Saudis to retrieve $360 billion abroad

United Press International. ^ | 8/7/2005 | United Press International.

[CJ Wolf]

Not sure whats up but I got this Spam today.

---

REQUEST FOR URGENT BUSINESS RELATIONSHIP

FIRST, I MUST SOLICIT YOUR STRICTEST CONFIDENCE IN THIS TRANSACTION. THIS IS BY VIRTUE OF ITS NATURE AS BEING UTTERLY CONFIDENTIAL AND 'TOP SECRET'. I AM SURE AND HAVE CONFIDENCE OF YOUR ABILITY AND RELIABILITY TO PROSECUTE A TRANSACTION OF THIS GREAT MAGNITUDE INVOLVING A PENDING TRANSACTION REQUIRING MAXIIMUM CONFIDENCE.

WE ARE TOP OFFICIAL OF THE FEDERAL GOVERNMENT CONTRACT REVIEW PANEL WHO ARE INTERESTED IN IMPORATION OF GOODS INTO OUR COUNTRY WITH FUNDS WHICH ARE PRESENTLY TRAPPED IN SAUDIA ARABIA. IN ORDER TO COMMENCE THIS BUSINESS WE SOLICIT YOUR ASSISTANCE TO ENABLE US TRANSFER INTO YOUR ACCOUNT THE SAID TRAPPED FUNDS.

THE SOURCE OF THIS FUND IS AS FOLLOWS; DURING THE LAST KING HERE IN SAUDI ARABIA, THE GOVERNMENT OFFICIALS SET UP COMPANIES AND AWARDED THEMSELVES CONTRACTS WHICH WERE GROSSLY OVER-INVOICED IN VARIOUS MINISTRIES. THE PRESENT KING SET UP A CONTRACT REVIEW PANEL AND WE HAVE IDENTIFIED A LOT OF INFLATED CONTRACT FUNDS WHICH ARE PRESENTLY FLOATING IN THE CENTRAL BANK OF SAUDIA ARABIA READY FOR PAYMENT.

HOWEVER, BY VIRTUE OF OUR POSITION AS CIVIL SERVANTS AND MEMBERS OF THIS PANEL, WE CANNOT ACQUIRE THIS MONEY IN OUR NAMES. I HAVE THEREFORE, BEEN DELEGATED AS A MATTER OF TRUST BY MY COLLEAGUES OF THE PANEL TO LOOK FOR AN OVERSEAS PARTNER INTO WHOSE ACCOUNT WE WOULD TRANSFER THE SUM OF US$360,000,000,000.00(THREE HUNDRED AND SIXY BILLION U.S DOLLARS). HENCE WE ARE WRITING YOU THIS LETTER. WE HAVE AGREED TO SHARE THE MONEY THUS; 1. 20% FOR THE ACCOUNT OWNER 2. 70% FOR US (THE OFFICIALS) 3. 10% TO BE USED IN SETTLING TAXATION AND ALL LOCAL AND FOREIGN EXPENSES. IT IS FROM THE 70% THAT WE WISH TO COMMENCE THE IMPORTATION BUSINESS.

PLEASE,NOTE THAT THIS TRANSACTION IS 100% SAFE AND WE HOPE TO COMMENCE THE TRANSFER LATEST SEVEN (7) BANKING DAYS FROM THE DATE OF THE RECEIPT OF THE FOLLOWING INFORMATIOM BY TEL/FAX; 12-3123-53244, YOUR COMPANY'S SIGNED, AND STAMPED LETTERHEAD PAPER THE ABOVE INFORMATION WILL ENABLE US WRITE LETTERS OF CLAIM AND JOB DESCRIPTION RESPECTIVELY. THIS WAY WE WILL USE YOUR COMPANY'S NAME TO APPLY FOR PAYMENT AND RE-AWARD THE CONTRACT IN YOUR COMPANY'S NAME.

