"Small shipowners refuse to operate in the waters off Yemen and Somalia because pirates mostly target small ships rather than huge vessels, which have strong defense systems," said committee member Muhammad Babaydan.

He added that sometimes Saudi businessmen ferry livestock, commodities or fuel in ships flying non-Saudi flags as a ploy to avoid the attention of pirates.

"There are some ships still under captivity of pirates while many of the ships were released after negotiations," he said. "The lack of safety has made insurance companies deny coverage of ships operating in these waters. Insurance companies, which are willing to offer coverage, demand charges as high as 4,000 percent more than the normal rate."

He maintained that only coordinated international efforts would make the area safe for shipping.

Another member of the committee, Amr Hafiz, said Saudi shipowners are paying a heavy price for the insecurity in the Indian Ocean and Red Sea.

Meanwhile, a Saudi ship that was hijacked by the Somali pirates with its crew three months ago will be released shortly, according to a shipping agent in Colombo. Al-Nisr Al-Saudi was hijacked in the Gulf of Aden on March 1 with a crew of 13 Sri Lankans and the ships’ Greek captain, Georgios Skalimis.

The bunker barge, owned by International Bunkering Company Ltd. (IBCO), was on its way from Japan to Jeddah when it was hijacked. The hijackers initially demanded a $20 million ransom. The ship is currently anchored on the Somali coast off Gada.

The company’s local agent, S.H.R. Kumar, told newspapers in Colombo that the parties have agreed on a ransom amount and the pirates would soon release the sailors and the ship after they receive the payment. Kumar did not reveal the amount of the ransom, but local sources said IBCO is seeking the permission from the authorities concerned to release the large amount required from its bank account to pay the pirates.