In 2008, Prince Alwaleed bin Talal, grandson of Saudi Arabia’s founder Abdulaziz ibn Saud, was asked in an interview if there was a possibility that he could some day become the King. Prince Alwaleed was already running a business empire and not involved in palace politicking. But the prince did not rule out the possibility. “The chain of command of people who could become King in this country is between the sons and the grandsons of King Abdulaziz. I am among them…,” he said. Nine years later, as power in Riyadh is set to be transferred from Abdulaziz’s sons to the next generation for the first time, Prince Alwaleed, now one of the richest men in the world, is under house arrest in the Saudi capital’s Ritz Carlton hotel.
Why was he arrested?
The arrest came as a surprise last Sunday night. Along with Prince Alwaleed, 10 princes, including a former King’s son, senior government officers, Ministers, businessmen and media moguls were arrested as part of what the Saudi government said was an anti-corruption drive. The committee that ordered the arrest was formed merely four hours before the purge under the chairmanship of Crown Prince Mohammed bin Salman, King Salman’s 32-year-old son. When the news was out, the media attention was naturally on Prince Alwaleed as he was the most internationally known face among those arrested.
What is his business empire?
Prince Alwaleed’s father had revolted against the throne in the 1960s. Prince Talal bin Abdulaziz called for reforms at home and a Constitution. After a fallout with King Saud bin Abdulaziz, he fled the country and founded the Free Princes Movement. He later reconciled with the royal family and returned home, but remained out of favour of King Saud. Prince Alwaleed, on the other hand, never challenged Saudi authorities or the system publicly, though he had hinted at his ambitions. His focus remained largely on his business empire, whose interests range from real estate to social networks. He started his own business when he was 30, after taking a degree from Menlo College in California. His father, Prince Talal, gave him $30,000, which he lost in a year. He got $3,00,0000 more. When he returned again to his father for money, Prince Talal gave him the deed to a house, according to a Vanity Fair profile of Prince Alwaleed. The prince took a loan mortgaging the house with which he started building the business empire he owns now.
According to Forbes, Prince Alwaleed’s net worth stands at $16 billion. Kingdom Holding Co., the investment giant he owns, has stakes in ride-sharing firm Lyft, social network Twitter, Citigroup and Four Seasons Hotels & Resorts. He also owns various real estate projects in and outside the kingdom, including the Kingdom Tower in Jeddah. In 2008, when the world was battling a massive economic crisis and fears of a real estate meltdown was gripping the Gulf, Prince Alwaleed laid out the proposal to build the world’s tallest building in Jeddah to the then King Abdullah. The building, with a height of 3,280 feet, is slated to open next year. Besides, 5% of Kingdom Holding is listed on the Saudi Stock Exchange.
What is his political stand?
Prince Alwaleed is an active philanthropist who occasionally lets out his political views. He offered $10 million to New York after the September 11 attacks, which Mayor Rudy Giuliani returned. Two years ago, he had promised to give his entire fortune “to build a more peaceful, equitable and sustainable world”. In February 2011 when the Arab world was still struggling to cope with public anger and demonstrations, Prince Alwaleed wrote an Oped in The New York Times in which he asked Arab governments to adopt “radically different policies.”
Why was he a target?
But neither his cautious approach to palace politics nor his enormous wealth prevented his arrest on November 5. The real reason is anybody’s guess. But the arrests allow MBS, as Crown Prince Mohammed bin Salman is widely known, to consolidate huge powers and neutralise potential power centres that could pose challenges to his ambition to ascend the throne.
Prince Alwaleed’s financial clout and warm relationship with several princes in the family, including Mohammed bin Nayef, the former Crown Prince who was deposed by MBS in June, make him a potential rival to the ambitious Crown Prince.