WE ARE LOOKING FORWARD TO DOING THIS BUSINESS WITH YOU AND SOLICIT YOUR CONFIDENTIALITY IN THIS TRANSATION. PLEASE ACKNOWLEDGE THE RECEIPT OF THIS LETTER USING THE ABOVE TEL/FAX NUMBERS. I WILL SEND YOU DETAILED INFORMATION OF THIS PENDING PROJECT WHEN I HAVE HEARD FROM YOU.

YOURS FAITHFULLY,

Mohammad

NOTE; PLEASE QUOTE THIS REFERENCE NUMBER (VE/S/09/99) IN ALL YOUR RESPONSES.

[Texas_Jarhead]

"If I was going to surprise the west with a cutoff of oil I sure would pull all my investments so I didn't loose it."

A similar thought occurred to me.

[Quix]

I think you are quite right to be wary or more.

[FreedomCalls]

Dajjal is coming.

He's already here.

http://www.freerepublic.com/~dajjal/

[motor_racer]

Well let's see.

A dollar is nothing more than the unsecured debt of the US government. It can't be redeemed for anything, and can only be traded to someone willing to accept it, for whatever he may be willing to give.

Each dollar came into being when the US government credited an account in exchange for something purchased, or it may have been created to extinguish older debt, thereby trading nothing for something.

Ultimately, a dollar has no value except in the US, where we are required by law to accept it "for all debts, public and private".

A US dollar is monopoly money (ironic, isnt it?). The ability to disturb the US economy by moving money is entirely limited to the price of US government debt (bonds).

So for all these years we have purchased Saudi oil for bits of paper. (We have a long history of this: Manhattan and some beads come to mind).

Anyway, if the Saudis decide that they dont want our bits of paper and as a result we won't take them from each other and that wrecks our economy, well shame on us.

But taking them home doesn't seem to indicate they think dollars will be without value soon, and if they were, who would buy the oil? And where would they spend their billions?

[JerseyHighlander]

Herd mentality at play within the royal family and their financial advisors.

As Al Qaeda made it's presence felt the last two years in Saudi Arabia, the few princes and financial advisors who are true leaders moved thier money out of the kingdom to reduce their risk exposure and to find better returns abroad. Then the several thousand other princes saw the true cutting edge financiers in the kingdom do such, and the herd mentality kicked in, and every princling moved money abroad.

The threat of Al Qaeda was overblown, moving some money abroad has rightly been seen as creating greater risk for the vast majority of the Sauds' wealth that is not liquid and held in the kingdom, and the sense of an escape safety net is no longer needed as "no capitulation" has been the rallying call to the financier Sauds, princes and businessmen.

The money flow returning to the country will mitigate wealth disparity issues, either through direct government transfers to the citizens, or through trickle down processes. 360 billion dollars will create a lot of jobs for the Arab citizen underclass in Saudi Arabia.

Could also be an issue that the money is held in Arab controlled banks that might be linked to terrorist activities. But, that is a minor concern to those who control 360 billion dollars.

[nw_arizona_granny]

Ping

[UnbelievingScumOnTheOtherSide]

>> Dajjal is coming.
> He's already here.
> http://www.freerepublic.com/~dajjal/

We have "bumped" into each other ;-)
http://www.freerepublic.com/focus/f-bloggers/1392746/posts?page=50#50

[swarthyguy]

Well, assume for a moment that they know a BIG attack is in the works.

Would you wish to leave your assets where they might get impounded?

[Marine_Uncle]

"Collectively, NYSE's listed companies represent about $18 trillion in market capitalization."

Good point. Their investments would appear to be a drop in the bucket. Thanks for the reality check.

[Bon mots]

We don't have to send money for oil, we can just send the sixth fleet. That ought to do it.

[Revolting cat!]

Good luck cashing out. I don't think 360 billion in greens even exists!

[Solson]

It's a play on the world exchange markets, imo. Oil at $63 a barrel and the Sauds pulling their money in makes them a more significant player and thus holding more power. I think this is the Sauds saying, "let the bidding begin."

