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EDITOR'S NOTE:
The Saudi-U.S. Relations Information Service
would like to thank the National
U.S.-Arab Chamber of Commerce, the Center for International
Private Enterprise and the Middle
East Institute
for permission to share the summary
of Mr. Al-Kurdi's remarks with our readers. This article originally
appeared in the April/May issue of U.S.-Arab
Tradeline.
Economic Reform in Saudi Arabia
Summary of Remarks by Usamah Al-Kurdi |
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"The
determination is there and it is time for reform."
The National
U.S.-Arab Chamber of Commerce (NUSACC), the Center for International
Private Enterprise (CIPE) and the Middle East Institute (MEI) co-hosted a roundtable discussion on April 29 on
"Getting the House in Order: Opportunities and Economic Reform in Saudi
Arabia." The featured
speaker was Usamah Al-Kurdi, a member of NUSACC’s Executive Committee and
part of Saudi Arabia's Consultative Council (Majlis
Al-Shura), where Al-Kurdi helps to serve as a nexus between government and
business. The event drew upwards
of 100 attendees, including C-Span, which broadcast the discussion nationwide.
Reform in Saudi
Arabia began in earnest in 1993, Al-Kurdi said, and "today it is a
central issue of what's happening in the country." In
terms of political reform, he highlighted the important role played by the
National Center for Dialogue, which has led to a "healthy debate"
among constituencies in Saudi Arabia. He
also cited the Supreme Economic Council which, in his view, is the
"single most important part of economic development in Saudi Arabia
because it is the 'fast track' decision-making process in the business
area."
Equally
impressive, Al-Kurdi suggested, are some of the changes that are taking place
in the area of social reform, which has seen the establishment of dozens of
civil society groups and non-governmental organizations in recent years.
The third
pillar of reform is economic, according to Al-Kurdi, and on this front Saudi
Arabia is moving forward very quickly. He
cited the recent adoption of new laws affecting insurance, financial markets,
intellectual property, and taxation on foreign investment.
("The reduced tax on foreign investors should enhance investment
opportunities.") In
addition, he said, new organizations have been created to promote economic
development in such areas as tourism, investment and technology.
| Saudi
Arabia is making significant progress in diversifying its economy, Al-Kurdi
said, and he noted that the Kingdom "needs investment to proceed in
diversification," which is key to spurring job growth.
He noted that there are 20 sectors targeted for privatization,
including water and power, aviation, railroads, port and airport
services, health care, and, perhaps most significantly, higher
education.
"All these efforts to diversify and privatize have jobs as a major
objective," he noted.
|
Saudi
Arabia is
making significant
progress in
diversifying its
economy.. |
"All
the numbers look extremely good for the economy of Saudi Arabia, especially
when you look at the opportunities that are being opened up," said Al-Kurdi,
who pointed out that Saudi exports total $100 billion and imports amount to
$30 billion.
Despite all the
positive economic news, Al-Kurdi admitted, there is room for improvement.
"Some of the work being done is commendable," he said,
"but in other areas, I think we could be moving faster."
In particular, he cited the importance of creating more jobs,
continuing the process of privatization, bringing down the nation's debt,
and further diversifying the country's exports, 90 percent of which are
petroleum-related.
The good news, said Al-Kurdi, is that the Saudi government is aware of
these challenges and is actively searching for solutions.
He noted that privatization is well underway, "Saudization"
plans to combat unemployment are on track, and the issue of small and
medium-sized enterprises is receiving "tremendous attention."
| "I
would like to see even better economic relations with the U.S.," Al-Kurdi
said, and he pointed out the recent progress that Saudi Arabia has made toward
acceding to the World Trade Organization and moving closer to a Free Trade
Agreement with the United States.
|
I
would like to see
even better economic
relations with the U.S. |
In the question-and-answer
session that followed Al-Kurdi's remarks, several questions revolved around
civil society, which Al-Kurdi described as "essential."
He reiterated that the government is well aware of this issue and that
the Consultative Council is studying a new law, currently in draft form, that
makes it easier to establish civil society organizations.
On the issue of
government decrees restricting certain jobs to Saudi nationals, Al-Kurdi
suggested that the "Saudization" of the workforce is essential to
alleviating unemployment in a nation where Saudis hold only 15 percent of the
jobs. This will be a gradual
process, he said, and he wants to see a more scientific, "systematic
approach to indigenization."
Al-Kurdi
repeatedly emphasized how important it is for Saudi Arabia to study how other
countries have dealt with reform in order to learn from them.
He believes that the pace of reform must be up to each nation, not
according to a timetable dictated by others.
As for the
effect of homegrown terrorism on economic reform, Al-Kurdi said there has been
no effect. "I think that
reform started such a long time ago," he noted, "that people were
set in their minds of the need for reform.
I haven't seen a major psychological or economic impact of the
terrorist attacks."
Al Kurdi noted
that the Saudi stock market has soared over the past year, despite the
terrorist attacks and the war in Iraq. "It
is unbelievable what confidence there is in the economy of Saudi Arabia and
how these terrorist attacks failed to affect the thinking in the country,"
he suggested.
On the issue of
anti-Americanism in Saudi Arabia, Al-Kurdi said he believes this is "only
a phase" that the Kingdom is going through.
He sees this sentiment as a reaction to the deteriorating situations in
Palestine and Iraq, as well as a backlash against tough U.S. policies
fashioned after the attacks of September 11, 2001.
It is his opinion that only a very small minority of Saudis have given
up on the United States and that, over time, the special relationship will be
restored.
| Al-Kurdi
expressed deep concern about how U.S. visa policies have led to a significant
drop in the number of Saudis coming to the United States, particularly among
students, where the drop-off has been in the range of 30 to 40 percent.
Al-Kurdi said he expressed these concerns recently to Alan P. Larson,
the Under Secretary of State for Economics, Business and Agricultural Affairs,
and Larson assured Al-Kurdi that the State Department is working to improve
the situation. This is very important, Al-Kurdi pointed out, because these
students have contributed greatly to the positive U.S.-Saudi relationship,
particularly those students who have gone on to become leaders in Saudi
society.
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Reform
in all its
parts is moving
forward..
The determination
is there. Everybody is
pushing toward it..
There is a belief that it
s time for reform, and
it is proceeding. |
Al-Kurdi also
responded to a question about the role of women in Saudi Arabia. He highlighted the growing influence of women in all aspects
of Saudi society, and he cited women in his own family as examples.
Among his five sisters, he said, all have degrees in higher education
and are part of the Saudi workforce. This
is just one example, he said, of the fact that "possibilities exist if
women want to get an education and go to work."
Reform in all
its parts is moving forward, Al-Kurdi concluded.
"The determination is there.
Everybody is pushing toward it -- whether the Consultative Council, or
the business community, or the government.
There is a belief that it is time for reform, and it is proceeding."
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![Usamah Al-Kurdi [Photo Courtesy Ryan & Associates]](http://www.saudi-american-forum.org/images/IOI/2004_04_22c.JPG)
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