Dec 10-16, 2006

• What's New on SUSRIS this week:

  • 27th GCC Supreme Council Summit Wrapup

  • Saudi Ambassador Abruptly Resigns

  • The US – GCC Relationship - Anthony

  • Perspectives on the U.S.-Gulf Relationship

  • Riyadh and Washington Maneuver Over Iraq Fears

  • Background on the News - Leading Diplomats

• Audio On the Web - Saudis Deny Reported Offer of Aid to Iraqi Sunnis - Gause  

• Audio On the Web - Iraq's Neighbors Pursue Their Own Regional Policies - Hiltermann

• On the Web - The Press in Saudi Arabia - BBC

• Keeping Track - Recent SUSRIS Items

• This Week's News - Dec 10-16, 2006

• About SUSRIS

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27th GCC Supreme Council Summit Wrapup
"..The 27th Supreme Council of the Gulf Cooperation Council met December 9-10, 2006 in Riyadh, Saudi Arabia. The gathering, dubbed the Sheikh Jaber Summit after the ruler of Kuwait who died in January, included the leaders of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.  A broad field of topics were headlined in the media as each being the highlight of the two-day annual council session: regional issues, a common market, a monetary union -- even the focus on Gulf citizenship was touted by the press as the summit's hot issue. However, few could deny that regional security questions were the centerpieces of discussions, especially after King Abdullah, in his opening remarks said, "Our Arab region is besieged by a number of dangers, as if it was a powder keg waiting for a spark to explode." The summit did provide the six heads of state the opportunity to address economic unity issues but the most pressing questions were how to address the troubles in Palestine, Lebanon, and Iraq, and relations with Iran.."
Saudi Ambassador Abruptly Resigns
"..Prince Turki al-Faisal, Saudi Arabia's ambassador to the United States, flew out of Washington yesterday after informing Secretary of State Condoleezza Rice and his staff that he would be leaving the post after only 15 months on the job, according to U.S. officials and foreign envoys. There has been no formal announcement from the kingdom.  The abrupt departure is particularly striking because his predecessor, Prince Bandar bin Sultan, spent 22 years on the job. The Saudi ambassador is one of the most influential diplomatic positions in Washington and is arguably the most important overseas post for the oil-rich desert kingdom.."
The US – GCC Relationship - Anthony
"..Although some would go back as far as the granting of Saudi Arabian oil concessions to the Americans in 1933 as the start of what would become the US relationship with the six countries that joined to forge the GCC, the foundations for the (‘official’) relationship in the modern era were laid over sixty years ago when President Franklin Delano Roosevelt and the founder of modern Saudi Arabia, King Abdulaziz, met aboard the USS Quincy on Great Bitter Lake, Egypt, on the 14th February, 1945. That was the date when President Franklin Delano Roosevelt and King Abdalaziz met for the first and only time.."
Perspectives on the U.S.-Gulf Relationship
"..In looking back over the year that is rapidly coming to a close, a glance in the rear view mirror as to what had occurred during the immediately preceding twelve months is illuminative. It reveals insight into not only the highlights and low lights of what transpired in terms of major events and developments. It also enhances understanding of what happened, for which the implications and ramifications were not clearly perceived or assessed at the time. The exercise provides numerous signposts, warnings, and indications of what would continue to unfold, and in some cases would suddenly erupt, in the period that followed which have led to the uncertain and in many ways dangerous and unsettling present.."
Riyadh and Washington Maneuver Over Iraq Fears
"..Saudi Arabia has told the Bush administration that it might provide financial backing to Iraqi Sunnis in any war against Iraq’s Shiites if the United States pulls its troops out of Iraq, according to American and Arab diplomats.  King Abdullah of Saudi Arabia conveyed that message to Vice President Dick Cheney two weeks ago during Mr. Cheney’s whirlwind visit to Riyadh, the officials said. During the visit, King Abdullah also expressed strong opposition to diplomatic talks between the United States and Iran, and pushed for Washington to encourage the resumption of peace talks between Israel and the Palestinians, senior Bush administration officials said.."
Background on the News - Leading Diplomats
"..Earlier today SUSRIS provided news of Prince Turki al Faisal's resignation as Ambassador to the United States.  Robin Wright in a Washington Post report reprinted by SUSRIS mentioned the illness of Saudi Foreign Minister Saud al Faisal.  The Saudi government is expected to confirm the departure of Prince Turki from his Washington Post later today.  This SUSRIS Item of Interest provides background information on personalities connected with this story: Foreign Minister Saud al Faisal, Prince Turki al Faisal and Prince Bandar bin Sultan, the immediate predecessor to Prince Turki as top Saudi diplomat in Washington.."
Audio On the Web
Saudis Deny Reported Offer of Aid to Iraqi Sunnis All Things Considered, December 13, 2006 · Saudi Arabia has told the White House that if U.S. troops withdraw from Iraq, the Saudis may provide financial aid to Iraq's Sunni Muslim minority, according to a New York Times report.  The White House and the Saudis deny the story -- but it raises questions about Saudi Arabia's relationship with Iraq, a country with which it shares a large border.  Michele Norris talks with Gregory Gause, director of the Middle East Studies Program at the University of Vermont.
Audio On the Web
Iraq's Neighbors Pursue Their Own Regional Policies Morning Edition, December 13, 2006 · Joost Hiltermann, Middle East project director of the International Crisis Group, talks about the interests that Iraq's neighbors, Saudi Arabia, Iran and Syria, have in the country.  Hiltermann tells Renee Montagne that their common goal is to avoid a wide-ranging civil war. Where they disagree is on how to do that.
On the Web
The Press in Saudi Arabia - BBC Saudi Arabia's 26m citizens have more than a dozen daily newspapers to choose from, most of them published in Arabic, with a few in English.  Overall, the Saudi media scene supports around 130 publications.

