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Newsletter #212

May 6-12, 2007

 

In This Issue

 

 

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  • What's New on SUSRIS this Week:

    • "Diplomatic Rescue Mission" - Cheney's Visit

    • A New Regional Leadership - Thomas Lippman

    • Secretary Rice On Mideast Developments

    • Cheney Touching Bases in the Middle East

    • Why is Saudi Arabia becoming the major power in the region? - Adel Al Toraifi

  • In the News:

    • In the News -- Riyadh Journal - Cultural Collisions in the Slow Lane to Modernity

  • Keeping Track - Recent SUSRIS Items

  • This Week's News - May 6-12, 2007

  • About SUSRIS

Click here for more information on Riyad Bank.

 

What's New On SUSRIS.org

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"Diplomatic Rescue Mission" - Cheney's Visit  
Click here to read Robin Wright's report about the visit of VP Dick Cheney to Saudi Arabia.  (SUSRIS / IOI / May 11, 2007)"..Vice President Cheney faces a diplomatic rescue mission tomorrow in Saudi Arabia, where King Abdullah has told top State Department and Pentagon officials over the past six weeks that the kingdom no longer supports Iraqi Prime Minister Nouri al-Maliki and does not believe the new U.S. military strategy to secure Baghdad will work, U.S. officials and Arab diplomats said. The oil-rich kingdom, which has taken an increasingly tough position on Iraq, believes Maliki has proven a weak leader during his first year in power and is too tied to Iran and pro-Iranian Shiite parties to bring about real reconciliation with Iraq's Sunni minority, Arab sources said.."
 

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A New Regional Leadership - Thomas Lippman   
Click here to read Thomas Lippman's essay "New Regional Leadership."  (SUSRIS / IOI / May 10, 2007)"..King Abdullah of Saudi Arabia caused a lot of heartburn in official Washington with his speech [in March] at the Arab summit conference in Riyadh in which he referred to an "illegitimate foreign occupation" of Iraq. The Americans had good reason to be distressed after reading the speech, but not because of what Abdullah said about Iraq. After all, he was addressing an Arab summit conference; he could hardly have endorsed the American adventure there, which everyone in his audience knew he had opposed.."
 

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Secretary Rice On Mideast Developments  
Click here to read Secretary of State Condoleeza Rice's interview on Middle East developments.  (SUSRIS / IOI / May 10, 2007)"..our relations are very good with Saudi Arabia. We agree completely on the strategic direction here. We are both concerned about extremism in the region. We are both concerned about al-Qaida and terrorism in the region. And clearly, the Saudis -- for instance on Lebanon, we have had very strong policies that go in the same direction. Saudi Arabia was very generous for the Lebanese Government during the Paris conference. Saudi Arabia has been a leader in helping to get the Arab League Initiative re-launched again out of the Riyadh Summit so that we can use that as one of the foundations to help press forward on Israeli-Palestinian peace, something that we continue to be very dedicated to, something that the President is committed to and we're going to continue to work, so we and the Saudis are working there. Sometimes we have tactical differences, but that really doesn't matter when you're pushing in the same strategic direction.."
 

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Cheney Touching Bases in the Middle East 

 

Click here to read about US VP Dick Cheney's visit to the Kingdom.  (SUSRIS / IOI / May 9, 2007)"..Secretary of State Condoleezza Rice may make the headlines with her high-profile diplomatic missions to the Middle East. But for a glimpse at the hidden power plays, follow Vice President Cheney's trip this week to Saudi Arabia. Saudi King Abdullah has emerged over the past nine months as the Bush administration's most important and strong-willed Arab ally. He launched an aggressive campaign last fall to contain Iranian influence in the Arab world and, in the process, buttress American interests in the region despite U.S. setbacks in Iraq. It's Cheney, whose blunt, unsmiling demeanor matches Saudi notions of American gravitas, who manages the Abdullah account.."

 

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Why is Saudi Arabia becoming the major power?  
Click here to read Adel al Toraifi's essay on Saudi Arabia becoming the major power in the region. (SUSRIS / IOI / May 6, 2007)

"..When the recent fight broke out between Fatah and Hamas militants in Gaza, the whole Middle East was affected by the brutal and unprecedented struggle over power in the Palestinian territories. Egyptian efforts to curb the deadly carnage failed and for the first time in the history of Egyptian mediation Hamas accused Cairo of siding with its opponents by supplying arms and ammunition to Fatah factions. The internal Palestinian war stopped only after King Abdullah of Saudi Arabia called upon both parties to negotiate a unity government in the city of Mecca. Surprisingly, both parties agreed within hours. For Fatah it was the only option to avoid the collapse of the Palestinian Authority, created by the Oslo Peace Process. As for Hamas, it sought to seize the opportunity of Saudi recognition due to what had been a cautious Saudi policy towards the rise of Hamas power after the 2006 elections.."

