and use it, Oprah gives them a sense of how it is done.." [more]

~~~~~~~~ [ Sep 19] ~~~~~~~~~

Saudi Arabia Lays Ground for More OPEC Action [Sep 19]
"OPEC's surprisingly tough output deal last week lays the foundation for more decisive action to prop up weakened oil markets and it could involve the possible collaboration of leading non-OPEC producer Russia. Until OPEC reached agreement in the early hours of Sept. 10, most had anticipated the group would leave production unchanged. But top oil exporter Saudi Arabia, which before the meeting said the market was fine as it was, put its name to the Organization of the Petroleum Exporting Countries' (OPEC) unanimous decision to throttle back to agreed output levels. 'The agreement was a surprise,'.. ..Saudi Oil Minister Ali al-Naimi may have decided he had done enough to bring markets back under OPEC control, said analyst David Kirsch of PFC Energy. By agreeing to cut, Saudi Arabia could be earning support ahead of the tougher task of coordinating deeper OPEC supply reductions if demand continued to fall, he added. Already, oil demand in top consumer the United States has dropped at the sharpest rate since the oil shock of the early 1980s. Global financial turmoil has increased the likelihood the slowdown in fuel demand will become even more pronounced. 'The Saudis need the rest of OPEC to go along with them in case the downside risks to oil demand do materialise and they have to take additional action,'.."  [more]

Arabs Denounce Cleric's Fatwa on Immoral TV [Sep 19]
"Arabs across the ideological spectrum, from secular-minded liberals to Muslim hard-liners, are denouncing a top Saudi cleric's edict that it was permissible to kill the owners of satellite TV stations that show 'immoral' content. Many expressed worry the recent comments by Sheik Saleh al-Lihedan � chief of the kingdom's highest tribunal, the Supreme Judiciary Council � would fuel terrorism, encouraging attacks on station employees and owners.. ..Even conservative clerics who agree that Arab satellite networks show too many 'indecent' programs said al-Lihedan had gone too far.. ..The remarks were especially surprising because many of the most popular Arab satellite networks are owned by Saudi princes and well-connected Saudi and Gulf businessmen.." [more]

Bush Hosts Iftar for American Muslims [Sep 19]
"President George W. Bush told a dinner honoring American Muslims that his administration has partnered with those practicing Islam around the world to promote tolerance and spread freedom to millions. 'We reject bigotry in all its forms,' the president said before sitting down for dinner Wednesday with about 110 guests in the White House State Dining Room. During the past eight years, the Bush administration has held an Iftaar dinner, a meal served at the end of the day during the holy month of Ramadan when Muslims fast from sunrise to sunset. Bush sat next to Kuwait�s Prime Minister Sheik Nasser Al-Mohammed Al-Sabah, who will return to the White House Friday for a meeting in the Oval Office. This year�s event highlighted American Muslims who have made technological, artistic or innovative contributions to society.." [more]

Group Threatens Saudi Mission [Sep 19]
"Yemeni authorities have rounded up 25 suspects over a deadly attack on the US Embassy in Sanaa claimed by an Al-Qaeda linked group. The Organization of Islamic Jihad said it was behind Wednesday�s car bombing and rocket attack on the highly fortified US mission that killed six soldiers, six assailants and four others, including an American and her Yemeni husband. It said it was demanding the release of militants being held by the Yemeni authorities.. ..A statement signed by the self-proclaimed leader of the group, Abu Ghaith Al-Yamani, said it would continue attacks 'against Western interests,' Yemeni public figures and the Saudi Embassy in the capital. It also called for the closure of the US and British missions in Yemen. Yemeni security sources said special counterterrorism forces had been put in charge of defending the US Embassy.." [more]

Move Under Way to Train Saudi Nurses [Sep 19]
"Saudi Arabia is in the process of recruiting 2,000 Filipino nurses and has announced 1,000 scholarships for Saudi girls in a move to address the shortage of specialist nursing staff. More than 10,000 nurses are urgently required to make up for the shortfall and this move by the Ministry of Health (MOH) will help train Saudi nurses with the aim to cut dependence on foreign nursing staff. 'A number of seats for Saudi women have also been reserved in premier health institutions in Jordan, Australia, the US, Britain and Bahrain, to enable them to pursue specialist nursing training,' said Dr. Munira Al-Osaimi, MOH�s director general of nursing, here yesterday. The MOH, which is seeking to increase the number of Saudis in the nursing sector to 60 percent within the next five years, is also offering advance training to nurses who have graduated from Kingdom�s medical colleges.." [more]

~~~~~~~~ [ Sep 18] ~~~~~~~~~

GCC Finance Chiefs Clear Monetary Union Plan [Sep 18]
" GCC finance chiefs on Wednesday approved proposals to set up a monetary council and a charter for a monetary union, the Arab bloc�s secretary general said. Finance and economy ministers of the six-member Gulf Cooperation Council approved the monetary union charter and the council�s bylaws said GCC Secretary General Abdurrahman Al-Atiyyah. The endorsement of the proposals constitutes a major step toward adopting a single currency, Atiyyah said. The monetary council, agreed in principle by GCC central bank governors in 2006, would be the forerunner for a GCC central bank, which will issue the single currency. The decisions taken by the ministers on Wednesday will be referred to as recommendations to GCC heads of state when they hold their annual summit in Oman later this year, Atiyyah said.They must be approved by the heads of state before they come in force.. ..The GCC has set a 2010 target date for a single currency.." [more]

JEF to Focus on Job Creation [Sep 18]
"The Jeddah Chamber of Commerce and Industry (JCCI) announced the preparation of the 10th Jeddah Economic Forum (JEF) to be held from Feb. 14-17, 2009. Saleh Al-Turki, chairman of JCCI, announced that the Jeddah Economic Forum 2009 would discuss job creation as an integral part of a vibrant effective economy and activism and how the private sector can lead in finding solution to macro issue facing our economies. 'For the tenth year the forum has proved its success and showed its impact on the economy level, therefore the forum in 2009 offers practical solutions to the challenges linked to economic growth and prosperity and we look forward to sharing with an engaging, stimulating and exclusive experience.'.. ..The forum is the most prestigious annual gathering in the Middle East and a world-class event where global, international and regional leaders meet to identify and address economic issues. Throughout the years, the forum has been able to set the standards for national and regional economic events aimed at job creation, economic development and identifying economic opportunities, offering a blueprint for the economic future of the Kingdom of Saudi Arabia and the region.." [more]

Daughter of Former Saudi Monarch Dies at the Age of 80 [Sep 18]
"The daughter of the former Saudi Monarch, Loula Bin Abdel Aziz (Ibn Saud) died at the age of eighty, the Saudi Royal Court announced on Thursday. Princess Loula, who died on Wednesday, is the twentieth among Abdel Aziz's 27 daughters and a half-sister to ruling King Abdullah. Ibn Saud, as he is known to the west, was the founder of a unified nation of Saudi Arabia in 1932. He was also the father of some 50 to 60 children, including all kings of Saudi Arabia that have ruled after him. Traditional Saudi families rarely comment in public on female family members.." [more]

US Attack May Spark Capital Flight: Saudi Bank [Sep 18]
"The eruption of hostilities between the United States and Iran in the Gulf could trigger a capital flight and seriously hit regional economies, a leading Saudi bank said yesterday. In the absence of a conflict, Saudi Arabia and other Gulf oil producers are expected to enjoy one of their best economic and fiscal years in 2008.. ..'Nonetheless, the US-Iranian standoff remains extremely dangerous. While a military conflict in 2008 is unlikely, the US policy will continue to focus on financially isolating Iran through sanctions and on deterring Iran through military deployment and regional alliances,' the report said. It said the Iranian nuclear issue is expected to remain the main source of geopolitical risk in the Gulf on the grounds that prospects for a solution are dim.. ..'Although a possible military conflict will push up crude oil prices and kingdom's revenues, a commensurate plunge in consumer and investor confidence will have a net negative impact on the growth of expenditure, prompt capital flight and depress the equity market'.." [more]

OPEC Lowers its Forecast for World Oil Demand Growth [Sep 18]
"The Organisation of Petroleum Exporting Countries (OPEC) in its latest monthly report has lowered its forecast for 2009 world oil demand to 0.9 million barrels a day (b/d), that is 1.00 per cent, compared with 1.03 per cent, as was the previous estimate. Oil consumption next year OPEC forecasts will average 87.7 million b/d. The basic reason for the lowering of the forecast is falling demand in the United States which is the largest consumer in the world. The oil cartel expects that all the additional demand will come from non-OECD countries, while demand form industrial countries will decline. OPEC also cut its oil demand forecast this year by 120.000 b/d.. ..It should be noted that OPEC's basket price currently is around $91 a barrel, a 30 per cent fall from its record high of $141 at the beginning of July.." [more]

~~~~~~~~ [ Sep 17] ~~~~~~~~~

Defiant Iran Puts Guards on Gulf Oil Route [Sep 17]
"Iran announced Tuesday that it has put its elite Revolutionary Guards in charge of defending the vital Gulf oil route. The announcement came as France joined the United States in calling for new United Nations sanctions to force Tehran to comply with international demands over its contested nuclear program. Iran has warned repeatedly that it will close the narrow Hormuz Strait at the mouth of the Gulf if the US or Israel attacks it amid tensions over Iran�s nuclear program. Around 40 percent of the world�s oil passes through Hormuz.. ..Iran�s hardened stance follows a new report by the International Atomic Energy Agency (IAEA), the UN�s atomic watchdog, that said Iran had not frozen uranium enrichment activities as instructed by the UN. French foreign ministry spokesman Eric Chevallier described the report as 'extremely worrying' and said: 'We have no choice but to work, in the coming days and weeks, on a new sanctions resolution at the Security Council.'.. ..The US says it seeking a diplomatic solution, but has not ruled out military action. Iran denies it intends to develop nuclear weapons.." [more]

Saudi Cleric Jailed for Shi�ite Practices [Sep 17]
" Saudi religious cleric has been jailed for demanding the right to perform a Shi�ite practice. Sheikh Tawfiq Al-�Amir, a Shi�ite religious cleric, said he preferred to remain in jail rather than give up his right to freedom of worship and propagating religious slogans according to the Shi�ite custom, UPI reports. He is being held in a jail in the Al-Ahsaa province, located in the east of the Saudi kingdom. Al-�Amir was jailed because he insisted on using a Shi�ite style of the recorded call for prayer.. ..Shi�ites constitute between five and 10 percent of the population in Saudi Arabia, a kingdom that practices a strict form of Sunni Islam. They often complain they are discriminated against by the government and say they face restrictions on religious freedom. Most Saudi Shi�ites live in the eastern part of the kingdom. Around 15 percent of Muslims worldwide adhere to Shi�ism, constituting the second-largest group of believers in Islam after the Sunnis. The main bone of contention between Sunnis and Shi�ites is the issue of succession to the Prophet Muhammad, who is believed to have died in 632 AD (CE).." [more]

Well-Known Daily Radio Broadcast Taken Off Air [Sep 17]
"In a surprise development, the Holy Quran Radio in Saudi Arabia has suspended its famous daily broadcast Light In The Path. The decision to take the programme off the air comes in the wake of the controversy generated by a fatwa issued by Shaikh Saleh Al Luhaidan, Chief Justice of the Supreme Judicial Council. The stricture says it is acceptable to kill owners of Arabic satellite television channels that broadcast programmes considered immoral. Light In The Path is a half-hour bulletin that features leading Saudi Islamic scholars fielding questions about Islamic issues from a global audience.. ..According to the Islam Today news website, the broadcast of a new episode of Light In The Path was halted yesterday along with another Islamic programme, Fahd Al Sunaidi. The website said the episode was scheduled to host Shaikh Abdul Rahman Al Ghadyan, a member of the Senior Ulema Board, but gave no reasons for the sudden decision not to air the programme.." [more]

Arab Banks� Governors See No Systemic Risk From US Financial Crisis [Sep 17]
"Arab banks have so far escaped a serious, direct hit from the US banking crisis and the region�s financial system is not at risk as the fallout sweeps global markets, key central bank governors said yesterday. Banks in Saudi Arabia, the biggest Gulf Arab economy, appear to have avoided serious damage, said Saudi central bank governor Hamad Saud al-Sayyari, who cautioned, however, the crisis was just a day old. 'At the moment ... I don�t see any risk but this crisis has just started yesterday,'.. ..In Saudi Arabia, the largest Arab bourse shed 6.49% on Monday�s crisis, but the head of the Capital Market Authority said there were no liquidity fears. 'The decline in Gulf markets and especially the Saudi market is a result of the global financial crisis,' Abdul Rahman al-Tuwaijri told Al Arabiya TV. 'There is no concern about the lack of liquidity in the market.'.." [more]

OIC, GCC Sign Accord [Sep 17]
"The 57-member Organization of the Islamic Conference, which is the world's largest Muslim organization, signed a landmark agreement on Monday with the Gulf Cooperation Council to strengthen political, economic and cultural cooperation. 'The agreement will usher in a new era in the historic relations between the two organizations,'.. ..The OIC secretary-general said the agreement would promote coordination between the two bodies on major issues of mutual concern. 'It will also 
contribute immensely toward realizing their mutual objectives,' he said. Speaking about the significance of the agreement, Ihsanoglu said both organizations would benefit from the experience and expertise of one another. He said the GCC has made significant progress in recent years. 'We�ll certainly benefit from its achievements.'.." [more]

Too Early to Say if OPEC to Cut Supply Again -Iran [Sep 17]
" It is still too early to say whether OPEC needs to reduce oil output again in December as the impact of financial market turmoil on oil demand is unclear, Iran's OPEC governor said on Wednesday. Members of the Organization of the Petroleum Exporting Countries (OPEC) last week agreed to rein in output that was above the group's target, cutting supply by 520,000 barrels per day. U.S. oil has since fallen below $100 to a seven-month low. 'It is too early to judge,' Iran's OPEC Governor Muhammad Ali Khatibi told Reuters. 'Demand is a key issue and signals from the economy in the United States are not good. But I hope demand will recover.' Khatibi said ahead of OPEC's meeting last week that the producer group may need to consider a cut to balance markets at its meeting in Algeria on Dec. 17. All members should abide by the group's decision last week to pump at output targets, Khatibi said.. ..Any reduction would come primarily from OPEC's most influential member Saudi Arabia, which produces most of the additional barrels above OPEC's agreed target. But concern about the effect of high fuel prices on the economies of leading energy consumer the United States and other big oil buyers could prevent Saudi from cutting.." [more]