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Forum on Smart Cities to Highlight Investment Opportunities [Dec 16]
" A major forum on smart cities will be held in Riyadh today to highlight investment opportunities in the four economic cities.. ..The four cities in Rabigh, Hail, Madinah and Jizan are expected to draw nearly SR300 billion ($80 billion) in investment. The Saudi Arabian General Investment Authority (SAGIA), the main facilitator of the economic cities, is organizing the forum.." [more]

PSU in Exchange Program With US University [Dec 16]
"Prince Sultan University (PSU) has signed an agreement with Kansas State University in the US to promote joint academic and research programs and to exchange students and faculty members.. ..this agreement outlines six main areas of cooperation, including collaborative research projects and joint-degree programs. The study abroad program is scheduled to begin in the fall semester of next year.." [more]

Saudi Budget, Results of Firms to Influence Market Trend [Dec 16]
"The Saudi stock market witnessed frequent fluctuations last week, but the Tadawul All-Shares Index (TASI) gained 0.56 percent, closing at 7,950.42 points from 7,906.28 points the previous week. The TASI is currently 52 percent lower than the year’s start.. ..'The performance of Arab markets last week indicates that the downward trend has not bottomed out yet,' an Amman-based portfolio manager told Arab News, asking anonymity. 'Speculation, lack of confidence, hesitation and discrepancy in experts’ evaluation of market trends still characterize regional stock exchanges despite the drastic decline of prices over the past few months'.." [more]

King Abdullah Meets with Visiting Sen. Bill Nelson [Dec 16]
"Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz met with visiting Sen. Bill Nelson (D-Florida) and his delegation at Al-Yamamah Palace in Riyadh today. The meeting was attended by a number of officials, including Chief of General Intelligence Prince Muqrin bin Abdulaziz. Sen. Nelson and his delegation also met separately with Minister of Interior Prince Nayef bin Abdulaziz today. They discussed issues of mutual interest.." [more]

Blair Defends Saudi Probe Ruling [Dec 15]
"Tony Blair has hit back at claims the government was "blackmailed" into dropping a corruption probe into a BAE Systems arms deal with Saudi Arabia. The Serious Fraud Office's sudden decision to wind up a two-year inquiry was in the national interest, he said. Pursuing it would have damaged the UK's relationship with a key ally and years of 'ill feeling', he added.. ..The Serious Fraud Office was investigating claims that Britain's biggest defence firm BAE had paid bribes to secure an arms deal with Saudi Arabia in the 1980s. BAE has denied the claims.." [more]

