Saudi clerics attack Prince Alwaleed's share offer

RIYADH, July 10 (Reuters) Interest in the public sale of a stake in Saudi Prince Alwaleed bin Talal's Kingdom Holding, which began today, could be tempered by clerical opposition to a business empire often attacked as un-Islamic.

The billionaire royal, often accused as being ''al-amir al-majin'' (the depraved prince) by Islamists on Internet forums, is selling 5 per cent of the flagship firm that has made him one of the richest people in the world.

But a Saudi cleric who specialises in giving religious opinions on economic issues this week deemed Kingdom mired in activities forbidden by Islam, such as usury and alcohol.

''I ask Almighty God to guide those in charge of the Capital Market Authority and this company towards what God approves, and to save them from His wrath and revenge,'' Mohammed al-Ossaimi said in a fatwa issued yesterday -- the latest of a number of clerical edicts against the firm.

The fatwa cited Kingdom Holding's investments in companies such as Time Warner Inc., Apple Computer Inc., Motorola Inc., News Corporation Inc. and Four Seasons Hotels, as well as some Saudi firms also frowned upon by Saudi religious scholars.

Saudi Arabia is an Islamic state where a powerful religious establishment is given wide scope to impose a stringent version of Sunni Muslim law.

The prince, a grandson of Saudi Arabia's founder who also has Lebanese nationality, has in the past attracted conservative ire for his Rotana network of television channels, which include Arabic music videos and feature films.

Liberals and religious conservatives are locked in a battle over the direction of the US-allied country, which is the world's largest oil exporter. Many senior members of the Saudi royal family are seen as belonging to one camp or the other.

Financial analysts say the criticism of Alwaleed could have an effect, though the offer is still expected to be a success.

''There is a great deal of retail investors who will refrain from buying for religious reasons, but the IPO (initial public offering) is set to be oversubscribed,'' said Mohamed al-Omran, head of the Gulf Center for Financial Consultancy in Riyadh.

REUTERS AM ND1652