JEDDAH, 15 February 2006 — Now that Saudi Arabia has joined the World Trade Organization, opened its economy to the global market and is seeking foreign investment, what are some of the challenges it faces? That was the question asked during the session on attracting foreign direct investment at the Jeddah Economic Forum.
Members of the panel were John Hugh Anwyl, president of Anwyl International Development Group in the United States, and Lim Hng Kiang, minister of trade and industry for Singapore, who presented Singapore’s experience in becoming an investment magnet in its region.
Speaking to Arab News on attracting investment to Saudi Arabia, Anwyl said that he comes from a country that lives in a self-created cocoon which makes it difficult for most Americans to get a clear image of Saudi Arabia. “Unfortunately, the image that most Americans have is related to 9/11, so I think there is a great need for a systematized plan for the Jeddah Chamber of Commerce & Industry and beyond, first to clarify what image you want to project in the American context and then have a planned design on how to effectively use the modern media,” he said. He finds that there are so many things going on and changes happening but they are unknown to the outside. “Ignorance leads to misunderstanding and perceived insensitivities, like the issue of the cartoon. I can’t believe in Denmark that if they had had even a glimmer of how sensitive the issue was that it would not have been handled differently.”
However, with that vast ignorance about Saudi Arabia, there is a great opportunity, according to Anwyl. “You don’t have to remove too many images except the 9/11 image, which is traumatic, but it also gives you an opportunity to create an image. A true image, as you know what that is and we don’t, it’s in your hands to do it if you want to.” As an example of how Saudi Arabia can attract investment and at the same time improve its image, he suggested the area of water as one thing that Saudi Arabia can initiate and lead in providing clean water to the world. “It will have an impact on the world of business, clearly has an impact on health, and the image of Saudi Arabia,” he said.
As for other challenges, besides the image, and obstacles that stand in the way of attracting investment to Saudi Arabia, he does not think there are any insuperable challenges, whether it is the image or technology or the skills. Asking about the criteria for establishing a healthy and robust investment environment, “I see there are some great strides that have been made in terms of the new city for example of how robust it is,” said Anwyl. There are some concerns about the oil issue — what if it dries up? The official response is that it is not going to happen any time soon, but nowadays, five years is a long time,” he added. He finds that fear of doing business here and what that triggers is the biggest factor.
“I think if people had the ideas and insinuations in the world of business presented to them, they would see a lot of opportunities, but they are shut off. I think there are no walls that cannot be taken down if there is real intent to do it. I would make a serious effort as part of that plan, to make the role and participation of women in business here known outside,” he suggested.