Newsletter - May 23-29, 2005 - #110

In This Issue

An Item of Interest in SUSRIS

21st Century World Still Needs Saudi Oil
By Martin Sieff
"The continued safety and stability of Saudi Arabia will remain a priority goal for major industrial nations dependent upon continued supplies of high-grade, easily-accessible petroleum for decades to come."

An Interview from SUSRIS

A Man With A Mission: Khaled Al Seif Talks About US-Saudi Business Relations
"The business relationship between the United States and Saudi Arabia is an old and historic relationship, which has been very beneficial for both Saudis and Americans. Over the years America has been Saudi Arabia's primary trading partner. Most of the things you see in Saudi Arabia are a result of this relationship -- American technology starting from oil exploration to infrastructure and public works.."

 An Item of Interest in SUSRIS

Saudi Arabia, the United States, and Political Reform in the Arab World
Philip Zelikow
"..Americans are deeply bound up in the modern history of the Kingdom. Saudi Arabia developed its energy resources in close partnership with the United States. Thousands of Americans contributed to the development of the Kingdom's energy and economic infrastructure, and thousands of Saudis came to the U.S. to take advantage of our world-class education system. As the holder of approximately one-quarter of the world's oil reserves, the Kingdom is obviously important to the United States, and the rest of the world.."

On the Web

Saudi Trade Mission Upbeat About US Trip
”A 50-member Saudi trade mission concluded its visit to five US states this week, after the coast-to-coast tour promoted $623 billion in US investment opportunities through 2020 in the electrical, water, telecommunications, gas and oil industries. The Saudi officials, who began their trip in New York on May 8, held their final business forum in San Francisco on Wednesday. Omar Bahlaiwa, the secretary-general for the Saudi Committee for the Development of International Trade (CIT) of the Council of Saudi Chambers of Commerce and Industry in Riyadh, said new investments in Saudi Arabia could create at least 500,000 jobs annually..”

US Firms Eye Saudi Railway Project
”Saudi Arabia’s landmark railway expansion received a shot in the arm recently when specialized US companies expressed their keen desire to take part in the project linking the country’s east and west.. ..The American firms expressed their interest when a Saudi trade mission visited the US earlier this month..”

On the Web

U.S.-Saudi Partnership in a Dynamic Energy World
Ali Al-Naimi, minister of petroleum and mineral resources for the Kingdom of Saudi Arabia, Samuel Bodman, U.S. secretary of energy, U.S. Senator Jeff Bingaman (D-NM), together with leading industry executives, explored energy supply, demand, and policy in a rapidly changing market at a half-day CSIS conference on May 17. "Against the backdrop of $50 oil and rising energy demand, the session highlighted the importance of global interdependency among the world's largest oil producer and consumer nations," said Frank Verrastro, director of the CSIS Energy Program.

Increasing Saudi Arabia's Energy Production Capacity to Meet Surging Global Demand
A report by Anthony H. Cordesman, Nawaf Obaid, and Khalid Al-Rodhan of the CSIS Arleigh A. Burke Chair in Strategy Program examines the key role Saudi Arabia plays in meeting the recent surge in global energy demand. The study analyzes Saudi Arabia’s efforts to increase its oil production capacity and bolster petroleum infrastructure security. The report also explores the impact of high oil revenues on internal stability and reforms in the Kingdom.

In the News

Saudi Arabia to Allow Foreign Investors to Own 60% of Banks
”Saudi Arabia will allow foreign investors to own 60 percent of the local banks’ capital instead of 49 percent before the end of this year. Al-Eqtisadiah business daily quoted informed sources as saying that Saudi Arabia would take this step according to the requirements needed to become a member of the World Trade Organization. The official announcement of Saudi Arabia’s membership will be made at the organization’s meeting in Hong Kong in December..”

