More News This Week

May 24-May 30, 2009

~~~~~~~~ [ May 30]~~~~~~~~~

Saudi Arabia Rejects Iraq Claims of Negativity [May 30]
"Saudi Interior Minister Prince Nayef bin Abdul-Aziz has rejected Iraqi claims that the kingdom was adopting 'negative positions' on repairing diplomatic ties and urged Baghdad to improve border security. In remarks published on Saturday by Saudi newspapers, Prince Nayef, who is also second deputy prime minister, said the kingdom wants only what is in Iraq's best interest. Iraqi Prime Minister Nuri al-Maliki said on Thursday Iraq's efforts to build diplomatic ties with Saudi Arabia had not been reciprocated and more would be "useless" without a change of heart from Riyadh. 'The kingdom only wants the welfare and stability of Iraq,' al-Watan quoted Prince Nayef as saying in answer to Maliki. 'The kingdom does what is in the best interest of Iraq and its people and the return of Iraq to its unity and sovereignty,'.." [more]

Naimi Says No OPEC Boost Until Stocks Fall [May 30]
"OPEC would wait until crude inventories fell to around 53 days of forward cover before considering raising output, Saudi Oil Minister Ali al-Naimi was reported as saying in remarks published late on Friday. OPEC left output targets unchanged at a meeting on Thursday, as higher oil prices and optimism the global economy would soon start to recover outweighed concern over high crude stocks. The oil price hit a six-month high over $66 a barrel on Friday. 'We will wait until inventories are at the level which we consider reasonable, which is about 53 days of forward cover,' the minister for the top oil exporter told industry publication Petroleum Argus in an interview, when asked what would prompt OPEC to increase supply. 'I think that is a fair level.'.." [more]

Saudi PIF to Buy Stakes in Mortgage Lenders [May 30]
"The Public Investment Fund (PIF), the Saudi finance ministry's investment vehicle, plans to take stakes of up to 40 per cent in new mortgage lenders, industry sources said on Saturday. PIF, which is already one of the biggest investors in the Saudi stock market, said in March that it plans to venture into mortgage financing in anticipation of a mortgage law expected to come into effect this year. The new law could open up home ownership to more of the 25 million population in the most-populous Gulf Arab country, less than a third of whom currently owns property. The low home-ownership ratio is seen by analysts as reflecting some weaknesses in Saudi Arabia's wealth distribution policies.." [more]

SR1bn Education Project Finalized [May 30]
"The Ministry of Education will launch a SR1 billion project to upgrade the mathematics and science syllabi in the Kingdom’s schools, Al-Watan newspaper reported yesterday. 'As part of the project — starting next academic year — new syllabi will be introduced in the first and fourth standards of primary schools and the first standard of intermediary schools. Secondary schools will get the new syllabus a year later,' said Muhammad Asiri, secretary-general of the project. Asiri was speaking at a meeting of teachers and other Education Depart- ment officials in Qunfuda. More than 400 maths and science teachers, including women, participated in the meeting. 'The Ministry of Education is making preparations to implement the project after it got the approval from higher authorities in 2004. As an initial step, the ministry undertook a feasibility study,' he said.." [more]

Saudi Energy Economics Think Tank Formed [May 30]
"The new Saudi Association for Energy Economics (SAEE) held its first formal gathering at the Plaza Conference Center here recently. Minister of Petroleum and Mineral Resources Ali Al-Naimi addressed the new organization and several members of Saudi Aramco executive management. 'The step we take today will have a direct impact on the future of the energy industry in our country,' he told the group, made up of Saudi Aramco and industry professionals. 'SAEE’s mission is to provide an interdisciplinary forum for the exchange of ideas, experiences and issues among business, academics, policymakers and other professionals interested in the field of energy economics,'.. ..'Given the central role energy plays in the Saudi economy, we strongly believe that such an affiliation will enhance the local understanding of the challenges facing the energy industry and provide a forum to debate and propose solutions to these challenges,'.." [more]

High Court is Urged to Block 9/11 Suit Against Saudis [May 30]
"In a setback for insurers and individual victims of the 9/11 attacks, U.S. Solicitor General Elena Kagan urged the Supreme Court yesterday to reject allegations that Saudi Arabia was responsible because it indirectly financed al-Qaeda and other terrorist groups. Kagan, in a 22-page amicus brief filed yesterday with the Supreme Court, said U.S. law generally barred lawsuits against foreign governments for supporting terrorism unless they met narrowly tailored exceptions. Kagan said none of those exceptions applied, and she advised the court not to hear the case. The brief was in response to allegations contained in a lawsuit filed by Center City's Cozen O'Connor law firm on behalf of dozens of insurance companies that lost billions at ground zero. Hundreds of victims' families and survivors also have joined in the litigation alleging Saudi responsibility. The Supreme Court generally - but not always - follows the recommendations of the solicitor general in deciding whether to hear a case.." [more]

