JEDDAH, 17 May 2005 — The Saudi government yesterday decided to cut customs tariff on cement imports from 20 to five percent in an apparent move to bring down soaring prices in the market, the Saudi Press Agency reported.
The decision, taken by the Cabinet meeting chaired by Crown Prince Abdullah, will be effective from Jan. 1, 2006.
However, the reduced rates will be in force as of today and the state will subsidize the customs tariff until its actual date of implementation.
The decision is significant as cement prices in some Saudi cities had gone up to SR25 per bag. Hassan Ateeq, a cement trader, said the decision would help cut prices and boost the construction sector. He disclosed plans to import cement from Egypt.
Speaking to Arab News, Ali Mousa, a real estate developer, said the decision was “a very good news.” It will bring down prices to SR11 or SR12, he said.
The Cabinet also emphasized the principles that must be followed by the international community to reinforce peace and stability all over the world and called for peaceful settlement of all regional and international conflicts.
The meeting stressed the importance of respecting international law, protecting human rights and preventing the spread of nuclear and other weapons of mass destruction.
Respecting the supremacy and territorial integrity of nations is another major principle required for world peace, the Cabinet said while commending the outcome of a summit of South American and Arab countries in Brasilia last week.
“The summit was successful in setting out new foundations for building strategic partnership between the Arab world and South American nations, especially in economic and commercial areas,” a Cabinet statement said.
Culture and Information Minister Iyad Madani said the crown prince briefed the Cabinet on the outcome of his talks with Lebanese Prime Minister Nagib Miqati. “The talks focused on strengthening unity among the Lebanese people in order to bolster the country’s security and stability,” Madani quoted the crown prince as saying.
The Cabinet meeting endorsed a framework agreement between the Gulf Cooperation Council and China for economic, commercial, investment and technical cooperation. The accord aims at expanding trade and economic relations between the two sides. Saudi Arabia is a member of the GCC which also include Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates.
The Cabinet authorized the governor of the Saudi Arabian General Investment Authority (SAGIA) to sign a draft agreement with Singapore for the protection and promotion of investments between the two countries.
