Robert Fisk’s World: The stakes get higher as Arab princes try to outdo each other

Do the Saudis not have the slightest idea of what is going on around them?

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Prince al-Waleed bin Talal of Saudi Arabia is quite a man.

He says he doesn't want to be the prime minister of Lebanon – everyone who wants to be the prime minister of Lebanon says that – but he is immensely wealthy. True, his bank balance has sunk from $23.7bn to a mere $13.3bn since 2005 (thus sayeth Forbes magazine). But he's just announced that he wants to construct the world's tallest building – a 1km-high goliath which will dwarf his neighbour emir in Dubai who last month opened the paltry 25,000ft Burj Khalifa amid the sand dunes of his bankrupt creditors. The nephew of King Abdullah, al-Waleed understandably calls his company Kingdom Holdings. He also happens to be a major shareholder in Rupert Murdoch's News Corp – which is why you won't be reading these words in The Times. Long live Kingdom Holdings, I suppose.

Because yesterday morning, I was taking an al-Jazeera television crew around the repulsive, obscene, outrageous, filthy, stinking slums of the Sabra and Chatila refugee camps not far from my home in Beirut, a place of such squalor that the gorge rises that human beings even live there. Sabra and Chatila – yes, the site of that infamous massacre in 1982 when Lebanese Christian militiamen allied to Israel slaughtered up to 1,700 Palestinian civilians while the Israeli army surrounded the camps, watched the killings – and did nothing. They were the survivors of the great exodus or ethnic cleansing of 1948 – or their sons or grandsons – who fled Galilee for the "temporary" safety of Lebanon and, like the visa applicants of the movie Casablanca, wait and wait – and wait – to go home. Which they will never do. "I am very positive," Prince al-Waleed said when he announced his new priapic tower, to be constructed in the Red Sea port of Jeddah. "We are always looking for new investments."

Now I know that there are a lot of fine philanthropists in the Gulf, Prince al-Waleed among them, but what is one to make of all this? Afghanistan is collapsing in blood; Iraq remains a state of semi-civil war; the Israelis continue to thieve land for Jews and Jews only from the Arabs who hold the title deeds to that property – and Prince al-Waled wants to build a tower reaching a kilometre into the sky. Do the Saudis – who gave so much largesse to the Taliban (we have to forget this, of course, along with the fact that the Saudis provided most of the murderers of 9/11, which is why we bombed Kabul rather than Riyadh) – not have the slightest idea of what is going on around them?

For example, we all know that the Americans maintain stocks of weapons among their allies. They keep munitions in South Korea and, indeed, in the Arab Gulf (aka Saudi Arabia). But very quietly this week, they agreed to double their munitions supplies in Israel from $400m of weapons to $800m. Of course, Washington's gift of $9bn to Israel up to 2012 – never, of course, to be spent on those illegal colonies which are built against international law on Arab land but which Barack Obama now pusillanimously ignores – has nothing to do with this. But don't imagine that – in the event of a new "preventive" war – Israel cannot draw on these supplies for its own army and air force. After all, it was a missile taken to Saudi Arabia by the US marines for use against Iraq in 1991 that ended up in the hands of the Israeli air force as part of a quid pro quo for not joining in the war against Baghad - and which was subsequently used to kill civilians in a Lebanese ambulance in 1996.

But these days, Arab compliance reaches new heights every day. Now, for example, we have the Egyptian government – and its ever popular president (see the American-approved presidential election results which are way above 90 per cent) – building a wall around Rafah, part of the vast mass of poverty which constitutes Gaza, thus preventing food, gasoline (and, no doubt, weapons) from reaching the trapped Palestinians of this prison camp. A camp, one has to add, which meets with the full approval of Lord Blair of Kut al-Amara, whose honourable involvement in the invasion of Iraq has now been outdone by is extraordinary success as peace envoy to the Middle East.

Egypt's intelligence boss (a certain Mr Sulieman who might be the next president of Egypt were it not for his pattern of heart attacks) approves of this wall, which is a very definite assistance to Israel and which will yet further impoverish the Palestinians of Gaza to the point at which the inhabitants of Sabra and Chatila might actually feel themselves lucky they don't live in "Palestine".

In Israel itself, the deputy foreign minister humiliates the Turkish ambassador – while complaining about an anti-Semitic series on Turkish television – by forcing the diplomat to sit on a low sofa, refusing to shake hands and addressing him, with two colleagues, from higher chairs. The foreign minister himself, our dear friend Mr Lieberman, has now acquired the habit – every time poor old (and I mean old) US envoy George Mitchell raises the question of Jerusalem – of walking out of the room. That's what Obama's point man is worth. Israel's crazies – Netanyahu is a moderate chap by comparison – now prove that Israel can be just as much a banana Raj as the rest of the Middle East.

But fear not. The princes and the emirs and the caliphs and the presidents will be able to outbid each other in towers and hotels. I have a bigger painting set than yours. I have a sharper pencil, more crayons, a larger train set (Qatar, please note), a bigger bear than yours. And the world will watch this tragedy and marvel at the toy boxes now being opened in the Middle East. And, by the way, how many crayons do the children of Sabra and Chatila have?

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