RIYADH, 7 December 2003 — The United States wants Saudi companies to take part in reconstruction projects in Iraq worth $18.6 billion. The call came from US Assistant Secretary of Commerce William Lash while meeting in Riyadh yesterday with Saudi businessmen at the Council of Saudi Chambers of Commerce and Industry.
Lash is in the Kingdom on a brief visit to whip up interest in work in Iraq.
“We want to encourage and facilitate Saudi businesses getting involved in the reconstruction of Iraq,” he told Arab News before flying to Jeddah. “We also want to encourage face-to-face contact between Iraqi and Saudi businessmen,” he said. “Saudi businesses have a very large and profitable role to play as regional leaders in the reconstruction program.”
The US Department of Commerce plans to conduct seminars and hold regular consultations to keep the Saudi businessmen informed about upcoming projects. Meanwhile, new tenders would be coming out soon and Saudi companies could bid in joint ventures with American counterparts.
The Riyadh meeting also heard that Saudi Arabia wants the US to agree to reopen the Saudi-Iraqi border at Judaidat Arar. Abdulrahman Al-Jeraisy, chairman of the Council of Saudi Chambers of Commerce, announced that the Kingdom plans to set up a coordination office at Judaidat Arar to facilitate direct trade with Iraq. But that would require American backing to get the border open.
“Moreover, businesses won’t need a visa to go to Iraq as they can operate from Judaidat Arar. Having this gate opened would help us to avoid using other Iraqi borders with Jordan or Kuwait.”
But Jeraisy also voiced concerns whether Saudi companies would get further involved in Iraq given the present situation there. Businessmen were unhappy about bidding for new projects without firm guarantees, he said. Some had lost a lot of money in Iraq, and Saudi investments need to be underwritten. “We want a letter of credit from a reputed financial institution or a solid guarantee,” he said.
Lash, however, did not believe that was necessary or wanted. “We’re not aware of any requests for guarantees,” he said. On the contrary, there is “Saudi enthusiasm” for doing business in Iraq — “without guarantees.”