 

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Click for complete item (HTML)In the News -- Riyadh Journal - Cultural Collisions in the Slow Lane to Modernity

RIYADH, Saudi Arabia — Mansour al-Atayan sat at a table in one of the Starbucks that are as ubiquitous here as they are in Manhattan and explained how unhappy he was with the social changes occurring in his country. He said he thought that it would be better if women were not allowed to work in his office at all. “Society is opening up too much,” said Mr. Atayan, 25. “You’re lying,” replied his friend, Saud Aldughaither, also 25, who was seated at the other side of the table. “You like it, but you think it is wrong.” Mr. Atayan hung his head and with a weak smile acknowledged that, perhaps, his friend was correct. Saudi Arabia is an extremely conservative country. Conservative in faith and tradition. But within those parameters — where individual expression is often discouraged — there is a conflict brewing between the desire to “have fun,” as Mr. Aldughaither said, and a desire to conform. Life here may be constrained, but there is often comfort in the predictable.."

 

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Keeping Track - Recently on SUSRIS 

Click here to read about the visit of Japan's Prime Minister Abe to Saudi Araabia.  (SUSRIS / IOI / Apr 29, 2007) Click here to read Abdulaziz Sager's essay "Japan's Chance to Build Mideast "Corridor of Peace".  (SUSRIS / IOI / Apr 29, 2007) Click here to read about Saudi Arabia's war on terror in the Kingdom.  (SUSRIS / IOI / Apr 30, 2007) Click here to read about the status of reform in the Kingdom.  (SUSRIS / IOI / May 1, 2007)
Click here to read the section of the annual State Department report on terrorism dealing with Saudi Arabia.  (SUSRIS / IOI / May 4, 2007) Click here to read about the arrests of over 170 suspected terrorists in Saudi Arabia that is said to have foiled attacks on oil and military facilities.  (SUSRIS / Special Report / Apr 27, 2007) Click here to read the US State Departments reaction to arrests of over 170 terrorist suspects in Saudi Arabia.  (SUSRIS / Special Report / Apr 27, 2007) Click here to read about Saudi Arabia's resurgent diplomacy.  (SUSRIS / IOI / Apr 27, 2007)
Click here to read about the National Dialogue in Saudi Arabia.  (SUSRIS / IOI / Apr 26, 2007) Click here to read about an overhaul of the education system in Saudi Arabia.  (SUSRIS / IOI / Apr 25, 2007) Click here to read Jamal Khashoggi talking about his appointment as editor of Al-Watan newspaper. (SUSRIS / IOI / April 26, 2007) Click here to read King Abdullah's address to the Saudi Consultative Council.  (SUSRIS / IOI / April 18, 2007)
Click here to read Rachel Bronson's essay, "What the Saudis Want - Good Neighbors."  (SUSRIS / IOI / Apr 17, 2007) Click here to read Lee Hamilton's essay, "Let's get to know the Saudis."  (SUSRIS / IOI / April 16, 2007) Click here to read the quarterly summary of SUSRIS production. (SUSRIS / Special Reports / April 1, 2007) Click here to read about a $5b energy deal among the US, China and Saudi Arabia.  (SUSRIS / IOI / Apr 1, 2007)
  Click here to read about US House Speaker Nancy Pelosi's visit to Saudi Arabia. (SUSRIS / IOI / Apr 5, 2007)   Click here to read about a forum focused on the empowerment of Saudi business women. (SUSRIS / IOI / Mar 21, 2007)   Click here to read about the opening of the Arab Summit in Riyadh.  (SUSRIS / Special Report / Mar 28, 2007) Click here to read about King Abdullah's opening address to the Arab Summit including a transcript of his remarks. (SUSRIS / IOI / Mar 29, 2007)
Click here to read Anthony Cordesman's report on "Iran, Oil and the Strait of Hormuz." (SUSRIS / IOI / Mar 27, 2007) Click here to read about the presentation of the Hart Award to aviator Joe Grant for fostering understanding through his service in Saudi Arabia. (SUSRIS / IOI / Mar 26, 2007) Click here to read about a forum focused on the empowerment of Saudi business women. (SUSRIS / IOI / Mar 21, 2007) Click here to read an interview with Gregory Gause on Saudi Arabia's response to growing Iranian influence in the region.  (SUSRIS / IOI / Mar 20, 2007)
Click here to read about the change of command at U.S. Central Command. (SUSRIS / IOI / Mar 19, 2007) Click here to read about President Ahmadinejad's visit to Riyadh. (SUSRIS / Special Report / Mar 5, 2007) Click here to read about plans for the King Abdullah Financial District in Riyadh..  (SUSRIS / IOI / Mar 10, 2007) Click here to read about the Jeddah Economic Forum. (SUSRIS / IOI / Feb. 22, 2007)
Click here to read about the performance of the Saudi economy in 2006. (SUSRIS / IOI / Feb. 21, 2007) Click here to read about Russian President Vladimir Putin's visit to Saudi Arabia. (SUSRIS / IOI / Feb. 12, 2007) Click here to read about the historic meeting of King Abdulaziz and President Roosevelt in 1945 as described by Thomas Lippman. (SUSRIS / IOI / Feb. 14, 2007) Click here to read the SUSRIS interview with Rachel Bronson about the Great Bitter Lake meeting between Ibn Saud and FDR. (SUSRIS / IOI / Feb. 14, 2007)
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News This Week - May 6-12, 2007