~~~~~~~~ [ Sep 16] ~~~~~~~~~

Brazil Declines Saudi Invitation to Join OPEC [Sep 16]
" Brazil has declined a recent invitation from Saudi Arabia to join OPEC, citing plans to refine, not export, crude oil from its recently discovered deep water reserves, top energy officials said Monday. Mines and Energy Minister Edison Lobao said Brazil determined it doesn't need the cartel, because it plans to boost oil income by refining crude into products like gasoline for export abroad, the state's Agencia Brasil news agency reported. Paulo Roberto Costa, a high-ranking executive with Brazil's state-run Petroleo Brasileiro SA oil company, confirmed the government had decided not to join OPEC. 'Brazil won't be a big exporter of oil, that's already defined,'' Costa told Agencia Brasil at the Rio Oil & Gas Expo 2008 industry conference in Rio de Janeiro. 'Brazil was invited to participate in OPEC and did not accept because our priority is refining here and exporting derivatives.'' Analysts say the reserves _ found in the last year thousands of meters (feet) under the ocean floor and several hundred kilometers (miles) off the Rio de Janeiro coast _ may contain 55 billion barrels of oil, enough to catapult Brazil to superpower oil status.." [more]

Broadcasters on the Defensive in Region [Sep 16]
"Arab media have reacted to the religious decree by senior Saudi cleric and Chief Justice Shaikh Saleh Luhaidan that TV station owners who broadcast immoral material can be killed according to Islamic law. Arab TV producers aren't laughing.. ..The attacks have raised eyebrows because the owners of Arab entertainment channels, including MBC, ART, Orbit, Rotana and LBC, are members of the Saudi royal family or businessmen allies. A spokesman for MBC declined to comment. One TV official who did not want to be named said religious conservatives could not push back the tide in Arab entertainment television, which already pays attention to social and religious mores. 'You can't put the consumer back in the box,' he said.." [more]

Boeing Awarded Contract for Radar Upgrade on Saudi AWACS Fleet [Sep 16]
"The Boeing Company [NYSE: BA] has been awarded a contract for the initial phase of upgrading the radar on Saudi Arabia's fleet of five E-3A Airborne Warning and Control System (AWACS) aircraft. The Foreign Military Sale, not to exceed $42 million, was contracted through the Electronic Systems Center at Hanscom Air Force Base, Mass.. ..Boeing delivered Saudi Arabia's five AWACS aircraft between June 1986 and September 1987. AWACS fills the needs for airborne-surveillance and command-control functions for tactical and air defense forces. The substantial growth capacity inherent in the E-3 AWACS ensures that the system can readily be adapted to meet future missions and requirements.." [more]

Al-Mal to Set Up a $1.3bn Firm in Saudi [Sep 16]
"Kuwait's Al-Mal Investment Co, a firm controlled by the family-owned conglomerate Kharafi Group, said it signed a deal with Saudi's General Investment Authority to develop an economic city in the kingdom. Under the agreement, Al-Mal will set up a Saudi firm with a capital of 5 billion Saudi riyals ($1.33 billion), in which it will own a significant stake and sell a stake to the public, it said in a statement on the Kuwait bourse website. Other governmental authorities will also own a stake in the firm, which will be set up within six months, Al-Mal said without being specific. Developing the real estate project, which is to build the northern Saudi economic city of Hail, will be completed before 2025.." [more]

Five Activists Win Human Rights Watch Awards [Sep 16]
"Five brave and selfless advocates of human rights from Burma, Congo, Saudi Arabia, Sri Lanka and Uzbekistan have been awarded the prestigious 2008 Human Rights Defender Awards, Human Rights Watch said today. All five have been persecuted and threatened for their work. One winner, Saudi lawyer Abd al-Rahman al-Lahim, is under a travel ban, which Human Rights Watch urges the Saudi government lift so that he may receive his award in person in London.. ..Abd al-Rahman al-Lahim's commitment to justice is manifest as he fights on behalf of those in Saudi Arabia who have been persecuted arbitrarily under dubious interpretations of Sharia (Islamic law). His constant quest for justice and thorough knowledge of Islamic teachings are valuable catalysts for change within oppressive Saudi Arabian laws. As the leading human rights lawyer in Saudi Arabia, al-Lahim defends the rights of women, educators, and human rights activists who have been unjustly convicted under the Saudi religious establishment's narrow interpretations of Islamic law. He has been arrested several times, imprisoned and banned from traveling outside the kingdom for his unfaltering defense of the rights of Saudi activists, but he continues to engage fearlessly in the fight for justice.." [more]

~~~~~~~~ [ Sep 15] ~~~~~~~~~

Saudi Pursues Plan to Raise Output [Sep 15]
"Saudi Arabia is pushing ahead with mega projects to lift its sustainable oil production capacity to 12.5 million barrels per day at the end of 2009 but it appears to have suspended long-term plans, a Saudi group said yesterday. The kingdom, which sits atop a quarter of the world's recoverable crude deposits, is pumping nearly $60 billion (Dh220.38bn) into five major projects to expand output capacity from its present level of about 11.3 million bpd.. ..'It will be some time before the decision is made as to whether to go ahead with the new capacity but by providing the basic details, the kingdom has reassured the oil market that additional supply will be forthcoming if required,' Jadwa said. Oil analysts said Riyadh is pressing ahead with major capacity expansion projects although the country already maintains the world's largest spare capacity of about two million bpd. They considered such a decision as a message of reassurance to the market and a cushion against fresh price spikes. Although it has been overtaken by Russia as the world's largest oil producer over the past few months, Saudi Arabia has remained the dominant crude exporter.." [more]

Death For Sorcery Urged [Sep 15]
"A senior Saudi cleric has said purveyors of horoscopes on Arab television should face the death penalty, a paper said yesterday. 'Sorcerers who appear on satellite channels who are proven to be sorcerers have committed a great crime .. and the Muslim consensus is that the apostate�s punishment is death by the sword,' Sheikh Saleh al-Fozan told Al Madinah daily. 'Those who call in to these shows should not be accorded Muslim rites when they die,' the prominent cleric added. Many of the hundreds of Arab satellite channels that have sprung up in recent years specialise in horoscopes and other advice to callers on solving problems that is seen as 'sorcery'. Fozan was responding to a controversy ignited by Sheikh Saleh al-Luhaidan, who said last week that owners of Arab TV shows should be tried and face death over some shows. Fozan said entertainment channel owners should be 'banished' but stopped short of advocating the death penalty for them.." [more]

Saudi Arabia Eyes $900bn in FDI Over Next 10 Years [Sep 15]
"Saudi Arabia, the world's oil powerhouse, is looking at attracting up to $900 billion (Dh3.3 trillion) in foreign direct investments over the next 10 years in the energy, power, financial services and real estate sectors, Emirates Business has learned. A top official of the Saudi Arabian General Investment Authority (Sagia)Saudi Arabian General Investment Authority (Sagia)Saudi Arabian General Investment Authority said actual investments in Saudi currently run at $24bn, a 12-fold increase compared to five years ago. These investments will further leapfrog to nearly $1trn by 2018, said Dr Awwad Al Awwad.. ..'We are expecting investments worth $800bn-$900bn. This is not just expectation, we have already identified these investment opportunities,'.. ..He said the Kingdom is on track to achieving the goal of the "10 x 10" programme that is to put Saudi Arabia in the top 10 of the world's most competitive nations by 2010. 'As you know we have started from the 67th place four years ago and today we are now in the 16th. It seems like we are not going to stop,' he said.." [more]

Human Rights Centers to Curb School Violence [Sep 15]
"The Kingdom�s schools are to be provided with National Human Rights Authority centers to help curb bullying and violence between teachers and students. Cases of violence at schools have increased over the last few years. 'We have received a lot of complaints concerning school violence and bullying,' said Mufleh Al-Qahtani, head assistant at the NHRA. 'Cases such as these need to be monitored by a designated authority that can teach students how to protect themselves,' Al-Qahtani added.  'The Ministry of Education addresses the rights of both students and teachers,' Al-Qahtani said. 'But problems arise when students have no idea of what their rights are,' he added. Many students are too embarrassed to discuss such issues.." [more]

Jobless Rate Among Saudis Declines [Sep 15]
"The general unemployment rate in the Kingdom has fallen slightly from 11.2 percent last year to 9.8 percent this year, Labor Minister Ghazi Al-Gosaibi announced yesterday. Speaking to reporters at the ministry�s headquarters in Riyadh, Al-Gosaibi dwelt on measures taken by the ministry to cut unemployment, which had fallen from 8 percent to 6.0 percent among Saudi men and from 26.6 percent to 24.9 percent among Saudi women. The minister�s statement was based on the latest statistics provided by the Ministry of Economy and Planning. Al-Gosaibi said the total Saudi workforce had reached 4.078 million in February 2008.. ..He attributed the fall in unemployment to the government�s efforts to Saudize jobs and growing government spending on development projects.." [more]

