Saudi Prince Alwaleed bin Talal's investment company sees borrowings stall
Saudi Prince Alwaleed bin Talal's investment company sees borrowings stall
Kingdom Holding’s plan to borrow money to fund new investments has stalled following the arrest of owner Prince Alwaleed bin Talal, Reuters reported on Monday.
2 min read
The arrest of Prince Alwaleed bin Talal came amid a crackdown against Saudi princes [AFP]
A major Saudi conglomerate saw new investment plans held up as consequence of the recent arrest of its owner Prince Alwaleed bin Talal in Saudi Arabia following a crackdown against Saudi princes and other senior figures.
Bin Talal's Kingdom Holding had planned to borrow around five billion riyals ($1.3 billion) from banks for planned investments.
The agreement has now been delayed according to a Reuters report on Monday, which cited "banking sources".
Lenders were especially concerned in dealing with a company owned by a prince who is now under arrest and investigation in the kingdom, the report added.
Kingdom Holding is a major Saudi investment firm with holdings in a diverse range of companies including the Four Seasons Hotel and the Rotana Group Entertainment enterprise. Alwaleed bin Talal owns 95 percent of the company.
There are signs that the crackdown against major figures like Alwaleed bin Talal is affecting Saudi businesses, according to the report.
A number of other transactions involving other figures under arrest had also been delayed.
The crackdown began overnight 4 November with the arrest of major Saudi royals, including the sons of Saudi Arabia's previous King Abdallah under allegations of corruption.
Critics have said the move is a power-grab by the current Crown Prince Muhammad bin Salman who is seeking to consolidate his power-base and eliminate rivals.
Follow the Middle East's top stories in English at The New Arab on Google News
