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Newsletter - August 1-7, 2005 - #120

In This Issue

1. SUSRIS Item of Interest - US-Saudi Bond Grew Under Fahd - Wyche Fowler Jr.
2. SUSRIS Item of Interest - The Saudi Succession and Economic Stability - Anthony H. Cordesman 
3. SUSRIS Item of Interest - King Fahd - Arab News Editorial
4. SUSRIS Item of Interest - The Impact on Saudi Regional Stability - Anthony H. Cordesman
5. Conference Announcement - 14th Annual Arab-U.S. Policymakers Conference - Sep 11-12 - Washington, DC
6. 
Conference Announcement - US-Arab Economic Forum - Sep 14-16 - Houston, TX  
7. In the News - Snapshots

8
. What is SUSRIS?
 
King Fahd hosting then Secretary of State Colin Powell on a visit to Saudi Arabia.  (Photo: SPA)US-Saudi Bond Grew Under Fahd
Wyche Fowler Jr.

The death of King Fahd is another step in the leadership transition taking place throughout the Middle East, as one long-serving ruler after another, from Morocco to Jordan to Syria to the United Arab Emirates, has passed from the scene.  Like his counterparts in other Arab countries, Fahd played a pivotal role as a nation-builder and in regional and global politics.

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The Saudi Succession and Economic Stability
Anthony H. Cordesman

The death of King Fahd and the succession of Crown Prince Abdullah have unleashed a flood of articles on Saudi stability, the Royal family, Saudi security, and Saudi economics. Many of the latter articles have been badly out of date, and many make assertions that are simply wrong. It may be useful to point out a few facts.

 

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King Fahd
Arab News Editorial

In the death of Custodian of the Two Holy Mosques King Fahd, it is not just Saudi Arabia that suffers a grievous loss. The loss of the Middle East region and the wider Muslim world is equally grievous. His death removes from the scene a man of vision whose commitment to Arab and Islamic unity was total. The period of his stewardship of the country was marked by a resolve, backed up by consistent action, to further that unity — not for confrontation with any, but for coordinated action with all.

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King Abdullah of Saudi Arabia was elevated to the throne on August 1, 2005 (Photo: SaudiEmbassy.net)The Impact on Saudi Regional Stability
Anthony H. Cordesman

King Fahd's death, and Crown Prince Abdullah's accession to the throne, is unlikely to have any negative impact on Saudi stability and may well help the Kingdom move forward in dealing with a number of major issues.  Although rumors always persist of divisions and conflicts within the Saudi royal family, the reality has been very different. Prince Abdullah was selected as Crown Prince in 1982 -nearly a quarter of a century ago. He has acted as de facto regent since King Fahd's stroke in 1995.

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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..

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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

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In the News

Snapshot of the Week Past

King Abdullah Assumes Saudi Throne
"King Abdullah quickly assumed the Saudi throne Monday after the death of his long-ailing half brother, giving a smooth transition to the leadership of this key U.S. ally and oil giant already grappling with extremists and debating the need for reform. After a decade as de facto ruler and the prime mover of recent reforms, the popular 81-year-old Abdullah is expected to seek to consolidate his power by bringing more allies into government and perhaps open the door for younger, more modern princes to play a role.."

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Saudi Arabia: King Abdullah Receives Oaths Of Loyalty
"King Abdullah received oaths of loyalty from hundreds of top Muslim clerics, tribal chiefs and other prominent Saudis on [Aug 3] in a traditional ceremony that bestows his legitimacy.. ..In the ceremony, known as 'bayah,' each one shakes Abdullah's hand and pronounces, 'I express my allegiance to you. I hear and obey, except in what would disobey God'.."

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Presidential Delegation to Riyadh, Saudi Arabia
"President George W. Bush [Aug 2] announced the designation of a Presidential Delegation to Riyadh, Saudi Arabia to express condolences on the passing of The Custodian of the Two Holy Mosques, King Fahd bin Abdulaziz Al Saud and the accession of King Abdullah bin Abdulaziz Al Saud, on assuming the Saudi throne and the position of Custodian of the Two Holy Mosques. The Honorable Richard B. Cheney, Vice President of the United States, will lead the delegation.."

