DAMMAM, 12 August 2003 — Eastern Province businessmen have called upon the Kingdom’s banks to lower the commission rates for loans. They said that the rates charged by banks here was among the highest in the world.
The businessmen discussed several issues pertaining to the private sector at the monthly meeting of the Eastern Province Chamber of Commerce and Industry.
The businessmen said tone reason for the higher rates was the presence of fewer banks in the Kingdom compared to other GCC countries. At present there are only 10 banks operating in the Kingdom while in the UAE, there are nearly 200.
In Bahrain too there are more banks than in Saudi Arabia and the small island is a center for offshore banking in the GCC.
The businessmen said that because of the small number of banks there was less competition and so the banks fixed rates to suit themselves.
One businessman said that if the banks lowered their rates, many people might consider launching new businesses.
“People are reluctant to ask for loans due to the high rates,” he explained.
The businessmen also called on foreign embassies and consulates, particularly those from Europe, to issue multiple visas to Saudi businessmen. They said that many western European countries gave only two or three visas every year.
“We talk about the world as a global village, and against this backdrop, I think it is imperative for all European countries and America to provide open visas to businessmen so that they can travel freely there,” said one disgruntled businessmen.
There was also agreement about the need to completely abolish custom duties on steel.
“Steel plays an important role in industrialization and the current high duty is a factor that impedes the growth of local industry,” they said.
The businessmen also renewed their call to create a free trade zone in the Kingdom.
“This would bring in foreign investments and major industries would be keen to come here,” they said. A free trade zone would also give an impetus to local business, they added.
