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At the Ritz in Riyadh, Detained Saudis Negotiate for Freedom

Businessmen and members of the royal family are among those held at the hotel amid corruption probe

By Summer Said and Asa Fitch Nov. 21, 2017 5:33 a.m. ET
https://www.wsj.com/articles/at-the-ritz-in-riyadh-detained-saudis-negotiate-for-freedom-1511260412

RIYADH, Saudi Arabia—Crown Prince Mohammed bin Salman has become a regular visitor to the Ritz-Carlton on the western side of his nation’s capital, which is now a luxurious detention center for wealthy Saudis caught up in a widening corruption probe, according to Saudi officials.

Prince Mohammed, who heads the committee leading the investigation, typically travels with only a few trusted advisers, and his visits to the five-star hotel near Riyadh’s Diplomatic Quarter and several royal palaces tend to last for a while, Saudi officials said.

“He does spend hours,” one Saudi official said. “It is never a quick visit.”

For the past two weeks, detainees at the Ritz have negotiated with Prince Mohammed and his deputies about handing large chunks of their wealth to the state in exchange for their freedom, according to Saudi officials. The amounts detainees are being asked to surrender are commensurate with what they are alleged to have gained improperly, Saudi officials said.

The Saudi government didn’t respond to requests for comment.

Designed originally as a palace for hosting foreign dignitaries, the Ritz boasts almost 500 rooms, a sprawling indoor pool, a small bowling alley and a lobby with four statues of rearing stallions.

Room prices range from around $500 a night to more than $6,000 for the “royal suite.” But regular guests aren’t allowed beyond the hotel’s high walls at the moment.

Authorities have expanded the medical facilities available on site, after some detainees sought medical care outside the hotel, according to Saudi officials. The decision was made “to avoid any detainees being transferred to local hospitals and having interaction with people outside the investigation,” said one Saudi official.

The government set up additional medical facilities within the nearby four-star Courtyard by Marriott, according to Saudi officials.

“The Ritz-Carlton, Riyadh and the Courtyard, Diplomatic Quarter are not operating as traditional hotels for the time being,” said a spokesman for Marriott International Inc., which operates both hotels.

Rooms aren’t available through the Ritz’s online booking portal until February.

Those detained at the Ritz include businessmen and members of the royal family, according to Saudi officials. Billionaire Prince al-Waleed bin Talal—a top investor in Citigroup Inc., Twitter Inc. and Lyft Inc.—is there, as is Prince Miteb bin Abdullah, the former head of the Saudi National Guard, according to Saudi officials. They couldn’t be reached for comment.

The Saudi government has established a special committee to handle forfeitures and to organize the transfer of assets to the Saudi state, according to Saudi officials.

“The investigation committee is aiming for about 70% of the total ill-gotten money, rather than the entire money,” said a senior Saudi adviser, adding that seizing half of the funds would be a more realistic outcome.

In an indication the probe is expanding, a Saudi official said the number of bank and investment accounts frozen in connection with the investigation was now “far beyond” the 2,000 the authorities initially blocked.

A number of the detainees have agreed to deals, according to Saudi officials. Many are still holding out for better terms, they said.

Those who agree to deals may be allowed to go home and live under house arrest as the assets are transferred, these officials said. Much of the detainees’ wealth is held in accounts overseas, which would make any involuntary seizure by the Saudi government through legal channels difficult.

Those who don’t agree to forfeit assets could be moved to al-Hayer prison about 25 miles south of central Riyadh and face trial, according to a Saudi official. The maximum-security prison is considered the most secure in Saudi Arabia.

As investigations unfolded, the strain among detainees was showing, according to a Saudi official. Some—especially the less prominent who stood to lose larger shares of their wealth or could implicate others by admitting to corruption—were hardly getting sleep, a Saudi official said.

Write to Summer Said at [e-mail] and Asa Fitch at [e-mail]

https://www.wsj.com/articles/at-the-ritz-in-riyadh-detained-saudis-negotiate-for-freedom-1511260412