[if_this_goes_on]

But taking them home doesn't seem to indicate they think dollars will be without value soon, and if they were, who would buy the oil? And where would they spend their billions? Ah, but when it is finally gathered into Saudi Arabia, do you think it will still be in dollars? Watch the currency exchange markets in the next month or so... the dollar will fall, and the euro will rise, most likely. There's long been talk of the Saudis and the Iranians going from petrodollars to petroeuros... or more likely, gold. OPEC has long talked about moving from petrodollars to pricing in gold, accepting only gold for oil, not valueless fiat paper. Where would we be then?

[Fitzcarraldo]

Conversion into Gold?

[DCPatriot]

Sounds to me any assets they have in the United States are high risk investments...if a WMD attack is in the future.

Buy low, sell high.

[Fitzcarraldo]

Does Abdullah have a penchant for gambling?

[Fitzcarraldo]

The amount of gold in fort knox is 147 million oz or 63 billion $ at current rates.

[antceecee]

Excerpted from: Gallagher's Travels:

The Middle East – New Tourism Opportunities
By Elinor Garely

If you are looking for good news in the hospitality, travel and tourism industry, look to the Middle East, according to HVS’s Younes and Forster (2004). Reviewing 120 branded four and five star hotels (33,000 rooms) the authors found that this region “continues to show tremendous resilience to economic and political turmoil.” With occupancy levels gaining two percentage points (to 67 percent) and average room rates rising by 6 percent (to $86), the Middle East is a market that all hotel investors should seriously consider when searching for new markets and new customers. Even with the Iraq war, this market has recovered with Kuwait and Doha the beneficiary of increased business from the coalition forces and business travelers.
Optimistic

The HVS International report indicated that Kuwait had the strongest operating performance and while the growth is not likely to be sustainable, it is “likely to encourage hotel investment.” The report also found that Dubai, Qatar, Bahrain and Oman were successfully diversifying their economies, with Kuwait, Dubai, Qatar and Egypt leading the region in tourist arrivals.

Economic growth has increased the number of five star hotels, as well as the development of mixed-use, serviced and time-shares resort properties. Funding for these projects is largely regional or local, although some Asian operators are moving into equity positions, enhancing their presence and brands, most notably the Intercontinental Hotels Group, Movenpick and Rotana.
Country Analysis
Bahrain

HVS International determined that Bahrain is the “most diversified and open economy” in the region, and social reforms are generating “greater political stability and prosperity.” Projects under consideration include a new international airport, ski center, spa and residential village for health tourists, and a bridge between Bahrain and Qatar. To encourage expatriate investment in new real estate projects, the Government of Bahrain is offering permanent residency status. The HVS report recommends that Bahrain “carefully define its tourism strategy” and “differentiate itself from other destinations…”
Lebanon

Lebanon hosted over 1 million visitors in 2003, with the growth attributed to intra-regional visitors. Enormously popular among Kuwaiti and Saudi visitors, Mount Lebanon hotels reported 95 percent occupancy. New developments in Lebanon include a $1.4 billion tourism complex which will include an international sports village, ski resort, two 18- hole golf courses and entertainment facilities. The Metropolitan Group is expanding to form a Metropolitan City, complete with a souk, restaurants, and a 1200 seat amphitheatre. HVS is optimistic about tourism development in Lebanon, supports its positioning as an up-market leisure destination for most Gulf Cooperation Council (GCC) markets, and see opportunities for expansion in the European and cruise ship markets.
United Arab Emirate

The United Arab Emirate has diversified its economy, according to Younes and Forster, with oil driving its growth. Dubai’s infrastructure, commerce and tourism have been enhanced, and the goal of the government is to have the Emirate become the hub of the Middle East for business and leisure travel. Continuing growth in Dubai includes airport expansion, a new public railway system, a bridge over Dubai Creek, a new International Financial Center, and the development of two of the world’s largest man-made islands. With a $35 billion investment, there are plans to build Adventure World, Sports World, Eco Tourism World, Kid’s World, Shopping World (with the world’s largest shopping mall), and a Family City. The Dubai Health Care City will turn this city into a global hub for specialized healthcare, medical education and research.

