Until now arguably the international face of business in Saudi Arabia, billionaire Prince Alwaleed bin Talal is among several princes and ministers who were detained over the weekend by Saudi security authorities as a part of a probe by a new anti-corruption body headed by Crown Prince Mohammed bin Salman.
The chairman of Kingdom Holding Co. (KHC) in Riyadh, nephew of King Salman and the grandson of Saudi Arabia’s founder King Abdulaziz al-Saud, Prince Alwaleed owns a 47% stake in Four Seasons Hotels and Resorts, is a major investor and board member at AccorHotels, and owns significant individual hotel assets, including the Four Seasons George V in Paris, the Savoy in London, and the Plaza in New York City. His company is also a major investor in companies such as Citigroup, Time Warner, Twitter and Lyft.
While Prince Alwaleed, 62, reportedly is being held, ironically enough, at the Ritz-Carlton hotel in Riyadh, KHC said in an official statement on Sunday that it is continuing its normal business operations and has the support of the government. It also reported it swung to a third-quarter profit, stating it made US$66 million in the three months to September 30, compared to a loss in the same period a year ago. However, the company’s stock dropped some 7.5% in Sunday trading.
KHC CEO Eng. Talal Al Maiman, who is charged with managing more than US$12.5 billion of investments around the world, said, “I am not surprised by the government’s vote of confidence as KHC pursues its investment strategy and global business operations. I would also like to emphasize that KHC’s experienced and seasoned team of senior executives, who are leaders in their respective fields, are focused on their unwavering responsibilities to KHC’s shareholders and stakeholders.”
Four Seasons also made a public statement and sent a letter to owners saying its day-to-day operations are not effected by the news of Prince Alwaleed detention. “It is business as usual as we continue to welcome guests to our hotels and resorts worldwide and focus on what we do best, providing the most genuine and personal service,” the statement said.
The arrests seem to come in step with Crown Prince Mohammed’s stated ambition to modernize the Kingdom and consolidate his power. The 32-year-old’s ascent has been swift and he is rumored to be in line to become king within months.
A Monday New York Times article suggested a potential reason for Prince Alwaleed’s detention is uncovered evidence of irregular activity and the opportunity to make an example of him. Others said there has been bad blood between Prince Alwaleed, who has been known to be outspoken, and the crown prince.