~~~~~~~~ [ May 29]~~~~~~~~~

Obama to Cement Saudi Ties on Surprise Trip [May 29]
"U.S. President Barack Obama is likely to hear Saudi Arabia's King Abdullah air his worries about the festering Arab-Israeli conflict and rising Iranian influence when he visits Riyadh next week. Obama, who meets King Abdullah on June 3, added a surprise Saudi leg to his trip to Europe and Egypt, where he plans to deliver a much-anticipated speech to the Muslim world. The decision reflects the enduring importance of a bilateral bond based on guaranteed oil supplies in return for U.S. protection for the Saudi monarchy that was sealed in the 1940s. Washington is keen to prevent any spike in oil prices that might threaten economic recovery -- U.S. crude hit a year-high on Tuesday.." [more]

Saudi Commerce Minister Urges Closer Ties With U.S. [May 29]
"In Saudi Arabia, water is becoming as precious as oil, and grain has to be imported from around the world. Such conditions could create new opportunities for Washington agriculture, said Abdullah Alireza, minister of commerce and industry of the Kingdom of Saudi Arabia. Alireza was in Seattle this week and addressed about 140 guests at a private dinner Wednesday sponsored by the U.S.-Saudi Arabian Business Council. As President Obama prepares to visit Saudi Arabia next week, Alireza said relations are entering a new era. 'We need to work together to reverse past failures,' he said. He said Obama's speech in Turkey — declaring that 'the United States is not, and will never be, at war with Islam' — was 'highly welcome in Saudi Arabia. It gives us a glimmer of hope.'.." [more]

OPEC News Sends Oil to 6-Month High [May 29]
"Crude oil rose to a six-month high after the Organization of the Petroleum Exporting Countries decided to leave production quotas unchanged and a government report showed US inventories declined. Saudi oil minister Ali al-Naimi said that the group opted not to alter its targets because "prices are good, the market is in good shape." Oil should stay in a $60 to $70 range for the rest of the year, OPEC said. The gain accelerated after the US Energy Department said US oil supplies fell the most since September. Crude for July delivery rose $1.63 to $65.08 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 5.." [more]

Germany, KSA Sign Anti-Terror Agreement [May 29]
"Saudi Arabia and Germany signed a security cooperation pact here Wednesday evening. The intelligence-sharing agreement signed by Second Deputy Premier and Interior Minister Prince Naif Bin Abdul Aziz and German Interior Minister Wolfgang Schaeuble will encompass possible terrorist financing and money-laundering. Srince Naif said the draft agreement left none of the security tasks untouched. They even agreed on the method of dealing with each aspect and the positive and practical measures. Prince Naif expressed his hope that there would be international cooperation to dry up the sources of terrorism and return terrorists to their societies as good citizens. He said the Kingdom was working in creating channels for positive and practical cooperation with all security agencies in the world.." [more]

Two From Saudi Arabia Among the 15 Ford Environmental Grants Winners [May 29]
"Fifteen environmental initiatives will share a total of $100,000 this year as part of the 2008-2009 Ford Motor Company Conservation & Environmental Grants program. The nine members of the independent jury panel convened in Dubai recently to select and vote on the winners in this year’s Ford’s green initiative which marks its 10th consecutive year of continued support to non-profit and grass-root level projects in the GCC and Levant markets.. ..“During the past 10 years, the Ford Grants have funded and helped materialize and expand over 100 projects, and it gives us immense pride when we realize the impact this program has had in the region’s communities. We are thrilled to have had this opportunity to demonstrate yet again, Ford Motor Company’s commitment to giving back to the local communities where we serve our customers,” Galan added.." [more]

