NEW YORK, Oct 15: Several Saudi investors are concerned that their US assets may be frozen in the global crackdown on terrorism.

Since last month’s terrorists attacks on New York and Washington, a surge of anti-Arab sentiment abroad has prompted many Saudis to postpone business trips to the United States and take their children out of US schools.

Concerns were heightened by news that a well-known Saudi businessman Yassin Abdullah al-Qadi was included on the second US Treasury blacklist of groups and individuals suspected by Washington of links to terrorism.

Qadi says he and the charity he founded years ago have no links with Osama bin Laden, Washington’s main suspect in last month’s attacks.

“I hope it doesn’t turn into a witch-hunt,” said a Riyadh-based financial manager on Sunday.

“People are having second thoughts about buying a house in the United States or putting a child in school there. I would expect less money to be allocated to the US”

However, portfolio managers and bankers, who advise top Saudi clients, say that this has not been the case.

The latest embarrassment was the rejection of a $10-million cheque donated by Saudi Prince Alwaleed bin Talal, the world’s sixth richest man, to victims of the collapsed World Trade Centre.

Prince Alwaleed’s cheque was shunned because of his criticism of US Mideast policy, which New York Mayor Rudolph Giuliani interpreted as an attempt to justify the attack, which left more than 5,000 dead or missing.

Just a few days beforehand, the Prince had announced he was adding a further $400 million to his US equity portfolio.