~~~~~~~~ [ Sep 14] ~~~~~~~~~

New Saudi Courts Show Al Qaida Was Defeated [Sep 14]
"Saudi Arabia's decision to establish special courts to prosecute terror suspects allegedly involved in attacks since 2003, demonstrates the government's confidence that Al Qaida has been largely defeated in the Arabian peninsula, analysts say. Christopher Boucek, research associate of the Carnegie Endowment for International Peace, explains in an article published by the Arab Reform Bulletin that the government has reduced terrorism in the kingdom to an internal threat and now aims to delegitmise radicals through prosecution. 'Efforts to confront and delegitimise violent, radical ideology will prove to be critical long-term strategies in the struggle against terrorism in the kingdom,' he says. While rumours about the special courts have been circulating for a few years, it seems officials have confirmed the establishment of the courts in July. These courts will lead to a big reorganisation of the Saudi legal system.." [more]

Saudi Cleric Tones Down Death Ruling for Depraved TV Bosses [Sep 14]
"Saudi Arabia's top judge sought on Sunday to tone down a controversial religious edict sanctioning the killing of owners of television stations that air 'debauchery.' Sheikh Saleh al-Luhaidan said on state television that 'depraved' television owners could only be put to death after a judicial process, reflecting the anger of many clerics at programmes perceived as un-Islamic. If the owners of television networks who air 'depravation and debauchery' are not deterred by lesser punishments, they would be referred to justice which issues its rulings in keeping with the laws in force in the kingdom, he said. 'They may be killed through a judicial (ruling),'.. ..On Sunday the cleric acknowledged that his remarks had caused an outcry, but put that down to what he said was a wrong interpretation of his views.. ..Saudi commentator Daoud al-Shrayyan said it was unfortunate that Luhaidan's ruling coincided with the seventh anniversary of the September 11, 2001 attacks in the United States, in which 15 of 19 hijackers were Saudi. 'Some media saw this fatwa as an ideal opportunity to resume the talk about the link between terrorism and... Saudi Arabia and its clerics and curricula,'.." [more]

Saudi Telecom Eyes North Africa Growth [Sep 14]
"Saudi Telecom 7010.SE said on Sunday it would cut 14 percent of its workforce at home and boost efforts to expand abroad after being rebuffed by France's Vivendi over a stake in Maroc Telecom IAM.CS. Chief Executive Saud al-Duweish said he hoped Vivendi would have a change of heart after the French media group declined to sell its Moroc Telecom stake, but later told Al Arabiya TV that it had not made an official bid.. ..'We are interested in the Middle East and North Africa in general but we are looking at North Africa in particular.' Saudi Telecom is among firms that are competing for a 25 percent stake in Oman Telecommunications Co. OTL.OM. Saudi Telecom is under intense pressure to improve profitability as a regional telecom war heats up.. ..Saudi Telecom has spent in excess of $6 billion on foreign expansion in the past 15 months.." [more]

Saudi Market Welcomes New System With 4% Decline [Sep 14]
"The Tadawul responded to new changes in the pricing units with a sharp decline yesterday, which reached 4% and saw the Saudi market give up the 7,800 points mark for the first time this year. A state of confusion prevailed among brokerage offices, with the implementation of the new price change unit system, which has three standards.. ..The system replaces the old one which used to calculate quarter riyal up or down for all listed shares. The new system calculates the changes according to the price of the share. The session witnessed some confusion as some shares followed the old system, attributed by the market authorities as a correctional operation following the close of trading on Wednesday. Tadawul says that the new system has been implemented successfully for the three standards in cooperation with brokerage firms.." [more]

Sep 7 - Sep 13, 2008

~~~~~~~~ [ Sep 13] ~~~~~~~~~

Saudi Judge Condemns Immoral TV [Sep 13]
"The most senior judge in Saudi Arabia has said it is permissible to kill the owners of satellite TV channels which broadcast immoral programmes. Sheikh Salih Ibn al-Luhaydan said some 'evil' entertainment programmes aired by the channels promoted debauchery.. ..'There is no doubt that these programmes are a great evil, and the owners of these channels are as guilty as those who watch them,' said the sheikh. 'It is legitimate to kill those who call for corruption if their evil can not be stopped by other penalties.'.. ..Given his position as the country's most senior judge, the sheikh's views can not be easily dismissed, says BBC Arab affairs analyst, Magdi Abdelhadi. Clerics like Sheikh al-Luhaydan represent a huge dilemma for the Saudi royal family, our correspondent adds. On the one hand, Saudi rulers need their support to claim that they rule in the name of Islam. But on the other hand, fighting militant Islam can be difficult when the country's top judge calls for the beheading of those he views as immoral broadcasters.." [more]

Mixed Saudi Signals Confuse Opec Deal [Sep 13]
"Mixed signals from Saudi Arabia have thrown into question whether the top oil exporter will throttle back output as agreed with other Opec members this week. Saudi Arabia, the most influential member of Opec, signed up to a deal on Wednesday that would cut output by around half a million barrels per day (bpd) after oil prices fell from a peak above $147 a barrel in July to just above $100. Any cut would be made primarily by Saudi Arabia, which produces most of the additional barrels above Opec�s agreed target.. ..'It always comes down to what the Saudis want to do, but the fact that they don�t appear happy with the decision throws up a question mark (about Opec cuts),' said Mike Wittner, energy analyst at Societe Generale. 'There are political considerations and Saudi Arabia and other moderate Opec members have a genuine concern that while higher oil prices didn�t cause the economic slowdown, they are an extra weight on the economy,' he said. But he added he expected Saudi would eventually cut output.." [more]

GCC to Collaborate With Private Sector to Ensure Food Security [Sep 13]
"The ministers of commerce and industry of the Gulf Cooperation Council (GCC) states have adopted on Thursday evening measures to check the soaring prices of foodstuffs in their countries. They decided, among others, to work with major investors in the agricultural sector in the region to ensure food security, GCC Assistant Secretary General Mohammad Al-Mazrou�i told reporters after the meetings. They asked the GCC Secretariat to notify the major agricultural investors such as the Arab Authority for Agricultural Investment and Development (AAAID) and the Gulf Investment Corporation (GIC) to work out a feasibility study on joint investment with a view to providing foodstuffs to the GCC citizens at reasonable prices, he said. The study could result in launching a fund or strategic partnerships between the government and private investors in the field of agricultural development.. ..King Abdullah, Custodian of the Two Holy Mosques, had earlier called for ways to remove all obstacles facing the trade exchanges among the GCC members as well as acceleration of joint action.." [more]

Marriage Officials to be Punished if Bride Consent Not Sought [Sep 13]
" Saudi society has been recently exposed to a number of marriages that involve elderly men as old as 60 marrying young girls as young as eight. The marriages shocked many people who objected to such marriages, saying that there is no equality in this type of marriage and that there should be a strong law against such marriages. The question that was raised was how have marriage officials approved such marriages in the first place.. .. the Ministry of Justice's new regulations, which include imposing disciplinary punishment against marriage officials who marry girls without their consent. Al-Belaihi believes that there should a legal liability on the wali - the legal guardian.. ..In this regard, consultant to the Ministry of Justice and member of the Shoura Council, Sheikh Abdul Mohsen Al-Obaikan, stressed the fact that should the wali be conspiring to marry his daughter without her consent or approval he should be deprived of the guardianship over his daughter. Al-Belaihi says that he finds it irresponsible for marriage officials to overlook the consent requirement.." [more]

Young Businesswomen Set Up Forum [Sep 13]
"A 10-member executive council for young businesswomen, which is first of its kind in the Kingdom, has been set up at Asharqia Chamber in the Eastern Province. The council will encourage young women to set up their own businesses. The council was formed during the annual conference of Businesswomen�s Center at the chamber attended by nearly 800 women in the presence of Princess Jawahir bint Naif, wife of Eastern Province Gov. Prince Muhammad bin Fahd.. ..'We want to tell our women that there is nothing impossible.' The formation of the new council comes in the wake of the government�s efforts to empower women. Arab News has been publishing an annual supplement named 'Saudi Businesswomen Top 20 Companies' to highlight the achievements of successful businesswomen in the country.." [more]

~~~~~~~~ [ Sep 12] ~~~~~~~~~

Will the Saudis Break Ranks with OPEC? [Sep 12]
"OPEC's recent decision to cut production may not have the impact that is usually expected (see NY Times article). Reports are, that Saudi Arabian officials have assured world markets that they would ignore their own cartel members and continue to pump oil. While agreeing with the recent decision of OPEC to cut production, the Saudis are concerned that higher oil prices will not help the world economy, possibly causing a recession that would not only cause oil prices to collapse even further, but also speed-up the development of alternative energy sources. The 13 nations in OPEC control roughly 40-45 percent of the world's oil production (and hold roughly two-thirds of reserves), yet some large non-OPEC players in the space, such as OECD members and Russia, produce approximately 24 percent and 15 percent, respectively. The impact of the OPEC decision, especially when one of its members may be breaking ranks, could be less than might be expected, but with close to half of all production their impact is still worth paying attention to.." [more]

Why Jihad's Waning in Bin Laden's Homeland [Sep 12]
"..The 9/11 anniversary wasn't big news in Riyadh; Saudis have other things on their minds, this being the holy fasting month of Ramadan. But while counter-terror experts in the West take this opportunity to bemoan the resurgence of the Taliban and al-Qaeda in Afghanistan and Pakistan, it's worth noting that Saudi Arabia is one of the few places where jihadism is on the wane � with relatively little help from the Bush Administration's 'global war on terror.'.. ..How did the Saudis do it? They used a combination of brute force and subtle persuasion. Few details are available on the crackdown on terrorist groups, because the authorities here don't much like talking about it. So it's a fair guess that many of the means they used wouldn't pass any Western human rights test. Riyadhis speak in whispers about midnight raids, arrests, torture and summary executions. The government also put the squeeze on al-Qaeda's sources of funding by imposing rules on previously unmonitored religious charities. In private, officials boast that bin-Laden's organization receives no money from his homeland. In public, the government of King Abdullah prefers to talk about its efforts to reason with extremist preachers and rehabilitate young men led astray by "deviant" ideologies. And Abdullah launched a massive TV, newspaper and advertising campaign to counter al-Qaeda propaganda; for a time, you couldn't draw money from an ATM without reading warnings against extremism!.." [more]

