Newsletter - August 15-21, 2005 - #122

In This Issue

New US Consul General Arrives in Jeddah

Tatiana C. Gfoeller has been appointed as the new US Consul General in Jeddah and has arrived to take up her duties. Her second tour of duty in Saudi Arabia, Gfoeller was stationed in Riyadh as political officer at the US Embassy in 1987 and 1988, only four years after she joined the Department of State in 1984.. ..“I am delighted,” she said, “to serve again in the Kingdom. Jeddah was a favorite place of mine during my first posting to Saudi Arabia and I am especially pleased to have now become a resident of this beautiful city.”

Wanted Terrorist Among the Riyadh Dead

The killing of Saleh Al-Oufi, 39, leader of Al-Qaeda cell in Saudi Arabia, with three other terrorists including Majed ibn Hamid Al-Hasry in gunbattles with Saudi security forces, has dealt a heavy blow to the militant network in the Kingdom.  Al-Oufi, who was on a list of most wanted 26 terrorists published by the Interior Ministry last December, was shot dead by security forces in Madinah on Thursday in the largest such operation after the three-day Al-Rass shootout, which saw the killing of 15 terrorists.

More Saudi Students Visiting UK for English Language Courses

Some 350 Saudi students are pursuing English language courses in London this summer, underlining a growing awareness among Saudis of the need to improve their English language skills.. ..A major factor that led to the surge in enrolment for English language courses in Britain last year was said to be the problem of getting student visas for the United States.

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..

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

Al-Qaeda Leader In Saudi Arabia Said To Be Killed
"A man suspected of being al-Qaeda's leader in Saudi Arabia was reportedly killed in a police raid in the western city of Medina, the Interior Ministry said. Saleh Mohammed al-Aoofi was among six al-Qaeda linked militants said to be killed during police raids on several locations in Medina and the capital, Riyadh, Interior Ministry spokesman Mansour al-Turki told The Associated Press. Al-Aoofi is one of the most wanted men in Saudi Arabia.."

Saudi Arabia , India to Finalize DTA Agreement
"The next round of talks for finalizing the Double Taxation Avoidance (DTA) agreement will be held in Riyadh from Sept. 11 to 14 following the previous ones that took place in New Delhi in January last year.. .. India and Saudi Arabia signed the bilateral agreement in June last year which is required under the provisions of the World Trade Agreement (WTO). This enables WTO member states to gain market access for industrial and agricultural products besides boosting inward and outward remittances.."

Religion Will Be No Bar For Saudi Arabia Tourist Visa
"The Saudi foreign ministry will issue tourist visas to all prospective visitors regardless of their religion, beginning February, an informed source at the ministry was quoted as saying.. ..He said it was imperative that the kingdom implement a visa regime to boost tourism and as part of preparations to join the World Trade Organization.."

SAGIA Considers Tax Exemption to Woo Investors
"Saudi Arabian General Investment Authority (SAGIA) is studying new proposals to attract foreign investment including exemption of investment projects from income tax for 15 years and from Saudization rules for five years.. ..The new proposals, which would be welcomed by foreign investors, comes at a time when the Kingdom is seeking funds for projects worth more than SR2.34 trillion ($624 billion) in vital sectors including petrochemicals, gas, railways, desalination and electricity.."

UK Firm Wins $1 Billion Contract
" Saudi Arabia's Eastern Petrochemical Company (SHARQ) has awarded a $1 billion contract to expand its operations in the industrial city of Jubail to Britain's Stone & Webster,.. ..SHARQ, an affiliate of petrochemical giant SABIC, signed up the firm to build a 1.3 million ton olefins complex, which will begin production in the first half of 2008.."

Random Fatwas Confounding Markets, Slowing Economy
"As Saudis seek Shariah-compliant investment opportunities, the issuance of religious rulings, or fatwas, from various levels is creating confusion in financial markets and may actually be harming the Kingdom's efforts to modernize its economy into one that is competitive in the global marketplace. Because most business dealings in banks are using systems that do not comply with Islamic law, many people are searching for fatwas from sheikhs or at least get their opinions before investing money in stocks or banks.. ..part of the problem is that some local sheikhs inexperienced in financial matters issue fatwas banning investment in some companies and permitting investment in other companies. This can have the effect of putting the brakes on private-sector economic growth.."

Abdullah to Stay On as SEC Chairman
"Custodian of the Two Holy Mosques King Abdullah will continue as chairman of the Supreme Economic Council (SEC), a high-level policy making body that oversees the Kingdom's economic reforms. A royal decree has been issued changing Article Four of SEC's bylaw. 'King Abdullah will be the SEC's chairman while Crown Prince Sultan will be its deputy chairman'.."

SR2 Billion Company to Set Up Universities
"In a significant first, a group of Saudi investors plan to establish a joint stock company with a capital of SR2 billion ($533 million) in order to set up advanced private universities and research centers. Dr. Ibrahim Al-Awaji, who runs a company specialized in organizing conferences in Riyadh, said the company aims at producing highly qualified graduates, matching with those of international universities. The project will also cater to the needs of the Kingdom's over six million expatriate community, as it will provide their children admission to its universities and research centers.."

Power Grid Decision Upsets Firms
"The Saudi private sector was disappointed at the decision by the GCC power Grid committee to prevent Saudi and Gulf companies from competing for this project. The project will be confined exclusively to international companies specialized in this field. The reason was that Saudi and Gulf companies could not carry out high-tech projects because it requires great experience. Such experience is not available in national contractors and contractors from gulf countries.."

New US Consul General Arrives
"Tatiana C. Gfoeller has been appointed as the new US Consul General in Jeddah and has arrived to take up her duties. Her second tour of duty in Saudi Arabia, Gfoeller was stationed in Riyadh as political officer at the US Embassy in 1987 and 1988, only four years after she joined the Department of State in 1984.."

Kingdom's Oil Revenue to Cross SR420bn
"Saudi Arabia's budget surplus is expected to cross SR110 billion ($29.33 billion) this year, banking on surging oil prices, a report issued by Saudi British Bank (SABB) said. The report said it expected the Kingdom's revenues from oil exports to reach SR420 billion ($112 billion).. ..Last year, the Kingdom made a budget surplus of SR98 billion ($26.1 billion) reaping a windfall from record prices for its crude exports. The government then said part of the surplus would be used for repaying public debts estimated at SR660 billion.."

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