A few weeks ago a local newspaper published a report saying that Saudi poultry producers lost a deal worth SR162 million for the export of chicken to Iraq after trying for two months in vain to secure an entry visa for an Iraqi businessman to conclude the deal. The deal went to a Brazilian firm through its resident agent in the United Arab Emirates.

This comes at a time when Saudi exports have been witnessing a steady decline. According to a bulletin released by the National Commercial Bank, the volume of finances provided by the bank to Saudi private sector exports went down by 5.0 percent last year. The decline was the second in two consecutive years. In 2002, NCB finances for Saudi exports went down by 11.4 percent compared to the previous year, and the bank said the decline during the first three months of 2003 was 3.61 percent compared to the same period last year.

While the decline continues, local production of poultry including chickens, eggs and dairy products has been recording a steady increase.

The obstacles put by the Ministry of Foreign Affairs in the way of representatives of foreign companies seeking entry visas to the Kingdom have forced many foreign investors to look for other countries after losing any hope of coming to our country.

Just across the border, we can see how the United Arab Emirates, and Dubai in particular, have succeeded in attracting foreign investors. It all depends on the policies adopted by officials there, which aim at encouraging foreign companies to open offices in the UAE to conduct their business and facilitating entry and residence in the country for foreign businessmen and their representatives.

Now many Saudi businessmen find themselves forced to deal with the representatives of companies operating from the UAE instead of dealing directly with the parent company. As a result Saudi businessmen continue to incur additional expenses in the form of commissions, travel and other expenses. The problem facing Saudi businessmen is further compounded by the presence of a free trade zone in Dubai that is now attracting investors and traders from all over the world.

With the world around us moving fast, we are still walking slowly. While the UAE is winning, we might find ourselves at the mercy of our neighbors’ mighty business influence.

With our country lacking resident representatives of foreign companies, a day may come when Saudis will have to work as agents and distributors for UAE-based firms.

Arab News From the Local Press 13 July 2003