Bangladeshi Expats Being Phased Out [Sep 12]
"Saudi Arabia has stopped issuing visas to recruit domestic helpers and agricultural workers from Bangladesh, said Waheedur Rahman, Minister and Deputy Chief of Mission at Bangladeshi Embassy in Riyadh. While Bangladeshi workers in other job categories are continuing to arrive in the Kingdom, those already here � including doctors and nurses � are uncertain about staying on much longer, he added. 'Starting April 2008, no domestic helpers including house maids, drivers and agriculture labor were being recruited to work in Saudi Arabia, although no official notification was given by Labor Ministry to the Embassy in this regard,'.. ..The minister said that Bangladeshi expatriates in the Kingdom are facing problems such as Saudi refusal to transfer sponsorship and the Immigration department�s refusal to extend the Iqama (residence) permit of Bangladeshi children who turn 18 while living here with their parents. 'When the parents apply for (Iqama), renewal the authorities give an exit-only visa,� he said, adding that several families have had to send their children, particularly daughters, back to Bangladesh'.." [more]

~~~~~~~~ [ Sep 11] ~~~~~~~~~

Meeting of Minds at OPEC Gathering [Sep 11]
"This week's OPEC meeting was about more than what a barrel of oil can fetch on the open market as the global economic picture grows dim. Organization of the Petroleum Exporting Countries heavyweight Saudi Arabia gave a nod, at least symbolically, to member nations that have grown increasingly uneasy about the rapid decline in crude prices. The Saudis attempted to placate rival Iran, and laid the groundwork for a potential new alliance with oil-producing giant Russia. But OPEC's announcement that it would cut output by more than 500,000 barrels by sticking closer to quotas did little to change what most consumers care most about�the cost of filling up a car with gas.. ..OPEC's decision Wednesday to cut output by 520,000 barrels left some talking about a Saudi defeat and a victory for Iran, which has sought higher oil prices through production cuts. Not so, says analyst and trader Stephen Schork, who was monitoring the meeting in Vienna. 'I wouldn't say the Saudis backed down,' he said. 'I'd say it was a respectful nod to the other members of the group'.." [more]

Saudi Arabia to Overhaul National Anti-Poverty Strategy [Sep 11]
"Saudi Arabia is in the process of upgrading its national anti-poverty strategy in order to cope with the high cost of living according to information made available to Asharq Al-Awsat. In fact, the rate of inflation has reached a record of 11.1 percent in July 2008, which is the highest rate the country has ever witnessed in the last 25 years, according to the latest official information issued by the government.. ..Officials in charge of the anti-poverty national strategy acknowledge the increasing numbers of the poor in varying degrees in Saudi Arabia in view of the increase of the population growth in the country. It is worth mentioning that Saudi Arabia is regarded as one of the countries with highest population growth in the world while there are no programs to cope with this increasing population growth.. ..Among the programs which the Saudi government approved as part of the anti poverty national strategy is to increase the allocations appropriated to the orphans and those who are living under needy conditions by 82 million Riyals or $21.86 million. The appropriations consisted of aid to the sponsoring families, school aid, end-of-sponsorship reward, matrimony aid, and rewards of the inmates of the orphanages.." [more]

Brown Announces Oil Summit on December 19 [Sep 11]
" Britain will host a summit of oil producer countries and consumers on December 19, Prime Minister Gordon Brown said Thursday, warning that the world must move away from the 'dictatorship of oil.' The guest list of those who will attend the conference will be finalized in the next few weeks, he said, while citing Saudi Arabia, long the kingpin of the Organisation of Petroleum Exporting Countries (OPEC). 'We... have taken this major initiative on energy,' Brown said at a monthly press conference in London, adding: 'We've all got to change from the dictatorship of oil to a far more balanced energy policy.' Brown raised the possibility of a summit meeting at talks in Jeddah in June, when Saudi King Abdullah launched an offensive against oil market speculators and called for greater transparency in oil market dealings. Reports have indicated the summit was pencilled in for mid-December, but Brown had not previously specified a date.." [more]

Saudi Arabia Faces Manpower Shortage [Sep 11]
"Saudi Arabia is facing an acute shortage of foreign manpower, the chairman of the National Recruitment Committee at the Saudi Council of Chambers of Commerce Sa'ad Al Badah, told a local newspaper. In an interview with Al Watan Arabic daily, Al Badah said the impact of the manpower shortage is expected to be particularly felt in the next few months if the restrictions on recruitment of expatriates continue. The expatriate workforce in Saudi Arabia is estimated at about six million. He blamed the shortage on the recent departure of a number of foreigners due to a sharp increase in cost of living and high recruitment fees.. ..The crisis, he felt, is due to the fact that many European recruitment agencies are turning to India, Philippines and Indonesia, the traditional source of blue-collared labourers in the Gulf, to recruit migrant labour. The salaries of these workers have increased tremendously because of competition from these countries.. ..The increase in demand has upset the balance of supply, Al Badah said. As a result, Saudi Arabia and other Gulf countries will suffer from a drastic shortage in foreign manpower, particularly skilled workers who are needed for new development projects.." [more]

Too Much Oil, Too Few Options [Sep 11]
"Saudi Arabia may seem rigid, autocratic and antiquated, but it is slowly changing. Under King Abdullah there has been some liberalisation and an attempt to build an economy not based on oil. But is this too little, too late?.. .. the al-Saud ("Saud's folk") have outlasted their enemies and rivals: the other Arabian sheikhdoms, the Sharif of Mecca, Gamal Abdel Nasser and Saddam Hussein, the Shah of Iran, and, at the time of writing, Osama Bin Laden. By the short-winded standards of the Near and Middle East, the al-Saud are stayers... .. the sons of Abdul Aziz are coming to the throne at ever more advanced ages, as in the last days of the Communist Party of the Soviet Union, or what Mark Weston calls 'the Chernenko syndrome'.. ..The al-Saud have had crude oil in abundance since 1938, but that is both a blessing and a curseThe al-Saud are in a race to create an economy independent of oil. When pressure falls in the oilfields and the wells run dry or fill with water, 30 million people cannot go back to herding camels, fleecing pilgrims and stoning adulteresses as in the 18th-century Saudi state. The desert will not even support one million. That is the challenge to the al-Saud, compared to which Bin Laden is a mere inconvenience.." [more]

~~~~~~~~ [ Sep 10] ~~~~~~~~~

Saudi Says Arrests Five Internet Qaeda Sympathizers [Sep 10]
" Saudi Arabia said on Wednesday it had arrested five regular users of Islamist chatrooms associated with sympathizers of al Qaeda. A statement by the Interior Ministry aired on Saudi state television said the five unidentified men were seized for 'spreading misleading propaganda on the Internet.' A security source told Reuters the men posted comments on many websites associated with al Qaeda using different pseudonyms. Saudi Arabia, the world's largest oil exporter, had battled battling Islamist militants who launched a violent campaign to destabilize the U.S.-allied monarchy in 2003. The violence has subsided since 2006 after nearly 200 people, including foreign residents, security forces and militants died, but the government has arrested hundreds of suspects over the past year. The Interior Ministry runs an extensive program of Internet monitoring.." [more]

Chevron Gets Saudi Extension [Sep 10]
"Saudi Arabia extended an agreement with Chevron Corp. Wednesday that allows the U.S. oil company to operate in a neutral zone the kingdom shares with Kuwait. Under the agreement, Saudi Arabian Chevron will be allowed to look for and produce crude on behalf of Saudi Arabia in the onshore neutral zone. Saudi Arabian Chevron and the Kuwait Gulf Oil Co. jointly operate four fields in the area - Wafra, South Umm Gudair, South Fuwaris and Humma. The fields produce mainly heavy crude from 10 reservoirs. The extension allows Chevron to operate in the area through Feb. 19, 2039.." [more]

Russia's Bid to Strengthen OPEC Ties May Sow Unease [Sep 10]
"Russia upped the ante in its faceoff with the West by proposing "extensive cooperation" with the OPEC oil cartel, an idea that would stir concerns among big oil-consuming countries like the U.S. The Russian proposal came just hours before the group's 13 ministers decided to scale back production by around 520,000 barrels a day, or less than 1% of world oil supply, over the next 40 days in the face of falling prices and slowing demand growth.. ..The offer by Russia's energy czar and vice premier, Igor Sechin, came as a surprise twist at the start of the OPEC session. The Organization of Petroleum Exporting Countries supplies around 40% of the world's oil, while Russian output makes up another 11%. Mr. Sechin made his offer for cooperation in person at the meeting in a visit that OPEC officials said was arranged in recent days. The Russian delegation of more than 20 officials raised eyebrows at the cartel's usually cloistered headquarters along the banks of the Danube; it was among the largest sent to Vienna by a nonmember state.." [more]