Sheikh Yamani: Saudi Arabia Unlikely to Embrace Oil Futures [May 29]
"In an interview this week, former Saudi oil minister Sheikh Yamani told Energy Risk that futures trading on exchanges had turned the global crude oil market into a 'casino'. He said it was unlikely that Saudi Arabia would ever follow the example of Oman and Dubai and price its oil from contracts traded on the Dubai Mercantile Exchange, due to the perceived influence of speculators. 'Unfortunately major banks, insurance companies and hedge funds are making huge profits and losses in this casino,' he said, referring to oil futures markets globally. He added that any exchange in the Middle East would need support from all major producers in the region, including Saudi Arabia, Kuwait, Iran and Qatar, to create a truly representative price. 'It has to be sold jointly, he said.." [more]

~~~~~~~~ [ May 28]~~~~~~~~~

OPEC Leaves Output Unchanged, Saudi Oil Minister Says [May 28]
"OPEC agreed Thursday to keep its production quotas steady, as expected, Saudi Arabian oil minister Ali Naimi said. The simple calculus: the group's big oil production cuts in past months are starting to bite, and oil prices are at a six-month high. 'It's a great decision; we stayed the course,' Mr. Naimi told reporters. 'The price is good, the market is in good shape and the recovery is under way, so what else would we want? The world is going to be a better place pretty soon.' Taking additional barrels off the market would risk jamming consumers with higher energy costs when the global economy remains fragile. It's the second time in as many months that the Organization of Petroleum Exporting Countries has opted to maintain the group's existing output ceiling.." [more]

Islamic Ministers Urged to Bridge Differences [May 28]
"Islamic Ministers of Endowments agreed to set aside the doctrinal differences among Muslims and avoid criticising religious beliefs of the other sects.  The Ministers, who concluded their eighth conference in Jeddah on Tuesday, issued a number of recommendations urging that the gaps between the various Islamic sects and doctrines be bridged. The recommendations were issued after debates and discussions aimed at eradicating religious extremism which make some Muslim sects depict the others as non-Muslims. The most important recommendation was that the different doctrines of Muslim people must be recognised.."  [more]

Danube Plans to Invest Dh80m in Saudi Arabian Mega Projects [May 28]
"Danube Building Materials, a company dealing in construction, building materials and shop fitting industries, has announced plans to invest Dh80 million in Saudi Arabia this year. The investment plan is a part of its efforts to support multi-billion mega projects that are expected to rise within the kingdom in the next few years. This is expected to result in a stronger presence for the company, thereby allowing it to address the demand spurred by the construction of over two million new housing units that are expected to solve the housing shortage in Saudi Arabia under the government's 8th Development Plan. The company's investment in the kingdom is a continuation of its expanding presence in the GCC, which currently comprises 14 branches in the UAE, two in Oman and one in Bahrain.." [more]

Need for Database on Terror Stressed [May 28]
"Saudi Arabia’s initiative to set up an international center to combat global terrorism, which was suggested at an international conference on terrorism held in Riyadh 2005, has been reconfirmed and reinforced at a pan-Arab scientific symposium at Qassim University yesterday. The symposium was organized by Naif Arab University for Security Sciences in cooperation with Qassim University with the support of Qassim Gov. Prince Faisal bin Bandar. The suggested center should build an international database to fight terrorism and urge all countries of the world to exchange information, Maj. Gen. Hasan Al-Shehri, the scientific supervisor of the symposium, said while announcing the recommendations of the symposium. Prince Faisal lauded the role played by the Kingdom to fight terrorism. 'The Kingdom was successful in fighting terrorism and ending terrorist acts,' he said, adding that security is a common responsibility between all citizens and security men.." [more]

Why Did Obama Add Saudi Arabia to his Itinerary? [May 28]
"The Arab media is buzzing today over the announcement that President Obama will travel to Riyadh before arriving in Cairo for his big address to the Islamic world. Why the late addition to his itinerary? The first wave of response was a pure reflection of endemic inter-Arab rivalries. The Saudis and their advocates are exultant, the Egyptians seem a bit deflated and defensive, and the 'resistance camp' is alternately complaining about the concentration on the usual 'Axis of Sunni Dictators'.. ..With the Saudis now the American President's first port of call, the Egyptian claim to renewed leadership is weaker. After that inter-Arab rivalry business, Arabs are trying to puzzle out the greater political significance of the trip. One group sees it as tied closely to the Israeli-Palestinian track, focusing on the Arab Peace Initiative and the coming unveiling of the Obama approach to Israeli-Arab relations. Another sees it as tied more closely to Iran, preparing the Saudis for the coming engagement (or confrontation) with Tehran.." [more]

No More Gestures to Saudis: Iraq's Maliki [May 28]
"Saudi-Iraqi relations are at a low ebb and Baghdad has no intention of making goodwill gestures because Riyadh sees them as a sign of weakness, Prime Minister Nuri al-Maliki said on Thursday. Ties have been strained since the US-led invasion of 2003 toppled dictator Saddam Hussein and ended 1,400 years of Sunni Arab domination of Shiite-majority Iraq. Maliki's Shiite-led government accuses Riyadh of not doing enough to stop its citizens crossing the border and joining the mainly-Sunni insurgency that has killed thousands of Iraqis in the past six years. 'Iraq has no intention of making new goodwill gestures towards Saudi Arabia because my initiative has been interpreted in Riyadh as a sign of weakness,'.." [more]

