JEDDAH, 4 October 2004 — Saudi economy continued its strong performance last year, showing a decline in inflation rate and an increase in balance of payment and general budget, Finance Minister Dr. Ibrahim Al-Assaf told an IMF meeting in Washington.
Al-Assaf, who heads the Kingdom’s delegation to the meeting, said Saudi Arabia’s healthy economic situation has enabled its private sector to play a pioneering role in diversifying the country’s economic resources.
The minister also spoke about the Kingdom’s role at regional and international levels, and its ongoing efforts to join the World Trade Organization (WTO).
Saudi Arabia is now holding final rounds of talks with the United States to reach a WTO agreement with its largest trading partner before the end of this year.
WTO spokesman Joseph Bosch said negotiations for the Kingdom’s accession to the organization were progressing well. “There is a big possibility that Saudi Arabia may get WTO membership this year,” Al-Eqtisadiah business daily quoted Bosch as saying.
US and Saudi negotiators met in Geneva last month to discuss the latest efforts by the Kingdom to bring its copyright and patent protection laws up to WTO standards. The two sides also discussed steps Riyadh was taking to bring its food product shelf-life restrictions in line with international norms.
Al-Assaf emphasized the importance of cooperation between oil producing and consuming countries to preserve oil price stability, under the auspices of the Riyadh-based World Energy Forum. “In order to bring about stability in world economy, notably in the economies of the developing countries, Saudi Arabia has decided to raise its oil production capacity,” the Saudi Press Agency quoted him as saying.
Referring to the recent oil price rise, the minister said the continuing tension in the Middle East had contributed to soaring prices. “Speculative trading in oil market and rise in world demand are other reasons,” he pointed out.
Al-Assaf underscored the economic reforms introduced by the government in recent years, adding that they had played a vital role in strengthening the economy.
“This strong economic performance not only reflects the developments in oil market but also the progress made in creating an atmosphere conducive to the private sector,” he said.