Samba to Manage SRMG IPO Scheduled for Next Year
”The Saudi Research & Marketing Group (SRMG) yesterday appointed Samba Financial Group as its financial adviser and the manager of the initial public offering (IPO) scheduled for next year, an official statement said.. ..The company emphasized its strong financial position and performance as its sales rose by 22 percent last year to SR949.4 million. “During the same year, the company’s net profit soared 303 percent to reach SR43.5 million..”

Lucent Bags STC Contract
”With a view to cutting operations costs, Saudi Telecom Co. (STC) tied up with Lucent Technologies to deliver an advanced software solution. As part of the contract announced yesterday, Lucent will be supplying its market-leading VitalSuite Network Fault Management software to provide real-time inter-domain fault management in the operator’s network. STC has previously successfully deployed Lucent’s Network Fault Management software (formally Navis NFM) to help manage the elements and systems deployed in STC’S multi-vendor, multi-technology switching, access and transmission networks..”

Saudi 'Torture Victims' Seek Cash
”Two Britons and a Canadian who claim they were tortured in a Saudi jail will pursue unpaid legal costs against the Saudi government, their lawyers say.. .. The Appeal Court on Monday blocked a bid to stop Riyadh using state immunity to avoid paying, the lawyers said. But the court said Saudi state assets could be seized to cover the costs..”

Human Rights Society Wins First Case
”The Jeddah General Court has ruled on the first family case brought by the National Society for Human Rights (NSHR). The judge ruled in favor of two orphaned girls and their mother who had approached the NSHR seeking justice from the girls’ half-brother who is their guardian.. ..’This is the first case filed by the NSHR and the case was transferred to me by the director of the NSHR in Makkah. We filed the case about eight months ago,’ said lawyer Yasser Khoja..”

High Oil Prices Not in Interest of Producers: Naimi
”Saudi Arabia, the world’s biggest oil producer, said yesterday it was ready to boost output but called on consumers like the United States to do more at their end to bring down high prices. Minister of Petroleum and Mineral Resources Ali Al-Naimi, attending an industry conference here with US Energy Secretary Samuel Bodman, also said that high or unstable oil prices ‘are not in the interest of producers’..”

Saudi Arabia Could Double Oil Output Capacity: Aramco Chief
”Saudi Arabia could double its crude production capacity to meet growing world demand, Aramco’s President and Chief Executive Officer Abdallah S. Jum’ah said on Monday. “The Kingdom is uniquely positioned, because of its reserves and resources, to consider raising its production by such a margin,” he said. ‘US forecasts say Saudi capacity will need to grow from its current 11 million bpd to over 23 million bpd to meet world demand’..”

Kingdom Ratifies Global Convention on Tobacco Control
”Saudi Arabia has ratified the world’s first tobacco control treaty, which came into effect in February this year, becoming the 65th country to ratify the World Health Organization’s Framework Convention on Tobacco Control.. ..The ratifying nations will impose a ban on tobacco advertising, place graphic health warnings on cigarette packets, take measures to protect nonsmokers from secondhand smoke, increase the cost of tobacco products and make efforts to stop tobacco smuggling..”

Bankers Eye GCC Monetary Union by 2010
”The GCC banking conference concluded here yesterday with a call for monetary union by 2010 and opening of more branches of GCC banks in the Gulf states on the way to greater integration of the capital market. However, it left open the option of GCC banks’ merger to the individual states as any regimented pace of change could be counterproductive. Earlier Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA), announced that many licenses would be issued to brokerage firms in the Kingdom in the near future to facilitate share transactions in the SR1 trillion plus stock market, which will see a slew of initial public offerings (IPOs) next year..”

Ahmed Rejects Torture Claim by 3 Britons
”Deputy Interior Minister Prince Ahmed yesterday rejected allegations made by three Britons that they had been tortured at a Riyadh jail and said they should have been thankful for receiving pardon for the crimes they had committed. “They have never been tortured. They had lawyers and the representatives of their embassies used to visit them and their families. If there were anything of that sort, their countries would have protested and it never happened,” the prince said when asked about the torture allegation..”