Saudi Ex-Ambassador Urged No US Talks with Iran [Dec 15]
"The US State Department has said Saudi Arabia's former ambassador here recently visited Washington, adding spice to reports he was involved in a power struggle which caused his successor to quit. Prince Bandar bin Sultan.. ..Sean McCormack reluctantly confirmed Prince Bandar met Secretary of State Condoleezza Rice, when pressed by reporters, but refused to divulge the substance of their conversation.." [more]

Saudi Aramco Revealed as Biggest Group [Dec 15]
"The world's biggest company is controlled by Saudi Arabia and is not listed on a stock exchange, according to new research by the Financial Times and the management consultancy McKinsey. The FT's Non-Public 150 – the first comprehensive study of the world's largest unlisted companies – found that Saudi Aramco, the state company in charge of the country's vast oil reserves, is worth an estimated $781bn, dwarfing the $454bn market capitalisation of its rival ExxonMobil.." [more]

Saudi Arabia, Poland Sign MOU on Trade, Investment [Dec 15]
"Saudi Arabia and Poland on Wednesday signed a memorandum of understanding on the first private sector trade and investment cooperation.. ..Fifteen leading companies representing Poland’s construction, engineering, energy, manufacturing, steel fabrication, environment protection, and telecommunication sectors composed the trade and investment mission, which held discussions with local chambers of commerce and industry. The MOU called for the expansion of bilateral trade and investment.." [more]

Conference Draws Up Plan to Protect Environment [Dec 15]
"The Second Islamic Conference of Environment Ministers drew up a twelve-point plan and decided to establish an environment institution and an Islamic media information network specialized in the environment.. ..The proposed environment institution would deal with political strategies and frame policies for the protection of environment.." [more]

Probe into BAE's Saudi Defence Deal Dropped [Dec 14]
"The Serious Fraud Office bowed to pressure on Thursday to drop a two-year-old inquiry that had upset Saudi Arabia and threatened to scupper a mullet-billion-pound defence deal with BAE Systems. The SFO said the decision to abandon the investigation followed 'representations' made to the Attorney General and the director of the SFO on the need to safeguard national and international security.." [more]

Bush Defends Saudi Support [Dec 14]
"..George W Bush said last night that Saudi Arabia was fully behind US-led efforts to forge an Iraqi unity 
government, amid reports of tensions between Washington and Riyadh. 'The Saudis are committed to a government that will bring peace and stability, and that's a unity government,' Bush said after talks with top US military planners at the Pentagon.. ..Bush's comments came after the New York Times reported that Saudi Arabia had warned it would support Iraq's Sunni minority against its Shi'ite majority if the US withdrew from the war-torn country.." [more]

Sixteen Saudis Held in Guantanamo Return Home [Dec 14]
"Sixteen Saudis held in the U.S. prison at Guantanamo Bay, where foreign terrorism suspects are held, returned to the kingdom on Thursday.. ..Interior Minister Prince Nayef bin Abdul-Aziz told SPA they will be allowed to meet their kin but did not say when they will be freed. 'The returnees will be subject to regulations applied in the kingdom,' he said without elaboration.. ..Public anger over the treatment of the Saudi detainees in Guantanamo has been high in the kingdom.." [more]

OPEC Eyes Possible Feb. Production Cut [Dec 14]
"OPEC ministers agreed Thursday to leave oil production unchanged for now but set the stage for a possible cutback of half a million barrels a day in February. Oil rose above 62 a barrel in response.. ..The decision.. ..was confirmed by OPEC President Edmund Daukoru, who is also oil minister of Nigeria, along with ministers from other member nations.." [more]

Abdullah, Aziz Discuss ME [Dec 14]
"King Abdullah and Pakistani Prime Minister Shaukat Aziz held talks yesterday on major global issues, most importantly the latest developments in Palestine and the situation in Iraq as well as ways of strengthening bilateral cooperation in all areas.. ..The talks were attended by top officials including Prince Badr, deputy commander of the National Guard, and Prince Muqrin, chief of intelligence.." [more]

