JEDDAH, 6 December 2006 — Saudi Arabia’s non oil exports grew by 13 percent annually during the past 10 years, according to Commerce and Industry Minister Hashim Yamani. He estimated the value of non-oil exports at SR70 billion ($18.66 billion) last year.
Opening a symposium titled “GCC and WTO, Improving the Competitive Capacity in the Light of Changing Global Economy,” Yamani emphasized the government’s plan to privatize 20 state-owned corporations and institutions.
He said the new economic cities in Rabigh, Hail, Madinah and Jizan would attract SR250 billion in investment and create 800,000 new jobs. The new industrial city in Jubail (Jubail-2) will also draw investment worth SR100 billion and provide 120,000 new jobs.
In his keynote address, Yamani also spoke about the Kingdom’s investment-friendly climate. Saudi Arabia is now ranked 38th among the world’s top investment centers. It has won the top position among Arab countries in terms of attracting foreign direct investment.
Since joining the World Trade Organization (WTO), Saudi Arabia has taken a series of measures to improve the country’s investment climate, removing obstacles facing private investors, allowing foreign manpower recruitment and speeding up licensing procedures.
The symposium, organized by Riyadh Chamber of Commerce and Industry (RCCI) in association with the Gulf Cooperation Council General Secretariat, the Council of Saudi Chambers of Commerce and Industry and the Islamic Development Bank, was held at the Riyadh chamber.
Yamani underscored the Kingdom’s growing role in world economy. “It also participates effectively with GCC member countries in order to reinforce the pillars of joint economic agreements and achieve the objectives of the greater Arab free trade zone,” he said.
He also noted the call made by Custodian of the Two Holy Mosques King Abdullah to increase trade exchange among Islamic countries by 20 percent during the next 10 years. A corporation has been set up with a capital of $3 billion in order to finance inter-OIC trade.
Abdul Rahman Al-Jeraisy, chairman of the RCCI, said the symposium was aimed at exploring the competitive strength of GCC economies in order to confront the challenges posed by the World Trade Organization that would intensify competition among economic forces. He urged decision makers in both private and public sectors to take steps for strengthening GCC economies by improving their efficiency and performance, bolstering competitive capabilities and removing obstacles that “declines the quality of our products and rises cost of production.”
Al-Jeraisy urged GCC governments to continue their economic reforms and press ahead with their privatization programs.
Dr. Fahd Al-Sultan, secretary-general of the Council of Saudi Chambers, said raising the competitiveness of GCC economies was a basic condition for maximizing the benefit of “our membership in the WTO,” adding that it was the biggest challenge for public and private sectors in the six-member GCC countries.
In his speech, Muhammad Al-Mulla, secretary-general of the Federation of GCC Chambers, urged the member countries to confront foreign competition by improving the efficiency and performance of GCC economies and strengthening their joint economic activities. “We should also develop our manpower in order to help them deal with modern economies,” he said.