Saudi Arabia, Bahrain Lead GCC in World Bank's Doing Business Report [Sep 10]
"It takes six days to start a business in Qatar, seven days in Egypt, 9 days in Bahrain, 12 days in Saudi Arabia and 17 days in the UAE, compared to just one day in New Zealand, according to the World Bank�s latest Doing Business 2009 report published on Wednesday, an advanced copy of which was obtained by Gulf News. Saudi Arabia leads the Gulf countries in global ranking in ease in doing business at 16, followed by Bahrain at 18, Qatar at 37 and the UAE at 46, the report shows.. ..�Saudi Arabia, a top regional reformer, made it easier to start a business by continuing to simplify formalities for commercial registration and reducing registration fees by 80 per cent,� the report said. 'The time to start a business fell by 3 days. Saudi Arabia strengthened protections for minority shareholders through new provisions that prohibit interested parties from voting on the approval of related-party transactions and increase sanctions against directors for misconduct. And it was the only reformer in the region in the area of closing a business this year'.." [more]

~~~~~~~~ [ Sep 9] ~~~~~~~~~

Saudi Arabia: OPEC Output Level Contributes to Fairly Well-Balanced Market [Sep 9]
"Saudi Oil Minister Ai al-Nuaimi said here Tuesday that the international crude oil market is 'fairly well-balanced' and that the current OPEC crude oil output is appropriate. Ai al-Nuaimi said that OPEC had made great efforts to fulfill its objectives and stabilize the market. Therefore, the current market is 'fairly well-balanced' and the 'inventories are in a healthy position,' he explained Oil ministers of the OPEC member countries will meet and discuss the new production levels for the coming months at the 149th Ordinary Meeting of the OPEC Conference scheduled for Tuesday night in Vienna Comments by Ai al-Nuaimi was seen as a signal. Some analyst predicted that the oil cartel might keep its current production level. Since early July, the OPEC crude oil prices have dropped sharply along with the international oil prices. The oil cartel produces about 40 percent of the whole world crude.." [more]

First of 100 Arab Human Genomes Sequenced by Saudi Biosciences [Sep 9]
"An international consortium consisting of Saudi Biosciences, Beijing Genomics Institute Shenzhen, and CLC bio have in a joint effort performed an initial sequencing and analysis of the first Arab human genome, as part of a large project to sequence 100 Arab human genomes to map the unique genetic variations of the Arab population.. ..The results, including analysis and identification of the unique variants of the Arab genome compared to African, European and Asian genomes, have been accumulated. The data are currently confidential but will be released following publication. What is the impact of this project? One of the most important goals of modern medicine and genetic research is the goal of tailoring medical care to an individual's needs, based on information from the individual's genotype or gene expression profile, so-called personalized medicine. Personalized medicine can offer huge advances in medical care but can only succeed if the genetic variation of humans can be accurately mapped.. ..This is why the Kingdom of Saudi Arabia wanted to start building an Arab human genomics database now, in order to scientifically explore the unique genetic composition in the Arab world.." [more]

Islamists Call on Saudi Leaders to Act Against Dangerous Liberal Ideology [Sep 9]
"A number of Saudi Islamists have appealed to the Grand Mufti Shaikh Abdul Aziz Al Shaikh to counter what they refer to as the 'Westernisation phenomenon in Saudi society'.. ..they expressed their dissatisfaction with the steps taken to curb the phenomenon, which they claim contradicts Islamic teachings. Speaking to Gulf News, Saudi writers and thinkers said their call comes after moves of some Saudi liberals to push society in a 'dangerous' direction.. ..Included in the memorandum is a list of demands. Among these, they request a halt to media campaigns that 'promote vice and evil.' They also asked the government to not accept visiting female delegations. Finally, they asked that the government not yield to the liberalising pressure from influential people in the government. Meanwhile, Saudi liberals told Gulf News that the movement of the Islamists against them would not force them to give up their attempts to make the Saudi people accept the views of others.." [more]

Qaeda Down But Not Out in Saudi [Sep 9]
" Oil-rich Saudi Arabia, home of most of the 9/11 hijackers, has largely neutralised local Al-Qaeda militants but they can not be written off so long as their 'dogma' is alive, officials and experts say. And a surge of Al-Qaeda militancy in neighbouring Yemen shows that the fight against the group is not over in the Arabian peninsula. 'Security forces have managed to bring the situation on the ground under control and have so far succeeded in foiling Al-Qaeda's plots in the kingdom,' said Saudi interior ministry spokesman General Mansur al-Turki. 'But this does not mean that Al-Qaeda is finished. Al-Qaeda still seeks to propagate its thinking and recruit youths in and outside the kingdom,' he told AFP, echoing the cautious view often voiced by officials. 'A greater degree of international cooperation is required to defeat Al-Qaeda everywhere,'.. ..While Saudi Arabia seems to have put behind it the dark days when Western residents fled the country after a spate of attacks by the so-called 'Al-Qaeda in the Arabian peninsula,' including the gruesome beheading of a US engineer in June 2004, its southern neighbour Yemen has in the past year faced an upsurge in Al-Qaeda operations against both Western and local targets.." [more]

Saudi Urges UN Meet on Settlements [Sep 9]
"Saudi Arabia yesterday called for the UN Security Council to hold a meeting on Israel�s policy of Jewish settlement building on Palestinian land in the occupied West Bank. 'I have proposed ... the Arab group (at the UN) calls for the UN Security Council to hold a ministerial meeting on the settlements,' Saudi Foreign Minister Prince Saud al-Faisal said at an Arab ministerial meeting in Cairo. Prince Saud charged that Israel was 'undermining the conditions of the peace process by intensifying the construction of settlements to change the situation on the ground.' He said his request for a Security Council meeting was made in co-ordination with Palestinian President Mahmoud Abbas.. ..The construction of settlements � viewed as a major obstacle to reaching a peace deal � has nearly doubled since 2007.." [more]

Kosovo FM Visiting Saudi Arabia [Sep 9]
"Kosovo Foreign Minister Sk�nder Hyseni is visiting Jeddah, Saudi Arabia today where he will meet with General Secretary of the Organization of Islamic Conference, Ekmeleddin Ihsanoglu.. ..The main discussion during this meeting will focus on the developments in Kosovo after independence, process of recognition of its statehood, interior developments in Kosovo and the 63th session of the United Nation General Assembly.. ..Minister Hyseni will ask Islanoglu for the support of the Islamic Organization to back Kosovo during the 63rd session of United Nations General Assembly to block the Serbian initiative regarding Kosovo independence.."  [more]

Saudi Cargo Ship Rescued From Pirates [Sep 9]
"A Saudi cargo ship was rescued from Somali pirates by the Yemeni Coast Guard in the southern part of the Red Sea on Saturday, according to a statement by the Yemeni authorities yesterday. 'On receiving an SOS from the Saudi ship �Mumina� at 3 p.m. on Saturday, coast guard boats rushed to a location 43 nautical miles off Raas Qaawa in the Gulf of Aden and found the ship surrounded by three Somali pirate boats. At the sight of the coast guard boats, the pirates fled. The coast guard accompanied the ship to the Shaqra region of Shabwa province from where it continued its voyage to Bahrain,'.." [more]

HRC Handled Over 10,000 Complaints in Three Years [Sep 9]
"In the last three years since its establishment on Sept. 28, 2005, the governmental Human Rights Commission (HRC) has dealt with over 10,000 complaints. Turki bin Khaled Al-Sudairi, chairman of the organization, said 50 percent of complaints were dealt with by referring them to specialized bodies, or dismissing them as unsubstantiated, or not falling under the HRC�s jurisdiction. Al-Sudairi said that the organization members have so far carried out 12 visits to shelters, homes and observation centers in conjunction with concerned governmental bodies, including the Ministry of Interior, the Ministry of Justice, the Ministry of Labor and the Ministry of Social Affairs. He added that the HRC recently formed a higher committee to work with governmental and nongovernmental organizations to distribute booklets on human rights to official bodies.." [more]

~~~~~~~~ [ Sep 8] ~~~~~~~~~

Varsity Allocations Doubled: Al-Anqari [Sep 8]
"Higher Education Minister Khaled Al-Anqari yesterday highlighted Custodian of the Two Holy Mosques King Abdullah�s support to institutions of higher learning in the Kingdom and said budget allocations to Saudi universities have doubled in the last five years. 'The government has shown tremendous enthusiasm to upgrade infrastructure facilities of universities,' the minister said while meeting Adnan Wazzan, president of Makkah�s Umm Al-Qura University and other top officials. He also referred to King Abdullah�s efforts to promote university education.. ..He said many colleges, especially teaching colleges, have been restructured to meet job market requirements.." [more]

Saudi Arabia Must Focus on Niche Farming [Sep 8]
"Saudi Arabia should move from large-scale agribusiness to niche farming of high-value products, says an analysis of the kingdom's agriculture sector in The Gulf. The kigndom is is the only state which boasts an agriculture sector in the water-scarce Arabian peninsula. And the sector takes up 90 per cent of total water consumption in the state. The GCC state took up large-scale agribusiness in order to attain food security, during the 1970s oil boom. On a purely economic level, the earlier policy was remarkably successful.. ..But from an ecological point of view, the policy has been disastrous, says the report. Groundwater reserves were extracted at up to five times their repletion rates.. ..In an attempt to preserve what remains of the country�s groundwater, the Saudi government in November took the decision to phase out wheat production. It was the first step in an unavoidable reduction and redirection of the agricultural sector. Now the question is, which crops should continue to be produced domestically?.." [more]

Saudi PetroRabigh Start Delayed to Q1 2009 [Sep 8]
"Saudi Arabia's Rabigh Refining and Petrochemical Co said on Monday it would delay to the first quarter of 2009 the commercial launch of operations at its $10.3 billion refining and petrochemical plant.. ..Spokesman Eyad al-Ajaj said the delay would affect the whole of the refining and petrochemical complex. 'As we said in the press release we are planning to start in the first quarter of 2009. We are talking about the whole start of the whole complex; it will be for the first quarter of 2009 instead of the last quarter of 2008,' Ajaj said. The firm targets the first quarter for both the experimental and commercial launches of the complex, he said. 'We don't anticipate any further delay, at least for the time being,' he added. The complex was 97.6 percent complete at the end of August.." [more]

Mall of Arabia Offers New Concept [Sep 8]
"Mall of Arabia, which aims to be a destination center for families, both for shopping and recreation, opened in north Jeddah, near King Abdul Aziz International Airport, on Saturday night. 'With its area spanning 25,000 sq m., this is the largest mark in the city,' Fawaz Al-Hokair, president of Fawaz Al-Hokair Group, who opened the mall, told Arab News. 'We have worked hard to built commercial centers that offer a new culture and concept in the marketing of trademarks across the region. With its traditional souk, a snow village, two international hotels, a French hypermarket, a food court and coffee shops, this project, which is being completed in two phases, is aimed to become a destination mall,' he added. 'The new concept mall is a benchmark in 21st century shopping and its creation is due to the economic dynamism witnessed in the city and elsewhere in the province,'.." [more]

