JEDDAH, 24 August — The Kingdom is capable of absorbing the large Saudi funds invested abroad, says Osama Al-Kurdi, secretary-general of the Council of Saudi Chambers of Commerce and Industry (CSCCI) and a Shoura Council member.
"I believe the Saudi economy is capable of absorbing Saudi funds invested abroad," he stressed, highlighting the growing investment opportunities in the Kingdom.
"There are a lot of investment opportunities in gas and mineral sectors and railways as well as in petrochemicals, tourism, education and training," Kurdi told Al-Bilad Arabic newspaper.
He noted the government’s incentives to investors by way of new regulations and establishing bodies like the Saudi Arabian General Investment Authority, Supreme Commission for Tourism, Supreme Economic Council and Supreme Council for Petroleum and Minerals. "All these systems serve investment in the Kingdom," he added.
He believed that most reports on the amount of Saudi investments abroad were exaggerated. "Some reports say it exceeded $800 billion while some others estimate it between $500 and $400 billion. This is guesswork. I don’t agree with these figures," he said, adding that no exact figure was available about Saudi investments abroad.
Kurdi underscored the council’s efforts in attracting Saudi and foreign investment. "Capital has no nationality, but we have to create a conducive atmosphere to attract it. Statistics presented by SAGIA show that there is increase in foreign investment. We need more."
He said the government had made a lot of efforts over the past years to attract foreign investment, by developing the economy and systems and opening new areas for investment. I am confident that more investments will come from abroad gradually," he added.
Kurdi emphasized the importance of easing government procedures to attract investors. "I believe that these routine procedures are one of the major obstacles. We have to be very keen on this matter and try to reduce its impact on investment flow," he added.
He said the government and private sector must make use of international expertise in privatization. "I believe privatization will reduce cost of production and services, increase demand and boost the economy."
Kurdi emphasized the importance of the Kingdom joining the World Trade Organization (WTO). "It will open new markets for Saudi exports," he added.
A prominent economist, Kurdi said the Sept. 11 events had no much impact on the Kingdom’s economy. "It has affected only those who have investments abroad which are subject to stock market fluctuations. I don’t think it had any direct impact on Saudi economy," he added.
Kurdi said Saudi companies and businessmen should study the reasons for the collapse of some major international companies and learn lessons from them. He called upon Saudi banks to contribute more for the development of small-scale and medium-scale firms.
He said the Export Promotion Center, which was established 15 years ago, was instrumental in boosting Saudi exports. "We are working with a number of government departments to establish a general exports authority," he said, adding that the authority will replace the center. He suggested that the export center must be kept as an independent organization.
Asked why he had presented his resignation, Kurdi said: "I have been discussing this matter with CSCCI’s board ever since my appointment as a Shoura Council member. I wanted to devote my entire time for the Shoura, especially at this time. Involvement in both organizations would affect both," he explained. He denied suggestions that he resigned because of differences of opinion.
The CSCCI is an important organization, which represents the Kingdom’s private sector at regional and international federations of chambers and other organizations such as the International Labor Organization. It also represents the private sector at the Saudi government.
"We have played a big role in redrafting many of the Kingdom’s laws," he said. The Export Promotion Center and the Supreme Commission for Tourism came into being as a result of proposals made by conferences held by the council. CSCCI also works to strengthen the Kingdom’s economic and commercial ties with other countries.
"The government seeks our opinion on various economic issues. Government departments and the Shoura Council hold meetings with Saudi businessmen to discuss matters related to economy," he said and underlined the strong ties between the public and private sectors.
He refuted the allegation that the council represented only a small group of businessmen. "On the contrary, we look for businessmen to participate in our seminars, conferences and delegations and we don’t find them
"The allegation that CSCCI is a club of a few businessmen is not true at all," he said and called upon Saudi businessmen to make full use of the council’s services and potentials.
Referring to the decision to cut the council’s annual budget, Kurdi said it was not because of dispute between CSCCI and chambers but because of the financial difficulties of chambers.
"Some chambers do not have the capability to continue their financial support for the council like before. This is the reason for cutting the budget," he added.
