RIYADH, 18 July 2004 — The Kingdom is mobilizing its forces in four areas in which it is particularly strong in preparation for the membership of the World Trade Organization (WTO).
Dr. Fahd S. Al-Sultan, secretary-general of the Council of Saudi Chambers of Commerce and Industry, told Arab News that in order to capitalize on its strengths — electrical, petrochemical, building materials and food industries — efforts are under way to bridge the gap in terms of information concerning WTO rules and regulations, management information system (MIS), inducting professionalism in the work place, and change in “administrative behavior.”
He said the Kingdom had abundant energy resources (26.5 percent of the world’s oil reserves) and a strong capital base. Together, they gave a competitive advantage to the Kingdom in terms of the reduced cost of production without sacrificing quality.
The secretary-general was speaking on measures to boost the Kingdom’s competitiveness during the run-up to the WTO membership. “We are prepared to face the competition,” he said, adding that the Kingdom had already become a member of the Trade Unions of the Gulf States and the Arab Free Market.
Asked if concerns over terrorism would have a negative impact on the Saudi economy, Dr. Fahd said: “Every country feels the impact in one way or the other. However, in the Kingdom’s case it is not that serious, since we have experienced 100 years of stability.”
He argued that despite security concerns, the Kingdom has continued to attract foreign direct investment, which stood at over SR39 billion since the inception of SAGIA in 2000. The latest joint venture to go on stream is the Eastern Petrochemical Co. (Sharq).
A 50:50 joint venture between Saudi Petrochemical Development Co. — a consortium of 58 Japanese companies — and Saudi Basic Industries Corporation (SABIC), they are planning to invest 250 billion yen in the construction of an ethylene plant in the Kingdom to produce the key raw material for petrochemical products.
According to current statistics, the Kingdom ranks 23rd in terms of the ratio of exports to the GDP at 43.4 percent and 45th among the world’s 60 top economies in terms of e-readiness as documented in a study conducted by the Economist Intelligence Unit and IBM.
Saudi exports stood at $91.6 billion last year, with oil accounting for 89.9 percent of the total exports. The value of imports amounted to $36.9 billion. The balance of trade ($54.7 billion) is in the Kingdom’s favor.
In reply to a question on the WTO awareness campaign, Dr. Fahd said eight major seminars were held in Riyadh, Jeddah, Dammam, Hail, Al-Qassim, Jouf, Tabuk and Najran with input coming from WTO experts.
In addition to filling in gaps on the technical front, the secretary-general said it was also necessary to put the employees in the private sector through an intensive training program in the field of MIS. He also called for the development of a work ethic, or “administrative behavior,” as he put it, to boost productivity.
Another priority area, according to the secretary-general, is the marketing of dates using state-of-the-art techniques. “The Kingdom produces 970,000 tons of high quality dates in 250 different varieties.