Amazon Makes Middle East Entry wth Taufeer [Sep 8]
"Amazon.com is set to make is Middle East debut, through an agreement with Saudi-based e-tailer Taufeer.com. Under the agreement, Amazon will use Taufeer�s e-channel retail program to bring a range of products to online customers in Saudi Arabia and the Gulf. Amazon, the world�s largest online retailer, is very popular with online shoppers in the region, but currently has no dedicated site for the Middle East or offerings in Arabic. Taufeer.com will act as a retail channel to sell Amazon�s product ranges in the Gulf, starting with consumer electronics. Yasser Abdullah, founder and CEO of Taufeer.com commented: 'We are very excited about signing up a mega retailer such as amazon.com to our e-channel program. After careful analysis and testing by amazon.com, our advanced comparison shopping service was selected for its simplicity and ease of integration with Amazon.com infrastructure. This is an important milestone in our strategy to be the first destination for online shoppers in the Middle East.." [more]

~~~~~~~~ [ Sep 7] ~~~~~~~~~

Iran: Saudi Arabia Should Produce Less Oil [Sep 7]
"The relationship between one of the leading countries in the region - Iran and Saudi Arabia - continues to deteriorate. The two have been at odds with each other for decades.. .. Saudi Arabia actively supported the United States during the first Gulf War. If they would not have done so, it would have been very difficult indeed for the U.S. to push Saddam Hussein�s forces back into Iraq. Now, Iran was all too happy with Saddam�s defeat, but letting Americans forces on your soil is an entirely different affair altogether. That support for the U.S. also becomes clear in other ways; when other oil producing countries produce less oil - forcing the prices to go up - Saudi Arabia sometimes agrees to produce more. As is the case right now. The Saudis have stepped up the production of oil, even though the other OPEC countries wanted to produce more. The result? Iran is angry. It has told Saudi Arabia to cut back production soon (or else).." [more]

Iraq, Saudis Reach Anti-terror Agreement [Sep 7]
"Iraqi officials say they and Saudi Arabia officials have agreed to a continuation of their joint effort to fight terrorism. Financial transactions between the two countries will be a special focus under an agreement reached during a recent visit to Saudi Arabia by Iraqi Security Adviser Dr. Muwafaq al-Rubaie, the Kuwait News Agency, KUNA, reported Sunday. A statement issued by the Iraqi government Sunday said Al-Rubaie also assured the Saudis that Iraq is ready to provide security for the new Saudi embassy scheduled to open soon in Baghdad. The Saudi embassy is considered an important sign of credibility in the Sunni Arab world.." [more]

Saudi Arabia Invites Bids for Jazan Refinery [Sep 7]
"Saudi Arabia's oil ministry said on Sunday it had set March 7, 2009 as the deadline for prequalified companies to present detailed proposals to build an export refinery in Jazan. Eight companies already shortlisted by the ministry could now download a "request for proposal" package from the refinery website.. ..Spiralling costs have cast doubt over the viability of new oil refineries worldwide, and industry observers have been sceptical over the Jazan plan since it is a long distance from crude production facilities. The project is part of government plans to give an economic boost to the impoverished region of Jazan in the far south near Yemen, on the Red Sea coast. The request for proposals is aimed at companies the ministry has vetted as qualified to build and operate the refinery. The ministry said last year that eight Saudi and 43 international companies had prequalified to take part in the Jazan tender.." [more]

Saudi Inflation to Continue to Rise [Sep 7]
"Inflation in Saudi Arabia will continue to rise in the third quarter of 2008, but at a slower pace than in the previous period, the Saudi Arabian Monetary Agency (SAMA) said a report on Saturday. The general cost of living index registered an annual rise of 10.5 percent in the second quarter of 2008, compared to the second quarter of 2007, SAMA said. 'In terms of external factors that feed domestic inflation level, the openness of the Saudi economy on the world makes it vulnerable to international economic conditions. Unfavorable economic circumstances in certain regions of the world have influenced the supply of food commodities and thus raised the prices of food products in general,'.. ..'Projections indicate a continued rise in the inflation rate during the third quarter of 2008 but at a slower pace than in the previous period,'.." [more]

Gulf Oil Production to Surge by 2015 [Sep 7]
"The Gulf could deliver an extra 10 million barrels of crude oil per day by 2015, with investment of almost $300 billion in boosting oil production currently underway, new research says. Emil Rademeyer, director of Dubai-based project research firm Proleads, said in a statement on Sunday that more than half of the added capacity would come from Saudi Arabia alone. 'Recent analysis of total global oil production and development projects shows that world crude production capacity from all sources has the potential to rise from the current 87 million barrels per day to as much as 108 million by 2015'.. ..'Saudi Arabia, with one-fifth of the world's proven oil reserves and some of the lowest production costs has an aggressive energy sector investment initiative. Saudi would contribute more than half the 10 million barrels a day in added capacity if all projects deliver on target by 2015,' Rademeyer added. Between this year and 2009 alone, Saudi Arabia has put in place projects with target added production capacity of more than 1.6 million barrels a day.." [more]

Palestine is AL�s Priority � Qattan [Sep 7]
"The meeting of 130th regular session of the Council of the Arab League at delegates level began at the Arab League headquarters in Cairo on Saturday. The meeting was headed by the representative of Saudi Arabia to the Arab League Ambassador Ahmed Abdulaziz Qattan.. ..the Ambassador said in his speech that the Palestinian issue is the most important priority of joint Arab action, which is currently working to achieve reconciliation among the Palestinians so that they can prevent their enemies from dispersing them. Saudi Arabia, he added, believes that the resolutions of the Arab League on the dispute between the Palestinian Authority and Hamas, and the Cairo, Makkah and Yemen agreements signed between them, in addition to the Palestinian constitution, are references for solving the internal Palestinian dispute.." [more]

Saudi Stock Index Plunges 5.41% to End at 8,044.79 [Sep 7]
"The Saudi stock index suffered the biggest one-day loss since Jan. 22 as blue chips extended declines into a fourth trading session yesterday. The Tadawul All-Share Index (TASI) plunged 459.93 points or 5.41 percent to close just above 8,000 points at 8,044.79.. ..'The market�s sudden drop defies any logical and fundamental explanation. Trying to explain a correction on external factors does not qualitatively quantify the market�s behavior especially as this was done in a volume-healthy session,' John Sfakianakis, chief economist at SABB (The Saudi British Bank), said, adding that looking closely, the external environment has not become more geopolitically uncertain as it was a few weeks back or when the market reacted in a positive way to the Capital Market Authority�s (CMA�s) announcement of the foreign swap agreement.." [more]

Saudi Aid Handed Over to Mali [Sep 7]
"Saudi humanitarian aid has been handed over to the Republic of Mali to alleviate the effects of a recent drought and locusts which were destroying agricultural crops in that country. The aid to Mali comes in implementation of the directives of King Abdullah, Custodian of the Two Holy Mosques. The aid was handed over by Saudi Acting Charge d�Affaires in Mali Ibrahim Bin Abdulwahab Al-Ghareeb, head of Saudi relief delegation, Ibrahim Bin Sulaiman Al-Duraiweesh, Ministry of Finance representative, Sultan Bin Mohammed Al-Subaie, and chief of the Food Security Commission in Mali, Nana Lansri. The aid includes 3,667 tons of rice. Lansri asserted that the Kingdom will always support the people of Mali who now face a food crisis in some parts of the republic.." [more]

Aug 31 - Sep 6, 2008

~~~~~~~~ [ Sep 6] ~~~~~~~~~

Opec is Likely to Trim Crude Supply as Global Economy Slows [Sep 6]
"Slower demand, an economic downturn and cheaper oil could convince Opec it needs to trim supply unofficially, but the producer group is expected to leave public output targets unchanged when it meets next week. Prices have plunged from a peak of more than $147 a barrel in July after leading oil exporter Saudi Arabia took a unilateral decision to pump at the fastest rate since 1981. At the same time, demand in top oil consumer the US fell at the fastest rate since 1982 in the first half of this year and traditional price hawks Iran and Venezuela have raised the prospect of reining in over-supply. Given the potential for oil stocks to build, the Organisation of the Petroleum Exporting Countries (Opec) will need to cut output at some point this year to prevent a further price fall, said David Kirsch of Washington-based consultancy PFC Energy. 'The question is not whether to cut, but when,'.." [more]

Saudi Arabia Debates Birthday Parties [Sep 6]
"When Hala Al Masa'ad invited her girlfriends over to celebrate her 18th birthday with cake and juice, little did the high school student know that she was stepping into an unusual public debate. Is celebrating birthdays un-Islamic? Saudi Arabia's most senior Muslim cleric recently denounced birthday parties as an unwanted foreign influence, but another prominent cleric declared they were OK.. ..The Saudi ban on birthdays is in line with the strict interpretation of Islam followed by the conservative Wahhabi sect adhered to in the Kingdom. All Christian and even most Muslim feasts are also prohibited because they are considered alien customs that the Saudi clerics do not approve.  Only the Muslim feasts of Eid Al Fitr, which marks the end of Ramadan, and Eid Al Adha, which concludes the annual pilgrimage to Makkah, are permitted.. ..The latest controversy started when a prominent Saudi Arabian cleric, Salman Al Audah, said on a popular satellite TV programme last month that it was OK to mark birthdays and wedding anniversaries with parties as long as the Arabic word "eid", meaning feast, is not used to describe the events. That prompted a quick denunciation by Saudi Arabia's grand mufti and top religious authority, Shaikh Abdul Aziz Al Shaikh, who said such celebrations have no place in Islam and produced a list of foreign customs that he suggested were unacceptable.." [more]

Labor Supply Firms in a Fix [Sep 6]
"The labor subcontracting business may no longer be lucrative as blue-collar foreign workers recruited on a salary of less than SR1,000 a month are unable to cope with a rising cost of living from inflation in Saudi Arabia. Worth as much as SR500 million, the labor supply business involves mostly Asian workers who get extremely low wages and no other financial benefits for jobs in often unhealthy and hazardous conditions.. ..Thousands of sub-contracted workers have surrendered to the Passports Department in recent months, seeking deportation at Saudi government expenses since they could not even afford a one-way ticket back home. Following the sharp rise in the cost of living over the past year, such subcontracted workers have had no choice but to look for a second job in violation of residency laws, make money through illegal ways, or simply the leave the country.." [more]

Child Labor Becoming a Problem in Saudi Arabia [Sep 6]
"Child labor is becoming a problem in Saudi Arabia, where nearly 1.54 percent of the child population works, a study said. The study, first of its kind in the Kingdom, commissioned by King Abdul Aziz City for Science & Technology (KACST) and conducted by Dr. Mohammad Abdullah Al-Naji, put the Eastern Province on top of the list at 2.3 percent followed by Makkah, Madinah, Asir and Riyadh. Economic issues are the primary driving factors behind child labor, followed by other factors that include dropping out of school and domestic compulsions, the study said. Some 2,000 Saudi children included in the study were either interviewed by Naji himself or asked to fill out questionnaires prepared as part of the national survey.. ..According to another study conducted by Saud-Al Shahri, a Saudi social worker, there are more than 83,000 homeless children in the Kingdom. 'Nearly 69 percent of child beggars in Riyadh are Saudis,' said the study, adding that about 88 percent of mothers of child beggars are illiterate and only nine percent of them hold an elementary school certificate.." [more]

~~~~~~~~ [ Sep 5] ~~~~~~~~~

Saudi Analysts Slam Iranian Expansionism [Sep 5]
"Saudi parliamentarians and political analysts have come down heavily on the tone and tenor of the Iranian response to a GCC call for returning the the three occupied UAE islands of Greater and Lesser Tunbs and Abu Mousa to UAE sovereignty. Speaking to Gulf News, parliamentarians and analysts said the Iranian assertion that the islands were an integral part of its territory reflected its hegemonic ambitions given the strategic and military value of the three islands.. ..'All the time, it [Iran] is endeavouring to extend its hegemonic hold over the three UAE islands though it is not in need of more territory. It wants to continue its occupation of the three islands in view of the strategic advantage they offer vis-a-vis control of international navigation routes and the flow of oil to international markets in case it faces a military attack', he said.." [more]

Oil Scene: No Warning Bells in OPEC Capitals Yet [Sep 5]
"All eyes are focused on Riyadh. With calls from within the Organization of the Petroleum Exporting Countries (OPEC) to have a close look at its current output practices, the Saudi stance on the issue is eagerly awaited. The guessing game is on. Keeping with its traditions, Riyadh has kept its cards close to its chest tactically avoiding any public position on the issue. The next few days are thus going to be interesting, with global energy fraternity almost on tenterhooks. There is a growing feeling now that at the Sept. 9 meeting in Vienna, Saudi Arabia may increasingly come under some pressure from within the OPEC ranks to curtail its output so as to prevent any steep fall in crude prices. Saudi Arabia has been underlining at the highest level its commitment, will and the ability to meet the growing needs of the market.." [more]

Saudi and Iraq to Enhance Security Cooperation [Sep 5]
"Iraq's National Security Adviser, Muwaffaq al-Rubayi, has revealed to Asharq Al-Awsat that the Kingdom of Saudi Arabia has provided the Iraqi Government with a list of 434 Iraqi nationals currently held in Saudi jails, most of whom were convicted for drug possession and trafficking.. ..Riyadh and Baghdad have agreed to take numerous measures to strengthen border security, including monitoring the transference of funds and the movement of individuals, whether those who travel directly between the two countries or through a third country. On his departure from Saudi Arabia, Al-Rubayi carried a draft security agreement between the two countries. He said that he would convey it to the Iraqi government and if approved, it would be tantamount to a legal framework for the extradition of prisoners between the two countries.." [more]

GCC to Discuss Monetary Plan [Sep 5]
"GCC finance ministers will discuss on September 17 a blue print to set up a monetary council as a prelude to establishing a GCC central bank, Jeddah-based Okaz daily reported yesterday. We are committed to 2010 as the year to establish a monetary council or a monetary authority for the GCC states,� the paper reported citing the governor of the Qatar Central Bank. The move will be a big step towards the GCC monetary union, the paper said. The Technical Committee for the GCC Monetary Union will hold its 25th meeting in Doha next Sunday.." [more]

Women�s Varsity to Have New Campus [Sep 5]
"Custodian of the Two Holy Mosques King Abdullah will lay the foundation stone of the new campus of Kingdom�s first women university shortly, Princess Al-Jowhara bint Fahd, president of the university, announced yesterday. Located north of Riyadh, the university will have 13 new colleges. She praised King Abdullah and Crown Prince Sultan for their tremendous support to Riyadh Women's University, which, she said, will usher in a new era in higher education for women in Saudi Arabia. �We want to make it a leading international university,� Princess Al-Jowhara told Al-Riyadh Arabic daily. She disclosed plans about tie-ups with prominent universities inside and outside the Kingdom to promote research. The women�s university, along with its affiliated colleges, has so far enrolled 17,000 women students, she added.." [more]

