Prince Alwaleed, a billionaire investor in Citigroup and Twitter is among those arrested. Prince Alwaleed had a tangle with Trump in 2015.

Alwaleed to Trump

Trump Response

In January of 2016, Billionaire Saudi Prince Alwaleed Bin Talal Trolls Trump: ‘I Bailed You Out Twice’.

Massive Purge

Today, the Washington Post reports Crown Prince Gains Power After Sweeping Purge of Saudi Officials.

In one breathtaking stroke, the men were detained by the Saudi authorities in a purge that began Saturday night and swept up some of the most powerful and recognizable names in the country, including members of the Saudi royal family, cabinet ministers, titans of media and industry and former officials. The detainees included Prince Alwaleed bin Talal, a wealthy investor who owns major stakes in such companies as Twitter and Citigroup, according to an associate of his family. The detentions come at a time of political, social and economic upheaval in Saudi Arabia, an absolute monarchy that has become one of the Trump administration’s closest Middle East allies. The reasons for Alwaleed’s arrest were not immediately clear. The prince, who is the founder of the business conglomerate Kingdom Holding and one of the world’s most prominent investors, had been supportive, at least publicly, of the Saudi leadership, including its controversial intervention in Yemen’s civil war. His detention — along with a number of other business tycoons — suggested that the Saudi leadership was sending a message that something fundamental had changed, Lacroix said. In the past, Saudi Arabia “would allow the existence of powerful people or fiefdoms, as long as they remained loyal in the general sense,” he said. “It’s not about loyalty anymore. Mohammed bin Salman doesn’t want to allow the existence of those fiefdoms.”

RECOMMENDED ARTICLES

Saudi Purge List

  • Prince Alwaleed bin Talal, chairman of Kingdom Holding
  • Prince Miteb bin Abdullah, minister of the National Guard
  • Prince Turki bin Abdullah, former governor of Riyadh province
  • Khalid al-Tuwaijri, former chief of the Royal Court
  • Adel Fakeih, Minister of Economy and Planning
  • Ibrahim al-Assaf, former finance minister
  • Abdullah al-Sultan, commander of the Saudi navy
  • Bakr bin Laden, chairman of Saudi Binladin Group
  • Mohammad al-Tobaishi, former head of protocol at the Royal Court
  • Amr al-Dabbagh, former governor of Saudi Arabian General Investment Authority
  • Alwaleed al-Ibrahim, owner of television network MBC
  • Khalid al-Mulheim, former director-general at Saudi Arabian Airlines
  • Saoud al-Daweesh , former chief executive of Saudi Telecom
  • Prince Turki bin Nasser, former head of the Presidency of Meteorology and Environment
  • Prince Fahad bin Abdullah bin Mohammad al-Saud, former deputy defence minister
  • Saleh Kamel, businessman
  • Mohammad al-Amoudi, businessman

Unconnected Events

What's Going On?

  1. This is a traditional move by a corrupt Saudi regime to consolidate power.
  2. This is a genuine reform aimed at tackling corruption.

A reader asked me to comment on what's going on.

Let me put it this way: I will believe number 2 when I see it.

Mike "Mish" Shedlock

War in the Mideast? Saudi Arabia Says Lebanon Declared War

Saudi Arabia says Lebanon has declared war on it. In response, the Saudis announced a blockade of Yemen. Trump backs Saudi Arabia. War coming?

If Iran is Responsible for Saudi Attack, So What? US in Another Undeclared War

Assume Iran is responsible for the attack on Saudi Arabia. Was it justified?

Trump Locked and Loaded (and Waiting for Saudi Arabia to Tell Us What to Do)

President trump is waiting for Saudi Arabia to tell us under what terms we should proceed.

Donald Trump Then vs Now on Saudi Arabia

Let's compare what Donald Trump said in 2014 vs what he is saying today regarding Saudi Arabia.

Yemen Claims Saudi Arabia Invasion Capturing Thousands of Troops

Yemen’s Houthis claim to have invaded Saudi Arabia and captured thousands of troops in Najran. Conflicting stories.

Trump, Saudi Arabia Trade “Severe Punishment” Threats Over Missing Journalist

Dissident Saudi journalist Jamal Khashoggi was last seen in the Saudi consulate in Istanbul on Oct 2. Threats are flying

China's Trade Surplus Vanished Into Thin Air: What's Going On?

China's currency reserves ought to be increasing given its persistent trade surplus. They aren't due to capital flight.

Yield Curve Steepens Dramatically: What's Going On?

US treasuries are seeing action we have not seen for a while: Strong sharp steepening of the yield curve.

Bond Market Dislocation: What the Hell is Going On?

The "Bond Freak" is wondering what's going on. I have an answer from Lacy Hunt at Hoisington Management.