Future Saudi king tightens grip on power with arrests including Prince Alwaleed

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Future Saudi king tightens grip on power with arrests including Prince Alwaleed

By Stephen Kalin and Katie Paul

 

FILE PHOTO: Saudi Crown Prince Mohammed bin Salman, attends the Future Investment Initiative conference in Riyadh, Saudi Arabia October 24, 2017. REUTERS/Hamad I Mohammed

 

RIYADH (Reuters) - Saudi Arabia's future king has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom's most prominent businessmen.

 

Prince Alwaleed, a nephew of the king and owner of investment firm Kingdom Holding <4280.SE>, invests in firms such as Citigroup <C.N> and Twitter <TWTR.N>. He was among 11 princes, four ministers and tens of former ministers detained, three senior officials told Reuters on Sunday.

 

The purge against the kingdom's political and business elite also targeted the head of the National Guard Prince Miteb bin Abdullah who was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf.

 

News of the purge came early on Sunday after King Salman decreed the creation of an anti-corruption committee chaired by Crown Prince Mohammed bin Salman, his 32-year-old favourite son who has amassed power since rising from obscurity three years ago.

 

The new body was given broad powers to investigate cases, issue arrest warrants and travel restrictions, and seize assets.

 

"The homeland will not exist unless corruption is uprooted and the corrupt are held accountable," the royal decree said.

 

Analysts say the arrests were another pre-emptive measure by the crown prince to remove powerful figures as he exerts control over the world's leading oil exporter.

 

The round-up recalls the palace coup in June through which he ousted his elder cousin, Mohammed bin Nayef, as heir to the throne and interior minister.

 

MbS, as he is known, was expected to follow at least by removing Prince Miteb from leadership of the National Guard, a pivotal power-base rooted in the kingdom's tribes.

 

Over the past year MbS has become the ultimate decision-maker for the kingdom's military, foreign, economic and social policies, causing resentment among parts of the Al Saud dynasty frustrated by his meteoric rise.

 

Saudi Arabia's stock index <.TASI> was dragged down briefly but recovered to close higher as some investors bet the crackdown could bolster reforms in the long run.

 

The royal decree said the arrests were in response to "exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money."

 

REFORM AGENDA

 

The line between public funds and royal money is not always clear in Saudi Arabia, an absolute monarchy ruled by an Islamic system in which most law is not systematically codified and no elected parliament exists.

 

WikiLeaks cables have detailed the huge monthly stipends that every Saudi royal receives as well as various money-making schemes some have used to finance lavish lifestyles.

 

Analysts said the purge aimed to go beyond corruption and aimed to remove potential opposition to Prince Mohammed's ambitious reform agenda which is widely popular with Saudi Arabia's burgeoning youth population but faces resistance from some of the old guard more comfortable with the kingdom's traditions of incremental change and rule by consensus.

 

In September, the king announced that a ban on women driving would be lifted, while Prince Mohammed is trying to break decades of conservative tradition by promoting public entertainment and visits by foreign tourists.

 

The crown prince has also slashed state spending in some areas and plans a big sale of state assets, including floating part of state oil giant Saudi Aramco [IPO-ARMO.SE] on international markets.

 

Prince Mohammed also led Saudi Arabia into a two-year-old war in Yemen, where the government says it is fighting Iran-aligned militants, and a row with neighbouring Qatar, which it accuses of backing terrorists, a charge Doha denies. Detractors of the crown prince say both moves are dangerous adventurism.

 

The most recent crackdown breaks with the tradition of consensus within the ruling family, wrote James Dorsey, a senior fellow at Singapore's S. Rajaratnam School of International Studies.

 

"Prince Mohammed, rather than forging alliances, is extending his iron grip to the ruling family, the military, and the National Guard to counter what appears to be more widespread opposition within the family as well as the military to his reforms and the Yemen war," he said.

 

Scholar Joseph Kechichian said the interests of the Al Saud, however, would remain protected.

 

"Both King Salman and heir apparent Mohammed bin Salman are fully committed to them. What they wish to instil, and seem determined to execute, is to modernise the ruling establishment, not just for the 2030 horizon but beyond it too," he said.

 

Many ordinary Saudis praised the crackdown as long-awaited.

