The editor in chief of the Egyptian daily Al Ahram had written on Oct. 25, 2002, that we currently write about Arab money abroad in view of what this money suffered since 9/11 and deliberate over its growth because of the October war of 1973. He infers that the war escalated the price of oil and pushed it to higher levels to the advantage of the oil producing countries and American oil companies. It also created the need for recycling to benefit the USA in particular and the West in general.

In his assessment, the Arab nations that took the risks were left with no reward. He highlights the risks of keeping surplus funds in the US in the light of recent freezings or confiscations. In his view, such ugly violations of trust should be sufficient to deter them in keeping the money there.

Nowadays there is no excuse for such freezings nor real justification. US judicial arrangements are apparently sufficient for the “arms of the law” to reach any convicted person even out of his “matrimonial bed”.

Whatever the wisdom for Arabs to send their money, it is fair to state that Saudis took their surplus funds where they desired. Some invested locally; others moved to Egypt, Europe, Japan or the USA. Regrettably the flight of Saudi money confronted nationalization or sequestration in one or two Arab countries. In the USA it has been frozen or blocked. Such overpowering actions burden peoples with hardship, agony and unexpected difficulties. Still, short of total loss or recourse to law.

Whichever way we look at it, funds are safer at home. Though may be less rewarding. The funds that are taken outside the country does not play a role in the building of the national economy. Admittedly it is more a question of chicken and egg between local investment opportunities and financial sourcings. Saudi Arabia is no exception. The opportunities are still in petrochemicals, in repeat-businesses or in buildings. This activity is thriving to the extent we notice one mall next to another with a third in between.

The size of Saudi money in USA is not known or established. However the chief-editor of Al- Ahram states that it is estimated between $500 billion to $2,400 billion. Neither figure seems credible to me. However, this is not the big issue. The real issue remains that Saudis hold billions of US dollars in cash, financial instruments and property in the USA. This little anecdote is of great interest to the people of this country, especially the needy ones. They do not desire to possess others’ wealth but wish to see what others make in their country is put to good use locally, especially when they are not too happy with the break in the dialogue of the two countries or as Maureen Dowd puts it in the New York Times of Nov. 11, 2002, where everyone I met bitterly complained that America is working against Islam and shafting the Palestinians.

The people in the West believe that the funds belong to their respective owners, but they should enjoy the ‘rent’ and other benefits. Also it is a worthwhile thought that the two governments should get their acts together and resolve their differences.

To them Saudi funds outside their country is of little benefit for the economy or its people. Working on joint investment programs will reap benefit and friendship.

Friendship is only true when it is meaningful. Then it can be the ingredient for successful commercial and investments relationships. Sustainable friendship benefit the two nations and their peoples, especially where at the grass root levels they get to know each other and exchange knowledge. This cannot materialize in a world of suspicions. Differences of shared values need to be recognized and respected. The difference in size should not work to the determent of the smaller. The cultural differences should make the total of the two more valuable than the stand-alone portions.

This country is an open field for investment opportunities rather than a playing ground for religious or cultural interferences. The USA can complement a lot of this country’s needs and requirements.

It can take advantage of the investment opportunities and exchange knowledge and know-how, for part of the funds that are parked in its country. This way both can benefit.

Arab News Features 25 November 2002