JEDDAH, 10 November 2004 — Saudi Arabia has one of the largest liquidity in the world despite the flight of some $1 trillion to foreign countries, according to Abdul Rahman Al-Jeraisy, chairman of the Council of Saudi Chambers of Commerce and Industry.
“Saudi investments abroad are estimated at between $800 billion and $1 trillion and most of these funds are concentrated in the United States and Europe,” Al-Eqtisadiah business daily quoted him as saying.
Jeraisy, who is chairman of the Riyadh Chamber of Commerce and Industry, called upon government departments to soften restrictions on foreign investment. “If we had allowed foreigners to own real estate and buy shares the volume of investments would have increased 10 times,” he explained.
“Many Saudis have invested in stocks and real estates as they are the easiest markets,” he said. “The decision taken by a number of Saudi businessmen to invest their money in the Kingdom has made Saudi Arabia one of the countries with highest liquidity,” he said.
Businessman Abdul Mohsen Al-Hokair, chairman of Al-Hokair Group, said in a recent press statement that more than 2,500 Saudi companies had chosen to establish investment projects in Dubai rather than Saudi Arabia during the past three years. He blamed bureaucracy, complex regulations and slow decision-making process for the massive exodus of capital.
The Saudi Arabian General Investment Authority (SAGIA) has announced a five-year strategy that aims at making the Kingdom more investment-friendly. The strategy will address investment issues in coordination with regional governorates and government agencies.
Speaking to reporters, Jeraisy proposed establishment of four free-trade zones at the Kingdom’s seaports, adding that the government was very late in taking a decision on this matter. “The idea of establishing free-trade zones is much better than the idea of setting up development regions,” he said referring to a proposal made by SAGIA.
Jeraisy, a veteran businessman, called upon the government to provide tax concessions to private industries and firms that are established outside major cities in order to reverse the migration of population and attract more investments to remote areas.
He said the council of chambers would not interfere in municipal elections by supporting its members to get elected. “There in nothing to worry about businessmen in these elections,” he said in reference to concerns expressed by some intellectuals that businessmen would spend large amounts of money on campaigning to win votes.
Jeraisy criticized suggestions that there were discrepancies in protecting rights of Saudi women. “You cannot find the rights and privileges enjoyed by women in my country in other parts of the world,” he stated.
Official statistics show that women constitute 35 percent of employees in government departments, he said, adding that most of them work at educational and health sectors and receive SR35 billion in salaries annually. About 65 percent of deposits in Saudi banks belong to women.
“The Saudi leadership facilitates the movement of Saudi businessmen. They visit other countries and receive foreign delegations. This has strengthened the Kingdom’s economic progress,” he said.
As part of its efforts to promote trade exchange with foreign countries, the Riyadh chamber has embarked on an SR150 million international exhibition center project. Riyadh Governor Prince Salman recently laid the foundation stone for the center, which covers an area of 193,000 square meters.
Jeraisy said the center, to be ready within two years, would host national, regional and international exhibitions to promote industry and business. The center will have four exhibition halls with the main hall covering an area of more than 4,700 square meters.
“The project also includes a permanent exhibition center for national products and a center for businesswomen with all facilities and services,” he added. Other facilities at the center will include offices of organizers, a business service center, banking services, travel and tourism offices, medical and first-aid services, posts, rent-a-car and hotel services.
