JEDDAH, 2 October 2007 — Custodian of the Two Holy Mosques King Abdullah has instructed the Kingdom’s chambers of commerce to discuss the reasons for increasing prices of certain essential commodities, according to Saleh Al-Turki, chairman of Jeddah Chamber of Commerce and Industry (JCCI).
“We’ll inform the king the reasons for the recent hike in order to take appropriate action,” Turki told reporters after attending a meeting of businessmen at the JCCI.
“The chambers cannot make any decisions to solve the problem of price hike. We can only identity its reasons and report to authorities,” he said.
The JCCI has set up a new department for the protection of consumers, Turki said, adding that this department would follow up matters related to consumers and enhance their awareness on spending habits.
“The department will not replace the Consumer Protection Society,” Turki said, referring to the Saudi government’s consumer watchdog, adding that the department would start work next week after the appointment of experienced manpower.
Turki attributed the price hike in the Kingdom to different reasons including low agricultural production, increase in global demand and rise in production cost and related expenditures.
“The fall in the exchange rate of dollar against other international currencies, such as the euro, sterling pound, the Canadian and Australian dollars and the Indian rupee was another major reason for the increase in prices of imported goods,” he said. Simultaneous rise in freight charges are another factor, he added.
Ali Basamh, owner of Basamh Trading Co., blamed the foreign factor for the price increase. Saudi Arabia is heavily dependent on imported products, and since the riyal is pegged to a weakening dollar these goods become more expensive.
Ali Abdul Rahman Al-Namlah of Nuwat Holding, a leading foodstuff importer, said consumers must be educated on the presence of cheaper alternatives in the market. “This will help reduce prices,” he said.