 

OPULENT HOTEL

 

Other detainees include former Finance Minister Ibrahim al-Assaf, a board member of national oil giant Saudi Aramco; ousted Economy Minister Adel Fakieh, who once played a major role in drafting MbS' reforms; former Riyadh Governor Prince Turki bin Abdullah and Khalid al-Tuwaijiri, who headed the Royal Court under the late King Abdullah.

 

People on Twitter applauded the arrests of certain ministers with some comparing them to "the night of the long knives", a violent purge of political leaders in Nazi Germany in 1934.

 

Bakr bin Laden, chairman of the big Saudi Binladin construction group, and Alwaleed al-Ibrahim, owner of the MBC television network, were also detained.

 

At least some of the detainees were held at the opulent Ritz-Carlton hotel in the diplomatic quarter of Riyadh, said sources in contact with the government and guests whose plans had been disrupted.

 

The hotel's exterior gate was shuttered on Sunday morning and guards turned away a Reuters reporter, saying it had been closed for security reasons though private cars and ambulances were seen entering through a rear entrance.

 

The hotel and an adjacent facility were the site of an international conference promoting Saudi Arabia as an investment destination just 10 days ago attended by at least one of those now being held for questioning.

 

The detentions follow a crackdown in September on political opponents of Saudi Arabia's rulers that saw some 30 clerics, intellectuals and activists detained.

 

Prince Alwaleed, a flamboyant character, has sometimes used his prominence as an investor to aim barbs at the kingdom's rulers.

 

In December 2015, he called then-U.S. presidential candidate Donald Trump a "disgrace to all America" and demanded on Twitter that he withdraw from the election.

 

Trump responded by tweeting: "Dopey Prince @Alwaleed_Talal wants to control our U.S. politicians with daddy’s money. Can't do it when I get elected."

 

His father, Prince Talal, is considered one of the most vocal supporters of reform in the ruling Al Saud family, having pressed for a constitutional monarchy decades ago.

 

(Additional reporting by Reem Shamseddine in Khobar and Rania El Gamal, Tom Arnold and Sylvia Westall in Dubai; Editing Samia Nakhoul, Matthew Mpoke Bigg and Edmund Blair)

 

-- © Copyright Reuters 2017-11-06

[ilostmypassword]

"In the same stroke, the crown prince has cowed businessmen and royals across the kingdom by taking down the undisputed giant of Saudi finance. And over the last several weeks he has ordered enough high-profile arrests of intellectuals and clerics to frighten the remainder of the academic and religious establishment into acceding to his will as well...

Crown Prince Mohammed’s haste, however, may now come at a price, because the lack of transparency or due process surrounding the anticorruption crackdown is sure to unnerve the same private investors he hopes to attract — including through a planned stock offering of the huge state oil company, Aramco."

https://www.nytimes.com/2017/11/05/world/middleeast/saudi-crown-prince-purge.html

[craigt3365]

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

[ilostmypassword]

22 minutes ago, craigt3365 said:

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

Brought to us by the same genius who has waged war on Yemen and started a pointless spat with Qatar. And has forced Hariri of Lebanon to step down bringing that nation closer to war.  Clearly, this latest move is going to turn out well.

[Foxxster]

And now a helicopter crash carrying a prince and government officials...

 

http://www.bbc.com/news/world-middle-east-41881058

 

 

[natway09]

It was talked about here having the same kind of crackdown, but realized that there would be no one 

left to run the country

[Baerboxer]

2 hours ago, craigt3365 said:

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

 

Exactly Craig. A change at the top and now a change through the ranks. Not liked, potential rival, member of wrong family, dissenter - out you go.

[pegman]

2 hours ago, Foxxster said:

And now a helicopter crash carrying a prince and government officials...

 

http://www.bbc.com/news/world-middle-east-41881058

 

 

This thug plays rough. The prince who was killed/murdered was the son of the recently deposed former Crown Prince.

[nasanews]

1 minute ago, pegman said:

This thug plays rough. The prince who was killed/murdered was the son of the recently deposed former Crown Prince.

Helicopter crash near the Saudi- Yemeni borders, properly it was shut down.

