DAMMAM, 10 December 2003 — Saudi exporters have urged the Council of Saudi Chambers of Commerce and Industry to study the possibility of setting up joint banking between Saudi Arabia and Iraq in order to protect the interests of Saudi businessmen. Millions of counterfeit Iraqi currency is in circulation in Iraq and Saudi businessmen fear receiving fake currency as payments. Businessmen say that sending goods to Iraq is unsafe because of the absence of law and order. They feel that the proposed bank would help by ensuring payments.
Thani Al-Onaizi, chairman of Northern Province Chamber of Commerce and Industry, said that Saudi exporters should receive money through Saudi banks in order to avoid such fears. A study is being conducted aimed at establishing a direct business center at Jodaiydat Arar Customs linking Saudi Arabia and Iraq. This center would facilitate business between Saudi Arabia and Iraq without participation by a third party. Al-Onaizi said he had been told by Iraqi businessmen that the American administrator in Iraq was not enthusiastic about such a trading zone.
Many Saudi business sectors are experiencing a boom due to Iraqi reconstruction. Steel, cement and transport services are in great demand in Iraq and Kuwaiti and Jordanian businessmen are exploring the Saudi market as they seek to supply desired commodities. Due to a construction boom in the Kingdom, cement and steel are already in short supply in the Kingdom and various cement companies are planning to expand production capacity merely in order to meet domestic demands. Cement export has already dropped due to domestic demands, industry sources say. Transport companies have their own reasons for backing out from Iraqi reconstruction. They say the security and safety of their drivers and vehicles are of paramount importance. According to a transport company manager, there have been many incidents in which Saudi trucks and trailers have been either destroyed or damaged. A few drivers have even been kidnapped and held for ransom.
For whatever reason, the Saudi private sector is not participating in Iraqi reconstruction the way it should. Businessmen are wary of the situation in Baghdad and say that their full participation will occur only when the situation in Iraq is stabilized. This less than enthusiastic response from the Saudi private sector has proved a blessing for those in Kuwait and Jordan who are trying to negotiate with Saudi businessmen on individual bases and making them offers in situations where the security of goods and lives is not jeopardized.