~~~~~~~~ [ May 27]~~~~~~~~~

Saudi Arabia Says No Need for OPEC Production Cuts [May 27]
"OPEC doesn’t need to cut oil production more because there are signs of recovering demand, Saudi Arabian Oil Minister Ali al-Naimi said. OPEC should meet existing cutbacks to boost prices, Angola’s minister said. 'There is no need to cut production,' and members should 'stay the course,' al-Naimi told reporters today during a morning walk in Vienna, where the Organization of Petroleum Exporting Countries will meet tomorrow to decide whether to alter output quotas. The Saudi minister said oil prices are likely to rise to about $75 a barrel by year’s end because there are signs of a recovery in demand in Asia, though not in the U.S. or Europe.." [more]

Moody's Upbeat on Saudi Banking Sector [May 27]
"A financial analyst has dismissed reports that Saudi Arabia’s banking sector is in crisis, insisting the industry is profitable and well capitalised. Speaking to Arabian Business on Wednesday, Constantinos Kypreos, an analyst from corporate finance firm Moody’s, said the industry was in better shape than most banking sectors around the globe. 'The government has prudently invested its oil revenue windfalls in the past few years, so it has strengthened its financials and is in a position to have this expansionary budget, which will help the economy and banking sector,' he said. 'The [banking] regulator has been prudent in requiring the banks to have a good asset quality and liquidity.'.." [more]

Saudi King Says Gulf Will Resolve Disputes [May 27]
"Gulf countries will review their deal on regional monetary union and will seek to resolve disputes prior to its implementation, Saudi Arabia's King Abdullah Bin Abdul Aziz was reported as saying on Tuesday. The comments come less than a week after the UAE broke ranks with four other Gulf states by withdrawing from the single currency plan in protest at a May 5 decision to base the joint central bank in Riyadh. King Abdullah did not specify what terms of a monetary union deal would be reviewed, in the remarks carried by Kuwait-based newspaper Al Seyyasah. 'The coming review before the implementation would resolve what had been disputed upon,'.." [more]

Saudi Arabia Investor Confidence Index Rises [May 27]
"Saudi Arabia saw an increase in investor confidence in May with the Saudi Arabia Investor Confidence Index seeing a significant rise of 8.1 points, moving to 140.1 points from 132 points in April, the second monthly GCC Investor Sentiment Report of SHUAA Capital, the region’s leading financial services institution, said on Tuesday. This compares well to the GCC confidence index which saw a more modest increase of 2.7 points to 112 points from 109.3 points in April. 'Saudi Arabia is expected by investors to see further improvement in economic conditions over the next six months. 67.6 percent of the respondents signalled that they expected an improvement in economic conditions in the Kingdom, up by over 15 percent on last month. Just 7 percent of investors questioned, expect the Kingdom’s economy to be negatively affected,'.." [more]

Sanaa Meet to Evaluate Tourism in Arab States [May 27]
"An official delegation led by Prince Sultan bin Salman, chairman of the Saudi Commission for Tourism and Antiquities (SCTA), will attend a high-profile meeting of Arab tourism ministers that starts in the Yemeni capital Sanaa today. The two-day meeting of the Arab Ministerial Council for Tourism (AMCT) will discuss plans of action for promoting tourism among Arab countries, which are witnessing a surge in tourism traffic this year. 'The AMCT session will also evaluate the performance of the tourism sector in Arab countries,' said Prince Sultan in a statement yesterday. He said the meeting would review decisions of the previous AMCT rounds, including the announcement by the council of a prize for tourism quality. Prince Sultan affirmed the importance of enhancing joint Arab work in the field of tourism.." [more]