US Drops Warning To Citizens To Leave Saudi Arabia
”The United States has quietly dropped a year-old warning it issued to its citizens to leave Saudi Arabia, but says they should still avoid travel to the kingdom because of possible militant attacks. A State Department travel warning posted on the Web site of the U.S. embassy in Riyadh said militants were still targeting foreigners and Saudi government facilities, despite being weakened by a two-year security clampdown..”

State Dept Drops Warning to Americans to Leave Kingdom
”The United States has dropped yesterday a year-old warning it issued to its citizens to leave Saudi Arabia but said that they should still “defer non-essential” travel to the Kingdom because of security concerns and possible terrorist attacks. The language used in the current advisory notice differs significantly from that of the April 2004 advisory, which said: “The Department of State warns US citizens to defer travel to Saudi Arabia. Private American citizens currently in Saudi Arabia are strongly urged to depart’..”

US Consulate Readies for Summer Visa Rush
”The US Consulate in Jeddah has announced special summer hours for students, tourists and businessmen to apply for non-immigrant visas. “In our effort to help applicants to avoid the summer heat, visitors will be welcomed through the gate individually from 7 a.m. to wait inside the US Consulate” on Saturday, Monday, Tuesday and Wednesday, said a press note released by the mission yesterday..”

Saudi-Austrian Trade Set for Expansion
”The Austrian trade mission ended its visit to Saudi Arabia yesterday, after a six-day tour of Jeddah and Riyadh.. ..The bilateral trade, which is on a strong footing, is also on the threshold of further expansion, he said. “The trade volume between the two countries amounted to over 500 euros in 2004, with Austria’s 206 million euros worth of exports and 300 million euros imports,” the ambassador said..”

Energy Secretary to Visit Saudi Arabia
”U.S. Energy Secretary Sam Bodman will visit Saudi Arabia later this year to discuss world oil supply, an Energy Department official said Wednesday. "I can confirm that the Secretary hopes to visit Saudi Arabia later this year," the official said, declining to elaborate. News of the trip comes amid closer ties between the United States -- the world's biggest oil consumer -- and Saudi Arabia, its biggest producer..”

Saudi Arabia Announces Price Structure For June Deliveries
”Saudi Aramco has informed its clients in the global market about the new price structure of its oil products for delivery in June. The products include Arabian light oil, Arabian medium, Arabian heavy, light sweet and light excellent. The price structure was finalized after taking into account of the market demand as well as requirements from the oil refineries in various parts of the world. There will be an increase ranging between $ 1.10 and $ 2.9 for the above products in the American market where as in the European market the increase will be from $ 1 to $ 2..”

Samsung Targets 24% in Mideast MP3 Market
”Samsung Electronics is strengthening its presence in the Middle East MP3 player market with the release of 10 new digital audio players.. ..J.H. Park, president, Samsung Gulf Electronics (SGE), said: “Samsung is already the world’s biggest chip-maker. We will leverage our dominance in LCD display, chip-making and cool-design that our products have come to signify to win market share in Middle East..”

Saudi Arabia Rejects IOC, HPCL's Bid For Yanbu Refinery
”Saudi Aramco, world's largest oil firm, has rejected Indian participation in its upcoming export-oriented Yanbu refinery on the Red Sea. Aramco, Saudi Arabia's national oil firm, this week wrote to Indian Oil Corporation and Hindustan Petroleum Corp Ltd that it has not shortlisted them for equity participation in the 20 million tonnes refinery project.. ..Sources said Saudi Aramco made it clear that it preferred a western partner in the project and did not even shortlist any Indian firm for discussions..”

Saudi Stock Index Hits Fresh Record
”Saudi shares will look to Monday’s listing of Saudi Dairy and Foodstuff Company (SADAFCO) and to world oil prices for direction next week after hitting fresh records in the week to Thursday. The Tadawul All-Share Index (TASI) closed the week at 12,369.04 points on Thursday, just one percent off Wednesday’s record close of 12,491.40 points, due to the rise of Saudi Basic Industries Corporation (SABIC) and Saudi Telecom Co. (STC) shares by 4.5 percent and 11.4 percent respectively..”

