We told the world that we’re working towards becoming an open developed country. We also made the rest of the world aware of our initiatives to demolish all bureaucracies and obstacles. We stated to the entire world that our administrative decisions wouldn’t be randomly made, that we would make the right decisions to avoid misconceptions that would ruin the Kingdom’s reputation.
To be frank and honest, I was never optimistic. The transitional period that a nation needs to undergo a shift from one phase to the other is not as easy as expected. My beliefs have been confirmed by what has happened. I was astounded to hear the news of the cancellation of the biggest specialized summit for the business sector only two days before its opening in Riyadh. The plan was for the summit to examine the role initial public offerings (IPOs) could play in broadening the total number of stocks available and improving investor confidence. It was also to provide essential information to private companies seeking to go public. The conference was expected to address the costs associated with IPOs and the long-term obligations of public companies, as well as the critical factors underpinning oversubscriptions, over-pricing and macro-economic issues that affect IPOs.
Four hundred investors and businessmen, participants and speakers from GCC countries, the US, Asia, and Europe who arrived in the Kingdom to attend the summit were shocked to learn that it had been canceled. Everyone started questioning the reason for suddenly calling off the conference. Each participant reached a different conclusion for the cancellation, but the one reason that terribly annoyed me was discussed by a group of angry participants in my office in Riyadh last Sunday. This particular group of guests was trying to be nice to me explaining that they understood the reasons for this chaos, namely that there were security issues because of the large number of participants, speakers, and foreign specialists.
I was perplexed that they actually thought this was the reason for canceling the summit. I assured them that this chaos was not caused by political terrorism, but by the terrorism of our bureaucracy that is deeply entrenched in our public and governmental sectors. I also explained that the foreign organizers, co-operating with the Riyadh Chamber of Commerce and Industry, had not applied apply for permission from the Ministry of Commerce ahead of time. The regulations state that a permit must be obtained twenty days prior to any conference, especially if there are foreign participants.
I also explained that on the same day of the summit, there was another conference taking place: An energy summit in the Eastern Province. Participants at that summit were the public sector, the Ministry of Petroleum and Mineral Resources and other sectors. There were 800 participants from GCC countries, Saudi Arabia, and other foreign countries and it wasn’t canceled for any security reason because they followed the rules in organizing their summit. If there were security reasons in Riyadh, it would have been more appropriate to cancel the Eastern Province’s conference for the delicacy of the subject presented and the type of participants attending. Therefore, the alleged political reasons are false.
Because of the organizer’s mistake, the Ministry of Commerce canceled the summit for failing to obtain permission in advance. The ministry could have questioned the Riyadh Chamber, which was the local partner, warned the foreign partner, issued the license quickly, allowed the summit to start, and then investigated the inadequacy of certain people who neglected their jobs.
Let us assume that the summit had been held without prior permission. I’m positive that our leaders wouldn’t question or hold anyone responsible. Our leaders are busy with more sensitive and crucial issues that matter to citizens more than summit permissions and licenses. So why do we assume the worst? Even if our leader questioned the reason for holding a conference without prior permission, I’m sure he would understand and thank the officials in the ministry for having acted in such a logical and rational way that saved our country from embarrassment.
Calling off the summit was the straw that broke the camel’s back. It ruined any future chances of organizing international conferences in cooperation with the private sector in the Kingdom. The losses were huge for all involved in this summit. It mainly angered the participants because they had reserved hotel rooms for four days and couldn’t cancel their reservations or get refunds.
After this catastrophe, I honestly wish that these complicated permissions and licenses would be removed as a requirement for holding conferences in the Kingdom. I am keeping in mind that the new system of Council of Saudi Chambers being studied in the Shoura Council gives the Chambers Council total freedom to coordinate with the Ministry of Commerce.
This incident must not be easily forgotten, especially during this crucial period of economic development, during which our country is making amazing advances in building the marketplace. The Kingdom is ready to open up once it can stop the bureaucracy from making sudden and disastrous decisions that have destructive effects on our attempts to attract foreign investment.
Similar rash decisions will hinder our future efforts at organizing international summits and conferences because this incident has left us with strong doubts as to the credibility of the organizers and whether they are capable of operating in such a vital field.
Officials in the Ministry of Commerce, and any other ministry for that matter, must never underestimate the importance of such behavior. This is dangerous and serious chaos. I request that our leaders investigate and look into the issue in order to punish those responsible, be they from the public and or private sectors.
The reader might wonder why I personally have so much interest in this subject. My reply is summed up in two main reasons: First, I was a featured speaker in the conference and spent much time preparing my speech. Second, it was my idea to organize this summit in Riyadh. I was invited by the organizers and an English company to give a speech in Dubai at one of their conferences last year. When I stood on the platform, I was surprised that most of the audience was composed of Saudis. And when I asked the Saudis to raise their hands, the surprise was that they represented 90 percent of the audience. I then invited the organizing committee to organize similar conferences in Riyadh, Jeddah, and Dammam. I encouraged them by saying that the number and quality of audience would be much better in the Kingdom. Unfortunately, they believed me and here are the sad results.
I pray that they don’t think of suing me; I don’t really need more financial problems. I have enough damage to deal with because of the stock market catastrophes and the losses of my portfolio savings.
— Dr. Abdul Rahman Al-Zamil is a Shoura Council member and chairman of the Zamil Group of Companies. He can be reached at: [email protected].
