Saudi Crown Prince Who Led Anti-Terror Effort Dies

Crown Prince Prince Nayef bin Abdulaziz Al Saud, who led Saudi Arabia’s fight against terrorism while in his dual role as interior minister, has died. He was in his late 70s.

The death of the heir-apparent to King Abdullah was announced today by state television, which cited a Royal Court statement. Details of his death weren’t given. Nayef left the kingdom last month for scheduled medical tests and a vacation, the Royal Court said at the time without elaborating. The prince also had medical tests in March in Cleveland, Ohio.

Nayef, who led the Interior Ministry since 1975, had been Saudi Arabia’s most powerful prince amid the turmoil that has rocked the region. He put down attacks by al-Qaeda and backed the religious police in the Sunni Muslim kingdom, the world’s largest oil producer. He was the second crown prince to die in less than a year. The king appointed him Oct. 28 to succeed Sultan bin Abdulaziz Al Saud. Prince Salman bin Abdulaziz followed Crown Prince Sultan as defense minister.

“I don’t think this will have any impact on the stability of the country,” Theodore Karasik, director of research at the Dubai-based Institute for Near East and Gulf Military Analysis, said in a phone interview today. “The selection process is pretty clear. Prince Salman will most likely become the next crown prince.”

Regional Unrest

Nayef’s death comes as Saudi Arabia confronts unemployment, an issue cited by some activists during the unrest that led to the toppling of leaders in Tunisia, Egypt, Yemen and Libya during the so-called Arab Spring that began in December 2010. Joblessness reached 27 percent for Saudis between 20 and 30 years old in 2009, according to official data.

King Abdullah unveiled a $130 billion spending plan in the first quarter of 2011, including allowances for government workers and salary increases for military personnel.

Six kings have ruled Saudi Arabia since it was established in 1932. Abdullah changed the kingdom’s succession rules in 2007 to give an appointed commission of princes, the Allegiance Council, more power to select a new ruler.

A funeral prayer will be said for Nayef at the Holy Mosque in Mecca tomorrow, the official Saudi Press Agency said. The Royal Court offered condolences to the Saudi people on the prince’s passing, “praying to Allah Almighty to bless his soul and to reward him for his services to his religion and homeland,” according to its statement.

‘Crush’ Terrorism

Nayef was born in 1933, according to the website of his Institute for Research and Consulting Services, at the Al-Imam Muhammad Ibn Saud Islamic University, which didn’t give his date of birth.

In September 2010, Nayef said Saudi Arabia was able to “crush” the ideology of terrorism. The Interior Ministry’s forces had arrested 11,527 people since Sept. 11, 2001, for their alleged involvement in terrorism, according to an April 2011 ministry statement.

After the announcement of Nayef’s death, Saudi Arabia’s Tadawul All Share Index (SASEIDX) fell as much as 2.7 percent to 6,565.82, the lowest intraday level since Jan. 31, after earlier gaining as much as 1.1 percent. The benchmark was down 0.3 percent, to 6,724.46, at the close in Riyadh.

“Saudi institutions are well established to ensure the continuity of economic policies,” Jarmo Kotilaine, chief economist at the Jeddah-based National Commercial Bank, said by phone. “The key strategic goals are widely shared and well anchored.”

OPEC Decision

OPEC’s June 14 decision to keep its output quota unchanged yesterday puts the onus on Saudi Arabia, the group’s biggest producer, to cut supply should crude prices extend their drop below $100 a barrel. Increased production from Saudi Arabia has been blamed for plunging prices by members including Shiite Muslim-led Iran, a regional rival whose exports will be subject to a European Union embargo July 1.

Saudi Arabia will make sure there is enough supply in the global crude market, Saudi Oil Minister Ali al-Naimi said yesterday. Crude for July delivery rose 12 cents to $84.03 a barrel on the New York Mercantile Exchange yesterday.

The kingdom’s economy expanded 6.8 percent last year as it benefited from additional government spending of 224 billion riyals ($60 billion) and oil prices that averaged $95 a barrel, up from $80 in 2010. Economy Minister Muhammad al-Jasser said on May 22 that he hopes the kingdom’s real gross domestic product growth will be at about 6 percent this year.

Source: Bloomberg