Do you get it?

~~~~~~~~ [ May 12 ] ~~~~~~~~~

New Economic City in Tabuk [May 12]
"Saudi Arabia’s fifth economic city will be established in the northern city of Tabuk as part of a government plan to promote development all over the country. Custodian of the Two Holy Mosques King Abdullah, who arrived in Tabuk yesterday, is expected to lay the foundation stone for the mega city. King Abdullah has already launched four economic cities — in Rabigh, Hail, Madinah and Jizan — which are to attract foreign and domestic investment worth more than SR300 billion and create more than a million jobs.. ..the new economic cities would contribute $150 billion to the gross domestic product (GDP) by the year 2020. They will also provide job opportunities to 1.3 million people, living environment for 4.5 million people and increase per capita GDP from $13,000 to $33,500.." [more]

Saudi-Malaysia Ties Growing [May 12]
"The growing close relationship between Saudi Arabia and Malaysia, especially at the leadership level, has seen the increase in tourism activities and the participation of Malaysian companies and workers in the Saudi economy.. ..Several Malaysian companies have participated in Saudi Arabia's construction industry via open tenders and in joint ventures with leading local firms for projects in Riyadh, Jeddah and Mecca.. ..On why Malaysian companies were selected to undertake projects in the country, he said apart from the close relationship between the country's leaders, the Saudis have known Malaysia better not only from tourism activities but also its human capital, information and communications technology (ICT) and engineering capability.." [more]

~~~~~~~~ [ May 11 ] ~~~~~~~~~

Cheney to Try to Ease Saudi Concerns [May 11]
"Vice President Cheney faces a diplomatic rescue mission tomorrow in Saudi Arabia, where King Abdullah has told top State Department and Pentagon officials over the past six weeks that the kingdom no longer supports Iraqi Prime Minister Nouri al-Maliki and does not believe the new U.S. military strategy to secure Baghdad will work, U.S. officials and Arab diplomats said. The oil-rich kingdom, which has taken an increasingly tough position on Iraq, believes Maliki has proven a weak leader during his first year in power and is too tied to Iran and pro-Iranian Shiite parties to bring about real reconciliation with Iraq's Sunni minority, Arab sources said. Assuaging Saudi concerns is the primary reason for the vice president's trip -- and even a key reason he went to Baghdad this week.." [more]

King Unveils His Vision of an Ideal Welfare State [May 11]
"Custodian of the Two Holy Mosques King Abdullah said that the Kingdom will have to struggle hard to build an ideal welfare state. 'We have to wage battles to build an ideal welfare state where nobody is in want, a land of justice and moderation far removed from hatred and extremism...Clinging firmly to our religion of tolerance seeking help from the Almighty alone.... Without any tribal or regional fanaticism that is against the values of the religion'.. ..The king set out on a tour of the north on Monday, underscoring the government’s determination to achieve balanced growth for all regions of the Kingdom. He launched a host of projects at an approximate cost of SR6 billion in the northern border region 
before he arrived in Al-Jouf. Included among the projects was the Northern Border University.." [more]

Dow Chemical Could Invest $20 Billion in Saudi Arabia [May 11]
"..DOW is close to deal to build a $20 billion petrochemical plant in Saudi Arabia, the Financial Times reported late Thursday.The deal could be announced Saturday and would be the largest foreign investment in the Saudi energy sector the paper said.For Dow the deal offers low-cost oil for plastics and for the Saudi Arabian government it would provide chemicals expertise.." [more]

Saudi Authorities Clear Way for Eight Companies to Issue IPOs [May 11]
"The Saudi Capital Market Authority (CMA) has cleared the way for Makkah-based Jebel Omar Company and seven insurance companies to issue initial public offerings (IPOs). More than 236 million shares will be floated by the eight companies which collectively have a capital exceeding seven billion riyals.. ..CMA has set May 19 to 28 as the dates for IPO of the insurance companies while the public issue of Jebel Omar Company will open on June 9 and close on June 18, said a statement released by CMA yesterday.." [more]

Saudis Cautious on Investment [May 11]
"Saudi Arabia's reluctance to commit to boosting oil production capacity beyond 2009 is a response to the potentially huge impact on future demand of energy efficiency, alternative fuels and high prices. Demand uncertainty is providing little incentive for oil producers to risk investing billions of dollars on long-term projects to boost capacity, as they worry it will lie idle.. ..Saudi Oil Minister Ali Al Naimi sent the strongest signal yet last week from the the world's biggest oil exporter that it needs concrete signs of demand before committing to further supply boosts beyond its 12.5 million barrels per day target in 2009. 'Our feeling now, with the thrust and push for conservation, efficiency and the use of alternatives, is that we probably need not go beyond 12.5 million bpd'.." [more]

