JEDDAH, 8 April 2008 — Custodian of the Two Holy Mosques King Abdullah yesterday urged ministers to adopt effective measures for the protection of the national economy from the negative impact of global economic developments.
The king made this statement while presiding over a meeting of the Council of Ministers at Al-Yamamah Palace in Riyadh.
“International economic developments, especially the decline in production of some foodstuffs and increase in consumption and prices must be studied carefully in order to reduce their negative impact on the Saudi economy,” the Saudi Press Agency said, quoting a Cabinet statement.
In January, the Cabinet adopted a 17-point program to offset the effect of rising inflation and prices. They included a five percent inflation allowance for government employees, a 10 percent increase in social insurance and subsidies for essential products including rice, baby milk and barley.
Government agencies were asked to intensify the monitoring of prices and combat trade fraud while shops were told to display lists of prices in a prominent place.
In order to address the issue of rising house rents, the Cabinet decided to start building more low-cost housing units for the poor.
The worsening security situation in Iraq and global efforts to establish Middle East peace also figured high on yesterday’s Cabinet meeting agenda.
“Saudi Arabia has been following the latest events in Iraq with deep concern,” the Cabinet said and called for the protection of Iraq’s territorial integrity and national will from foreign domination and encroachment.
King Abdullah briefed the ministers on the outcome of his talks with Palestinian President Mahmoud Abbas last Tuesday and reiterated Saudi Arabia’s support for the Palestinian cause, their national unity and legitimate rights.
Minister of Information Iyad Madani said the Cabinet took a number of other important decisions. It authorized the interior minister to sign a memorandum of understanding (MOU) with Morocco for cooperation in civil defense. The minister of Islamic affairs was directed to sign another MOU with Indonesia dealing with Islamic affairs and endowments.
The Cabinet also decided to strengthen cooperation with Argentina in higher education and authorized the minister of higher education to sign an MOU with his Argentine counterpart in this respect.
The president of King Abdullah University of Science and Technology will sign another agreement with the US for cooperation in science and technology.
Meanwhile, Saudi-Turkish relations received a shot in the arm yesterday with the Cabinet endorsing an agreement signed by the two countries for the protection and promotion of investments.
The accord prevents either party from confiscating or nationalizing investments of the other party, Madani added.
Prince Abdullah ibn Fahd ibn Muhammad has been appointed undersecretary for security affairs at the Makkah Governorate, and Saad ibn Zaid Al-Zaid panel coordinator at the Cabinet’s secretariat.
