RIYADH: The Saudi government pursued a sweeping purge of the country’s upper ranks on Sunday, saying it would freeze the accounts of dozens of princes, ministers and a tycoon arrested as the crown prince cements his hold on power.

Prominent billionaire Al Waleed bin Talal was among the princes arrested late on Saturday night, a government source said, immediately after a new anti-corruption commission, headed by Crown Prince Mohammed bin Salman, was established through a royal decree. In another move, the head of the Saudi National Guard, once a leading contender to the throne, as well as the navy chief and the economy minister were replaced in a series of high-profile sackings that sent shockwaves through the nation.

The dramatic shake-up comes at a time of unprecedented social and economic transformation in Saudi Arabia, as Prince Mohammed steps up his reform drive for a post-oil era.

Shake-up signals a tightening of Crown Prince Mohammed’s grip on power

State-owned Al Arabiya television reported that 11 princes, four current ministers and a large number of ex-ministers were arrested as the commission launched a probe into old cases such as floods that devastated the Red Sea city of Jeddah in 2009.

The government official gave a list of 14 of the most high-profile names, including Prince Al Waleed, ranked among the richest men in the world.

The information ministry separately said the bank accounts of those arrested would be “frozen” and any assets related to the corruption cases would be registered as state property.

“The suspects are being granted the same rights and treatment as any other Saudi citizen,” attorney general Sheikh Saud al Mojeb said in a statement, adding that a number of investigations had been initiated. “A suspect’s position or status does not influence the firm and fair application of justice.”

‘A new era’

Shares in Kingdom Holding, 95 per cent of which is owned by Prince Al Waleed, dived 9.9pc as the Saudi stock exchange opened on Sunday after reports of his arrest. The share price later recovered some of its losses to end the day down 7.6pc.

In a statement, Kingdom Holding said it was “aware” of Saturday’s developments, but insisted that it was “business as usual” after the chief executive of the company was assured of support from the government.

Finance Minister Mohammed al Jadaan said the crackdown “heralds a new era and policy of transparency, clarity and accountability”.

“The decisive decisions will preserve the investment environment and boost trust in the rule of law,” the Saudi Press Agency quoted him as saying.

The kingdom’s top council of clerics also lauded the anti-corruption efforts as “important”, essentially giving religious backing to the crackdown.

An aviation source said that security forces had grounded private jets at airports, possibly to prevent high-profile figures from leaving the country.

There was fevered speculation on social media that the arrested figures were being held at Riyadh’s Ritz Carlton – a palatial hotel originally planned as a palace for guests of the royal family. The hotel appeared to be closed off to the public on Sunday and its website said the property was fully booked.

“The breadth and scale of the arrests appears to be unprecedented in modern Saudi history,” said Kristian Ulrichsen, a fellow at the Baker Institute for Public Policy at Rice University.

“The reported detention of Prince Al Waleed bin Talal, if true, would send shockwaves through the domestic and international business community,” Ulrichsen added.

The purge comes less than two weeks after Prince Mohammed hosted thousands of global business leaders in Riyadh for an investment summit, showcasing his reform drive that has shaken up the kingdom.

Meteoric rise

It follows a wave of arrests of influential clerics and activists in September as the 32-year-old prince, known as MBS, consolidates his hold on power.

Analysts said many of those detained were resistant to Prince Mohammed’s aggressive foreign policy that included the boycott of Gulf neighbour Qatar as well as some of his bold policy reforms, including privatising state assets and cutting subsidies.

The latest purge saw Prince Miteb bin Abdullah sacked as the head of the National Guard – an elite internal security force. His removal consolidates the crown prince’s control of security institutions.

To analysts, Prince Mohammed’s meteoric rise has seemed almost Shakespearean in its aggression and calculation. In June, he edged out a 58-year-old cousin, Prince Mohammed bin Nayef, to become heir to the throne.

Already viewed as the de facto ruler controlling all the major levers of government, from defence to the economy, the prince is widely seen to be stamping out traces of internal dissent before a formal transfer of power from his 81-year-old father King Salman.

At the same time, he has projected himself as a liberal reformer with a series of bold moves, including a decision allowing women to drive from next June.

Published in Dawn, November 6th, 2017