Opec Urged to Boost Oil Output Amid Shortages [May 11]
"Fears that world oil prices could soar to record levels of $80 a barrel this year emerged today as a leading think-tank urged Opec to increase global production of crude. The Paris-based International Energy Agency (IEA) gave warning that unless Opec members pushed up output by more than two million barrels a day in the next six months there would be a “dramatic” squeeze on oil stocks. The IEA said that gasoline supplies in the US were already at a 16-year low for this time of year. Pump prices in the US have surged to more than $3 a gallon.." [more]

~~~~~~~~ [ May 10 ] ~~~~~~~~~

Saudi Prince Gets 10-Year Sentence [May 10]
"Saudi Prince Nayef Al-Shaalan was sentenced in absentia yesterday to 10 years in jail on charges of involvement in a cocaine smuggling gang, at the outcome of his trial in France. The 53-year-old prince, who is not in line for the Saudi throne, was one of 10 people handed jail terms of four to 10 years in connection with an operation which landed two tonnes of cocaine at an airfield outside Paris in 1999. The judge ruled to uphold international arrest warrants against Prince Nayef and the nine other defendants, who include three former Colombian drugs barons.. .. He is accused of using his diplomatic immunity to smuggle drugs to France on board a private jet.." [more]

Saudis Move to Curb Money Laundering [May 10]
"The Saudi Interior Ministry has issued new rules to curb money laundering.. ..The new rules, which is expected to come into effect soon, stipule that whoever caught laundering money will be imprisoned for up to ten years and fined up to five million Saudi Riyals. The regulations, a copy of which Gulf News got, states: 'Whoever funds terrorists or terror organisations is considered to be committing a crime of money laundering.' It also warns financial and other institutions from dealings with unidentified names.." [more]

Saudi Gas Sector Opens Further to Foreign Investment [May 10]
"Saudi Arabia has announced a further opening of the natural gas industry and is encouraging more foreign investment in exploratory projects in the natural gas sector. Ali Al-Naimi, Minister of Petroleum, spoke at the Euromoney Saudi Arabia Conference Wednesday, saying that the Kingdom has been simplifying regulations in order to attract foreign investors. Around 300 potential investors from 35 different countries participated in Euromoney Saudi Arabia in Riyadh. Al-Naimi said the Kingdom has already invested SR50 billion in establishing one of the largest networks for the collection and transport 
of natural gas.." [more]

Kingdom on Rebound [May 10]
"What a difference a few years can make. For a period of about two-and-a-half years following the attacks of September 11, the Kingdom of Saudi Arabia appeared to be in serious trouble. Much of the outside world viewed the Kingdom as a hotbed of extremism, a country that had turned a blind eye towards its support for radical Islamism, and therefore a state that could not be viewed as a trusted ally.. ..Three years later, the picture has taken a 180-degree turn. Regionally, Saudi Arabia has assumed a leadership position with regard to many of the issues plaguing the wider Middle East, and recently hosted the Arab summit for the first time in its history. Far from being ostracised, the Kingdom is basking in new-found legitimacy and the recognition that its role in calming down regional tensions might be more valuable than ever.." [more]

Women Bringing Europe, Arab World Closer Together [May 10]
"Women can play a greater role to boost relations between the Arab world and Europe. This was very evident when eight women from Arab countries recently went to Germany for a program aimed at establishing a network among Arab women and German women with power. The exchange of ideas was a great opportunity to create better relations between the Arab world and the West. In addition the exposure to the experiences of German women in politics, business and society was an incentive for women in the Arab world. The resulting dialogue was a recognition of Arab women as engines for peace and the knowledge gained was of great support to the endeavors of Arab women to contribute to the economic prosperity of their countries.." [more]

GE Signs $1b Power Plants Deals in Saudi Arabia [May 10]
"A senior official at General Electric Energy said that the company has signed a second set of agreements worth $1 billion for major power plant projects in Saudi Arabia, Khaleej Times reported. The official indicated that the projects, combined with the plans announced in December 2006, represent a total value approximately $2 billion investments for GE in the KSA.. ..These commitments follow GE's announcement last December that it had signed three contracts valued at more than $950 million for the Qurayyah, Faras and Riyadh Power Plant No. 8 extension projects in Saudi Arabia.." [more]

Saudi Schools Launch Project to Fight Extremism [May 10]
"Saudi schools this week begun a 7-day project to refute the takfir ideology and combat extremist thinking that has led to its supporters turning to youngsters and transforming them into time-bombs that threaten both internal and external security.. ..Saudi Arabia has outlined an anti-terrorism strategy as part of its firm policy that constitutes the various underlying foundations and principles of the state—the protection of religion, lives, money, honor, minds, and bringing about the security of the state and society in accordance with Shariaa law.." [more]