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Saudi Arabia Moves Toward Women Suffrage
"Saudi Arabia might be following in Kuwait's footsteps after the country's Municipal Electoral Commission promised citizens that women could take part in the next elections - one small step for Saudi policy, but one large step for women's social rights in the Middle East, said Rachel Bronson, director of Middle East studies at the Council of Foreign Relations.. ..The Municipal Electoral Commission, the committee created to handle voting in Saudi Arabia for the country's first in a series of national municipal elections that began last February, recently confirmed that women should be allowed to vote in the next election period.."

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Oil Prices Cross $61 Pb Mark After Saudi Arabia's King Dies
"Crude oil prices [Aug 1] rose above $61 a barrel in New York, following the death of Saudi Arabia's King Fahd. King Fahd, who ruled the world's largest oil exporter for 23 years, would be succeeded by his half-brother, Abdullah bin Abdulaziz al-Saud, according to the Saudi State Television. The news fueled supply concerns on account of Abdullah's Arab nationalist views.."

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Saudis Urged to Pledge Allegiance to New King
"Prominent Islamic scholars of Saudi Arabia including Sheikh Abdul Aziz Al-Asheikh, grand mufti, and Dr. Saleh Al-Wohaibi, secretary-general of the World Assembly of Muslim Youth (WAMY), have called on Saudi citizens to pledge allegiance to newly proclaimed King Abdullah and Crown Prince Sultan.. ..The grand mufti urged Saudis, in a statement, to follow in the footsteps of the Al-Saud ruling family, which on Monday proclaimed Abdullah as king. 'We call on Muslims to pledge allegiance to them'.."

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Eradicating Poverty & Unemployment Will Be New King's Top Priority
"After his visit to a slum area in a Riyadh neighborhood three years ago, King Abdullah, crown prince at the time, made it his goal to eradicate poverty and unemployment in Saudi Arabia.. ..On Sunday, King Abdullah was presented with the national strategy for eliminating poverty, which has been under preparation for three years since the king first requested it.. ..This strategy is considered to be the launching stage for addressing the problem of poverty and the start of direct and immediate steps toward solving it.."

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Ready to Make a Mark?
"Royal tradition, a strong constitution honed in the deserts he loves and a stealthy cunning cloaked in rustic behavior are traits that enabled Abdullah ibn Abdulaziz to beat the odds and finally become head of the family business known as the Kingdom of Saudi Arabia. The immediate conventional wisdom is that there will be little change in Saudi policy on oil, Middle East peace, Gulf security and the rest. That view is probably right, as far as it goes. But do not think of the new king of Saudi Arabia as a totally predictable entity, or as someone not prepared to put his own stamp on things.."

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Saudi Frustrated at U.S. Doubts on Militant Policy
"Saudi Arabian Foreign Minister Prince Saud al-Faisal said [Aug 3] he was frustrated some U.S. politicians refused to accept the kingdom was doing its utmost to combat Islamic militancy. ``We are more successful in fighting terrorism than in convincing some American politicians that we are doing what is necessary to combat terrorism,'' he told reporters. Saudi Arabia is still attempting to rebuild bridges with the United States following the Sept. 11, 2001, attacks, which were carried out mainly by Saudis. Stuart Levey, the U.S. Treasury's undersecretary for terrorism and financial intelligence, said last month that some private Saudi donors may still be funding Islamic extremists, including insurgents in Iraq.."

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No Change in Foreign Policy, Says Saud
"Foreign Minister Prince Saud Al-Faisal [Aug 3] said the smooth transfer of power following the death of King Fahd had confounded those who cast doubts on the stability of the Kingdom. 'The smooth transfer of the leadership to King Abdullah attests to the soundness and firmness of the state institutions, providing a definite answer to those who are skeptical and pessimistic about the Kingdom's integrity and stability,'.. ..The foreign minister said there would be no basic changes in the country's policy under King Abdullah. Both King Abdullah and Crown Prince Sultan had worked closely with Fahd and 'the policies will remain the same'.."

