Newsletter - July 11-17, 2005 - #117

In This Issue

On the Web

Crown Prince Abdullah's Foreign Affairs Advisor answers questions on U.S.-Saudi relations

Adel Al-Jubeir, Foreign Affairs Advisor to Crown Prince Abdullah, held a live online question and answer session on July 13, 2005

washingtonpost.com: Welcome to Viewpoint! Our guest today is Adel Al-Jubeir, Foreign Affairs Advisor to the Crown Prince, to answer questions on the U.S.-Saudi relationship. Let's get started.

Adel Al-Jubeir: It's great to be here. I look forward to your questions. Let's get started.

Washington, D.C.: Why did the Crown Prince meet with President Bush?

Adel Al-Jubeir: Our two countries have been friends and allies for seven decades and it is common for our leaders to meet on a regular basis to discuss issues of mutual concern. We are allies in the war on terrorism, we are partners in the search for peace and stability in the Middle East, we have extensive trade relations, and we have deep ties between our two peoples. When our leaders meet, it represents an opportunity to reinforce the historic ties between our two countries.

Anonymous: What is Saudi Arabia doing to bring down the price of oil?

Adel Al-Jubeir: We have increased our oil production. We are investing tremendous amounts of capital to increase our production capacity in the future to accommodate the world’s rising demand for crude oil. The current high prices are a function of several factors, and are not simply due to a lack of supply: the lack of refining capacity, political risk, and speculation by hedge funds all contribute to putting upward pressure on prices. We believe that the market’s supply and demand picture is in equilibrium and that the current high level of prices will eventually reflect that by trending downwards.

Falls Church, Va.: What are the steps your government is undertaking to secure the lives of foreigners and non-Saudi citizens working over there against any attack of any “deviant groups”?

Adel Al-Jubeir: We are determined to provide for the safety of all of our citizens and residents. We have increased the number of forces we have to counter the terrorists and we have had, thank God, great success in killing or capturing terrorists and disrupting their financing and recruiting capabilities. We believe that Saudi citizens and residents, as a consequence of these actions, are safer today than they were in the past. And we will continue to do whatever is required to ensure the safety of everyone in Saudi Arabia.

 On the Web

A Saudi nemesis in the U.S. Congress
By Mohamed Nabhan Swelam
Daily Star
Commentary

Wednesday, July 13, 2005

"The news from Riyadh is encouraging. Recently, Saudi security forces dealt a major blow to Al-Qaeda's operations in the kingdom by gunning down a militant at the top of its most-wanted list, a Moroccan. His death was the latest victory in what has largely been a successful crackdown on terrorist organizations.

"In general, things are starting to look better for the Saudi regime. Domestic pressures have been eased through a combination of tougher security measures, limited political concessions and generous giveaways to the economically vulnerable (but also potentially dangerous), thanks to the surge in international oil prices.

"On the external front, things are also looking better. The summit between U.S. President George W. Bush and Saudi Arabian Crown Prince Abdullah in Crawford, Texas, some two months ago marked a significant turning point in the relationship between the United States and Saudi Arabia, away from the deep mistrust after September 11, 2001. The centrality of "price-at-the-pump" issues has created a simple logic: a Saudi-American agenda that has oil at its center is one that reduces democracy, religious freedom and respect for human rights to what they had always been: footnotes.

"One thorn in the Saudi side, however, endures: the U.S. Congress.."

Conference Announcement

The National Council on US-Arab Relations announces:

14th Annual Arab-U.S. Policymakers Conference
"Restoring Arab-U.S. Trust in a Time of Turbulence and Reforms"

September 11-12, 2005
Marriott-Wardman Hotel, Washington, D.C. 

For information regarding conference registration and corporate as well as institutional cosponsorship, contact: Ms. Jennifer Sewell or Mr. Shawn Romer, Conference Coordinators: 202-293-6466; fax: 202-293-7770; email: [email protected]

For confirmed speakers list..

Conference Announcement

US Arab Economic Forum
Focus on Business as Instrument of Change
Fortune 500, SM/MED Businesses, US/Arab Gov. Officials Gather in Houston

July 11, Detroit - More than 1,500 American and Arab business leaders will gather in Houston September 14-16 for the 2005 U.S. Arab Economic Forum.  Supported by the U.S. Departments of State and Commerce, the Arab League and the Gulf Cooperation Council, and organized by the American Middle-East Economic Affairs Committee (AMEAC), the Forum will focus on improving economic ties and economic development as a source of societal change.

Participants will hear from the Chairs of ExxonMobil, Chevron Corp., ConocoPhillips, Marathon Oil, Cisco Systems, Medialink, and PriceWaterhouseCoopers as well as the Energy Ministers from Saudi Arabia and Qatar.  

Among the many topics tackled at the Forum, transparency and accountability, human capacity building, trade infrastructure, public-private partnerships and empowering women through economics will take center stage.  