MIT, Johns Hopkins Scholarship Tests Today [Dec 14]
"Over 400 male and female Saudi students who have come from all over the Kingdom will compete today for a six-week scholarship at two of United States’ most prestigious universities: The Massachusetts Institute of Technology (MIT) and Johns Hopkins University.. ..The scholarships will be for the summer of 2007 and are part of collaboration efforts between the foundation and the two universities.." [more]

Saudi Arabia: Middle East on Brink of Exploding [Dec 14]
"Six Gulf Arab nations wrapped up their two-day summit on Sunday, announcing their intention to acquire peaceful nuclear technology, while the Saudi King had warned on Saturday that the region is on the brink of exploding. The 27th summit of the Gulf Cooperation Council (GCC), a regional alliance grouping Saudi Arabia, Kuwait, Qatar, Oman, Bahrain and the United Arab Emirates, has been held on Saturday and Sunday in Riyadh, the capital of Saudi Arabia.. ..Founded in 1981, the GCC has been striving to achieve wide- ranging cooperation among member states in face of internal and international challenges.." [more]

Saudi Minister Hints at OPEC Output Cut [Dec 13]
"Saudi Arabian Oil Minister Ali al-Nuaimi said Wednesday that OPEC had 'a little more work to make the market even more stable', a hint the oil exporters’ group might cut its output at a ministerial meeting on Thursday. 'The fundamentals of the market are much better than they were in October and I think the market is moving towards better stability'.." [more]

Saudi Stocks Extend Gains [Dec 13]
"Saudi stocks extended gains yesterday as banking shares surged, wiping out early session losses. The index rose 0.47% to 7,837.06 points.. ..The market has lost more than a quarter of its value since the regulator scrapped an evening trading session popular with retail investors on October 28.." [more]

Saudi NAS to Invest $2b in Fleet Expansion [Dec 13]
"An official at National Air Services (NAS), a private Riyadh-based aviation company, said that the company will invest $2 billion in fleet expansion, including the purchase of 75 new aircraft by 2010.. ..With investments of over $2 billion, the company's initial acquisition will include Airbus, Gulfstream and Raytheon aircraft.." [more]

Turki Resigns as Saudi Envoy to Washington [Dec 13]
"..The Washington Post said yesterday, "Prince Turki Al Faisal flew out of Washington Monday after informing Secretary of State Condoleezza Rice and his staff that he would be leaving the post." But until last evening, there was no formal announcement from Riyadh, a sign that the resignation has not yet been accepted.." [more]

Saudi Threat to Take Sunni Side in Iraq War [Dec 13]
"Saudi Arabia has told the Bush Administration that it might provide financial backing to Iraqi Sunnis in any war against Iraq's Shiites if the US pulls its troops out of Iraq. The Saudi leader, King Abdullah, conveyed that message to the Vice-President, Dick Cheney, two weeks ago during Mr Cheney's visit to Riyadh, US and Arab diplomats said.." [more]

Saudi Ambassador Leaves Job in Washington [Dec 12]
"Prince Turki al-Faisal, Saudi Arabia's ambassador to the United States, flew out of Washington Monday after informing Secretary of State Condoleezza Rice and his staff that he would be leaving the post after only 15 months on the job, according to U.S. officials and foreign envoys. There has been no formal announcement from the kingdom.. ..Turki has increasingly been rumored as a possible replacement for his older brother. He would symbolize continuity in Saudi foreign policy at a moment of tension over Iraq between Riyadh and Washington.." [more]

Saudi Arabia Non-Oil Exports Reach $18.6 Billion in 2005 [Dec 12]
"According to the Saudi Commerce and Industry Minister, the kingdom's non oil exports, which have been growing by 13 percent yearly during the past decade, reached an estimated value of $18.66 billion in 2005.. ..Saudi Arabia, since joining the World Trade Organisation (WTO), has taken a series of measures to improve the country's investment climate.." [more]