~~~~~~~~ [ May 9 ] ~~~~~~~~~

Fluor Receives $1 Billion Saudi Contract [May 9]
"Engineering, construction and project management company Fluor Corp. said Wednesday it received a $1 billion contract from Saudi International Petrochemical Co. Fluor will provide engineering, procurement, construction management and precommissioning services to the company's new acetyls complex in Jubail, Saudi Arabia. Construction began earlier this month. Fluor expects to complete the project in December of 2008.. ..Irving, Texas-based Fluor booked the contract in the first quarter. Shares rose $1.65 to $102.07 in morning trading.." [more]

GCC Will Not Go Nuclear for 15 Years [May 9]
"Plans for the GCC to begin producing its own nuclear power have been given the green light by the International Atomic Energy Agency, but it will take up to 15 years before any power plant could become operational, according to Kuwait's Foreign Minister. Speaking to the Al Qabas daily newspaper yesterday, Sheikh Mohammed Sabah Al Salem Al Sabah, said that a lengthy period of consultation and planning would be required, even if the plan was sanctioned today.. ..The Kuwaiti Foreign Minister was responding to questions related to an announcement made last December at a GCC heads of state 
conference where it was agreed that the GCC would work together on developing a civilian nuclear capability. It was widely reported at the time that the GCC was flexing its muscles at a time of increasing tension with Iran, and its rapidly developing nuclear programme.." [more]

Mideast Stalemate is Adding to Tension in Region, says Saud [May 9]
"The continuing stalemate in the Middle East peace process is causing tension in the region, Saudi Foreign Minister Prince Saud Al Faisal has said. Prince Saud reiterated the Arab commitment to working towards the realisation of a just and comprehensive peace within the framework of the Arab peace initiative which is based on the principles and decisions of the international legitimacy.. ..'In our view it [the Arab peace initiative] constitutes a historical opportunity which we hope would not be wasted,' Prince Saud said.." [more]

Poet Prince Passes Away [May 9]
"Poet, politician and sportsman, Prince Abdullah Al-Faisal Bin Abdul Aziz passed away on Wednesday, following a long struggle with illness. He was 80. The eldest son of the late King Faisal Bin Abdul Aziz, he grew up in the ruling court of his grandfather, King Abdul Aziz, the founder of modern day Saudi Arabia.. ..He will be remembered, perhaps, as much for his words as for his accomplishments, however, as he was considered one the finest poets ever produced by the Kingdom. 'He was a prince of art, poetry and feelings,' according to Muhammed Ali Qudus, a member of the art and literature club in Jeddah. 'Artists all over the world lost a great figure.'.." [more]

Saudi Report: Terror Cell Had Syria Base [May 9]
"One of seven recently exposed Saudi terrorist cells used Syria as a base for coordinating with al-Qaida in Iraq and held training camps in the desert of neighboring Yemen, a newspaper owned by Saudi Arabia's royal family said Tuesday.. .'One of the uncovered cells used Syria as a `safe house' for meetings and coordination with active elements of al-Qaida in Iraq,' Al-Watan said. 'The houses were used for recruiting and testing loyalties of new members, most of whom were youngsters.' Al-Watan provided no source for its report. In Syria, officials were not immediately available for comment on the newspaper's claim. U.S. officials have accused Syrian authorities of allowing militants to cross into Iraq to join the insurgency.." [more]

IDB to Launch $10bn Fund to Fight Poverty [May 9]
"The Islamic Development Bank (IDB), an affiliate of the 57-member Organization of the Islamic Conference (OIC), will launch a $10 billion solidarity fund to fight poverty in member countries during its annual meeting in the Senegalese capital Dakar at the end of this month. Twenty-one member countries including Saudi Arabia, Iran, Kuwait, Algeria, Morocco and Libya have welcomed the project, one of the resolutions passed by OIC leaders during their summit in Makkah in December 2005, and agreed to contribute to the fund. Saudi Arabia has offered to contribute $1 billion to the fund.." [more]

Saudi Arabia to Cut Government Spending [May 9]
"Saudi Arabia, the world's largest oil exporter, said it plans to control government spending in a bid to limit inflation that rose to at least an 11-year high in 2006, spurred by rising food prices and rents. 'Price stability is a challenge and we are working to make sure the size of spending does not affect economic development,' Saudi Finance Minister Ebrahim Al Assaf said at a conference in Riyadh. 'We will continue our programme of investment expenditure. The main area we will look at is current expenditure'.." [more]

China's CNPC Unit Wins Contract from Saudi Basic [May 9]
"China National Petroleum Corp unit, China Huanqiu Contracting and Engineering Corp has won an engineering procurement construction (EPC) contract from Saudi Basic Industries Corp to build a high-density polythene plant in Saudi Arabia. The value of the contract is about 300 mln usd.. ..The plant is slated to be operational by 2010 with a designed annual output of 400,000 tons.." [more]

