RIYADH, 17 October 2007 — The Ministry of Commerce and Industry has received approval from the Council of Ministers to create a new department at the deputy minister’s level for consumer protection as part of a national effort to monitor the price situation in the Kingdom, where the level of inflation stands at 3.8 percent, up from 2.2 percent last year.
Speaking to Arab News, Osama Al-Kurdi, member of the Board of Trustees of the Riyadh Economic Forum, said the government’s move to set up the department of consumer protection reflects its concern to safeguard the consumer’s interest.
“An agreement has already been reached and the Ministry of Finance will provide the necessary financing to make it operational,” said Al-Kurdi, who is also a member of the Shoura Council.
The proposed consumer protection cell in the ministry will beef up its inspection team and monitor consumer prices on a continuous basis. It will also be accessible to consumers for any feedback from the market for taking corrective measures.
He said the inflationary spiral in the Kingdom is part of a global phenomenon that is not only linked to a weakening dollar but is also the result of the supply/demand situation triggered by the economic boom in East Asia and the escalating oil prices.
“The opening up of the international economy thanks to the WTO has created a situation in which the demand for goods and services exceeds supply,” he said. “This is not only due to the increase in the purchasing power of the people but also due to the population growth. On top of it, you have the rise in oil prices.”
Al-Kurdi said OPEC should not be blamed for the high oil prices because there is growing demand for oil from energy-hungry countries like China and India. The situation is further compounded by the constraints on refining capacity.
