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Editor's Note:
On June 4, 2009 the White House
announced James B. Smith as nominee to follow Ford Fraker as
U.S. Ambassador to Saudi Arabia. Smith, a retired U.S.
Air Force brigadier general, was sworn in on September 16,
2009. Today we are pleased to present for your consideration an interview Ambassador
Smith gave to "US-Arab Tradeline," a publication of the National U.S.-Arab Chamber of Commerce in which he focuses on
his new role as a key steward of the relationship between the United States and Saudi Arabia. We thank the Chamber or permission to share this interview with you.
As the new ambassador to Saudi Arabia, what are the first items on your agenda?
President Obama articulated a new beginning in his Cairo
speech. As his representative in the Kingdom of Saudi Arabia, my agenda is to open the door to the possibilities in that speech. The relationship between the United States and Saudi Arabia is one of the most important in the world. Given the unique and dynamic nature of world events, it is incumbent on both nations to continue building on this important relationship. Business and trade constitute a central element of this relationship, and as Ambassador, I will actively promote trade and investment between Saudi Arabia and the United States. We will facilitate travel, cultural exchanges, and other delegations to both countries. We look forward to the inauguration of the King Abdullah University of Science and Technology this month, and I firmly believe that exchanges in science and technology can be a positive, meaningful basis for building our relationship. We must continue to cooperate closely on a wide range of regional security challenges, and close cooperation aimed at confronting violent extremism must be further strengthened. Harkening back to the President’s comments, my first task will be to listen, to engage with business and government leaders and to hear from people who bring new approaches to improving commerce and good relations between our countries.
What is your impression of the current U.S.-Saudi relationship? Have the historic ties between the two countries, dating back to the 1930’s, helped buffer the lingering impact of 9/11?
The relationship between Saudi Arabia and the United States has never been stronger; it has also never been more multi-faceted or important. The United States values greatly the cooperation we have had with Saudi Arabia on a wide range of issues. As I said in my remarks during confirmation, my experience in Saudi Arabia as a military officer and business executive has left me with a great respect for Saudi Arabia, its culture, and the vitality of our relationship. Over the coming months and years, we should have many opportunities
to build on that friendship. The historic ties between our countries have been a source of strength for the bilateral relationship, and our shared goals will propel us forward together.
In 2008, trade agreements between Saudi Arabia and the U.S. resulted in a 14% growth in bilateral trade. How active a role will the U.S. Embassy play in continuing to strengthen trade relations between the two countries?
The U.S. Embassy has and will continue to play an active role in promoting bilateral commercial ties. We want to do more business with the Kingdom. Over the next 12 months, the U.S. Commercial Service at the Embassy has planned more than 12 trade missions from Saudi Arabia to the U.S. We are also working on organizing trade missions from the U.S. to the Kingdom. I expect our trade promotion activity will see a significant increase in coming months.
I also see this as a great opportunity to promote the efforts of women entrepreneurs in Saudi Arabia. Saudi Arabia is fortunate to have such outstanding businessmen and businesswomen, making a positive contribution to the future prosperity of the Kingdom. President Obama and his administration strongly support the Kingdom’s efforts to increase opportunities for women in business and other professions. My wife, Janet, who is a university professor, and I will do all we can to enhance the prospects for the next generation of entrepreneurs, both men and women.
The King Abdullah University of Science and Technology (KAUST) opened this September. Many American universities, research institutes and companies – Babson College, Woods Hole Oceanographic Institute, Stanford University, Boeing and Dow Chemical, to name a few, are partnering with KAUST. Will KAUST also open new doors for SMEs in Saudi Arabia?
The Inauguration of KAUST marks an important milestone for King Abdullah. The King has said that one of the aims of KAUST is to “promote the economic development and social prosperity of the people of the Kingdom and of the world.” Small and medium enterprises (SMEs) are one of the main foundations of economic growth and development. Commerce has played a central role in helping people achieve a better life throughout the Middle East. I am certain that SMEs will benefit from the new discoveries and innovation undertaken at KAUST.
In the aftermath of 9/11, when political and trade relations between the U.S. and Saudi Arabia were strained, many European and Asian companies stepped in. Can U.S. companies, in particular SMEs, regain their position, and if so, how?
Business opportunities continue to develop in Saudi Arabia – both for large and small companies - and U.S. firms continue to enjoy respectable market share in the Kingdom. However, just as in the United States, there is increasing competition from other countries. The U.S. Government offers a number of services to assist SMEs entering the Saudi market. For instance, with its network of offices across the United States, the U.S. Commercial Service of the U.S. Department of Commerce helps SMEs sell their products and services worldwide. (For more information, visit www. export.gov.)