Saudi Gains for First Day in 5 as Kayan IPO Ends [May 9]
"Saudi Arabia’s main stock index snapped a four-day losing streak yesterday as cash returned to the market after the Gulf’s second-largest initial public offering ended.. ..Five of seven Gulf Arab markets closed higher, with Saudi Arabia’s benchmark, the Gulf Arab region’s worst performer this year to Monday’s close, climbing 1.04% to 7,389.48 points. Investors returned to the market after Saudi Kayan Petrochemical Co’s 6.75bn riyal ($1.80bn) IPO ended on Monday, analysts said.." [more]

Oil Markets Over-Supplied, Refineries are the Problem [May 9]
"World crude-oil markets are 'over-supplied,' and high gasoline prices are the result of few available refineries, Qatar’s deputy premier and energy minister has said. 'The problem is not the shortage of crude oil,'.. ..Asked whether the 12-member Opec should increase production to ease gasoline prices, al-Attiyah said he talks with his customers daily and they do not need more crude oil.. ..Some analysts said oil’s recent slide - its longest losing run since early September, but not its steepest - was aided by soaring metals markets, which have captured investor attention and limited any bargain-hunt buying.." [more]

Saudi to Boost Gas Reserves by 40% [May 9]
"Saudi Arabia is stepping up exploration to boost its natural gas reserves by around 40% in the next 10 years as it prepares to meet rising domestic demand, Oil Minister Ali al-Naimi said on Wednesday. 'We are planning to add in the next 10 years 100 trillion cubic feet to our current reserves of gas,'.. ..Saudi Arabia faces increasing demand for natural gas from its rapidly growing population and new petrochemical and industrial projects. Domestic gas sales were expected to rise by 40% through 2012 from the current level of around 7 billion cubic feet per day, Naimi said. The kingdom plans to drill 186 exploration wells for gas and 332 development wells by 2012.." [more]

~~~~~~~~ [ May 8 ] ~~~~~~~~~

Cheney to Follow Rice to Middle East [May 8]
"Vice President Dick Cheney is reaching out to moderate Arab leaders for help in bringing stability to Iraq , a mission that will include pleas for postwar support for minority party Sunnis. Cheney departs Tuesday on a weeklong mission to the Middle East, right after a visit to the region by Secretary of State Condoleezza Rice.. ..In particular, the senior administration official said, Cheney will appeal to King Abdullah of Saudi Arabia, King Abdullah II of Jordan and Egyptian President Hosni Mubarak to use their influence to help rein in Sunni violence against Shiites in Iraq as well as charting ways to better protect Sunnis from violence at the hands of militant Shiites.." [more]

Saudi Inflation Rate is a Challenge [May 8]
"Saudi Arabia's finance minister said on Tuesday that keeping prices stable was 'a challenge' and that the kingdom was striving to make sure that government spending would not impede economic development.. ..Rising rents and food prices, including a near 60% jump in the cost of fresh vegetables, drove Saudi Arabia's annual inflation rate to 3% in January, according to official statistics. Saudi inflation remained at 3% in February as prices for food and beverages increased.The kingdom's central bank governor, Hamad Saud al-Sayyari, said today that inflation is 'still under control' at this rate. 'The initial indication is that it is stabilising but it's too early to make any estimates'.." [more]

Dialogue is Key to Overcoming Religious Stereotypes, says Saud [May 8]
"Saudi Foreign Minister Prince Saud Al Faisal has said the historic relations between Muslims and Christians can be traced back to an era before 1450.. ..Prince Saud described the year 1450 as 'a turning point in the European-Arab communication due to the conjunction of trade routes between Central Asia and the Mediterranean including Bilad Al Sham (Syria with its present borders, Lebanon, Palestine and Jordan) and Egypt which is the heart of the world.' The Saudi foreign minister underlined the importance of removing barriers and put aside stereotypes that each party has about the other.." [more]

Saudi Forex Reserves Hit 937b Riyals [May 8]
"The Saudi Arabian Monetary Agency (Sama), the kingdom's central bank, had consolidated foreign currency reserves of 937 billion Saudi riyals in March, the highest to be recorded since oil prices began rising a few years ago.. ..Generally, governments work on building their foreign exchange reserves to guarantee the flow of their payments balance and fulfill their foreign currency overseas debts as well as accumulate hard currency to enable the economy to face any economic or financial fluctuations. In the case of Saudi Arabia, the move aims to boost the state budgets for the next five years.." [more]

GCC-EU Free Trade Talks in Final Stage [May 8]
"Negotiations on the proposed Free Trade Agreement (FTA) between the GCC and the European Union (EU) could be finalised soon, it was revealed yesterday. Visiting Austrian Foreign Minister Ursula Plassnik said she hoped an agreement could be reached at a GCC-EU conference, set to take place in Saudi Arabia today. The FTA is one of the issues the 27-member countries will discuss at the one-day event, in Riyadh, along with energy policies and regional security. German Foreign Minister Frank-Walter Steinmeier, whose country holds the rotating EU and G8 presidencies, will be among those participating.." [more]

