EXHIBIT 16

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May 13, 1996

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Ladies and Gentlemen:

Subject: Arabian Shield Development Company 
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We have read Item 4 of Arabian Shield Development Company's Form 8-K dated
May 6, 1996 and, except as stated below, are in agreement with the statements
contained in paragraph 4(a) therein.

With respect to the disclosure referred to in Item 4(a)(iv)(A)1, it is Price
Waterhouse LLP's belief that such disclosure, which had been suggested by Price
Waterhouse LLP, had been reviewed and accepted by the Company.

In addition, because it appears that the Company may believe that certain
sentences in its 1995 financial statements are "untrue" and "misleading", Price
Waterhouse LLP has advised the Company that it should consult with its outside
counsel regarding any amendments which may be necessary to the Company's
filings with the Commission.

Yours very truly,

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