Other confirmed speakers include: Arab League Secretary General Amre Moussa, Saudi Minister of State Abdullah Alireza, USAID Director Andrew Natsios, bestselling author Dr. Deepak Chopra, Houston Mayor Bill White, Baker Institute Director Amb. Edward Djerejian, Harvard Business Review Editor Thomas Stewart, Arab International Women's Forum Chair Haifa Al Kaylani, Timberland CEO Jeff Swartz, Link Group CEO Nijad Fares, Ghandi Institute Chair Arun Ghandi, MD Anderson Cancer Center President Dr. John Mendelsohn and BBC Global News Director Richard Sambrook.    

Forum proceedings are open to the media.  Members of the working press may register and get more information at  http://www.usaeforum.org  or contact Jennifer Salan 202-494-9857 [email protected] .

WHAT: U.S. Arab Economic Forum

WHERE: Houston, Texas, Hilton Americas

WHEN:  September 14-16, 2005

REGISTRATION/INFORMATION: http://www.usaeforum.org

In the News

Kingdom Reiterates Need for Anti-Terror Center
Arab News

JEDDAH, 12 July 2005 — Saudi Arabia yesterday emphasized the need for setting up a global center to combat terrorism and said it would help boost international cooperation to fight the scourge.

Addressing the Council of Ministers, Prince Abdullah renewed his call for the world community to step up cooperation to counter terrorism, “dismember it, dry up its sources and confront the extremist thinking that leads to terror,” the Saudi Press Agency said.

Prince Abdullah hoped, “the creation of the international counterterrorism center which the Kingdom had called for would help open a new page of effective global cooperation to establish an international community free of terrorism.”

The crown prince proposed the establishment of the center during a counterterrorism conference in Riyadh last February. The gathering then endorsed the proposal and set up a task force to work on the project.

On the Bookshelf

Culture and Customs of Saudi Arabia 
by David E. Long

Book Description (Amazon.com)
Saudi Arabia is a young nation with an ancient history. It is one of the most conservative traditional societies in the world grappling with the impact of modernization wrought by the influx of great oil wealth beginning only in the mid twentieth century. Saudi culture is in constant flux, and the culture gap between the West and Saudi Islamic culture is wide. Culture and Customs of Saudi Arabia is the first cultural overview of country and provides timely, authoritative insight into a major Middle Eastern power.

About the Author (Amazon.com)
DAVID E. LONG is a consultant on Middle East and Islamic politics and international terrorism. He was a diplomat for 30 years with the U.S. Department of State and specializes in Saudi Arabia and the Gulf. He has authored and edited many books and articles on the Middle East, including The Kingdom of Saudi Arabia (1997).

In the News

Saudi Government Urged to Oversee Charitable Group Activities
"The Saudi Arabian government must follow through on its commitment to establish a commission to oversee charitable organizations, the U.S. Treasury official responsible for fighting terrorist finance says. In July 13 testimony prepared for the Senate Banking Committee, Treasury Under Secretary Stuart Levey said such a commission should regulate the activities of charities that cause concern for the United States, especially the International Islamic Relief Organization, the World Association of Muslim Youth and the Muslim World League.. ..Freezing all international transfers of the three organizations would represent a 'satisfactory short-term solution if implemented fully' by the Saudis, he said.."

U.S. Moves to Freeze Saudi [Opposition] Group's Assets
"The United States moved Thursday to freeze the financial assets of a London-based Saudi opposition group because of its alleged links to the al-Qaida terrorist network. The Treasury Department's action is against the Movement for Islamic Reform in Arabia, or MIRA. Any bank accounts or other financial assets belonging to the organization found in the United States must be frozen and Americans are forbidden from providing financial or other support to the group. The British government recently ordered that the group's assets be frozen.."

Muslim Body Dismisses U.S. Charge of Terror Funding
"A Saudi-based Islamic organization on [Jul 16] denied US claims that it might be a conduit for terror financing, becoming the second Saudi-sponsored body to dismiss the charges in as many days. The Muslim World League rejects anything linked to terrorism and is committed to Islam s stand, which prohibits terrorist acts, secretary general Abdullah Al-Turki said in a statement from headquarters in the holy city of Makkah. The 45-year-old league was one of the first international organizations to exert big efforts to combat terrorism.."

UK-Based Saudi Opposition Group Mocks U.S. Move
"The head of a British-based Saudi opposition group laughed off the U.S. government freezing his organisation's assets, saying on [Jul 15] he had no assets and no links to al Qaeda. The U.S. government froze the assets of the Movement for Islamic Reform in Arabia (MIRA) on [Jul 14] and said the group's head, Saad al-Fagih, was on the U.N. list of people associated with al Qaeda and the Taliban.. ..Fagih, an exiled Saudi dissident, denied the allegations and said Washington was targeting him because of the threat he and his organisation posed to the Saudi government, a U.S. ally.."

Kingdom Reiterates Need for Anti-Terror Center
"Saudi Arabia [Jul 11] emphasized the need for setting up a global center to combat terrorism and said it would help boost international cooperation to fight the scourge. Addressing the Council of Ministers, Prince Abdullah renewed his call for the world community to step up cooperation to counter terrorism, 'dismember it, dry up its sources and confront the extremist thinking that leads to terror'.."