Dubai continues to “amaze most analysts” according to HVS, with government driven efforts, investment and promotions. Referred to as the “Las Vegas of the Middle East” – these successful efforts have turned the desert into gold and demonstrated that supply led tourism can be accomplished. It is expected that Dubai will be the “first destination in the region to experience international investment in hotel real estate.”
Saudi Arabia

Saudi Arabia has, according to Younes and Forster, focused it efforts on religious tourism, allowing pilgrim visas for over seven months of the year and the Supreme Commission for Tourism is working toward “removing obstacles” that foreign tourists encounter during this visit. Low income travelers will be welcome at a new tourist complex on the Red Sea, near Jeddah, and other projects are planned for Mecca, Madinah, Yanbu and Al Khobar, including a 5000 room hotel and timeshare complex.
Syria

The government of Syria is committed to tourism development, and experienced a 5 percent increase in 2003. Room rates have increased by 5 percent, currently averaging $98. The natural and cultural resources of Syria make it a desirable destination and a $280 million tourist resort is being developed in Tartous, with a 2008 scheduled completion date.
Qatar

In Qatar, $5 billion is being spent to enhance the Doha airport and there is increasing demand for hotel accommodations. HVS finds Qatar plans for tourism and infrastructure enhancement encouraging and sees investment opportunities in branded limited service hotels, serviced apartments and timeshare (for the speculative investor).
Egypt
modern pottery by Omar Abdel Aziz Kamel
modern pottery
by Omar Abdel Aziz Kamel

Over 6 million tourists visited Egypt in 2002. The country has experienced one of the highest levels of European visitations in the region, accounting for over 50 percent of the total. Egypt has expanded its Red Sea ports to accommodate larger ships, and new airport terminals are planned, along with a new metro line in Cairo city center, and two new exhibition halls expected to be completed in 2005. The HVS report finds this destination to have “unmatched cultural and natural resources” and sees potential for branded limited service hotels in Cairo city center, and other major cities.
Jordan

Jordan is committed to tourism development in the Aqaba Special Economic Zone which will include airport expansion, and port relocation. Jordan and Singapore have developed a strategic alliance in order to increase Asian visitors to the destination. In addition, there is a new sea link between Aqaba and Sharm El Sheikh and the $18 million cruise ship Princess, with 710 passenger capacity is likely to be using this route. In the Dead Sea region, a $150 million project is planned to include a 600 room hotel, conference center and leisure amenities. HVS sees “great potential” for tourism in Jordan.
Kuwait

Kuwait is stimulating investment by offering a ten year tax exemption to foreign investors, and allowing foreign banks to enter the market. Due to the Iraq war, there has been an increased demand for hotel accommodations from the military, press/journalists, conflict related conferences and business executives exploring opportunities in Iraq, using this country as a gateway. Hotel occupancy reached 60 percent, and ADR was $185, resulting in a REVPAR of $157. Kuwait has outperformed all other markets in the region. In the future, HVS sees the primary Kuwait markets to be intra regional family and shopping, creating opportunities for branded limited service hotels in the city.
Oman

Oman’s government is committed to tourism development, and will have spent $100 million by the end of 2005 to promote the industry. Oman international airport will have a new terminal, the Al Hota caves are being transformed into a major tourist attraction, while adventure trails and waterfront projects are under development.
Opportunities

For future growth HVS recommends a unified tourism strategy for the GCC countries, so that intra-regional competition is avoided. Strong growth of tourism in the Middle East is expected to continue, with hotels being re-flagged and re-branded, based on the competitiveness of the marketplace.

For the complete report, visit http://www.hvsinternational.com

[oceanview]

gold for oil? there isn't enough physical gold to provide the liquidity the oil market needs. what are the saudis and iran going to do with their oil, drink it?