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Saudi Arabia Withdraw 200 Billion Dollars from America

Posted August. 21, 2002 22:54,   


Hundreds of billions of dollars of Saudi Arabian funds in America is being withdrawn from America. The British daily Financial Times named it ‘Exodus’ on the 21st.

The Financial Times reported quoting investment analysts, “Saudi Arabia recently withdrew 100 billion to 200 billion dollars already.”

The reason for exodus is because the earning rate in America is lowered due to economical slump in America.

Most of all, however, the astronomical group lawsuit by the surviving family of the 9.11 terror is stirred this ‘adverse tide of anger.’

The some 600 surviving family members raised a trillion dollar reparation lawsuit against the Saudi Arabian Royal Family, banks including the biggest in Saudi Arabia, National Commercial Bank, and charity organizations including the International Islam Relief Organization saying that they supported Osama Bin Laden, who was known to be the man behind the 9.11 terror. As the outcome of the lawsuit, the investment assets of Saudi Arabia in America might be closed or confiscated, so they are withdrawing the funds as quickly as possible.

However, it not just because of the lawsuit. Saudi Arabia harbors suspicion that this lawsuit is related to the briefing given by the highest policy-advising group in the US Department of Defense, the DPB on the 10th of last month. A researcher of the Land Research Institution, Nolant Moravik, who gave the brief then insisted, “Saudi Arabia must be considered as the enemy of America, and if necessary, Saudi Arabian oil fields and funds in America might be confiscated.” Therefore, they think this lawsuit is the pre-step toward confiscation of funds in America.

The spokesperson of one of the banks being sued this time, Al Lazi Investment and Development Bank criticized, “The lawsuit is an action to drive away Saudi Arabian funds saved in America,” The total amount of invested funds is assumed to be 400 billion ~ 600 billion dollars including funds flowed into stocks, bonds, and real estates.

Since the foreign investment in America was dropped from 301 billion dollars in 2000 to 124 billion dollars in last year, the withdrawal of Saudi Arabian funds is presumed to be a serious threat to the American economy.

The Financial Times analyzed, “The Saudi Arabian investors are not considering totally closing all the accounts in America, but they are transferring the withdrawn funds to European accounts,” and “this can put more pressure on depreciation of dollars.” However, since the US Government cannot play a part in civil lawsuits, it cannot do anything about withdrawal of the Saudi Arabian funds.

The relationship between America and Saudi Arabia, which were allies for the past 60 years, started to freeze since 15 out of 19 culprits of the 9.11 terror were identified as Saudi Arabian, and it is getting worse since Saudi Arabia openly announced that it would not support America when it attacked Iraq. America is discontented that the Saudi Arabian Government is conservative about regulating terrorist organizations including Al Qaeda.

Jung-Ahn Kim credo@donga.com