Today we are pleased to present for your consideration the SUSRIS interview with Mr. Khaled al-Seif that was originally published last year. His message about the importance of business in the relationship between the United States and Saudi Arabia remains relevant today. We hope you find this SUSRIS interview reprint useful.

Last week [May 2005] a delegation of Saudi Arabians completed a tour to five American cities. Their mission? Promote new business ties between the Kingdom and the United States as Saudi Arabia enters a new economic boom. 

On the delegation's stop in Atlanta, Georgia on May 11, 2005, SUSRIS had the opportunity to talk with Mr. Khaled Al Seif, a leading Saudi businessman and Chairman of the Saudi Committee for the Development of International Trade at the Council of Saudi Chambers of Commerce and Industry -- responsible for organizing the trade mission. 

A Man With A Mission: Khaled Al Seif Talks About US-Saudi Business Relations

SUSRIS: Thank you for taking time from your busy schedule coordinating the trade mission visit here in Atlanta. Can we start by talking about the importance of the business component of the US-Saudi relationship?

Mr. Al Seif: The business relationship between the United States and Saudi Arabia is an old and historic relationship, which has been very beneficial for both Saudis and Americans.

Over the years America has been Saudi Arabia's primary trading partner. Most of the things you see in Saudi Arabia are a result of this relationship -- American technology starting from oil exploration to infrastructure and public works. You even see American influence in our standards due to the success of this relationship over the years.

The development that has happened in Saudi Arabia we owe to American companies that have worked hard in the Kingdom. They have gained and we have gained. American exports to Saudi Arabia have provided hundreds of thousands of jobs in the US. Likewise, our economy has benefited from American business involvement so it has been the perfect partnership over all those years.

What happened on September 11 was a shame. What was also a shame was how a group of terrorists could have damaged the relationship between Saudi Arabia and the US. Just as we have been business partners we are now partners in the war on terrorism. Saudi Arabia and America are cooperating in the fight against the terrorists and we are winning this war together.

SUSRIS: What is happening in the Saudi economy now?

Mr. Al Seif: What has been happening there is quite exciting. Saudi Arabia is seeing another boom in the making, an economic boom which in my opinion will be wider and deeper than the boom in the 70's. The main drivers of this economic boom are twofold.

First, there have been the reforms that have taken place in economic laws and regulations in the country along with the privatization program, which opened up the economy. There are so many opportunities in the private sector now that were not dreamed of ten years ago. Economic reform in Saudi Arabia has been extensive. I was talking today with some of my colleagues that even Saudis cannot sometimes recognize our own country with all the changes that are happening.

SUSRIS: What was the motivation for reform of the economic sector?

Mr. Al Seif: If you look at the history of the Saudi economy we had an oil boom and then a slowdown in oil production. We were producing around four to four and a half million barrels of oil a day and the population was growing. All of a sudden people started realizing we were getting poorer and that something had to be done. We couldn't keep relying on oil so diversification of the economy and sources of income was a must.

A lot of ideas were circulating about what to do. Then the government formed the Supreme Economic Council, which was a critical step in the process. They were able to join ministers and officials together, as well as a consultative body made up from the private sector who contributed their practical expertise. The commission was behind the implementation of economic reforms and although it has taken time the positive results are now being seen.

SUSRIS: Besides economic reform what is behind the current boom?

Mr. Al Seif: The second driver is the increase in oil production. As you know Saudi Arabia is committed to the stability of oil prices in the world but global consumption has increased tremendously over the last few years. It has been driven, in particular, by the increased demand from new markets like China and India. Since Saudi Arabia is committed to stabilizing world oil prices we started increasing production to try to put the brakes on the rise in prices. We have boosted oil production to 9.5 million barrels a day.

The additional oil production along with the reforms made in recent years are the main drivers of the economic boom that is taking shape in Saudi Arabia and is likely to continue for quite some time. The main reason for sustained growth is the forecasted increase in global oil demand. As you know, Crown Prince Abdullah met with President Bush in April and he confirmed the commitment of Saudi Arabia to not only maintain oil production but he also presented a plan to increase it to 12 � million barrels a day by the year 2009 and up to 15 million barrels a day a few years after that.

What this means is that as those new regulations I was telling you about continue to drive improvements in the economy and oil production continues to increase over the next ten years this boom will be longer than the boom of the 1970's.

SUSRIS: In addition to the increased oil revenues that will expand the Saudi Arabian economy what will new production capacity mean to the oil industry.

Mr. Al Seif: Increasing production does not mean that we just open the tap and produce more from the existing wells. That could damage those wells. When we talk about increased production as related to an expansion of capacity it means further exploration and development of new areas and new wells. The Saudi Arabian government is committing around 50 billion dollars in new investments to accomplish these goals.

SUSRIS: What is the relationship between the economic boom in Saudi Arabia and the trade mission you are leading?