Cooperation Pacts Expected During Pakistan PM’s Visit [Dec 12]
"Pakistani Prime Minister Shaukat Aziz would be arriving here Tuesday on an official four-day visit to discuss closer economic, trade and political ties. There have been increased frequency of high-level visits between the two countries and the total trade volume between the two countries is increasing on government and public level.. ..Some cooperation agreements are likely to be signed during the Prime Minister’s visit that would include his meetings with the King Abdullah.." [more]

Clerics Urge Muslims to Back Iraq Sunnis [Dec 12]
"More than 30 prominent Islamic clerics from Saudi Arabia on Monday called on Sunni Muslims around the Middle East to support their brethren in Iraq against Shiites and praised the insurgency. The clerics said jihad, or holy war, 'is one of the most important tenets of religion, and what has been taken by force can only be regained by force'.. ..Saudi Arabia, like most Arab countries, is predominantly Sunni but has a significant Shiite minority. Saudi Arabia, Jordan and Egypt all have expressed concerns over increasing Shiite power in Iraq.." [more]

Philippine Court Freezes Account of Muslim Charity Accused of Terror Links [Dec 12]
"A court in the Philippines has frozen the local bank account of a Saudi-based charitable organization because of suspicions it has been used to bankroll terror activities, the court said Tuesday. The Court of Appeals said in a written ruling it found "probable cause" that an account of the International Islamic Relief Organization's local office may have been used for illegal purposes. The court granted a request by the Anti-Money Laundering Council to freeze the account for at least 20 days.." [more]

Saudi Deepens Asia Oil Supply Cuts Before Opec Talks [Dec 11]
"Saudi Arabia has told major Asian refiners that it will deepen supply curbs in January versus this month, industry sources said, just days before Opec is expected to agree a second output cut. At the weekend, state oil firm Saudi Aramco told three Japanese lifters, two refiners in South Korea and one Taiwanese buyer that it will supply them with about 8 to 9 percent less crude than stipulated under their annual contracts next month.." [more]

Saudi Welcomes US Report [Dec 11]
"Saudi Arabia yesterday welcomed a US report on foreign policy in the region for emphasising a need for more attention to the Israeli-Palestinian conflict. Saudi Foreign Minister Prince Saud al-Faisal also praised the report for suggesting that the Iraqi constitution might need rewording - a central Sunni demand in Iraq, where Shia Muslims have held sway since the US-led invasion of 2003.. ..'We hope that in coming to decisions about what is to be done ... the realities of the region will be taken into decisions and the counsel of the countries of the region will be taken into consideration'.." [more]

Third Athletics Gold for Saudi [Dec 11]
"It is turning out to be a good Asian Games for Saudi Arabia's athletes as Hamdan Awdah Al Bishi won the Men's 400 metres yesterday to post the kingdom's third track and field gold, reported Reuters. Al Bishi edged out Bahrain's Brandon Simpson in a closely contested final few metres.." [more]

Accession Brings Investor Confidence - KSA [Dec 11]
"Saudi Arabia today celebrates the first anniversary of its accession to the World Trade Organization (WTO) - its 149th member - both with optimism and expectancy.. ..the single immediate quantifiable benefit which Saudi Arabia has gained through WTO accession is investor confidence. According to Fawaz Al-Alamy, chief technical WTO negotiator, foreign direct investment (FDI) into the Saudi Arabia increased by 250 percent.." [more]

Regulations Required on Human Trafficking [Dec 11]
"A senior US advisor on trafficking has found two types of human trafficking in Saudi Arabia: domestic servitude and the smuggling of underage beggars. Laura J. Lederer, from the Office of the Undersecretary for Democracy and Global Affairs, held high-level talks in Riyadh with officials from the ministries of interior and justice, and human rights experts to create international network for combating illegal trafficking.. ..The US advisor said the Kingdom and the US have joined hands to fight the problem of human trafficking.." [more]

