Saudi prince’s U.S. holdings in question
Billionaire investor arrested in Saudi Arabian anti-corruption crackdown
The arrest of one of the world’s wealthiest men, Saudi Arabia’s Prince Alwaleed bin Talal — dubbed the “Arabian Warren Buffett” by Time magazine — has cast a spotlight on his vast investment holdings, which include American companies Citigroup, Apple, Twitter and ride-hailing service Lyft.
His arrest in Saudi Arabia on Saturday night was part of a sweeping anti-corruption crackdown that included detaining 10 other Saudi princes, four country ministers and dozens of other ministers, seen as a move by Crown Prince Mohammed bin Salman to tighten his grip on power.
Prince Mohammed, 32, a son of King Salman, was named next in line for the throne in June.
Prince Alwaleed, 62, ranked 45th in Forbes magazine’s 2017 list of the world’s richest billionaires and has a current esti- mated net worth of $17.2 billion.
His global holdings include stakes in companies stretching from the Middle East to Europe to the U.S. through his investment firm Kingdom Holding Co. His investments also include the Plaza Hotel, a New York landmark, as well as a sizable stake in the Four Seasons hotel chain.
The high-profile arrest raised concerns about the future of his business empire, as well as the political stability of Saudi Arabia, a key player in the world’s energy markets. It also sparked speculation on the future of the wealthy prince’s investment holdings. Shares of Kingdom Holding fell nearly 8% Sunday in Saudi Arabia.
Wall Street analysts, however, downplayed a major negative impact when stock trading resumes Monday. The U.S. market, they argue, has survived more severe shocks than this since the bull run in stocks began in early 2009.
“I don’t see why this should be any different,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.
Prince Alwaleed, one of the most well-known members of the Saudi royal family, is probably best known to Americans for his appearances on cable business news channels like CNBC, where he often weighs in on financial matters and is viewed as the “face” of Saudi Arabia’s investment community.
In late October, he told CNBC that the cryptocurrency bitcoin would “implode” one day and weighed in on the future of electric cars. The prince, who bought a yacht from President Trump back in 1991, also said in a tweet during the presidential election that Trump should drop out of the race, saying, “You will never win.” The prince later congratulated Trump on his surprise win.