~~~~~~~~ [ Sep 4] ~~~~~~~~~

Victim's Father Offers Glimmer of Hope to Canadians Facing Saudi Execution [Sep 4]
"The father of a Syrian teen beaten to death in a schoolyard brawl here says he might forgive the Canadian brothers accused in his son's murder - a mercy that could save them from an executioner's sword. But Mueen Al-Haraki's rare offer of clemency comes with strings attached: He is demanding that Saudi Arabia order the death penalty for Mohamed and Sultan Kohail, a public admission of guilt from the brothers and an apology from their family for the killing of Munzer, his 19-year-old son. Most crucially, he is asking the Canadian government to stop interfering in their case.. ..If the Kohails take Mr. Al-Haraki at his word, their best chance of survival could hinge on them renouncing Ottawa's efforts to seek clemency directly from the Saudi government. Until now, engaging Ottawa in their cause has been viewed as the best hope for the Kohails, who maintain they are innocent victims of conspiracy and a twisted justice system.." [more]

Saudi Arabia Opens New Field [Sep 4]
"Saudi Aramco, the Saudi Arabian oil giant, will add an additional half a million barrels per day (bpd) to its production capabilities with the opening of the Khursaniyah field.. ..With the opening of the new field Saudi Arabia's production capabilities are expected to rise to 11.8 million bpd. Riyadh, which is a strong regional ally of Washington, has been under increasing pressure by the latter to increase its oil output in order to combat the rising price of oil, which has hit consumers in the U.S.." [more]

Iran Rejects GCC Call to End Isle Row [Sep 4]
"The row between Gulf Arab countries and Iran over an island in the strategic Gulf waterway remained deadlocked Wednesday with Iran rejecting a call by GGC foreign ministers for a peaceful resolution through direct negotiations or by referring the case to the International Court of Justice. Late Tuesday, the foreign ministers of the six-member Gulf Cooperation Council (GCC) met here and backed the United Arab Emirates� claim to the territories. 'The ministerial council condemns Iran�s establishment of two administrative offices on Abu Musa island that belongs to the UAE and demands that Iran remove these illegal installations and respect the UAE�s sovereignty on its land,' the GCC ministers� statement read.. ..Abu Musa and the Greater and Lesser Tunbs, located near key shipping lanes in the Gulf, are controlled by non-Arab Iran but claimed by the United Arab Emirates with broad Arab support.." [more]

Buying a Home is Beyond the Reach of Many Saudis [Sep 4]
"Owning a home has never been more difficult for most Saudis. Soaring construction costs, land speculation, and lack of bank financing have aggravated a housing deficit estimated at some 1mn homes and driven rents higher. Realtors say the percentage of home ownership stands at about 30%, making it the lowest among the oil-driven economies in the Gulf Arab region. Saudi Arabia has 5-6mn homes. 'It is a challenge they have to address when you have 65% of the population on rent,' said John Sfakianakis, chief economist at SABB bank, HSBC�s Saudi subsidiary. 'Many Saudis feel there is an obligation that during this economic boom people have to be housed ... If people don�t have equity and the only thing they have is, say, a car, then what is it that they have to pass down to the next generation?' he said.." [more]

HRC Opens Women�s Wing in Riyadh [Sep 4]
"The Human Rights Commission (HRC) announced yesterday the opening of its women�s branch here to look into cases of human rights violations against women and children. �Dignity of women and childhood support� is the motto of this new wing,' said Wafiqah Al-Dakhil, the newly appointed head of the women�s wing. She added that its aim is to create awareness about the laws pertaining to women and children through campaigns and define rights as established by Islam. Al-Dakhil said the new wing would seek the help of volunteers and experts from all parts of the Kingdom to accomplish its mission. She also registered her thanks to HRC President Turki Al-Sudairy for the establishment of the new wing that would concentrate on women and children... ..The new wing will have a team of specialists in psychology and sociology, who will receive complaints relating to violence, sexual harassment, arbitrary divorce, rape and personal cases.." [more]

~~~~~~~~ [ Sep 3] ~~~~~~~~~

EU Court Unfreezes Assets of Saudi Suspect [Sep 3]
"The EU's Court of Justice on Wednesday overturned a 2001 decision by EU governments to implement a U.N. anti-terror order to freeze the assets of a Saudi businessman and a Sweden-based charity suspected of funding al-Qaida terror groups. The ruling by the EU's highest court in Luxembourg calls into question international efforts to stop the financing of terror groups, notably al-Qaida. Similar cases filed by other suspects and groups on the list have also led to them winning legal victories against their listing on the EU terror blacklist.. ..Wednesday's decision overturns a 2005 EU court decision that rejected an appeal by Yasin al-Qadi, a Saudi national, and the Swedish-based charity Al-Barakaat International Foundation to unfreeze their assets. Al-Qadi, head of the Saudi-based Muwafaq Foundation, is trying to appeal the freezing of his assets by the 27-nation bloc under a U.N. order filed after a month after the Sept. 11, 2001, terror attacks in the United States.." [more]

Saudis Could Lift Heavy Crude and Cut Light Prices [Sep 3]
"Lifters of Saudi crude expect the world's top oil exporter to raise prices of its heavy crude on the back of strong fuel oil prices, and to trim the price of its lighter grades as Asian refiners cut runs. But lifters polled agreed on the direction, not the size of the moves. Refiners said this was a tough month to predict, as product prices have started diverging with the fuel oil crack rising strongly while the gas oil crack has plunged.. ..Saudi prices set the trend for Iranian, Kuwaiti and Iraqi prices, affecting the price of more than 8 million barrels per day (bpd) of crude sold to Asia. They are usually released around the fifth of each month before crude starts trading. The front-month fuel oil crack rose to average $10.76 a barrel below Dubai swaps in August, up a steep $7.63 from July, as strong demand from the Middle East tightened supplies, Reuters data showed. That would likely prompt Saudi Aramco to raise the prices of Arab Medium and Heavy, which have a high fuel oil content, lifters said.." [more]

Education Gets a Boost [Sep 3]
" The increase in gratuities and allowances of members of the academic staff in Saudi universities has been praised by the Minister of Higher Education and other officials.  The incentives to university teachers were approved by the Council of Ministers on Monday.. ..'Universities in Kingdom of Saudi Arabia have to compete with famous educational institutions throughout the world,' he said. 'Achieving such high educational standards requires us to have international universities, such as, King Abdullah University in Thwal,' he added. The incentives for teachers will also encourage Saudi youth to take up the teaching profession, he said. It will also help the government in its Saudization campaign, said Al-Uwaihel. In order to create a better educational work environment, the Cabinet has earmarked around SR5 billion for housing projects for teachers.." [more]

Saudi Girl Selected as Youth Ambassador [Sep 3]
"A first-year student at the College of Business Administration, Ala�a Al�Mizyen, has recently been selected as Saudi Youth Ambassador for the Middle East Youth Initiative. Ala�a, 18, is also the founder president of the on-campus student organization Saudi Arabia�s Women of Tomorrow. Saudi Arabia�s Women of Tomorrow aims to instill and nurture the leadership role in female students, Ala�a said. She looks forward to providing opportunities for character development and enrichment, to extend networking and team-building beyond classrooms.. ..Ala�a was also selected by the British Council from a pool of applicants to attend the Learning from the Future workshop. As the youngest and only undergraduate college student chosen, she represented Saudi Arabia at the workshop covering global and regional issues such as climate change, the multi-polar world, energy crisis, and relations between the Arab World and the West.." [more]

Manufacturing Sector's Investments Drive IT Growth in Saudi Arabia [Sep 3]
"The growing manufacturing industry in Saudi Arabia is driving IT growth in the Kingdom, said a recent report from the Jeddah Chamber of Commerce and Industry (JCCI). According to the report, there are approximately 3,986 manufacturing industries in Saudi Arabia with a total investment of 306 billion Saudi riyals. 'Manufacturing in the Gulf region has been investing quite heavily, particularly last year, in ERP solutions and specific applications related to manufacturing and distribution,' said Margaret Adams, senior analyst, IT services, Middle East and Africa, IDC, a research house. She told Gulf News that there is a lot of supply chain management investment.. ..A study done by the Central Department of Statistics, of the Saudi Ministry of Economy and Planning, showed that the annual value-added achieved by the manufacturing sector rose from 15 billion riyals in 1974 to about 92.6 billion riyals at the end of 2006.." [more]

~~~~~~~~ [ Sep 2] ~~~~~~~~~

Iran Calls for Control of OPEC Oil Supply [Sep 2]
"Iran's Oil Minister Gholam Hossein Nozari said here on Tuesday that the Organization of Petroleum Exporting Countries (OPEC) should control the excess of oil supply to the market, the official IRNA news agency reported. Nozari called for the member states of OPEC to discuss the issue by reconsidering the quota in the upcoming meeting in Viennaon Sept. 9. 'The oil supply should be in proportion to the market demand'.. ..Saudi Arabia and some other members have excess supply and this has affected the oil price in the market, he said. Nozari said Sunday that 100 U.S. dollars per barrel is the lowest suitable price for oil. Oil prices have dropped from the record high of 147.27 dollars a barrel on July 11 to about 110 dollars a barrel due to an increase in Saudi Arabia's output and a fall in the world's demand for oil.." [more]

Saudi Defence Industry Strategy Takes Shape [Sep 2]
"Plans to develop military aircraft production in Saudi Arabia are moving ahead following the Kingdom's agreement to purchase Typhoon fighter jets from BAE Systems. The new deal calls for most of the aircraft to be assembled in Saudi Arabia. In March, Defence and Aviation Minister Crown Prince Sultan laid the foundation stone at King Abdulaziz Air Base in Eastern Province for a new centre to update and assemble systems for Saudi military aircraft. The complex will be developed on a 300,000sqkm site will include a range of hangars, stores for hazardous materials, workshops, fuel storage, a water desalination plant and power station as well as other utilities and infrastructure.." [more]

Al-Arabiya Bureau Chief Says Told to Leave Iran [Sep 2]
"The head of the Tehran bureau of pan-Arab television station Al-Arabiya said on Tuesday that Iranian officials have demanded his departure from the country.. ..Iranian state radio said that students from 10 universities had called for the closure of the offices of the Saudi-owned network, one of two leading pan-Arab satellite news channels which was launched five years ago in Dubai. 'This demand came after this network, which is linked with hardline Saudi movements, broadcast a a film insulting Imam (Ruhollah) Khomeini, the founder of Islamic revolution, and Shiite beliefs,' the radio said. A prominent Iranian MP had warned last month about the future of the network in the Islamic republic.. ..In July this year, AFP's deputy bureau chief in Tehran, Stuart Williams, had to leave the country after being told by Iranian authorities that his visa would not be renewed.." [more]

