One of the benefits of attending the Arab-US Policymakers Conferences (AUSPC) in recent years has been the opportunity to talk with H.E. Usamah al Kurdi, a member of Saudi Arabia's Majlis Ash Shura, the Consultative Council. His background in the private sector and business related government organizations prepared him well to serve as a Vice Chairman of the Financial Committee and other business and finance roles in the Shura. 

Majlis Member al Kurdi has generously given his time to SUSRIS in the past and again this year, last month in Washington on the sidelines of the AUSPC, he talked to us about developments in the Saudi-US relationship, reforms in Saudi Arabia and other issues of importance to SUSRIS readers. As always we thank him for his time, his insight and his candor.

SUSRIS: Thank you for taking the time to update our readers on developments in the relationship between the United States and Saudi Arabia. Our previous conversations have been on the occasions of your visits to Washington for the annual Arab-US Policymakers Conference. Let’s start by talking about this year’s event. What were the highlights of the conference for you?

H.E. Usamah al Kurdi: Thank you. I was delighted to be asked by the National Council on US-Arab Relations to participate in the conference, the fifteenth such event. This year’s conference was the most successful by far. There were very interesting issues addressed in the agenda and the lineup of speakers was unparalleled, whether in the oil sector, the Saudi-American relations areas, or the many other areas the conference addressed. 

In addition I think taking one full day of the conference to focus on GCC-US relations was an extremely important twist to the conference, adding knowledge and excitement for the participants. I have to congratulate the National Council on this conference, but it is going to be a challenge to do a better job next year. It is not going to be easy but I am confident they can do it. 

SUSRIS: There were quite a number of topics covered at the conference. What was the most interesting area for you?

Kurdi: Actually all of the panels were interesting and important. The area I would highlight is the session on oil. The participation of Aramco and all the other major oil companies from the United States and other countries was quite impressive. The discussions, the free and frank discussions, which took place during the sessions were very interesting for me and they reflected directly on Saudi Arabia and its standing in the world. 

SUSRIS: The first day of the conference was devoted to the relationship between Saudi Arabia and the United States. What were some of the more important points in the discussions?

Kurdi: We covered many different parts of the relationship, of course, but one area that I believe is important is the fact that the two countries have no alternative but to strengthen their relations. The importance of the United States is its role as the superpower of the world. The importance of Saudi Arabia is its international role, its good standing around the world, and its important voice among the Muslim countries as the host of the two holiest cities in all of Islam -- Mecca and Medina. There is also its importance as a major source of energy to the rest of the world. 

One of the important subjects discussed was the issue of visas for Saudis to come to the United States, which stood as the single most important issue because of its long-term impact on the relationship. Saudis and Americans, I have to admit, find it difficult to go into each other’s country, but we have heard assuring statements from American participants that this is an issue they consider important.

SUSRIS: Many Americans may not be familiar with the component of the Saudi-US relationship that has to do with the Kingdom’s standing in the world. Can you expand on Saudi Arabia’s international role?

Kurdi: Saudi Arabia’s standing in the world is a result of the policies it has followed over the past 50 or 60 years. We have shown ourselves to be important players, balanced players in world affairs. We don’t move on impulse and we always look at the short-, medium- and long-term impacts of our policies. I think the most important indicator of this is the fact that Saudi Arabia was one of the signatories to the United Nations Charter in 1945 in San Francisco. This is an indication of the global role fulfilled by Saudi Arabia.

If you look at Saudi Arabia’s relationship with countries like the United States, the European Union, other Arab countries and other Islamic countries, you can conclude that Saudi Arabia commands a lot of respect with these countries because of its balanced policies. As an example of Saudi Arabia’s role as a responsible member of the international community I would remind you that on two occasions the Kingdom produced proposals for peace agreements between the Palestinians and the Israelis. King Fahd’s proposal was made in 1982 at the Arab Summit in Fez. In 2002 then Crown Prince Abdullah produced a proposal for the Arab League Summit in Beirut. It won agreement from every Arab state on a peace initiative with Israel. Unfortunately the Israeli position did not push this process ahead. We think that the rest of the world needs to understand that the matter of peace between the Palestinians and Israelis sits in the Israeli hands now and they should try to move it forward. 

SUSRIS: An obvious, and important, part of Saudi Arabia’s position in the international community is as a source of energy for the world market. How do you view the role the Kingdom plays in this regard?

Kurdi: Saudi Arabia has always made it clear in words and in practice that it wants oil to be available at fair prices. Fair prices meaning that it does not want to disrupt the economies of any countries involved. To meet this commitment Saudi Arabia has made a significant investment to ensure that production and reserve capacities are maintained at levels that will keep the price of oil at reasonable levels -- affordable by the different economies around the world. 

