RIYADH, 13 January 2004 — Britain has indicated its strong interest in entering the Kingdom’s mobile telecommunications sector, which has been thrown open to overseas investors.
Sir Stephen Brown, chief executive of UK Trade & Investment, told newsmen that while the Saudi economic reforms program had generated interest among overseas investors, they would, at the same time, like to see how it is being implemented.
“My message to your government is: Set the right policy framework as it thinks fit; let it be transparent so that everybody can see it; and then implement it consistently. A country may have excellent laws, but what if they are not implemented?”
During his stay in the capital, Sir Brown had talks with Minister of Transportation Jobara Suraisry and Minister of Commerce Dr. Hashim Yamani. He thanked Dr. Yamani for lifting the ban on British dairy products and hoped that the import of British beef and lamb products would also be resumed soon. He invited a delegation from the Ministry of Commerce and Industry to inspect their facilities in Britain.
On Sunday, the chief executive visited the Saudi-British Training Institute, one of the 150 Saudi-British joint venture firms operating in the Kingdom. The total value of British investment in the Kingdom stands at $3.5 billion. During his talks with the deputy governor of the Saudi Arabian General Investment Authority, he was briefed on the economic reforms program. As for the mobile telecom sector, he said there was a great deal of interest among some of Britain’s major telecommunication companies, especially as the Saudi government wants to license an overseas mobile telephone company. Britain, he pointed out, was among the first countries to deregulate the telecom sector and open it up to foreign competition.
“By encouraging competition, we have driven down costs and improved service,” he said, offering the British model as a possible subject of study.
Referring to his talks with Dr. Yamani, Sir Brown said he commended the Kingdom’s efforts in streamlining the Kingdom’s regulations for entry into the WTO. “It has been calculated that if we can achieve the right deal, then 300 million poor people will be taken out of the poverty trap. This can be done essentially through trade liberalization.”
The advantages, he pointed out, would be twofold. It would stimulate the world economy and also contribute significantly to improving world security. “There is no doubt that in some countries poverty could breed terrorism, disaffection and political instability. If we can help these 300 million people out of the poverty trap, it will have a practical benefit.”
Asked about his assessment of the current situation in the Kingdom and whether it would impact negatively on the investment prospects, Sir Brown said investors are here for the long haul. They did not seem to be unduly perturbed over the current security concerns.