JEDDAH, 29 December 2005 — Abdullah Al-Muallami, the newly elected chairman of the Jeddah Chamber of Commerce & Industry (JCCI), is not worried about the Rabigh economic city taking business away from Jeddah. In fact, he considers Rabigh is an extension of Jeddah.

Last week, King Abdullah launched the SR100 billion King Abdullah Economic City at a location off the Red Sea in Rabigh north of Jeddah. Construction on the mega project, which consists of six distinct components — a modern world class seaport, industrial district, financial island, education zone, resorts and a residential area — began Dec. 21. The completion of the overall project will be done in stages with the first batch of business and residents moving into the city within two to three years. The project will function as a catalyst for attracting foreign investment, global trade, commerce and industry. It is expected to create up to 500,000 employment opportunities in various industries and service-oriented companies that will open in the city.

While many businessmen in Jeddah expect a boom in business, especially those in construction, due to this new project, others are worried that it would take away potential investments and growth in such sectors as tourism and finance, not to mention affecting activities at the Jeddah Islamic Port.

“I think the effect on business in Jeddah will be positive because Rabigh is an extension of Jeddah and Jeddah is a basic launching point for Rabigh,” said Al-Muallami. “Developing the regions adjacent to Jeddah is part of the strategy we are working to develop Jeddah. The idea is to establish the cities and entry points and connect them with Jeddah. I think development in Rabigh is development in Jeddah too,” he said.

He does not think it will take away businesses from Jeddah but rather add to it because Jeddah is the launching point to Rabigh.

The new chairman and his board, which includes women for the first time in Saudi history, has a five focal point work plan. “We are preparing the plan and intend to follow it,” said Al-Muallami. The first focal point is identifying Jeddah’s needs and activating the economic and construction development march and assist in achieving it.

The second is supporting small and medium establishments, “and in this regard there are several initiatives to establish loan funds and cooperative funds and others to help provide the support for these establishments.”

The third focal point is supporting businesswomen and young businessmen because, according to Al-Muallami, these two groups face certain kinds of problems and obstacles in starting and developing their businesses, and they need special programs to remove these problems.

The fourth is increasing the chamber’s activities and improving its performance by introducing the use of information technology and providing training.

The last focal point is increasing the relationship between the chamber and the business sector in Jeddah, which is connected to improving representation in the committees and trying to figure out the sector’s expectations and needs.

The board’s development program also includes identifying the sectors with the greatest potential.

“In my opinion the sectors related to tourism, information technology, services and capital market are all promising sectors that need to be activated,” he said.