Mr. Al Seif: The trade mission's purpose is not just to attract investments. Many in the private sector in Saudi Arabia are worried about the relationship with our American partners. We consider American companies very talented and great friends and we worked with them for many years. As I mentioned the United States has been our primary trading partner for decades. We saw the relationship deteriorate after Sept 11, including the business ties. With the upturn in Saudi Arabia's economic prospects a lot of people from other countries started coming to Saudi Arabia for business. What we are worried about is that others will take the place of the US as our trading partner.

So given the history of our partnership with Americans we owe it to the relationship to do just what we are doing now -- reaching out to American companies, to our old friends, to tell them what is going on in our country, to tell them about all the exciting opportunities out there and to invite them to come over to Saudi Arabia. What we are really saying to them is that Saudi Arabia again welcomes American business partners and we, as Saudis, will be open to work together. There is a great future and great business to be done there and we would love to do it together.

SUSRIS: The recent summit meeting between President Bush and Crown Prince Abdullah in Texas has been called by some as a milestone in the relationship. Are those observers correct?

Mr. Al Seif: It is apparent to us that there really is a new stage in the relationship based on the warmth we have seen from the American officials we have met and representatives of the American companies that have attended the trade mission meetings. I'm glad that I can see this first hand in my visit here to the US. In those sessions there have been representatives of the Department of Commerce, the Department of Energy and the US Embassy in Riyadh and they have been encouraging to American companies to do business in Saudi Arabia. Their tone has been very positive. The atmosphere for building on the relationship has improved greatly and I think the meeting between Crown Prince Abdullah and President Bush was just one more step in the historic connections we enjoy.

The delegates of the Saudi trade mission have felt welcomed at every stop. I've talked to many of them and they were very happy to see this kind of a reception and to hear these kinds of positive messages. On their part they reciprocated from their hearts. When they were telling people who were interested in their projects they were really saying from their hearts, "Come on over and join with us." They were very touched by the reception.

SUSRIS: Can you tell us more about the composition of the trade mission delegation?

Mr. Al Seif: The delegation was developed by the Commission of International Trade, one of the main committees of the Saudi Council of Chambers of Commerce. It is a private sector initiative.

There is a group of business people participating as representatives of some of the largest Saudi companies. They are here to network with American companies especially those who are new to working with Saudi partners. It is an effort to ease their entry into the Saudi market.

There are also some government officials involved, by our invitation, because we wanted them to explain projects their ministries are planning. Their participation is part of the new transparency in the Saudi economy that we have been talking about. This is part of putting it to the test. We invited these officials to participate, to show our American friends what projects the government will be opening up through about the year 2020. They agreed and have joined the trade mission delegation. Their presentations were very thorough, very specific. They covered details about project size, amount, location -- the whole lot. So I think business partners will have benefited tremendously from this information.

SUSRIS: How have the trade mission meetings gone so far?

Mr. Al Seif: New York was the first stop and things went quite well. The speakers at the opening session included Mr. William Lash, Assistant Secretary of Commerce for Market Access and Compliance; Mr. Justin Swift, Assistant Secretary for International Affairs in the Department of Energy; and Mr. James Oberwetter, the US Ambassador to Saudi Arabia. This showed the amount of interest that the US government attaches to this relationship.

We were also pleased that Princess Lolowah al-Faisal, a member of the trade mission delegation, made a speech to the participants. This was something new for us and is part of the social change that is happening in Saudi Arabia regarding the role of women, especially in the business world. Her remarks were very well received.

I would also note that the expansive, positive coverage of the trade mission in both the US and Saudi media is another sign of the improving nature of the relationship.

SUSRIS: There is $623 billion dollars in new business being discussed in the trade mission meetings. Can you talk about the scope of the US-Saudi business relationship in the context of those prospects?

Mr. Al Seif: The sum of $623 billion is the estimate of the total expenditures that will be required in Saudi Arabia up to 2020. They represent a broad spectrum of projects - private sector expenditures, government expenditures, realty projects and so forth. Now how much of that would go to American companies really depends on how eager American companies are -- how willing they are to come over and get involved before it is too late. This is our message to them. Get involved before it is too late. We welcome you.

SUSRIS: Former US Ambassador to Saudi Arabia Wyche Fowler spoke to the trade mission participants here in Atlanta and mentioned the conditions for business relations were improving. Can you elaborate on changes in areas like visas and the security situation?

Mr. Al Seif: These are all major steps. I was pleased to hear Ambassador Fowler, as well as the current ambassador, Mr. Oberwetter, in New York. They talked about these situations. As it has been widely reported and commented upon the security situation in Saudi Arabia has improved tremendously. The cooperation between the US and Saudi Arabia on security matters is proceeding very well. We hear there is movement on the questions like travel warnings and hope to see these issues resolved.

I was very encouraged by the comments of Mr. Lash from the Commerce Department. In his speech in New York he described what he saw in his visit to Riyadh about a month ago. He said he went to the marketplace, the souk, in Riyadh for a visit. He mentioned he walked around freely without a security detail, and he said it was just as safe as any other place in the world. It was quite encouraging to hear these kinds of first hand observations shared with others.

