According to reports which quote the chairman of the Council of Saudi Chambers of Commerce & Industry (CSCCI), some 4,000 Saudi investors have recently moved to neighboring countries in order to do business there. CSCCI Chairman Abdul Rahman Al-Jeraisy attributed the mass exodus to the fact that the Saudi economy is a free economy where investors can come and go as they wish, driven by the investment opportunities available to them. It is true that the Saudi economy is free, but we question ourselves if even one Saudi investor moves his capital outside the Kingdom — let alone as large a number as 4,000!
It is regrettable to hear the honorable chairman say that the council intends to study the reasons leading to the flight of investments and to address whatever the problems are. At the same time, Al-Jeraisy said the council would look at 14 obstacles out of a staggering 120 that hinder investment in the Kingdom; he went on to say that many of the obstacles are not really impediments but are in fact positive signs. What? How can something be both an impediment and something positive at the same time?
The problem is a simple one and does not require either a group of businessmen or a committee to solve it. If any investment is to succeed, there must be clear rules and regulations that govern the relationship between the state and the investors and both of these and the commercial entities they deal with: banks, importers, distributors, etc. in addition to an effective legal system that guarantees and protects the rights of all parties.
These things which produce investments depend upon a strong government apparatus capable of upholding and implementing the rule of law, protecting people’s rights and enforcing the rulings of courts. If this were in fact the case, we would see those responsible for billions of riyals in bad checks being punished instead of walking free; we would see all those who have made fortunes out of every kind of scam being jailed. Perhaps we would even see Saudi investments abroad returning home.