~~~~~~~~ [ May 7 ] ~~~~~~~~~

Saudi Arabia Cuts Crude Prices to Europe, U.S. [May 7]
"Saudi Arabia has cut the price of its all its June-loading crude oil to Europe and the U.S., a trading source said on Monday. It cut prices to Europe by 20 to 70 cents a barrel, with flagship Arab Light crude set at a $4.40 discount to BWAVE, down 60 cents from the May price. Saudi Aramco cut prices to the U.S. by a wider $1.40-1.65 a barrel. Arab Light was set at a $3.10 discount to WTI, down by $1.65 from May.." [more]

GCC Leaders to Hold Consultative Summit in Riyadh [May 7]
"Leaders of the member states of the Gulf Cooperation Council will hold their ninth consultative summit in Riyadh mid-May. The meeting, to review ways of boosting joint GCC work and the latest developments in Palestine, Iraq and Lebanon as well as Iran's nuclear programme, will be chaired by King Abdullah Bin Abdul Aziz.. ..a GCC diplomatic source underlined the importance of this meeting due to the critical situation prevailing in the region. He indicated that Iran's nuclear programme would be given priority in the summit discussions.." [more]

Canadian Booth at Saudi Fair Shut Down Over Female Staffers [May 7]
"The Canadian embassy in Saudi Arabia is protesting a decision to shut down a booth at an education fair in the Saudi city of Jeddah aimed at wooing Saudi students to Canada because it was staffed by women. 'Such unprofessional incidents are very damaging to Saudi Arabia's international reputation,' the embassy said in a statement. 'Prior to the event, we specifically inquired whether women staff would be permitted at the exhibition and we were told by the organizers, the Al-Harithy Company, that they would.' According to reports in the Saudi Arabian press, members of the Commission for the 
Promotion of Virtue and the Prevention of Vice closed down the booth and forced three female Canadian embassy employees to leave the exhibition.." [more]

Saudi Warns Off Currency Speculators [May 7]
"Six Gulf countries aiming for monetary union by 2010 are committed to their dollar pegs, and speculators betting on rising Gulf currencies could get their fingers burnt, Saudi Arabia's central bank vice governor Muhammad Al-Jasser said.. ..Al-Jasser also said he saw no need to tighten Saudi monetary policy now and added that the country's dollar peg served the Gulf's largest economy well. Saudi Arabia is one of the six countries in the Gulf Cooperation Council (GCC) which plans a single currency by 2010. However, this deadline is in doubt. Markets have been piling pressure on Gulf 
currencies, betting that some central banks will allow their currencies to appreciate against the falling dollar.." [more]

Amnesty for Prisoners to Benefit 11,000 [May 7]
"More than 11,000 prisoners, including many Indians, are expected to benefit from an amnesty declared by King Abdullah of Saudi Arabia.. ..Jail authorities in different regions would start releasing prisoners after receiving the terms and conditions for the release, he was quoted as saying by the 'Arab News'. 'The pardon covers convicts who do not pose a danger to security and are not involved in major crimes,' Interior Minister Prince Naif said.. ..About 11,500 prisoners were released in a similar amnesty by the king last year.." [more]

