JEDDAH, 2 December 2004 — In its bid to join the World Trade Organization, Saudi Arabia has offered to increase foreign investment in banks from 40 to 49 percent soon after becoming a WTO member and to 51 percent three years after the accession, informed sources said.

Ahead of another round of WTO talks in Geneva this week, the Kingdom has also offered to increase foreign ownership of telecom services to 49 percent at the time of accession and 51 to 60 percent by the year 2007, Al-Madinah Arabic daily reported, quoting the sources.

The United States is the only major trading partner with which Saudi Arabia has not yet reached a WTO agreement. However, Dr. Fawaz Al-Alamy, deputy commerce and industry minister and head of the negotiating team, has reported that negotiations with Washington had reached an advanced stage.

“The Kingdom has received the American demands for concluding a bilateral agreement...and has expressed its readiness to raise the percentage of foreign ownership in banking services to 49 percent soon after joining WTO and 51 percent three years after the accession,” the sources said.

The Saudi negotiating team is expected to arrive in Geneva today for talks with the US and other WTO members. According to the sources, the Saudi team will present its offers in meetings with US officials this week. Saudi Arabia has reportedly received 14 demands from America to reach a WTO accord.

The US has asked Saudi Arabia to raise foreign ownership in banks to 100 percent, in mobile and land phone services to the maximum and in other telecom services to 100 percent by the year 2006, and in retail and wholesale trade to 75 percent within three years. US demands also covered topics such as insurance, company branches, subsidized services, technical workers, acquired rights, customs tariff and legal services. It wanted the Kingdom to cut tariff on wheat from 50 to 25 percent and on poultry from 25 to 20 percent.

Though Saudi officials have repeatedly stated that Riyadh could join the WTO by the end of this year, a US trade official said in September that it could be delayed. “I can’t give you a time line, but it’s not imminent,” the official said. But WTO spokesman Joseph Bosch said negotiations for the Kingdom’s accession to the organization were progressing well. Saudi Arabia has already signed bilateral WTO agreements with 35 countries.