[ilostmypassword]

Jared of America meets Jared of Arabia:

 

"MBS [the Crown Prince] is emboldened by strong support from President Trump and his inner circle, who see him as a kindred disrupter of the status quo — at once a wealthy tycoon and a populist insurgent. It was probably no accident that last month, Jared Kushner, Trump’s senior adviser and son-in-law, made a personal visit to Riyadh. The two princes are said to have stayed up until nearly 4 a.m. several nights, swapping stories and planning strategy."

https://www.washingtonpost.com/opinions/global-opinions/the-saudi-crown-princes-risky-power-play/2017/11/05/4b12fcf0-c272-11e7-afe9-4f60b5a6c4a0_story.html

 

[Tchooptip]

Incredible! Prince Al-waleed was one of the richest men in the kingdom, In November 2017 Forbes listed Al-Waleed as the 45th richest man in the world, he is also rather westernised too. Al-Waleed urged Arab nations to give up their hostility toward Israel and seek peaceful coexistence, not sure it was approved by everyone in the kingdom? 

After the September 11 attack,  al-Waleed gave a check for $10 million to New York City Mayor Rudi Juliany, despite Saudi opposition. 

[ilostmypassword]

1 minute ago, Tchooptip said:

Incredible! Prince Al-waleed was one of the richest men in the kingdom, In November 2017 Forbes listed Al-Waleed as the 45th richest man in the world, he is also rather westernised too. Al-Waleed urged Arab nations to give up their hostility toward Israel and seek peaceful coexistence, not sure it was approved by everyone in the kingdom? 

After the September 11 attack,  al-Waleed gave a check for $10 million to New York City Mayor Rudi Juliany, despite Saudi opposition. 

This excerpt from the article might go a long way to explaining Al-waleed's detention:

"Prince Alwaleed, a flamboyant character, has sometimes used his prominence as an investor to aim barbs at the kingdom's rulers.

In December 2015, he called then-U.S. presidential candidate Donald Trump a "disgrace to all America" and demanded on Twitter that he withdraw from the election.

Trump responded by tweeting: "Dopey Prince @Alwaleed_Talal wants to control our U.S. politicians with daddy’s money. Can't do it when I get elected."

His father, Prince Talal, is considered one of the most vocal supporters of reform in the ruling Al Saud family, having pressed for a constitutional monarchy decades ago."

[pegman]

1 hour ago, nasanews said:

Helicopter crash near the Saudi- Yemeni borders, properly it was shut down.

Question is by which side?

[tonbridgebrit]

4 hours ago, craigt3365 said:

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

Ah yes, but Xi Jinping is not backed by Washington. Saudi Arabia is backed by Washington.  Hence, the media can condemn Beijing, but they don't want to highlight the issue of Washington backing Saudi Arabia.  

[Rancid]

4 hours ago, craigt3365 said:

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

Problem is if governments ever had a true crackdown on corruption there would be no one left. As such, yes, all corruption crackdowns are just reinforcing the base.

[craigt3365]

31 minutes ago, tonbridgebrit said:

Ah yes, but Xi Jinping is not backed by Washington. Saudi Arabia is backed by Washington.  Hence, the media can condemn Beijing, but they don't want to highlight the issue of Washington backing Saudi Arabia.  

Saudi Arabia is also backed by Russia, as my link with the 3B in arms sales shows.  The US media is free and fair.  They are open to condemn anybody.  And there have been MANY articles critical of the dodgy relationship the US has/had with SA.  Many.

 

P.S. Saudi Arabia also has a cozy relationship with the UK.  Who tends to not go after them and their dodgy wrongdoings strongly....

[Caps]

I wonder if the Prince killed in the helicopter crash was just a coincidence?

[craigt3365]

31 minutes ago, Rancid said:

Problem is if governments ever had a true crackdown on corruption there would be no one left. As such, yes, all corruption crackdowns are just reinforcing the base.

That is absolutely true for many countries, but not all.

[pegman]

33 minutes ago, Caps said:

I wonder if the Prince killed in the helicopter crash was just a coincidence?

Me thinks that when it comes to consolidating power Michael Corleone has nothing on this guy.

[pegman]

Just now, pegman said:

Me thinks that when it comes to consolidating power Michael Corleone has nothing on this guy.

His brothers should be nervous.. 

[ilostmypassword]

2 minutes ago, pegman said:

Me thinks that when it comes to consolidating power Michael Corleone has nothing on this guy.

I think he's more comparable to Sonny.

[GOLDBUGGY]

The King sure has a lot of faith in this son and has given him a lot of power.  He seems to be using this power wisely to.

But I don't think this move is all about a crackdown on corruption.

