JEDDAH, 31 October 2005 — Saudi Arabia’s accession to the World Trade Organization would not affect gas prices in the Kingdom, according to Prince Abdul Aziz ibn Salman, assistant minister of petroleum and minerals.
“The WTO agreement will not change the energy price regime in the Kingdom in general and the price of liquid petroleum gas in particular,” he told Al-Eqtisadiah business daily, a sister publication of Arab News.
Prince Abdul Aziz’s assurance comes after a key WTO working team, including major trading nations, approved the Kingdom’s accession documents on Friday, paving the way for its WTO membership after 12 years of intense negotiations.
He commended the big role played by Custodian of the Two Holy Mosques King Abdullah in speeding up the Kingdom’s accession to the body, making use of his excellent relations with leaders of the United States, Britain and France.
He said the negotiations on gas prices with the European Union had taken a lot of time. “Here also the role played by the king was crucial,” the prince pointed out. King Abdullah contacted British Prime Minister Tony Blair, current chairman of the European Union, and convinced him that gas prices inside the Kingdom would not affect foreign investment in the sector.
“The WTO agreement will allay the fears about the possibility of putting more conditions on the Kingdom, affecting its competitive edge and weakening its position in drawing foreign investment,” the prince said, adding that the agreement would strengthen the country’s position in drawing foreign investment.
Prince Abdul Aziz, a member of the Saudi delegation which won the WTO working team’s go-ahead in Geneva Friday, described the working team’s decision as an important and final step on the road to Saudi accession.
“All that remains for a formal announcement is the (approval of the ruling) General Council during a meeting on Nov. 11,” he said. “Saudi Arabia will attend the WTO ministerial meeting in Hong Kong on Dec. 13 as a full-fledged member of the organization,” he added.
Prince Abdul Aziz said trade agreements signed with the United States and the European Union “played a major role” in paving the way for WTO membership.
WTO accession is expected to boost foreign investment. Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA), said the Kingdom has reduced the number of sectors previously protected from foreign ownership, known as the negative list. “The negative list very soon will not exist,” Dabbagh said, noting that the retail sector, telecom and insurance have been removed from the list.