What are the best sectors for U.S. exporters in Saudi Arabia?
Saudi Arabia offers opportunities for U.S. exporters in a wide range of sectors. Some of the most dynamic sectors include Oil and Gas Equipment and Services, Petrochemical, Security Equipment, Power Generation, Telecommunications and Information Technology, Medical Equipment, Architecture and Construction, Railroad Equipment and Services, Franchising, Automobiles & Parts & Services, Aviation (Civil and Defense), Pollution Control and Environmental Services, Mining, and Water Resources and Equipment. This list is not exhaustive, however. There are many export opportunities in other sectors, too.
Saudi Arabia is building four mega-economic cities across the Kingdom. What opportunities do these cities offer for foreign investment?
The Saudi leadership envisions the economic cities as engines for industrial growth, real estate development, sea port and dry port development, and educational advancement in the Kingdom. According to the Saudi Arabian General Investment Authority, these new cities will contribute $150 billion to the country’s GDP by the year 2020. In developing the cities, the government will play the role of regulator, facilitator and promoter with the private sector providing the capital, the land owners and the developers. The cities have the potential to offer diverse opportunities for foreign investors in sectors ranging from alternative energy to information technology and manufacturing.
Is there a feeling of confidence and growing entrepreneurship in the Saudi private sector?
During my last visit to Saudi Arabia in the summer of 2008, I was impressed with the growth of a new class of Saudi entrepreneurs. They are creative, aggressive, and motivated to succeed. This speaks well for Saudi Arabia’s ability to diversify its economy. Over the last decade, Saudi Arabia has made considerable progress toward expanding its economy in order to achieve sustainable growth, and the future looks bright. It has taken concrete steps to create an enabling business environment. According to the World Bank, in 2009, Saudi Arabia ranked among the top 25 worldwide in terms of the ease of doing business. The culture of entrepreneurship is on the upswing in the Kingdom.
The IMF recently praised Saudi Arabia for the strength of its economy, and The World Bank ranked the Kingdom number one in the Arab World for the ease of doing business. What factors have led to this success in the midst of a global economic crisis?
No country has been immune from the effects of the international financial crisis, though Saudi Arabia has been affected less than many other countries. I think Saudi Arabia deserves great credit for the financial discipline shown over the past decade; the reforms that the Kingdom’s economic leaders have implemented certainly contribute to its many successes. As the only Arab member of the G-20, Saudi Arabia has played an important role in supporting international efforts to stem the global financial crisis.
How will Saudi Arabia’s regional and global role change in the coming decade, and what impact will this change have on U.S.-Saudi relations?
It would be unwise for me to begin my tenure by predicting the future..
..that’s a fool’s exercise. But it is obvious that Saudi Arabia will play a key leadership role in a myriad of regional issues. Most of the key global challenges facing the world and the United States will require consultation with the Saudi leadership. We have active dialogues on a wide range of key regional security challenges; indeed, on so many issues, we share common objectives. I accepted this assignment because of the importance the Administration places on the relationship between the United States and Saudi Arabia; I will do everything in my power to build on the very positive success of the last few years and to make the relationship even stronger.
James Smith - U.S. Ambassador to the Kingdom of Saudi Arabia
James B. Smith was sworn in on September 16, 2009, as the U.S. Ambassador to the Kingdom of Saudi Arabia. Prior to his appointment, Ambassador Smith had served in a variety of executive positions with Raytheon Company involving corporate strategic planning, aircraft manufacturing, and international business development.
Ambassador Smith was a distinguished graduate of the United States Air Force Academy’s Class of 1974 and received the Richard I. Bong award as the Outstanding Cadet in Military History. He received his Masters in History from Indiana University in 1975, and is also a distinguished graduate from the Naval War College, the Air Command and Staff College and the National War College.
Ambassador Smith spent a 28 year career in the United States Air Force. Trained as a fighter pilot, he logged over 4000 hours of flight time in F-15s and T-38s. He served around the world in a variety of operational assignments and flew combat missions from Dhahran AB during Operation Desert Storm. He commanded the 94th Fighter Squadron, the 325th Operations Group and the 18th Fighter Wing (Kadena AB, Okinawa). In addition, he served in a variety of staff assignments involving coalition partners, and served as Air Force Chair and Professor of Military Strategy at the National War College. During his final assignment at U.S. Joint Forces Command, he led Millennium Challenge, the largest transformation experiment in history. He was promoted to Brigadier General in October, 1998, and retired from the Air Force on October 1, 2002.
A native of Brooks, Georgia, Ambassador Smith lives in Salem, New Hampshire, with his wife Dr. Janet Breslin-Smith.
Source: U.S. State Department
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