RIYADH, 19 December 2006 — Development of interregional land-sea linkages between the Kingdom and surrounding countries to promote trade and tourism was the theme of a workshop that Deputy Minister of Transport Abdul Aziz Al-Ohali inaugurated here yesterday.
The workshop — which brought together officials from the ministries of transport, and commerce and industry, the United Nations’ Economic and Social Commission for West Asia (ECSWA) as well as representatives of the private sector — was meant to formulate a long-term strategy to develop interregional linkages within the framework of the WTO regime to globalize trade and commerce.
Speaking to Arab News, Ohali said the Kingdom is one of the 13 countries of the Middle East that have embarked on infrastructural development projects to integrate the region. Such a move would not only give a big boost to trade and tourism but also encourage the transportation sector in a big way. The Ministry of Transport would be the regulatory authority in preparing the groundwork for a freer flow of trade and transportation.
He disclosed that the Saudi government has already signed an agreement for land linkage within the ECSWA region.
“We have fulfilled the requirements in this regard by completing the road network as far as the Kingdom is concerned,” said Ohali. “The proposed railroad link between Jeddah and Dammam will further enhance this network.”
To this end, he said the Saudi Arabian General Investment Authority (SAGIA) would set up an inter-ministerial committee consisting of representatives from the ministries of transport, commerce and industry as well as the Supreme Commission of Tourism (SCT) to develop a coordinated strategy.
“The Kingdom has done its part by developing the infrastructure of roads, seaports and airports,” said the deputy minister. “Now the customs authorities have installed sophisticated equipment at border checkpoints for the clearance of trucks and container traffic. We are also working on the electronic data interchange (EDI) for the instant transfer of business transaction data, besides streamlining procedures at seaports.”
Speaking on behalf of ECSWA, Niels Rasmussen, first Economic Affairs Officer (Transport), said the Kingdom was making great efforts in streamlining trade and transit procedures.
“Saudi Arabia has a great role play in this regard in view of its strategic position in the region,” Rasmussen said.
However, the UN official pointed out that, barring Dubai, most of the Middle East region suffers from red tape and other bottlenecks.
“The container traffic moves efficiently across the international borders in other parts of the world,” said Rasmussen. “While Dubai is an outstanding example of hassle-free container traffic, the rest of the ECSWA region has got bogged down in red tape. It is important to simplify trade procedures in the interest of promoting international trade and commerce as part of the globalization process.”
Besides cutting down the red tape, he said steps would have to be taken to standardize the procedures, harmonize them with the best practices around the world, and deploy ICT for the electronic data interchange. This facilitates the transfer of documents in an electronic form that is coded in such a way that the computers can interpret the information on the document, which allows automated procedures.
It is very important that the customs introduce modern practices, including risk management, pre-arrival information, developing relations with other customs offices around the world, and with business partners to develop trust in traders. These measures have acquired great importance in the context of the global security concerns, he added.