KSA Inflation Hits 11.1% � a New High [Sep 2]
"Annual inflation in Saudi Arabia accelerated to 11.1 percent in July, its highest level in at least 30 years, due mainly to increases in food and housing costs, official data showed on Monday. The cost of living index for the largest Arab economy hit 117.3 points on July 31 compared with 105.6 points a year earlier, the Central Department of Statistics said in a statement. Food and beverage costs advanced 16 percent in July compared with an increase of 15.8 percent in June while the rental index � which includes rents, fuel and water � soared 19.8 percent versus 18.7 percent in June. The rent index alone rose 23.7 percent. Monthly inflation in Saudi Arabia added 1.6 percent in July compared to June.. ..Analysts expect annual inflation to hit its peak towards the end of the third quarter which coincides with the end of Ramadan, the Muslim fasting month which sees a surge in both consumption and prices.." [more]

Indonesia Moves to Protect Workers [Sep 2]
"The delay in the recruitment of Indonesian housemaids and drivers has prompted Jakarta to set up a commission to look into the interests of Indonesian workers, including their overseas employment, training and health. What has also resulted in the appointment of the commission is the growing woes of Indonesian migrant workers, an official at the Consulate General of Indonesia told Arab News yesterday. The workers, especially housemaids, consistently complain against their employers of physical abuse and nonpayment of wages, and also for not granting weekly days off and annual leaves. Their complaints also relate to the harassment caused by some unscrupulous recruitment agencies. The commission is meant to protect the country�s overseas workers and also focus on their issues.. ..'There is a shortage of domestic workers in Saudi Arabia,� a council member said. In fact a reduction in the number of Indonesian domestic workers is responsible for a major crisis in the Saudi recruitment market'.." [more]

~~~~~~~~ [ Sep 1] ~~~~~~~~~

King, Crown Prince Make Speech on Ramadan [Sep 1]
"Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz and Crown Prince Sultan Bin Abdul Aziz, Deputy Premier, Minister of Defense and Aviation and Inspector General made a speech on the advent of the blessed month of Ramadan for the year 1429H. The following is the text of the speech delivered through the media by Minister of State, Cabinet�s Member for Shoura Council Affairs and Acting Minister of Culture and Information Dr. Saud Bin Saeed Al-Mathami.." [more]

Muslims' Holy Month of Fasting Starts [Sep 1]
"Most of the Muslim Mideast began the first day of Ramadan on Monday, but Iraqi Shiites, some Lebanese Shiites and Iran will start observing the holy month of fasting on Tuesday.. ..This year's Muslim holy month comes at a time of high food prices region-wide � a burden for low-income people struggling to afford the special foods traditionally prepared for the meal that breaks the fast at each sunset. High food prices also complicate the usual practice of buying new clothes and other Ramadan treats. Hot weather also will likely create extra challenges this year, for observers who go without food or water during daylight hours.. ..Ramadan can last either 29 or 30 days, depending on when the first moon of the next lunar month is sighted. During the month, Muslims are expected to abstain during daylight hours from food, drink, smoking and sex in order to focus on spiritual introspection.." [more]

Start Date Set for New $40bn Saudi City [Sep 1]
"Construction work is scheduled to start within six months on the $40bn Sudair City, which will be the largest city built by the private sector in the Gulf. A decision is expected to be announced in the next four months on a development consortium to spearhead the building of the 257 million square metre metropolis to the north of Saudi Arabia�s capital Riyadh and which is set to incorporate the biggest industrial development in the region. More than 60 developers have been invited by the Saudi Industrial Property Authority (Sipa) to invest in the project which will feature zones covering economics, technology, education, entertainment, in addition to a residential area home to up to one million people.. ..The industrial zone will span one million square metres, the largest industrial development in the Gulf. Serving the city will be the 2,400km-long North-South Railway, which is being built in the kingdom, as well as an airport and two ports.." [more]

Alstom Signs Contract to Build Stage 3 of Shoaiba in Saudi Arabia [Sep 1]
"Alstom (Paris:ALO) today signed a contract with Saudi Electricity Company (SEC) to build stage 3 of the Shoaiba power plant, worth around �1.9 billion.. ..Stages 1 and 2 of Shoaiba were supplied by an Alstom-led consortium on a turnkey basis. The contract to build stage 1, consisting of five 400 MW units, was signed in October 1998. Following its completion in 2003, a second contract was signed in March 2004 for stage 2 , which included six 400 MW units. Stage 2 was completed in December 2007, with the last unit (number 6) commercially operational six months in advance of the agreed contract completion date. Electric power demand in Saudi Arabia has increased tremendously in the last two decades in line with the country�s rapidly growing economy, requiring massive investment in the country�s power generation capacity.." [more]

~~~~~~~~ [ Aug 31] ~~~~~~~~~

Saudi, Most Gulf Arabs, to Start Ramadan on Monday [Aug 31]
"Saudi Arabia, the birthplace of Islam, will start the Muslim fasting month of Ramadan on Monday along with most other Gulf states, regional state media reported on Saturday. Senior religious councils in Saudi Arabia, Kuwait, Qatar, Bahrain and the United Arab Emirates said the moon's crescent was not sighted after nightfall on Saturday, and so Sunday would be the last day of the month preceding Ramadan. Muslims scan the sky at night in search of the new moon to proclaim the start of Ramadan, the holiest month for the world's more than one billion Muslims.." [more]

Low-Income Saudis Get $306m [Aug 31]
"Saudi Arabia is to pay low-income Saudis an extra 1.15 billion riyals ($306 million) in aid during the fasting month of Ramadan, state media said. The grant ordered by King Abdullah will be distributed to families covered by social welfare to help them 'fulfil their urgent needs during the holy month of Ramadan'.. ..Saudi inflation hit a 30-year high of 10.6 percent in June and is expected to continue rising in the third quarter. Inflation is a key challenge across the Gulf, where currencies are pegged to the ailing dollar, as their economies surge on windfall revenues from oil that has been racing to record highs.." [more]

Gulf Monarchies to Boost Links With Turkey [Aug 31]
"Oil-rich Gulf monarchies will sign an accord with Turkey aimed at boosting ties between the pro-Western Arab bloc and Ankara, the chief of the Gulf Cooperation Council said on Sunday. The 'memorandum of understanding to be inked in the Saudi Red Sea city of Jeddah on Tuesday will provide for 'cooperation in the economic, political and security domains,' GCC Secretary General Abdurrahman al-Attiyah told AFP. Attiyah said GCC foreign ministers are due to meet in Jeddah on Tuesday and will hold talks with their Turkish counterpart Ali Babacan on the sidelines of the meeting. The MoU will pave the way for the conclusion of a free trade agreement between the GCC and Turkey that has been under negotiation since 2005, he said. The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. GCC states have good relations with Turkey. 'Turkey has an important role in the region. It is a balanced and moderate role,'.." [more]

Iranian Official Considers $100 Per Barrel as Lowest Suitable Price for Oil [Aug 31]
" Iranian Oil Minister Gholam-Hossein Nozari said Sunday that 100 U.S. dollars per barrel is the lowest suitable price for oil, the English-language Press TV satellite channel reported. 'This (crude at 100 USD a barrel) is the minimum price for oil,' Nozari was quoted as saying, adding 'in view of the cold season and rising oil demand, we are moving toward higher and more acceptable prices.' Oil prices have dropped from the record high of 147.27 dollars a barrel on July 11 to about 115 dollars a barrel due to an increase in Saudi Arabia's output and a fall in the world's demand for oil. Despite the Organization of Petroleum Exporting Countries (OPEC) decided to maintain crude output levels, its member-state Saudi Arabia said in June that it would raise production from 9.45 million barrels per day (bpd) to 9.7 million bpd, the kingdom's highest level since 1981.." [more]

Saudi Arabia Requested To Give $300-400 Million Credit Facility [Aug 31]
"Pakistan has requested Saudi Arabia to provide $300-400 million credit facility for purchasing urea, well-placed sources told Business Recorder here on Saturday. This is in addition to the request made by the government of Pakistan for a $5.9 billion oil facility. Last month, the Saudi authorities provided a credit facility of $125 million for fertiliser. This amount is over and above the credit facility of $133 million that was provided for the same purpose one and a half month ago. Thus far the Saudis have extended $258 million for purchase of urea. Ziaur Rehman, Secretary, Ministry of Food, Agriculture and Livestock (Minfal), has left for Saudi Arabia to negotiate with the concerned authorities the additional credit facility of $300-400 million.. ..The price of urea in the international market is $800 per ton while in Pakistan growers are purchasing it at $200 per tons. This huge difference has created shortage of the commodity in the market.." [more]

Saudi Stock Exchange Falls Sharply [Aug 31]
"The Tadawul fell sharply yesterday taking away one third of its profits from last week, which reached 5.1%, after its general index fell by 2%. Analysts believe that the decline is justified after its strong performance in the last two weeks in which the market gained around 1000 points or 8%. The decision taken by the market to let foreigners trade in local shares gave strong support, but not strong enough to push the index above 9,000 points. All 15 listed sectors witnessed a decline excepting slight rises for retail and energy. Most deals were focused on the three main sectors; Banking, Petrochemicals and Telecoms which have been traditional supporters for the index.." [more]

Saudis, Expats Back Obama [Aug 31]
"There is overwhelming support among Saudis and expatriates here in the Kingdom for Democratic candidate Barack Hussein Obama as the next US president. A cross-section of both groups told Arab News yesterday that they wanted Obama to succeed George W. Bush. One Saudi said Obama was preferred because he is black while an expatriate felt his middle name suggested a willingness to tackle the contentious issues facing the Muslim world.. ..'Some believed Obama is a Muslim because of his middle name. All the blacks so far in power at various levels have shown their commitment and determination to serve the country and the world without discrimination of color and religion. However, the track record of whites has been to side with Israel rather than with Muslim countries. We now have a ray of hope in Obama. We expect him to solve the problems facing the Muslim world, including those in Iraq, Palestine and Kashmir. What has happened after Sept. 11, 2001, is that Muslims are being dubbed terrorists. We extend our support to Obama or anyone who will be able to solve problems related to the Muslim world,'.." [more]

Persian Gulf to Drive the Next Big Agricultural Boom [Aug 31]
"The oil-rich Persian Gulf states are making a headlong rush for farmland. Most of these countries heavily rely on food imports at a time when global food prices surged 57% between Aprils 2007 to 2008, according to the United Nations. With food riots breaking out in impoverished countries, as well as rationing in industrialized nations such as the U.S., the Persian Gulf states have made food availability a high priority. A report by the Gulf Research Center [GRC] revealed that Saudi Arabia is the largest Arab food importer in the Gulf Cooperation Council [GCC].. ..The GCC states are especially susceptible to food shortages. Arid landscapes and of course water shortages make it difficult for them to grow their own crops. The GCC imports approximately 60% of its food. Worse, the total population of GCC members rose from around 30 million in 2000 to more than 35 million in 2006.. ..A regional food crisis is more fact than fiction.." [more]

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