Saudi Arabia is likely to bag over $100 billion in monetary settlement deals with princes and businessmen detained as part of its so-called anti-graft purge, a senior government official says.
The official, who was speaking on condition of anonymity, told Bloomberg last week that the settlement payments were a combination of cash, real estate, stocks and other asset classes.
He also noted that only a handful of those held at Ritz-Carlton Hotel in the Saudi capital, Riyadh, would likely reach an agreement with the authorities, warning that the individuals who fail to come to a compromise would be referred to prosecutors.
Over 200 Saudi businessmen and royals were rounded up in November 2017 in an anti-corruption probe spearheaded by Crown Prince Mohammad bin Salman.
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Observers said the campaign was actually meant to consolidate bin Salman's power and silence his critics.
The purge sent shockwaves through Saudi markets, with reports saying many billionaires moved their assets out of the region to avoid getting caught up in the crackdown.
The Saudi authorities then began securing cash settlement deals with the high-profile detainees, receiving hefty amounts in exchange for their freedom.
Prince Miteb bin Abdullah, a son of the former Saudi king, was freed after reaching a one-billion-dollar settlement agreement with the authorities.
The Ritz-Carlton hotel in Riyadh
The Wall Street Journal also reported last month that the kingdom was pressuring Prince Alwaleed bin Talal to pay up a whopping six billion dollars. Prince Alwaleed was freed on Saturday after reaching a settlement with the Saudi authorities.
Reuters reported that Prince Alwaleed was freed after a financial settlement over "violations" to which he had admitted. Terms of the release have not so far been disclosed.
Shares in Riyadh-listed Kingdom Holding company soared at the opening on Sunday after Prince Alwaleed, the company's owner, was released. The stock immediately jumped 10 percent to 10.04 riyals in unusually active trade, according to Reuters.
The Saudi Attorney General Sheikh Saud al-Mojeb was reported as saying that authorities had agreed to drop charges against about 90 detainees, who were released.
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“The royal order was clear. Those who express remorse and agree to settle will have any criminal proceedings against them dropped,” he pointed out.
Al-Mojeb denied reports of violation of the detainees’ rights, saying all had access to legal counsel while those released faced no restrictions on their movement.
Saudi authorities confiscate Mecca hotel
Separately, Qatari daily Al Sharq last week reported that the Saudi kingdom had confiscated Dar Al Tawhid Intercontinental Hotel, owned by Prince Abdul Aziz bin Fahd.
The 5-star hotel overlooks the Great Mosque of Mecca.
The prince was taken into custody as part of the alleged anti-graft campaign late last year.
He was initially thought to have been killed in a firefight while resisting arrest, but Saudi Arabia’s Information Ministry later confirmed he was “alive and well.” The prince’s whereabouts are still unknown.
Editor's note: The article has been adapted from its original source.
