RIYADH, 21 April — Contracts worth SR98 million ($26.1 million) between Saudi companies and the Iraqi government are still awaiting approval from the United Nations Sanctions Committee.
The deals were concluded under the UN oil-for-food program that allows Baghdad to sell oil to buy food, medicine and other essential supplies for Iraqis struggling under crippling economic sanctions imposed after its invasion of Kuwait.
Osama Kurdi, secretary-general of the Council of Saudi Chambers of Commerce and Industry, told Arab News that the UN Sanctions Committee has been taking too much time to make routine review of the trade agreements.
“The endorsement of the contracts are delayed as a result of long procedures as well as political and administrative complexities,” he said.
The Saudi Exports Promotion Center (SEPC) recently raised the issue at a New York meeting of countries that participate in the oil-for-food program. The center pointed out that such delays might result in Saudi companies losing the contracts. It charged that companies in most other countries get the UN approval without any delay.
Saudi companies exported around $300 million worth of food and other products to Iraq last year under the program.
Saudi businessmen said the figure would have been much higher if the world body had shown greater flexibility and cooperation.
In 2001, Saudi firms signed contracts worth $298 million for the export of miscellaneous goods to Iraq after securing UN approval.
Of this, $117 million was food exports, $104 million machinery and spare parts, and $77 million medicine and medical equipment.
Saudi businessmen say that the UN should do more to remove the obstacles it has created before Saudi exports. They urged the United Nations to approve opening of a border post between Iraq and Saudi Arabia, which the Kingdom had agreed to in 2000.
The Saudi government gave its approval for the reopening of the Arar border crossing to provide Saudi exporters with direct access to the Iraqi market after much lobbying by the SEPC.