Peretz Endorses Saudi Peace Initiative [Dec 11]
"Israeli Defense Minister Amir Peretz says any Palestinian peace initiative must be based on a Saudi plan which calls for two states along the 1967 borders. It was one of the first times an Israeli official has publicly considered the plan.. ..Speaking to Israel Business Conference delegates Sunday, Peretz said the 2002 Saudi initiative should be the basis of all negotiations between the Palestinians and Israel, the newspaper said. The initiative has never gotten much support in Israel as it calls for the country to withdraw back to its 1967 borders.." [more]

Gulf States Commission Study for Possible Shared Nuclear Program [Dec 10]
"Oil-rich Arab states in the Gulf announced at the end of a summit Sunday that they were considering a shared nuclear program for peaceful purposes.. ..The statement read by Abdul Rahman al-Attiyah, the secretary general of the political and economic alliance, did not elaborate on the plan by the GCC, which is comprised of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman. 'We hope that our statements (on the study) will not be misunderstood,' Saudi Arabia's foreign minister, Prince Saud al-Faisal, told reporters after the announcement.." [more]

King Urges GCC Economic Union [Dec 10]
"..King Abdullah yesterday urged GCC countries to achieve economic unity. 'The dream of realizing economic unity should remain vibrant in our minds, because without unity we will remain small entities without having any influence and be influenced by others. But united we will be a power that cannot be ignored'.. ..Opening the 27th GCC summit here, King Abdullah highlighted the volatile situation in the Middle East. 'It’s like a barrel full of gunpowder that could explode any moment with a single spark'.." [more]

Saudi Electricity Awards $973 mln Contracts to GE [Dec 10]
" Saudi Electricity Co. (5110.SE) said on Sunday it had awarded U.S. firm General Electric (GE.N) contracts worth 3.65 billion riyals ($973 million) to help expand three power plants in key regions of the country. The project would increase the capacity of the three plants in the Eastern and Central provinces by 2,860 megawatts, Saudi Electricity, the kingdom's biggest utility by market value.. ..Completion is expected within 20 months, it added without giving further details.." [more]

Saudi Women Turn to Classes in Wifehood as Divorces Soar [Dec 10]
"Khulud Abdul-Aziz enrolled in a course on manners, fashion and cooking that prepares young women to be good wives.. ..Fahad al-Yahya, a psychiatrist who counsels married couples, estimates at least 30 percent of Saudi first marriages end in divorce. The course Abdul-Aziz takes at al-Shaqaiq Society in Jiddah is just one of the ways social groups are trying to give marriage a boost. The divorce rate has alarmed many here, but some argue Saudi men can be part of the problem, unable to deal with a female population that is growing educated and assertive.." [more]

Saudi Arabia's Habeeb is Fastest Man in Asia [Dec 10]
"Diminutive Yahya Hassan Habeeb ran a blistering 10.32 to claim the coveted 100 metres sprint gold for Saudi Arabia.. ..Long jumper Taher Al Saba, back from a two-year suspension for a failed dope test, retained his long jump title and led a double gold night for the Saudis. Coached by world record holder Mike Powell, Al Saba, said: 'I feel great. I am the goldenboy of Saudi Arabia'.." [more]

Opec Official Says Market Excess is 500,000 bpd [Dec 10]
" The global oil market is over-supplied by over 500,000 barrels per day (bpd) and Opec will take appropriate measures to balance it at its December 14 meeting, the group's acting secretary-general said yesterday. Mohammad Barkindo stopped short of saying Opec would cut production at the Abuja meeting, though the group's president Edmund Daukoru said on Friday he favoured a further reduction after Opec cut output in October.." [more]

Critics Call UN Report Biased [Dec 10]
"THE Arab Human Development Report 2005, which was released Thursday in Yemen, has come under fire. Critics of the report entitled 'Toward the Rise of Women in the Arab World,' which focuses on the development of women in the Arab world, said it is culturally biased and written by Westerners.. ..El-Mostafa Benlamlih, the UNDP residing representative to Saudi Arabia, disputed these claims.. ..'This report was prepared and written by Arab researchers and not by Westerners,” Benlamlih said. “This report shouldn’t be taken as a criticism or a final statement, but a means for discussion and dialogue'.." [more]

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