Four Terror Suspects Arrested in Riyadh
"Security forces arrested four people [Jul 13] morning in Al-Naseem district, east of the capital, on the suspicion of being affiliated with those on the new list of 36 top terrorists.. .. On [Jul 13], security forces in the capital began their second combing operation to flush out any terror suspects in Al-Murooj, King Fahd and Al-Khaleej districts.."

NSHR to Issue Annual Report
"The National Society for Human Rights (NSHR) plans to issue annual reports on human rights situation in Saudi Arabia, says its Chairman Dr. Hamad Al-Majed. He also disclosed that the Riyadh-based rights watchdog had received 1,614 complaints from citizens.. ..The society was established in March 2004 to protect human rights within the framework of Saudi regulations and the standards approved by the United Nations, the Arab League and the Organization of the Islamic Conference, without violating Islamic teachings. The society has a 41-member general body including 10 women.."

Saudi Stocks Continue Downward Trend
"The Saudi stock market continued its downward trend for the third consecutive week as the Tadawul All Shares Index (TASI) closed on Thursday at 12,538.87, losing 90.19 points or 0.71 percent, which is 1.5 percent down compared to last week. Saudi stocks witnessed sharp volatility due to fluctuations in the prices of leading banks, the Saudi Basic Industries Corp. (SABIC) and the Saudi Telecom Co. (STC).."

Saudi Arabia, Biggest Emerging Market, May Fall: Taking Stock
"Saudi Arabia, buoyed by optimism that record oil prices will spur economic and earnings growth, last month became the world's biggest emerging stock market. The distinction may be short-lived. `'The market is going to turn because share prices have outpaced earnings growth,'' said Joe Kawkabani, a fund manager at Shuaa Capital, a Dubai, United Arab Emirates-based firm that manages $1.3 billion of assets in Arab markets. `'And when it does, the decline could be very steep.'''.. ..The average Saudi stock trades at 35 times forecast earnings for this year, according to Shuaa. The ratio is more than triple the average of 11.2 for the Morgan Stanley Capital International Emerging Markets Index, a global measure.."

Saudi Arabia Expects Investments Worth $624 Billion
"Saudi Arabia is expecting foreign investment worth $624 billion (SR 2.34 trillion) to carry out a large number of projects in vital sectors. The Kingdom has offered projects in petrochemicals, natural gas, electricity generation, water desalination, railway, telecommunications and other major sectors.. ..Speaking at the Middle East Seminar 2005 titled "Commercial Diplomacy: A Force for Regional Prosperity" in London, Prince Turki Al-Faisal said the new projects, which were approved by the Saudi government this year, would be implemented within the next 15 years.. .. Several ministers, ambassadors and prominent economists from Britain, the United States, Europe as well as the Arab countries attended the seminar, which was held at the British Ministry of Trade and Industry.."

Saudi Arabia Allocates SR15 Billion to Promote Exports
"Saudi Arabia has allocated SR15 billion to underwrite credit facilities to boost non-oil exports. Crown Prince Abdullah yesterday approved a decision by the board of the Saudi Fund for Development (SFD).. .. 'This will definitely help Saudi exports,' said economist Dr. Ihsan Bu-Hulaiga. 'The goal is to diversify the country's economic resources by promoting non-oil exports. This has been the aim of the latest development plans and we have seen a 10 percent increase in non-oil exports during the past few years'.."

Saudi Aramco Joins Hands With Sinopec
"Saudi Arabia's state-owned Aramco said [Jul 11] it has joined with China Petroleum and Chemical Corp. (Sinopec) on a massive oil and chemicals venture in China's Fujian province.. ..The Wall Street Journal said the deal was valued at $3.5 billion.. ..The Fujian project also involves ExxonMobil and encompasses a refinery expansion, a petrochemical plant and a joint marketing venture to operate 600 service stations.."

Minister to Represent Kingdom at Massacre Anniversary
"A six-member delegation, led by Minister of Islamic Affairs, Endowments, Propagation and Guidance Saleh Al-Asheikh, will represent the Kingdom at the 10th anniversary of the massacre of over 10,000 Bosnian Muslims in Srebrenica, [Jul 11]. Bosnia's Charge d' Affaires Ali Moumnovic told Arab News the Saudi team would be among 50 international delegations invited from all over the world to take part in the ceremony marking the 10th anniversary of the Muslims' genocide by Serb forces.."

Global Radio Service Is Now Available in Saudi Arabia
"The global satellite radio pioneer "World Space" will now be available in Saudi Arabia.. ..It is the only company offering radio service globally using dedicated satellites.. ..World Space satellite radio receivers are available in Jeddah, Riyadh and Alkhobar.."

Saudi's First Private Airline Is Ready For Take-Off
"Saudi Arabia's first private commercial airline takes off tomorrow, ending flagship carrier Saudi Arabian Airlines' decades-old monopoly on domestic flights. Al Khayala, a 400 million riyals ($100m) luxury airline aiming to attract wealthy travellers, will start flying several times a week between the capital Riyadh and the Red Sea hub of Jeddah.. ..Plans are underway to expand the service to other Gulf cities as well as Beirut and Cairo.."

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