RIYADH, 12 June 2003 — The United Nations has canceled 70 contracts of Saudi companies in Iraq saying they were signed outside the framework of the oil-for-food program during the reign of Saddam Hussein.
Dr. Abdul Rahman Al-Zamil, president of the Saudi Exports Development Center, estimated the value of canceled Saudi contracts at hundreds of millions of riyals. He said the UN had exempted contracts related to the oil-for food-program.
However, Al-Zamil expressed hope that the UN will review the cancellation of contracts after the formation of a new civilian government in Baghdad, especially government-related contracts.
The export promotion center had informed Saudi businessmen involved in the-oil-for food program that it was difficult to implement the program in the present situation. The center conveyed the information on instructions of the permanent Saudi delegation to the United Nations.
Al-Zamil disclosed that Saudi and Iraqi businessmen were holding talks on establishing joint ventures in Iraq. “This is the ideal way to enter the Iraqi market directly,” he said.
At present the move is to provide 70 to 80 percent of domestic contracts to Iraqi companies. Al-Zamil urged Saudi businessmen not to pin great hopes on projects of big American companies such as Bechtel as these large-scale projects would take time to implement.
