The Money Flow

Oil revenue in 2007 supplied the desert kingdom with 194 billion dollars. If oil prices remain at about $140/barrel, combined revenues for 2008 and 2009 will increase to 700 billion dollars. A nation of only 27 million that imports most of its goods is actually the fourth leading nation in trade balance, with a trade surplus of $88.9 billion.

Unlike the oil producing nations of the Arab Emirates, Saudi Arabia does not have a sovereign capital fund. Instead of exporting, and thus re-circulating much of their capital, the Saudis have retained much of the surplus for internal investment or have established companies that mainly allow only Saudi investors. Nevertheless, Saudi oil revenue is flowing outwards. Some noteworthy examples:

As a major partner of The Islamic Chamber of Commerce and Industry (ICCI), Saudi Arabian capital will be flowing throughout the world, but not the western world. ICCI has started Foras Investments, whose purpose is to create international companies that will manufacture low-cost cars, aircraft and satellites for and in more deprived nations.

By a strange twist, New York's famous Plaza hotel has become co-owned by Israel's Elad Group and the Saudi-based Kingdom Holding Co.

Saudi Prince al-Waleed bin Talal, world's fifth richest man on Forbes World's Richest People list, bought 5.46% of voting shares in News Corp, which made him the fourth largest voting shareholder in News Corp., the parent of Fox News.

Attempts to have the Saudis recycle more western capital reached an embarrassing level when British Prime Minister Gordon, before attending an energy summit during late June, 2008, appealed to the Saudis "to buy up Britain's nuclear industry and recycle their riches." Gordon compounded his pandering by referencing the Persian Gulf and naming it the Gulf of Arabia. In a speech, Brown said "the North Sea, which has passed its peak in terms of oil and gas supplies, will be turned into the equivalent for wind power of what the Gulf of Arabia is for oil."

The one way flow of capital, due to oil exports, disturbs western nations. Saudi Arabia's possible export of terrorism is more disturbing.

Exporting Terrorism

The Saudi Arabia government and the king's extended family are not and have not been directly linked to international terrorist financing or activities. Just the opposite - the Saudis are aggressively combating terrorism. Nevertheless, the Saudi Arabia continent is considered a probable major ground for financing of terrorists, enlisting of terrorists, training of terrorists and the disbursement of terrorists to Iraq and Afghanistan - and for good reason - past performance of the Saudi government and presence of terrorists on Saudi territory arouse suspicion.

During the 1980's the Saudis supported Saddam Hussein in his war against Iran and had friendly relations with the Taliban until the 9/11 terrorist attack. The Saudi monarchy, as part of its commitment to Islam, funds Islamic schools and charities, some of whom have been accused of fomenting anti-Western attitudes, contributing to terrorist organizations and developing terrorists. Most damaging is evidence that linked the wife of the Saudi ambassador to Washington to the family of a Saudi man in San Diego who befriended and assisted two of the Sept. 11 hijackers. Princess Haifa al-Faisal, the wife of Ambassador Bandar bin Sultan, provided tens of thousands of dollars in what she believed were charitable gifts for medical care to Osama Bassnan. The F.B.I. questioned Mr. Bassnan and a Saudi neighbor, Omar al-Bayoumi, after learning they had befriended and assisted two of the Saudi hijackers, Khalid al-Midhar and Nawaq Alhazmi. Reports of the FBI meetings have been classified, but The New York Times, August 2, 2003, claims the two Saudis might have been Saudi intelligence agents.

WASHINGTON, Aug. 1 - The classified part of a Congressional report on the terrorist attacks on Sept. 11, 2001, says that two Saudi citizens who had at least indirect links with two hijackers were probably Saudi intelligence agents and may have reported to Saudi government officials, according to people who have seen the report.

Many of the Al-Qaeda operatives in post-Hussein Iraq originate from Saudi Arabia and neighboring Yemen. These terrorists, as well as those training and operating on Saudi soil are undoubtedly receiving funds from a close source. Considering the vast and unchecked funds flowing through Saudi banks and institutions, it's reasonable to assume that some of the oil revenues are unknowingly being siphoned to illicit activities and arrive in terrorist hands. The Saudi Ministry of Interior recently detained 520 terror suspects, who they claimed had targeted an oil facility. One of them admitted to receiving an equivalent of $133,000 (from who?) and Saudi security forces seized another equivalent of $400,00 cash, which was hidden in remote desert areas. Although Mauritania, Yemeni and Iraqi nationals, some of who had university degrees and came to the Kingdom on private drivers' visas, composed the terrorist cell, Saudis composed the majority of those detained.

The most serious element in Saudi Arabia for creating terrorism is Saudi Arabia. Combine Saudi society, the contradictory actions of the government with the large and mostly barren landscape and Saudi Arabia is a perfect situation for all types of dissent and allied terrorism.

Although claiming to adhere to Koran principles, the desert kingdom allows the United States, a hostile and non-Muslim nation, to construct bases on its territory, has accumulated vast wealth for one family, has not sufficiently attended to income distribution and uses oil revenue to support the lifestyle of group of jet setters. These operations enrage Islamist extremists, who sense the Saudi family is hypocritical and violates religious tradition. On the other hand, the authoritarianism, political persecution and extensive human rights violations fuel a bubbling dissent that is prepared to explode. The vast and barren areas are not easily controlled and terrorists have both internal support and places to hide. It is certainly not deliberate, but Saudi Arabia is fertile ground for developing and exporting terrorism.

This feature concerns the Saudi government and they know it concerns all governments. However, they also know the western world is more concerned with their energy sources. The Saudis realize that having oil is having control and they are starting to use that control.