JEDDAH, 25 May 2004 — Saudi Arabia yesterday welcomed the “important resolutions” taken by the Arab summit conference in Tunis and expressed confidence that they would strengthen the Arab League and help restore its credibility.
The Council of Ministers, chaired by Crown Prince Abdullah, also emphasized the significance of the reform document adopted by the summit, adding it would serve Arab causes and strengthen joint Arab action.
“This is the first time a document promoting joint Arab action has been approved. It sets out the foundations of serious and credible work,” Information Minister Fouad Al-Farsy said quoting the Cabinet.
The Kingdom also said new ideas for the Arab League Charter would help the organization restore its credibility. Arab foreign ministers have already endorsed the proposals.
The Cabinet meeting reiterated that world peace and security could not be realized without reaching a just and permanent settlement in the Middle East and urged the international community to do its utmost to revive the Middle East peace process.
The meeting expressed its deep sorrow over the worsening security situation in Iraq and called on the United Nations to play a vital role in restoring the country’s security.
Al-Farsy said state shares in the National Company for Cooperative Insurance (NCCI) would be floated for public subscription in the second half of this year.
“The Council of Ministers has approved a proposal by the Supreme Economic Council to sell off the shares in NCCI owned by the Public Investment Fund,” he said.
The fund has a 50 percent stake worth SR250 million in the company. The rest goes to the General Organization for Social Insurance and the Pensions Fund.
“The PIF will hold talks with GOSI and the Pensions Fund to sell 10 to 15 percent of their shares in the company,” Al-Farsy said quoting the Cabinet decision. “The shares will be sold to Saudis and the flotation will be open for two weeks,” the minister explained.
The value of the share will be fixed after studying the company’s financial condition. “Prospective shareholders have to buy at least 10 shares or double that figure if they want more,” Al-Farsy said. Individuals may only buy shares on behalf of a maximum of 10 others.
The Cabinet also approved steps by the Saudi Arabian Mining Company (Maaden) for the gradual privatization of the company once it has achieved reasonable profits from its investment projects, especially its phosphate and bauxite plants.
“Maaden has to intensify efforts to bring in strategic partners in the early stage ... to obtain the necessary funds and technical support,” the Cabinet said.
The company will reach an agreement with investors in its strategic units to float part of its shares for public subscription. It will also set up independent legal units to speed up the privatization process.
The Cabinet also approved private-sector participation in e-government.
