JEDDAH, 21 February 2005 — The importance of cooperation between government and the private sector was highlighted in the session “Private Sector: Vital Driver of Local Government” moderated by Ghassan Al-Sulaiman, the vice chairman of Jeddah Economic Forum here yesterday.
Abdulla Al-Muallami, the mayor of Jeddah, Mohammed Al-Abbar, director general of Dubai Economic Development and chairman, Emaar Properties, and Nibras Al-Fadel, the economic adviser to the president of Syria were the panelists.
The session dealt with how private sector has the potential to transform local governments with its skills, experience and finance. It also touched on how differing objectives can create disruptive tensions and lead to poor solutions and missed opportunities.
Al-Muallami, in his speech, stressed the importance of cooperation between the government and the private sector. The government plays an important role because it provides a convenient environment for private business in using all the national potentials and directs them in the right economical and social growth. He pointed out the Kingdom’s experience with this cooperation has proved the success of this ideology.
The mayor of Jeddah stressed that this cooperation provides a good climate for opportunities while also providing the governmental sector with human resources development. He added, this cooperation gives a chance to revise implemented laws and regulations. This also gives a chance to review these laws and regulations and give fair critic about their quality and implementations.
Al-Muallami said it also encouraged investments and cooperation to provide services like roads, telecommunications, electricity, health care and education. The experience of Saudi Arabia with regard to such cooperation between the private and government sectors has been successful.
Al-Abbar however did not rule out government participation. He said governments had a crucial role to play in creating the right environment for business and enterprise to take on the provision of these services and provide quality.
“Local governments have the ability to harness resources, capital and personnel from a variety of sources for very big projects. It can also guarantee continuity, security, and income streams for investors that would be difficult to replicate in the private sector,” he said. “On the other hand, the private sector offers several advantages including capital, an investment/returns model, sharp management and methodology that targets delivery, a can-do market and customer-dominated culture geared to achieving tangible goals and professionalism,” he added.
He illustrated the Dubai economic model as an effective one in which private sector and local government have worked hand in hand to create an economic miracle. He highlighted Dubai’s assets which include a dynamic economy with modern infrastructure, first class communications, secure and accessible financial system, ready access to skilled labor, free zones and highly-prized property market with world class developers.