Saudi Arabia: Religious Police Want Cameras to Monitor Youth [May 27]
"Saudi Arabia's religious police want to install surveillance cameras in shopping centres throughout the country in order to watch young people. 'We will place surveillance cameras in all shopping centres and public places to monitor the behaviour of young people, said General Abdel Aziz al-Hamin, chief of the committee for the promotion of virtue and the prevention of vice, quoted by Saudi daily Okaz on Wednesday. 'Our objective is to correct the mistakes made by some youths, in order to protect their moral integrity,' said al-Hamin. However, Saudi Arabia's religious police have been accused by many Saudis of violating young people's privacy by providing the media with the names of those who are caught engaging in behaviour considered in breach of Islamic Sharia law. Their names are then published in Saudi newspapers. Al-Hamin, however, has denied the claims and said he never handed over the names of anyone to the media.." [more]

~~~~~~~~ [ May 26]~~~~~~~~~

Obama To Visit Saudi Arabia Next Week [May 26]
"President Obama will travel to Saudi Arabia next week where he will meet with Saudi King Abdullah, White House spokesman Robert Gibbs announced today. The meeting will take place on June 3rd in Riyadh Gibbs said the two leaders will 'discuss a range of important issues, including Middle East peace, Iran, and terrorism.' The Saudi stop has been added to the president's previously planned trip to Egypt, Germany and France.  Mr. Obama plans to address U.S.-Muslim relations in Egypt, visit the Buchenwald concentration camp in Germany, and mark the 65th anniversary of D-Day in France. The stop in Riyadh will come at the beginning of the trip.."  [more]

Saudi Crown Prince Recovered, Back in 6 Weeks - King [May 26]
" Saudi Arabia's Crown Prince Sultan has recovered from surgery and will return home within six weeks, King Abdullah was quoted as saying on Tuesday. State media said in April Prince Sultan arrived in Morocco for 'rest and recreation' after undergoing treatment in the United States, including unspecified surgery in February. 'The crown prince is in good health, thanks to God the Almighty has cured Sultan after he went for treatment,' King Abdullah told the Kuwaiti newspaper al-Seyassah. 'He was, still is and will be our best helper and right hand in taking care of citizens and pilgrims and we look forward to his return in the next six weeks.' Prince Sultan went to the United States for medical tests in November, then to Morocco for a prescribed convalescence before flying back to New York.." [more]

Shots Fired at Minibus in Saudi, No One Hurt [May 26]
"Gunmen opened fire on a minibus carrying foreigners in the industrial region of Jubail in eastern Saudi Arabia on Tuesday, but no one was injured, a Saudi Interior Ministry spokesman said.. ..Jubail is home to a large industrial zone comprising heavy industries such as petrochemical plants, many of which are owned by state-controlled Saudi Basic Industries Corp (SABIC). Al Qaeda staged an unsuccessful campaign of violence including suicide attacks on foreign residential compounds, oil installations and government buildings to destabilize the Gulf Arab country from 2003 to 2006. Since then there have been some isolated attacks on foreigners in the kingdom. Three French expatriates working in Saudi Arabia were shot dead during a desert trip in 2007, the last major attack.." [more]

Saudi Arabia Aims to Pass Law Controlling Electronic Media [May 26]
"The Saudi Ministry of Information and other government bodies are studying the possibility of issuing special regulations to control electronic newspapers. The move came in the wake of a protest staged by a number of Saudi female journalists against a report published in an electronic newspaper allegedly defaming Saudi women. According to informed sources, the new regulations will include several controls including that all Saudi electronic newspapers and websites must obtain official permits from the Ministry of Information, and that owners of the newspapers and the chief editors must put their names on the front pages.." [more]

Rights Group Report Ignores Islamic Law [May 26]
"A prominent Saudi human rights activist has described the Human Rights Watch report on the rights situation in Saudi Arabia as contradicting the truth in some of its items and does not take into account in many cases the religious background of the people of Saudi Arabia. In a statement to Gulf News, Dr Mufleh Al Qahtani, Chairman of the National Society for Human Rights in Saudi Arabia, said, 'It is quite clear that the writers of such reports ignore the religious side and the beliefs of the people, a matter which makes their reports subject to criticism from governments and people of the respective countries'.. ..'What the Western societies consider a basic right and essential aspect of freedom may be seen by us Muslims as a punishable offence by law. An example of this is the view of Western society towards the rights of homosexuals, adulterers and other offenders of the moral values in general,' he said.." [more]

Saudi Private Sector to Spend $20b on New Medical Projects [May 26]
"Amid an expected exponential growth in demand in health care services in Saudi Arabia, the Kingdom’s private sector is forecast to spend $20 billion by 2016 on new medical facilities and services, Dr. Mazen Fakeeh, director-general of Dr. Soliman Fakeeh Hospital (DSFH) said on Monday at a function to celebrate the 30th year of the hospital founding.. ..Three major factors drive the upsurge in health care demand in the region, namely population growth, an aging population and unique health risks. Consultants MsCkinsey & Co. forecast earlier that the total health care spending in the Gulf Cooperation Council (GCC) countries will each $60 billion by 2025. 'No other region in the world faces such rapid growth in demand,'.." [more]

Insurance Stocks Send TASI Plunging [May 26]
"The Saudi stock market closed lower for the second successive session yesterday as shares in insurance companies plunged and blue chips retreated amid region-wide profit-taking. The Tadawul All-Share Index (TASI) closed below 6,000 points after plunging 2.28 percent or 138.07 points at 5,914.23, its second straight decline since hitting a 30-week closing high on Saturday. Almost all market sectors contributed to this loss, except the Media sector, which managed to close with a gain of 1.23 percent. Otherwise, sector losses ranged from a strong drop of 7.33 percent in the Insurance sector to 0.14 percent in the Real Estate development sector.. ..The TASI’s drop of 2.28 percent is ‘normal’ and past due after the series of strong gains that pushed most of the listed companies to strong resistance levels that were difficult to overcome due to a lack of supportive news.." [more]

British Airways Resumes Flights From June 1 [May 26]
"After a four-year hiatus, British Airways (BA) — the UK’s flagship carrier — will next week mark its return to Saudi Arabia with five weekly flights to both Riyadh and Jeddah from its base of operations at London Heathrow’s Terminal 5. The resumption of operations in the Kingdom form the core of the airline’s Middle East expansion strategy, with the Riyadh and Jeddah services taking BA’s regional summer schedule to 66 weekly flights from eight GCC destinations, a 35 percent increase on the same period last year.." [more]

