Saudi Arabia arrests 11 princes over utility bills
Riyadh says no one is above the law as Prince Mohammed struggles to enforce austerity
Saudi authorities have arrested 11 princes for protesting against the suspension of state subsidies to pay the electricity and water bills of members of the royal family, a rare example of open dissent over recent austerity measures.
The public prosecutor, in a statement late on Saturday, said the group of princes had staged a sit-in at a palace in the capital on Thursday, refusing to leave the area after being told that their demands were not lawful.
The group, now detained in prison ahead of trial on charges related to these offences, were also demanding compensation for one of their cousins, Prince Turki bin Saud al-Kabeer, who was convicted of murder and executed in 2016.
“No one is above the law in Saudi Arabia, everyone is equal and is treated the same as others,” said Saud Al Mojeb, the attorney-general. “Any person, regardless of their status or position, will be held accountable should they decide not to follow the rules and regulations of the state.”
The princely dissent reflects broader antipathy towards the government’s revenue-raising imposed this year, including a 5 per cent sales tax, a doubling of petrol prices and further increases to utility charges.
In the wake of the measures introduced over the new year, Saudis took to social media to complain about the rising cost of living and difficulties in covering their monthly costs.
In response, the authorities on Saturday granted state employees a monthly payment of an extra 1,000 riyals ($267) to help with the burden of new taxes and higher costs.
The royal order acknowledged the “increased burden” on some segments of society, saying the extra measures aim to “soften the impact of economic reform on Saudi households”.
But the decision also risks undermining attempts to diversify the economy away from oil by boosting the private sector’s role in the economy.
Crown Prince Mohammed bin Salman, the king’s son, has embarked on an ambitious reform programme, seeking to rationalise state spending while launching a wide-ranging privatisation process, anchored in the part-sale of oil giant Saudi Aramco, scheduled for this year.
The economy, buffeted by three years of lower oil prices, fell into recession in 2017, with the private sector reeling from years of lower government spending. The finance ministry has ploughed through state reserves and issued international debt to balance a budget that is projected to be in deficit to the tune of $52bn this year.
The latest royal arrests come after more than 150 princes, businessmen and ministers were detained in Riyadh’s Ritz-Carlton hotel on charges of corruption. Some are now being released, after having paid back money allegedly embezzled from the state. Others are said to have been found innocent of the accusations.
The extraordinary purge, masterminded by Prince Mohammed, has shattered decades of family protocol by publicising grievances previously voiced only in private.
The crackdown — intending to raise $100bn — has won broad appeal among many Saudis fed up with rampant embezzlement among the elite.
Global investors, however, have raised concerns that Prince Mohammed’s purge intends to quell potential opponents within the ruling family and raise revenues for depleted state coffers.