This guy hasn't sold yet>
Prince Alwaleed Urges Saudi Investors to Stay in U.S. Market
By James Cordahi and Sean Evers
Cannes, France, Aug. 22 (Bloomberg) -- Saudi Prince Alwaleed bin Talal, the world's 11th richest man, urged fellow Saudis to remain invested in U.S. markets amid speculation they have pulled billions on concern the assets will be frozen.
The 45-year-old nephew of King Fahd, whose net worth Forbes magazine valued at $20 billion, dismissed analyst estimates that Saudi investors have withdrawn $200 billion from the U.S. market. The families of about 600 killed in the Sept. 11 attacks have filed a $1 trillion lawsuit last week against Saudi banks, charities and individuals.
``These people may have filed a lawsuit, but they still have to win'' before the courts can freeze assets, the prince said in a telephone interview. ``If you have nothing to hide, then you should stay in'' the market, he said.
Concern that Saudis, who analysts estimate have $600 billion in the U.S., were withdrawing money from U.S. markets kept the dollar from gaining alongside stocks yesterday. The prince is the largest single shareholder in Citigroup Inc., with almost a 5 percent stake.
The prince has no intention of selling any of his U.S. assets, which also include stakes in AOL Time Warner, the world's largest media and Internet company, and Motorola Inc., the second- largest maker of mobile phones.
`Looking to Buy'
``If anything, I'm looking to buy if the opportunity arises,'' he said by phone from Cannes, on the southern coast of France.
Last month the prince said he had no plans to buy more U.S. shares and is concerned by recent swings in the stock market.
The prince said he has spent more than $1.5 billion on U.S. shares since Sept. 11, including $1 billion of Citigroup shares, $450 million on AOL and about $100 million on Priceline.com, the No. 3 Internet travel seller.
``The U.S. investment market is a very important market for any serious investor worldwide,'' said Fahd Mubarak, a Riyadh- based economist who has advised the Saudi government on attracting foreign investment.
Some small Saudi ``investors may retreat, but serious investors that have been in that market for many years will make their judgment on solid economic fundamentals,'' he said.
The U.S. lawsuit names several Saudi-owned banks, financial institutions and principal shareholders as having helped finance or channel funds to Osama bin Laden and his al-Qaeda group. The organizations include National Commercial Bank, Saudi Arabia's top bank, and Al-Rajhi Banking & Investment Corp. the third-largest.
In Saudi Arabia, the Al-Watan newspaper among others urged investors to keep their funds in the kingdom, while clerics, schoolteachers and activists have called on Saudis to boycott U.S. goods to protest the country's support for Israel.
U.S. exports to Saudi Arabia in the first half fell to the lowest level since 1990.
Foreign investment in the U.S. in the first five months of the year fell 19 percent to $185 billion, according to the latest U.S. Treasury figures, contributing to this year's 17 percent drop in the Standard & Poor's 500 index. |