 

This Prince is next in line to be the next Saudi King. If this happens it will be the first time the Kingdom was passed down from father to son, and not brother to brother. So I think there needs to be some reforms from the old school and before he can do that.

[ilostmypassword]

43 minutes ago, GOLDBUGGY said:

The King sure has a lot of faith in this son and has given him a lot of power.  He seems to be using this power wisely to.

 

You mean like the war in Yemen? The spat with Qatar? The removal of Hariri with ensuing instability and possibly war in Lebanon? What would constitute an unwise use of power on his part?

[thaibeachlovers]

From my time in Saudi it was accepted that the royals were corrupt, though whether that applied to all I could not say.

Seems to me more in keeping with a middle ages style power grab by eliminating the opposition than any real corruption crackdown. Not unexpected given it is still mentally in the middle ages, IMO, despite the trapping of modern society.

[Morch]

11 hours ago, ilostmypassword said:

"In the same stroke, the crown prince has cowed businessmen and royals across the kingdom by taking down the undisputed giant of Saudi finance. And over the last several weeks he has ordered enough high-profile arrests of intellectuals and clerics to frighten the remainder of the academic and religious establishment into acceding to his will as well...

Crown Prince Mohammed’s haste, however, may now come at a price, because the lack of transparency or due process surrounding the anticorruption crackdown is sure to unnerve the same private investors he hopes to attract — including through a planned stock offering of the huge state oil company, Aramco."

https://www.nytimes.com/2017/11/05/world/middleeast/saudi-crown-prince-purge.html

 

From the OP:

 

Quote

Saudi Arabia's stock index <.TASI> was dragged down briefly but recovered to close higher as some investors bet the crackdown could bolster reforms in the long run.

 

There wasn't a whole lot of transparency in Saudi Arabia prior to this purge, so not much actually changed in this regard. Those targeted in the purges were high level Saudi nationals, rather than foreign investors. I doubt this would seriously deter foreign investments in Saudi Arabia.

[Morch]

10 hours ago, craigt3365 said:

Perhaps like the "corruption" crackdown done by Xi Jinping in China?  Dubious at best.  Just consolidating power and getting rid of those they don't like or are against them.  Not as much to do with corruption.

 

It's about consolidating power for sure, but that's not to say that all those targeted weren't involved in corruption. Guess it's a mixed bag. Some of the reforms he pushes, and some of the economic plans envisaged would benefit from cutting down on such activities. Doesn't mean there aren't many others or that him or his own people don't indulge, of course.

 

 

[nasanews]

The absolute monarchy government confiscated all arrested individuals assets.

[mackayae]

6 hours ago, Tchooptip said:

Incredible! Prince Al-waleed was one of the richest men in the kingdom, In November 2017 Forbes listed Al-Waleed as the 45th richest man in the world, he is also rather westernised too. Al-Waleed urged Arab nations to give up their hostility toward Israel and seek peaceful coexistence, not sure it was approved by everyone in the kingdom? 

After the September 11 attack,  al-Waleed gave a check for $10 million to New York City Mayor Rudi Juliany, despite Saudi opposition. 

Rudy did not accept the check.

Edited November 6, 2017 by mackayae

[Morch]

4 hours ago, ilostmypassword said:

You mean like the war in Yemen? The spat with Qatar? The removal of Hariri with ensuing instability and possibly war in Lebanon? What would constitute an unwise use of power on his part?

 

Without singing his praises (which I do not), it's one thing to be at the helm and another to pass hindsight commentary on an internet forum based on partial (at best) information.

 

I think that to a degree, some of the things he does are aimed at asserting regional image and power, certainly so with regard to the domestic front.

 

To date, he managed to consolidate power within the country, to quite an unprecedented level, at that. The Yemen War, while failing to show any progress, is drawing limited international criticism and while a stalemate may not be much of a result, the country haven't quite turned over as well. With regard to Qatar - a miscalculation, for sure. And yet, no actual negative effects of consequence, and in all probability, things will be resolved in due course. The Hariri thing is still too early to judge and details are still sketchy. May be better to see how things unfold and what other information comes to light before declaring it to be this or that. As mentioned on a parallel topic, Hariri's resignation might be related to the OP's purge.

[nasanews]

4 minutes ago, Morch said:

The Hariri thing is still too early to judge and details are still sketchy.

I think it has to do with exposing the Iranian political control of Lebanon, remember Iranians including Sayed Hassan are not happy with Harriri resignation.