~~~~~~~~ [ May 25]~~~~~~~~~

Saudi Oil Min: Price Spike In 3 Yrs If Investment Lags [May 25]
"The world may witness a new crude oil price spike in two to three years - potentially worst than a peak of $147 a barrel seen last year - if oil producers don't invest enough, Saudi Arabia's oil minister said Monday. The world's largest oil producer is the latest to warn about the risk associated to under-investment after the International Energy Agency, which represents energy consumers, voiced similar concerns. Speaking at a G8 Energy ministers summit in Rome, Saudi oil minister Ali Al-Naimi said his country is 'continuing to invest now in both the upstream and downstream to help ensure an uninterrupted supply of energy when the global economy recovers.' But 'if others do not begin to invest similarly in new capacity expansion projects, we could see within two to three years another price spike similar to or worse than we witnessed in 2008,'.." [more]

Expatriates Number 10 Million by End of 2008 [May 25]
"The number of expatriates living in the Kingdom reached 10 million by the end of 2008, an increase of 14 percent from the previous year. Expatriates now represent 27 percent of the country’s population. Abdul Wahid Al-Humaid, Deputy Minister of Labor, giving the figures at a meeting to discuss Saudization at Riyadh’s Literary Club Sunday, said that the number of domestic workers of both sexes had increased by 23 percent over a year to a 1.2 million. Expatriate remittances abroad, Al-Humaid said, were recorded at SR60 billion in 2007.. ..In 2003 the Saudi Manpower Council mandated that the number of foreign workers and their families should not exceed 20 percent of the total population by 2013, and that the number of persons from any single nationality should not exceed 10 percent of the total expat population. But only five percent total Saudiization could be achieved between 1998 and 2003.." [more]

Indian, Saudi Navies to Tackle Piracy Issue [May 25]
" The PassEx – Passage Exercise – that the two visiting Indian naval ships, INS Aditya, and INS Delhi, will conduct with the Royal Saudi Navy (RSN) on Monday acquire an added significance in view of the piracy situation in the region, according to Rear Admiral S.P.S. Cheema, Flag Officer Commanding Western Fleet. Answering a question during a press conference on board the INS Aditya on Saturday, that in view of the increasing problem of piracy in the region, was there any difference in the role of the navy, and whether any special measures were planned between the two navies.. ..'That is why PassEx becomes more critical because we need to understand how to operate with each other. When we understand this then during a chance encounter, we can mutually support each other, help each other towards thwarting any piracy,'.." [more]

Saudi-Swiss Talks Focus on ME Peace [May 25]
"Talks between Custodian of the Two Holy Mosques King Abdullah and Swiss President Hans-Rudolf Merz yesterday focused on the Middle East peace process and security concerns with special reference to the global financial crisis. 'The talks will be followed by official-level consultations later to boost cooperation in different fields,” said Tanja Kocher, a spokeswoman who is traveling with the Swiss president. “Switzerland, which is keen to see peace in the Middle East, is a neutral country and not part of any alliance.. .. the Swiss president has made it clear that it was part of his country’s tradition to offer mediation services.'.." [more]

