RIYADH, 16 January 2003 — Prince Alwaleed ibn Talal, chairman of Kingdom Holding Company (KHC), described as “stupid” accusations that some members of the royal family had provided funds to persons linked to the Sept. 11 attacks in the United States.
In an interview with the French daily Le Monde, he said: “Saudi Arabia has been the No. 1 target of Osama Bin Laden, well before the United States. If some funds from a very few in the ruling family found their way to persons linked to the Sept. 11 acts, this was certainly inadvertent and well beyond intent. The money was given out of a sense of charity to help individuals in their difficult times.”
Prince Alwaleed said that even the United States was also not free from guilt.
“It is well-known, for instance, that for years Americans, particularly those of Irish descent, have been funding the Irish Republican Army (IRA) when at the same time the US government was condemning the IRA’s terrorist acts. Until very recently, the US has not been able to put a stop to that money flow,” he said.
Prince Alwaleed recalled that the Saudi authorities have recently announced drastic measures to monitor the flow of funds to Muslim philanthropic organizations, which would ensure that funds remitted from abroad would serve only the financing of charitable causes.
Asked if the United States, by attacking Iraq, wants to expropriate its oil to reduce American dependence on Saudi oil, Prince Alwaleed replied that the scenario cannot withstand close scrutiny.
“Even if enormous capital were invested, Iraq can in no way replace Saudi Arabia as a principal supplier of oil. Further, we are the only country in the world which could immediately increase its production and thus quickly respond to abrupt shifts in supply and demand.”
On the question of the Program for a United States-Middle East Partnership recently launched by the US Secretary of State Colin Powell aimed at encouraging greater openness in the Arab world, particularly in the economic and social realms, Prince Alwaleed said there were certain aspects of the plan that merit a closer look.
He pointed out that Powell’s advocacy of direct intervention to confront the challenges in the Arab world would not work in areas like economic openness, education, institution-building, the promotion of civic culture and the like. “Where the shoe rubs is the fact that this proposed partnership largely ignores what is at the heart of our problem: the Israeli occupation of Palestinian lands and the daily massacre of Palestinians.”
Prince Alwaleed described the asymmetric warfare in Palestine as a “crucial factor” that has hamstrung development in the region.
“Today, the United States is adopting an unrealistic stance, and I hope that it will come back to reality. I feel confident that when that happens a sense of normality in our relations will return,” he said.
Asked about the solution to the economic stagnation that has plagued the economies of the Middle East countries, Prince Alwaleed attributed it to the poor economic performance resulting from the stagnation of the private sector. He stressed the need for radical changes in the structure of their economies and to pursue privatization in the hope of attracting overseas capital.
Pointing out that substantial Saudi assets are being invested in the OECD (Organization for Economic Cooperation & Development) countries rather than in the Arab countries, he asked: “If such huge local fortunes have no confidence in the region, how can one expect foreign investors to come in?”