Unfortunately there are other players in the market, and I mean the commodities market, who have a different agenda. No matter what others may choose to do Saudi Arabia has always had this policy and has always practiced this policy. That is another reason why Saudi Arabia has a good standing around the world.

SUSRIS: In what other areas does Saudi Arabia influence international developments?

Kurdi: There is, of course area, its position in the Islamic world, and Saudi Arabia has been playing an important role with other Islamic countries through its actions and policies as I have mentioned. But Saudi Arabia is also a solid partner with the United States and the international community in the war on terrorism. An important sign in its commitment here is the success that Saudi Arabia has had in fighting terrorism inside the country and the assistance it provides in fighting terrorism around the world. 

Let us not forget the Saudi initiative of organizing the International Counter Terrorism Conference in Saudi Arabia and the proposal to create the Center to Counter Terrorism, including the proposal to finance and host this conference. 

One more note on the question about Saudi Arabia’s role as a steward of world energy resources. You should recall the Saudi proposal to create, finance and host the International Energy Forum that came as a result of the petroleum ministers meeting from around the world to improve dialogue between producers and consumers. This organization is now operational in Saudi Arabia.

SUSRIS: In previous conversations you outlined the progress the Kingdom was making in political, economic and social reforms. You said the process was a long-term commitment. How would you describe the progress so far?

Kurdi: Reform in Saudi Arabia is serious business and we have addressed many different aspects of Saudi life. Almost every area has been touched by reform and I would like to highlight the latest step taken in Saudi Arabia. That was the issuance of the Succession Law. It clearly shows Saudi intentions regarding reform. It shows that it doesn’t matter what issue we are talking about. It doesn’t matter how sensitive it is. The Saudis want to address and produce steps that will improve what is happening in Saudi Arabia. The issuance of the Succession Law shows our boldness and seriousness in the area of reform. When it touches such an important issue, you know reform is taken seriously.

Reform has touched many other areas in Saudi Arabian life, such as in the area of the economy. In my opinion that is where we have seen the most significant and comprehensive efforts at reform. There have been three different axes of economic reform. One was the issuance of new laws and updating old laws. We have produced a competitiveness law. We have issued a new foreign investment law. We have issued a new tax law, reducing tax on foreign investors to a mere 20 percent. We are now looking at a companies law and other new business laws. Of course we cannot forget Saudi Arabia’s accession to the WTO, which has made a big difference in the openness and transparency of the Saudi economy. 

The second axis was the way new organizations were created in Saudi Arabia to support the decision making process in the private sector and to assist the private sector -- whether it is foreign or local -- to do business in Saudi Arabia. We saw the creation of the Supreme Economic Council. We saw the creation of the General Investment Authority. We saw the creation of the Tourism Authority. There are other organizations that support the activities of the private sector. 

The third axis was the opening up of new sectors in the Saudi economy for investments -- private sector investors whether foreign or local. We saw the mining sector, the power generation sector and the water desalination sector open to private investments. We have seen the opening of the railroad sector for investment by the private sector. We have even seen changes in higher education and the introduction of foreign universities into Saudi Arabia in collaboration with local private universities. So this is the third axis -- different investment possibilities in the country. 

Another area where there has been extensive reform is the political area. It started many years ago with the issuance of the Saudi Basic Law of Governance. We have seen the creation of new regional councils in the different provinces of Saudi Arabia. There are thirteen different provinces and now each has its own council. We have seen the issuance of the Shura Council Law. The creation of the Shura Council is, in my opinion, the most important political reform that has taken place in Saudi Arabia. We have seen the establishment of municipal councils and the open election of half of the members. I am hopeful we will see even more political reform in Saudi Arabia.

We also saw the creation of a new labor law and increased attention given to the indigenization of the labor forces of each sector in the Saudi economy by giving the local labor force more opportunities to work. Many people know that a large number, about 27 percent, of the people living in Saudi Arabia are foreigners and the percentage gets higher when we are talking about the labor force. 

We have also seen reform in the judicial area by the issuance of the due process law, by issuing a law requiring appointment of a lawyer for each accused individual. We also saw the creation of the Attorney General organization or the Public Prosecutor as it is called sometimes. We also saw the plans to create labor courts, to create traffic courts, and to create commercial courts, in addition to training and preparing more judges to serve in the different courts that have been created. So even in the judicial area there has been considerable development and improvement in Saudi Arabia.

SUSRIS: What are the current developments in the Shura Council, where you serve? 

Kurdi: The Shura council continues to perform the duties prescribed by the law. An important development in the past couple of years was when the Shura council was accepted in the International Parliamentary Union, indicating that the council is actually the parliament of Saudi Arabia. That was done after due consideration of what the Shura Council does. The latest change in the Shura law allowed it to put items on its own agenda and I think in my opinion that is a major improvement. This change signifies the importance given to the Shura Council activities. 

