Arabs told to brace for rapid changes in global economy

RIYADH, 18 April  — On behalf of Crown Prince Abdullah, deputy premier and commander of the National Guard, Riyadh Governor Prince Salman opened a meeting of Arab League finance ministers, central bank chiefs and heads of financial agencies here yesterday.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

In his speech read out by Prince Salman, Crown Prince Abdullah said the Kingdom had been supporting joint Arab action in every field since its foundation by the late King Abdul Aziz. “Saudi Arabia has played an effective role in establishing Arab financial institutions which continue to receive its support,” he added.

The crown prince drew the attention of the meeting to the rapid changes taking place in the global economy. “These developments require the Arab world to devise appropriate strategies to benefit from their positive aspects and to escape their negative effects,” the crown prince told the Arab officials. “We participate with great keenness in the joint Arab economic activities which, we hope, will bolster the growth and development in the Arab world,” he said.

“The Kingdom has been following with interest the progress these Arab financial institutions are making,” he added.

Underscoring Saudi efforts to enhance cooperation among Arab states, the crown prince said he was happy with the achievements of the Arab financial institutions which led to economic stability in the region.

Speaking at the opening session of the two-day conference, Minister of Finance and National Economy Ibrahim Al-Assaf said joint economic action by Arab countries was passing through a decisive stage in the light of globalization, stiff outside competition and the existence of numerous economic blocs.

The minister also enumerated the results of increased cooperation among Arab countries in the field of trade and economy. He cited the increase in intra-Arab trade, expansion of markets for Arab products, the growing competitiveness of Arab products in the international markets and better bargaining position for Arab states with other economic blocs, apart from the approaching reality of an Arab free trade zone.

The minister said the Kingdom forged new economic policies to meet the challenges of the World Trade Organization and the increasing competition in the international market, to improve  investment climate in the country and to boost private sector role in the nation’s development.

The Kingdom also set up the Supreme Economic Council, the General Investment Authority and the Higher Commission for Tourism. The new foreign investment regulations, real estate ownership law and reviewing of taxation rules reflect the Kingdom’s keenness to open up its economy to cope with the international developments.

Meanwhile, Crown Prince Abdullah received a number of Saudi businessmen at his palace in Jeddah.