The issue of visas is something, I understand, the US side is hard at work on -- especially for students because education is extremely important. Most of the leaders in Saudi Arabian society, whether it is in the government bureaucracy or in the private sector were educated in America. That has become part of the foundation of the good relationship that exists between Saudis and Americans. To see these numbers dwindle is not good for the future. So, to enable students to obtain visas is extremely important. Likewise to facilitate business travel is another key component in the relationship. It is very positive that these issues are being addressed.

SUSRIS: Ambassador Chas Freeman, who also served as US Ambassador to Saudi Arabia, told us in an interview last October, at the height of the US presidential campaign, that both Americans and Saudis needed to get together after the elections, at the highest levels, to "reassess and redefine the relationship" or it could "drift permanently into mutually disadvantageous" directions. Do you think our leaders have accomplished anything on that score?

Mr. Al Seif: We still have work to do, but I think you should see the meeting that took place between President Bush and Crown Prince Abdullah last month in Texas as a commitment from both leaders to the future of the relationship.

They also realize that this commitment has to filter down. That's why they formed a joint committee between Foreign Minister Prince Saud al Faisal and Secretary of State Condoleeza Rice. The main objective of this committee is to see that more clarity is put into the relationship at the various levels so that it doesn't remain good only at the top and unsettled below. You have to make sure it filters all the way through on both sides.

We have received numerous comments from US government officials about our trade mission -- that it is a very important way of assisting to strengthen the relationship. That was why they were ready to assist because they can see the total benefit to both our people.

SUSRIS: With your background in international trade you have insights into American as well as, obviously, Saudi society. What is it on each side of the relationship that you see as a major misunderstanding of the other side?

Mr. Al Seif: This is a very good question but to tell you honestly, whenever we have had the chance to meet face to face with American groups or individuals the differences disappear.

The minute we start talking the misconceptions start disappearing and you hear comments like, "I didn't know that" or "I thought it was like this or like that." This is really what encourages us to continue doing what we are doing because the more people we meet, the more trade missions we have, the more conferences we arrange, the more that people talk then the less the differences are.

We all realize that in reality both sides are on the same side. We all realize that both sides are partners in so many things -- partners in fighting terrorism, partners in economic developments and business, partners, even, on political issues. The differences are not that great once we get to talk to each other.

SUSRIS: Well thank you very much for taking time to talk with us. We have been talking to Khaled Al-Seif, the Chairman of the Saudi Committee for the Development of International Trade at the Council of Saudi Chambers of Commerce and Industry.

ABOUT KHALED AL SEIF

Khaled Musaed Al Seif is a businessman and a leading member of the business community in Saudi Arabia who manages one of the largest business groups in the Kingdom. He is active in various committees and councils dealing with the promotion of international trade and bridging relations with the West.

Mr. Al Seif currently serves as Chairman of the Saudi Committee for the Development of International Trade (CIT) at the Council of Saudi Chambers of Commerce and Industry. He has officiated as board member of the Saudi-British Council since January 1993; board member of the Arab-British Chamber of Commerce, London, UK since February 1996; on the Board of Directors of Riyadh Chamber of Commerce and Industry, Riyadh, Saudi Arabia (2004-2008); board member of Royal Philanthropic Society for Science (Prince Sultan University) since 1999; and President and CEO of El Seif Group of Companies, Riyadh, Saudi Arabia.

As the President and CEO of El Seif Group of Companies, Mr. Al Seif is a board member of the following Saudi and international companies: Musaed Al Seif & Sons Company; Saudi Medicare Company; International Management Development Company; Dana Investment and Development Company; Al Azizia Commercial and Investment Company; National Power Company; Modern Arab Construction Company; Marina Towers S.A.L.; and El Seif Holding Company in Lebanon. He has founded the following companies: Arabian Medicare Company; Universal Advanced Systems Company; El Seif Engineering Contracting Establishment; and El Seif Development Company.

Mr. Al Seif holds a B.S. in Civil Engineering from the American University in Beirut.

How Can the U.S. Re-Open for Business to the Arab World? - MEPC Capitol Hill Forum:

Part 1 - Ambassador Chas Freeman - President, Middle East Policy Council
http://www.saudi-us-relations.org/articles/2006/ioi/060414-mepc-freeman.html 
Part 2 - Dr. Edward M. Graham, Senior Fellow, Institute for International Economics
http://www.saudi-us-relations.org/articles/2006/ioi/060415-mepc-graham.html 
Part 3 - James Andrew Lewis, Senior Fellow, Center for Strategic and International Studies
http://www.saudi-us-relations.org/articles/2006/ioi/060416-mepc-lewis.html 
Part 4 - Don N. De Marino, Chairman, National US-Arab Chamber of Commerce
http://www.saudi-us-relations.org/articles/2006/ioi/060417-mepc-demarino.html 
Part 5 - William A. Reinsch, President, National Foreign Trade Council
http://www.saudi-us-relations.org/articles/2006/ioi/060418-mepc-reinsch.html 
Part 6 - Panel Questions and Answers
http://www.saudi-us-relations.org/articles/2006/ioi/060419-mepc-qanda.html