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US-Saudi Bond Grew Under Fahd
"..As US ambassador to Saudi Arabia from l996 until March 2001, I had a unique opportunity to observe firsthand and appreciate Fahd's leadership before his declining health incapacitated him. The sad occasion of his death allows us to reflect anew on how much the strong US-Saudi relationship and Saudi political stability grew out of his initiatives and policies. From the US perspective, the late king should be remembered gratefully as a steadfast ally who played an important role against communism, for Arab-Israeli peace and for stability in the Gulf.."

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Saudi King's Choices May Affect Succession
"The decisions King Abdullah makes - or avoids - now will affect the crucial question of succession years in the future, when the next generation of Saudi princes gets in sight of the throne. The men Abdullah names to key posts may give a glimpse into internal struggles the House of Saud keeps deeply under wraps, well aware that a unified face is the key to their seven decades in power.."

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Threat Closes US Embassy In Saudi
"The U.S. Embassy and consulates in Saudi Arabia will be closed on [Aug 8] and [Aug 9] owing to a threat against U.S. government buildings, the embassy said [Aug 7]. In a statement, the embassy said mission personnel will limit their non-official travel during the next two days and urged Americans to keep 'a high level of vigilance'.. . 'American citizens are.. ..advised to exercise caution and maintain good situational awareness when visiting commercial establishments frequented by Westerners or in primarily Western environments,' the statement added.."

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UK Terrorists Got Cash From Saudi Arabia Before 7/7
"Two senior al-Qaeda operatives in Saudi Arabia made money transfers and used coded text messages to communicate with suspected terrorists in Britain before last month's attacks in London, according to officials in the kingdom. The two men, of Moroccan descent, have since been shot dead.. ..Saudi security officials suspect both men of involvement in the attacks in London on July 7 and 21 and say that al-Qaeda is definitely operating in Britain.."

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Why America Is More Dependent Than Ever On Saudi Arabia
"President Bush might not have turned up personally in Riyadh yesterday but he certainly sent a high-powered delegation to pay his respects to the new leader of Saudi Arabia, King Abdullah.. .. 'The Saudis are in a great position today,' said Jean-François Seznec, a professor at Columbia University's Middle East Institute. 'We cannot be enemies with everybody. We need their oil desperately'.."

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Abdullah, Cheney Review Ties
"Custodian of the Two Holy Mosques King Abdullah has been invited to visit the US by Vice President Dick Cheney. King Abdullah also held a meeting with Cheney at his farm in Janadriyadh, near Riyadh.. ..Cheney's meeting capped the visit of the high-level delegation he led to the Saudi capital, where he extended condolences to King Abdullah on the demise of Custodian of the Two Holy Mosques King Fahd and to congratulate King Abdullah on his accession to the throne. The US delegation also included former President George Bush, former Secretary of State Colin Powell and Gen. Peter Pace, vice chairman of the Joint Chiefs of Staff.."

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Saudi Aramco, Sumitomo Chemical Sign Accord
"The Saudi Arabian Oil Company (Saudi Aramco) and Sumitomo Chemical Co., Ltd. (Sumitomo Chemical) yesterday signed an agreement to become joint venture partners in the development of a large, integrated refining and petrochemical complex in the Red Sea town of Rabigh, on the Kingdom's west coast.. ..For Saudi Aramco and Sumitomo Chemical, the project represents an opportunity for the world's largest producer of hydrocarbons to partner with a leading world-class petrochemical producer.."

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About the Saudi-US Relations Information Service


The Saudi-U.S. Relations Information Service (SUSRIS) provides you information resources and interactive features through a Web site and weekly newsletters -- all designed to enhance your understanding of the historic relationship between the United States and Saudi Arabia.

The Saudi-U.S. Relations Information Service is a public service of the National Council on U.S.-Arab Relations as an element of its mission to educate Americans about Arab countries, the Middle East, and the Islamic world.

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