VTC To Supply Saudi Arabia With 1,000 Trainers
”Jordan has agreed to supply Saudi Arabia with around 1,000 trainers from the Vocational Training Corporation (VTC) over this year and the next. The agreement was part of the Executive Program signed by the VTC and Saudi Arabia's General Corporation for Technical Education and Vocational Training this month. Under the agreement, the Saudis will decide the number of trainers they need at each stage during the implementation period, which started earlier this year and will end in December 2006..”

PGCC Meeting To Be Held In Saudi Arabia
”The 7th consultative meeting of the Persian Gulf Cooperation Council (PGCC) is scheduled to be held in Riyadh, Saudi Arabia on May 28, it was announced here Saturday. At the one-day meeting, the heads of state of the PGCC will exchange views on cooperation, the latest regional developments, international and Arab issues including Iraq, Palestine and Lebanon..”

Saudis Rank Lowest in Women's Rights Issues
”Saudi Arabia ranked last in a study of women's rights in Middle Eastern and North African countries and was the only one of 16 nations surveyed that had no constitutional guarantees of equal protection for females, according to a report released Saturday. Despite gains in educational and employment opportunities and the recent decision by Kuwait's parliament to grant women the right to vote, there was a lack of legal protections for women in all 16 nations and one territory studied, said Freedom House, the nonpartisan, Washington-based organization that released the report at the World Economic Forum..”

Saudis Seek Clerics' Help in Terror Fight
”In its fight against terrorists, Saudi Arabia is increasingly reaching out for assistance to clerics -- some of whom once preached the fiery rhetoric that is now taboo. On Saturday, Crown Prince Abdullah called on judges and professors of Islamic law to fight a ''corrupt deviated group'' that has distorted the teachings of Islam. But as anti-terrorism remarks in mosque sermons and over state-run television become as routine as the shootouts that provoke them, it is less clear whether Saudi citizens are heeding the message..”

Kingdom Pledges Free Flow of Oil
”The Council of Ministers, chaired by Crown Prince Abdullah, yesterday reaffirmed Saudi Arabia’s commitment to ensure adequate oil supplies and stabilize the world market as well as to increase production in accordance with supply and demand factors in the international market.. ..Addressing the conference, Minister of Petroleum and Mineral Resources Ali Al-Naimi said the Kingdom was ready to boost output to stabilize the market..”

Kingdom and Gulf Countries Make Changes in School Curriculums
”Saudi Arabia and other members of the Gulf Cooperation Council (GCC) have made substantial changes in their school curriculums as part of an ongoing process of educational reform. “The move to redesign the curriculums is intended to meet the challenges of the new world order and is unrelated to the Sept. 11 terrorist attacks,” said Dr. Abdulilah Al-Mosarraf, director of planning and evaluation at the Arab Bureau of Education for the Gulf States (ABEGS)..”

ExxonMobil Joins PSCDR Founders’ Council
”ExxonMobil Saudi Arabia announced on Sunday with an SR5 million donation its membership in the Founders’ Council of the Prince Salman Center for Disability Research (PSCDR). Desmond P. Carr, ExxonMobil Saudi Arabia CEO and board chairman, made the announcement after meeting Prince Sultan ibn Salman, chairman of PSCDR’s board of trustees.. ..Carr said ExxonMobil would contribute SR1 million annually until the full amount is paid. It is the 88th member of the Founders’ Council. The Al-Zamil Group earlier joined as the 87th member..”

Saudi Arabia To Launch 6 Satellites With Russian Rockets
”Officials from Saudi Arabia and Russia are currently holding talks on the Russian launch of six Saudi satellites in 2005, Saudi Ambassador in Moscow told Interfax on Monday. Russia's Dnepr rockets had put seven Saudi satellites in orbit from the Baikonur spaceport, Mohamed Hasan Abdulwali said, adding ‘we are holding negotiations to launch another six satellites this year’..”

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