In March the Shura Council received its first visit by a foreign dignitary when President Chirac of France delivered a speech there. It was the first occasion where a head of state made an address to the Shura Council -- the first in the Council’s history of 15 years. In April we received Chinese President Hu Jintao who also delivered a speech in the Shura Council. These two visits, I think, signify the importance of the Shura Council as the parliament in Saudi Arabia and that its role is gaining momentum.

SUSRIS: What is your position in the Council. 

Kurdi: I’ve served as Vice Chairman of the Financial Committee and currently serve as a member of the Financial Committee. I usually follow economic and financial matters.

SUSRIS: Can you tell us more about the visit of the President of China to Saudi Arabia?

Kurdi: I think this shows the importance the Chinese give to Saudi Arabia. This is an important sign, it shows the kind of relationship Saudi Arabia has with all the countries around the world -- more significantly the important, bigger countries. It is not necessary to explain the important economic progress that’s taking place in China and how quickly it is becoming an important trading partner with many different countries in the world. Saudi Arabia is keen to develop, to further develop, its relations with China, with India, and with many other countries around the world. 

As you know on the GCC level we are starting to negotiate a free trade agreement with China with the [United] States, with the European Union and with Japan. I think the signing of such agreements will dramatically improve not only the trade and business between signatories but also world trade. 

SUSRIS: During his visit President Hu and King Abdullah talked about a strategic oil reserve in China, agreements on oil refineries and increasing bilateral relations. Should that be of concern to Americans? 

Kurdi: It should not be at all. In whatever Saudi Arabia does in the oil sector there is always attention to the global situation. We never emphasize any specific country or any specific region, especially knowing that oil is a freely traded commodity. In the commodities market it is nearly impossible for any country to play a dominant role. 

But lets not forget that Saudi Arabia is also expanding its ventures related to oil in other countries, in many countries around the world. This includes the United States, Europe, China, Japan and countries like the Philippines and those of North Africa. The idea here is to ensure internal supply, global energy supply and also provide additional value added to Saudi Arabia. So you can see this is nothing more than a win-win situation for Saudi Arabia and the world. 

SUSRIS: Last question has to do with the fundamentals of the Saudi-US relationship. What should Americans be thinking about Saudi Arabia?

Kurdi: I think we are a friendly country that is careful in supporting a well-developed global economy. Saudi Arabia is a country that wants world peace in every part in the world. Saudi Arabia has shown that, not only in its words but also in its actions. 

SUSRIS: Thank you for taking time to share your insights with our readers. 

Kurdi: Well, thank you.

Usamah Al-Kurdi is President of Alagat, a business-consulting firm based in Riyadh and a member of Saudi Arabia’s Consultative Council (Majlis Al-Shura). He serves as a Board Member of Saudi Arabian Airlines and an Executive Committee member of the national U.S. Arab Chamber of Commerce.

From 1990-2001, Mr. Al-Kurdi served as Secretary General of the Council of Saudi Chambers of Commerce, as well as Vice President of Saudi Consulting House, a forerunner of the Saudi Arabian General Investment Authority (SAGIA). He has also served on the Boards of Saudi Arabia’s National Industrialization Committee and the Royal Commission on Jubail & Yanbu (industrial cities).

• Taking Stock of the Saudi Arabian-US Relationship: Examining the Implications for Interests and Policies - AUSPC Panel - H.E. Usamah Al-Kurdi, Member, Majlis Ash-Shura

• On Relations and Reforms: A Conversation with Usamah al Kurdi - SUSRIS IOI - Sep 30, 2005

• Political, Social and Economic Reform in Saudi Arabia - Interview with Usamah Al-Kurdi - Part 2 - SUSRIS Interview - Dec 15, 2004

• Political, Social and Economic Reform in Saudi Arabia - Interview with Usamah Al-Kurdi - Part 1 - SUSRIS Interview - Dec 9, 2004

• How to Reform Saudi Arabia Without Handing It to Extremists - Part 2 - SUSRIS IOI - Sep 19, 2004

• How to Reform Saudi Arabia Without Handing It to Extremists - Part 1 - SUSRIS IOI - Sep 19, 2004

• The Dynamics of Economic and Commercial Reform: Near-Term Prognoses - Usamah Al-Kurdi - SUSRIS IOI - Sep 27, 2004

• Economic Reform in Saudi Arabia - Summary of Remarks by Usamah Al-Kurdi - SUSRIS IOI - Jun 4, 2004

Related Material:

• Majlis Ash-Shura Home Page