Saudi Arabian to Build Fleet [May 7]
"Saudi Arabian Airlines is to buy up to 60 new aircraft, and increase its weekly flights to Dubai by 14.. ..The total of weekly flights between Saudi Arabia and Dubai will now number 44. Heavy demand among business travellers in particular is expected for the airline’s new morning flights between the two destinations. Al Molhem also confirmed that the airline is to launch a no-frills arm, as reported by Arabian Business last month.." [more]

~~~~~~~~ [ May 6 ] ~~~~~~~~~

Saudi Warns Civil War Looms [May 6]
"In the wake of the so-called ‘neighbours-plus’ conference, Saudi Foreign Minister Saud al-Faisal in comments published yesterday said the situation in Iraq was only getting worse and that civil war could break out in the already-divided country. 'The situation in Iraq is only getting worse,' Faisal, who was considered one of the key players in the Egypt conference, told Al-Hayat newspaper. 'We fear that the situation will deteriorate into a civil war.' The conference which ended on Friday was regarded by independent observers as a disappointment.." [more]

US Replaces Naval Strike Force in Gulf [May 6]
"The US looks determined to reinforce 'gunboat diplomacy' in the Gulf by maintaining a high concentration of its naval firepower, replacing one strike group with another. The Nimitz Carrier Strike Group is set to replace the Eisenhower Carrier Strike Group which, according to the Navy, left the Fifth Fleet operations area and passed through the Suez Canal on Friday.. ..Fifth Fleet, headquartered in Bahrain, is responsible for an area encompassing about 2.5 million square miles and includes the Arabian Gulf, Red Sea, Gulf of Oman and parts of the Indian Ocean.." [more]

Saudi Opposition Calls for Interior Minister to be Tried [May 6]
"Opposition figures in Saudi Arabia have issued a public call for Interior Minister Prince Nayef Bin Abdul Aziz to face trial for suspected rights abuses. A letter sent to King Abdullah Bin Abdul Aziz late last month and made public this week accuses the prince of creating a 'culture of fear' and a 'police state' that prevents political reforms. There is almost no chance of the minister facing legal action, but the unusual call reflects growing disillusion with slow progress on promised reforms.. ..The letter accused the interior ministry of relying solely on security measures to tackle militant violence by Al Qaida sympathisers, and 'supporting a distorted religious discourse that hurts citizenship, pluralism and tolerance'. 'We ask for the issue of human rights to be opened [for debate].." [more]

The (Not So) Eagerly Modern Saudi [May 6]
"Saudi Arabia, home of Islam’s holiest sites, flush with oil revenue, and increasingly the most influential player among Arab countries, has long resisted changing its ultratraditional ways. Now the intrusions of global economics and technology have begun to challenge some traditions in ways that the country’s idealists could not. And the strain that this is causing is showing in the form of surprisingly open debate about how much Saudis really want to modernize. While the notorious religious police still roam this capital city, much is evolving in the way people live. Saudis are suddenly overwhelmed with credit card debt. Thousands have grown rich, and thousands more have lost large sums, in the stock market. Foreigners can now invest in the country’s insurance services, mining, railroads, airlines and satellite 
ransmission services, all once off limits. Much of this economic activity has been driven by the leaders’ desire to have Saudi Arabia be more economically competitive, more a part of the modern world beyond its borders.." [more]

Manage the Crisis [May 6]
"I would not say that the recent discovery of the seven terrorist cells in Saudi Arabia came as a surprise. What has been revealed was news that was expected at any moment. This is not because of the failure of security and intelligence in confronting the “Al Qaeda” trend nor was it because of a lack of official willingness to wage a war on the “Al Qaeda” movement. The conflict between “Al Qaeda” and the Saudi government is a matter of life or death, not a partial conflict where the opponent could be bargained with or tamed in time.. ..Even though we are not surprised by the recent discovery in Saudi Arabia, this does not mean that the arrest of these cells was not a significant security achievement; however the point is that the “roots of the problem” are yet to be addressed.." [more]

Palestinians Turn Down US Peace Plan [May 6]
"Palestinians yesterday rejected a US proposal that aims to foster peace moves by setting a timetable of reciprocal security measures with Israel. The Israeli government had already rejected Washington’s plan for a 'timeline' of 'benchmark' steps that included Palestinian forces cracking down on rocket attacks and Israel easing travel restrictions. 'The American plan is rejected and we will work to make it fail by any means,' said Hamas spokesman Fawzi Barhoum. 'The American administration is concerned about the security of the Israeli occupation and offers no protection to the Palestinian people.'.." [more]

Business Continuity Keeps Saudi Companies On Track for Future Growth [May 6]
"Four of the technology industry’s leading vendors – Hitachi Data Systems, Juniper, Sun Microsystems, and Symantec – recently hit the road to undertake a unique initiative and educate Saudi’s business community on the benefits of a comprehensive business continuity strategy. Focusing on how corporations can overcome operational failures, the four technology vendors stopped in Saudi Arabia’s three main cities – Riyadh, Jeddah, and Al Khobar – to meet with decision makers and brief them on the latest strategies and technologies used to ensure business continuity, the practice of keeping your company functioning no matter the circumstances.." [more]

Citizenship for Expats in Saudi With Science Skill [May 6]
"Saudi King Abdullah has given the green light to granting citizenship to foreign residents with scientific qualifications, the interior minister was quoted by official media as saying. The king agreed to 'granting Saudi citizenship to a number of applicants who have scientific qualifications ... and who will hopefully contribute to the country’s development,'.. ..Unofficial estimates put at 1mn the number of residents potentially eligible for citizenship of the kingdom, where there are more than 6mn expatriates, mostly Asian, out of a population of 22.6mn.." [more]

1st Teacher Training Center Coming Up [May 6]
"The Kingdom's first teacher training center will open in the near future under the auspices of two international teaching accreditation organizations. The Commission on International and Trans-Regional Accreditation (CITA) and the American English Language Teacher's Association (AELTA) will oversee the opening of the training center in cooperation with the Saudi Ministry of Education. The announcement comes on the heels of a teacher's training program held at the end of April in Jeddah, in which 100 teachers from over 75 schools in the Kingdom participated. The one-day event introduced 
numerous up-to-date teaching techniques that are widespread in the West.." [more]

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