JEDDAH, 11 June 2008 — Kingdom’s contracting sector hopes that the current shortage of iron, steel, and cement would disappear shortly and their prices would be steadied as a result of the steps taken recently by the government.
The steps include stringent checks on the export of iron, steel and cement. Another significant step taken to contain the situation is Saudi Basic Industries Corp.’s decision to suspend export of iron and steel besides importing them in quantities sufficient to cover the local requirements.
The Ministry of Commerce has laid down several conditions on exporters to guarantee that they do not involve in any foul play. The exporters should give all the details about their export such as the source of the goods, destination and the contract with the buyers. The permits for the export of iron and cement would be issued only after ensuring that local requirement has been supplied.
Abdullah Ammar, chairman of the National Contractors Committee, said the government has the authority to regulate the export of iron because the manufacturing country has the first right for its products.
Ayman Ahmad, a Jeddah-based contractor, said despite the new government measures they found it hard to get sufficient quantity of iron and steel. “We still do not get sufficient supply of iron and so we are compelled to get the material at any price since we have our contracts to keep going,” he said.