In global crisis, oil insulates Gulf

 

Economists say that Arab states such as Saudi Arabia will feel the pinch, but a year of record oil prices provides a deep cushion.

By Caryle Murphy | Correspondent of The Christian Science Monitor

from the October 16, 2008 edition

Riyadh, Saudi Arabia – Against the backdrop of an imploding global financial system, one of the world’s richest men unveiled plans to build the world’s tallest building in Saudi Arabia.

Prince Alwaleed bin Talal bin Abdul Aziz revealed a display model of Kingdom City, a $26.7 billion mini-city to be constructed near the Red Sea port of Jeddah. At its center will be a tower more than a kilometer high (the exact height is a secret) for offices, luxury residences, and a five-star hotel.

With a fortune estimated by Forbes at $21 billion, Prince Alwaleed, chairman of Kingdom Holding Company, doesn’t have to worry about getting a line of credit, even in these financially shaky times.

Still, his apparent confidence about the future reflects the predominant view in oil-rich Saudi Arabia and its Gulf neighbors about how the fiscal tsunami sweeping the rest of the globe may affect them.

Despite repercussions here that have included a downward slide in oil prices and trouble ….

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