Virtue Commission’s Defamation Move Raises Eyebrows [May 25]
"The recent move by the Commission for the Promotion of Virtue and the Prevention of Vice to seek judicial action against those who defame them has evoked a fiery response from Saudi legal experts, who say journalists have the legal right to report news and that members of all government bodies are open to criticism as long as it is supported with evidence. The legal experts also say that the only government body that can question journalists is the Journalist Violations Committee of the Ministry of Information. It is unclear whether the commission’s decision to seek legal action against media outlets includes coverage in the international media.." [more]

GCC Mutual Fund Industry to Reach $200 Billion by 2012 [May 25]
"With high growth prospects in the asset-management industry, the GCC mutual fund industry is expected to double in size to around $200 billion by 2012, according to Securities and Investment Company (SICO), the Bahrain-based regionally focused investment bank. 'The long-term prospects for the regional asset-management industry remain positive,' SICO said in a report released yesterday. 'The estimated size of the GCC asset management industry is around $90-100 billion of which GCC equities account for around $10-20 billion. According to estimates, the GCC mutual fund industry is expected to double in size to around $200 billion by 2012,'.. ..The report added that the market is still in its infancy.." [more]

Saudi Tuwairqi Sees Fast End to Steel Export Ban [May 25]
"Al-Tuwairqi Group, which owns one of Saudi Arabia's top three steel makers, said on Monday it expects the government before the end of July to end a ban on steel exports that has hurt profitability in the industry. 'Currently, negotiations for reviewing the ban are taking place on a very high level and hopefully it will be lifted in one to two months' time,'.. ..The ban, which was enforced at peak prices, has hurt the margins of steel makers in the kingdom as its implementation was almost immediately followed by a rapid slide in global commodity prices on the back of the economic slowdown. 'Saudi Arabia will soon shift from being an importing country of metals to an exporting one. That is why the government wants to lift the ban,' he said.." [more]

Saudi Car Imports Brace for Tough 2009 [May 25]
"Saudi Arabia, one of the Middle East's biggest car markets, could see the first drop in car imports in 10 years in 2009 as a crisis hits the oil-based economy, analysts and traders said. The industry, whose 2008 sales accounted for about 3 percent of the biggest Arab economy's gross domestic product (GDP), is cutting costs by freezing new recruitment, while banks are making access to financing harder, industry experts said. Global auto makers hope Gulf Arab countries will show relative resilience to the global downturn hitting the industry: the Saudi government has boosted spending to counter the effects of the crisis, but the private sector is widely expected to suffer, mainly from greater caution by banks towards lending.." [more]

~~~~~~~~ [ May 24]~~~~~~~~~

Prince Saud Urges US to Pressure Israel [May 24]
"Foreign Minister Prince Saud Al-Faisal has urged the new US administration to pressure Israel to reach peace by granting the just rights of the Palestinian people. Addressing a foreign ministers’ meeting of the Organization of the Islamic Conference here Saturday, he called on Arab countries and the Palestinians to unite in confronting the challenges they face at the hands of the Israeli enemy. 'The Arab League is exerting efforts to criminalize Israel for the crimes it committed during its aggression in the Gaza Strip and to stop the hostilities practiced against the Palestinian people, especially in the city of occupied Al-Quds,' Prince Saud said.. ..Syrian leader said that Israel poses the “greatest obstacle” to Mideast peace and warned that a failure of negotiations would open the way for more resistance in occupied lands. He said peace must include regaining Arab territories held by Israel.." [more]

Saudi Arabia Sees $75 Oil Which Would Kill An Economic Recovery [May 24]
"Saudi Arabia’s oil minister expects oil to move back to $75, about 22% higher than it is now. He also expects that OPEC will not have to cut production for crude prices to rise. Demand is already strong in Asia, Saudi Arabian oil minister Ali al- Naimi is reported by Reuters as saying. He believes that the increasing need for oil in other large industrial nations will rise as the global economy recovers. The Saudi formula may work, but only if the move up in crude prices trails GDP improvements. If crude move to $75 due to speculation or an increasing need for oil in China and India, it could ruin a recovery in the US, EU, UK, and Japan. Consumer and business demand would be severely undermined if a greater percent of every dollar of income has to go to oil and gas.. ..Low oil prices have played a part in keeping the recession from getting worse.." [more]

Venezuela Vows to Beef Up Saudi Diplomats’ Security [May 24]
"Venezuela is doing all it can to arrest and punish criminals who kidnapped, beat and held to ransom two Saudi diplomats in Caracas, the country’s embassy in Riyadh said yesterday. Saudi diplomat Ali Al-Qahtani was kidnapped and repeatedly beaten before being released after intervention by the Saudi Embassy in Caracas. A few days later, Heilan bin Labda, another Saudi official, was also kidnapped from his home. Labda was tortured brutally, and burned on the face and other parts of his body with a hot iron bar. Faris bin Hizam, a journalist who met Labda after he returned home, said the Venezuelan authorities have failed to take action, and that the case was remotely mentioned in the Venezuelan media. Hizam said authorities in Venezuela claim the incidents are part of a drug war. The Venezuelan Embassy in Riyadh, however, said the Caracas government was doing its best to address the issue.." [more]

Saudi Kosovo Proposal Fails at OIC [May 24]
" A draft resolution tabled by Saudi Arabia, calling for recognition of Kosovo, has been rejected at the OIC meeting in Damascus, Syria. The draft was presented during the Organization of the Islamic Conference (OIC) ministerial gathering. But Serbian FM Vuk Jeremić stated today that Syria, Egypt, Azerbaijan and some other member states submitted amendments to the resolution, so that the text does not call for Kosovo Albanian unilateral declaration of independence to be recognized, nor does it mention Kosovo's 'statehood'.. .. Saudi Arabia, a very strong and one of the most influential Islamic countries was on the one side, he said, while on the other are Iran, Syria, Algeria and Egypt.." [more]

Saudi Grand Mufti Blames Curricula for Deviant Thoughts Among Youngsters [May 24]
"Shaikh Abdul Aziz Bin Abdullah Al Shaikh, Grand Mufti of Saudi Arabia, has described the curricula in the Muslim world as the main reason for the spread of deviant thoughts and called for immediate action from relevant authorities to correct the 'unacceptable situation'. 'Shortcomings in some of the curricula in the Islamic world lead to the promotion of intellectual deviations in the mind of the public, which requires an immediate intervention to find out crucial solutions and correct the confusions caused by these shortcomings,' he said. Addressing the opening session of the Eighth Conference of the Ministers of Endowments and Islamic Affairs in the Islamic world, he also attributed the deviation to the uncontrolled TV stations and internet as well as the extremism of some religious men.." [more]

Swiss and Saudis Ink Double-Taxation Accord [May 24]
"Swiss and Saudi Arabian officials have initialled the first double-taxation treaty that eases portions of Switzerland's banking secrecy laws.  During a state visit to the Middle East, Hans-Rudolf Merz, the Swiss finance minister, said the countries had also moved closer to concluding a free trade agreement and bilateral air-traffic accords. Earlier on Sunday the finance ministry confirmed reports that Switzerland was ready to sign two tax accords that met standards set by the Organisation for Economic Co-operation and Development (OECD). Officials would not name the other country with which they had made an agreement.." [more]

Indian Warships Arrive in Jeddah on a Goodwill Mission [May 24]
"Two stately Indian ships pulled in at the Jeddah Islamic Port Friday on a goodwill visit with the aim to engage 'extensively with the Royal Saudi Naval Force during their three-day stay here.' The two warships, INS Delhi and Aditya, are part of Indian Navy’s overseas deployment to Russia, Europe, the Mediterranean Sea and the Red Sea. Stimulated by the warm welcome accorded to them by the Royal Saudi Naval and the port authorities, the Indian fleet commander, Rear Admiral S.P.S. Cheema, AVSM, NM, observed that the navy was a good instrument of international diplomacy. Addressing a press conference Saturday, Cheema outlined the purpose of such friendly visits. They are, he stressed, an exercise aimed at 'promoting greater interoperability and foster synergy between the two navies by mutual interaction in the practical aspects of seamanship, ship handling and various other naval evolutions.'.." [more]

US Official Urges OPEC to Stabilize Oil as IEA Warns of Higher Prices [May 24]
"US Energy Secretary Steven Chu wants OPEC to carry out an oil production policy that will help keep oil and gasoline prices stable 'as much as possible.' 'Sudden drops and sudden rises (in oil and gasoline prices) hurt everybody equally, and it’s that stability that we seek,' Chu told Reuters in an interview on Friday as he prepares to leave for Rome this weekend to meet with energy ministers from the Group of Eight (G-8) industrialized countries. Chu noted that US oil and gasoline prices 'have gone up a bit' in recent weeks, with crude rising $10 a barrel and gasoline jumping 23 cents a gallon since the beginning of the month. 'Another price spike would be bad for the economy and they (OPEC members) know it,' he said.." [more]