Editor's Note:
In June 2006 in Houston Saudi Arabian Minister of State and former head of the
Jeddah Chamber of Commerce and Industry Abdullah Zainal Alireza provide his perspective on the Saudi economy to a session of the
US-Arab Economic
Forum [provided in one of a number of SUSRIS articles about
Mr. Alireza]:
|
"Saudi Arabia is experiencing a transition from public to private sector growth and its strategy for achieving balanced development through privatization is founded upon building an effective public-private partnership. Its objectives are straightforward and designed to enhance human resource development, to diversify government revenue sources away from an overwhelming dependence on the oil sector, to promote privatization of government owned entities, to use the private sector to enhance the bureaucratic efficiency and effectively controlling the public sector. At the same time Saudi Arabia will be building a knowledge-based society, and the circle will continue. As we move into the knowledge society we will increase our ability in human resources. It will also improve our bureaucratic capabilities and diversify incomes. The circle will continue to grow until human capital has reached higher levels.
"In order to pursue these ambitious economic initiatives Saudi Arabia remains committed to building an ever more dynamic free market economy. It will have no restriction on capital movements. It will have a positive business climate. Capital market and tax reforms have recently been implemented. Saudi Arabia has embarked on a sweeping program of economic policy reforms to forge an ever expanding commercial prosperity. These reforms have achieved impressive successes and established an improved atmosphere of efficiency, greater transactional transparency, more effective governmental oversight and enhanced opportunities for foreign investment." |
On March 3, 2008 King Abdullah named distinguished businessman Abdullah Zainal
Alireza, to the post of Commerce and Industry
Minister. We are pleased to share the announcement and an
Arab News editorial endorsement of Minister Alireza's
selection which called him " probably the most experienced person in the country for the
job," as well as a collection of related reports and web sites.
Alireza Named New Minister of Commerce
JEDDAH, 4 March 2008 � Custodian of the Two Holy Mosques King Abdullah yesterday appointed Abdullah ibn Ahmed Zainal Alireza as
minister of commerce and
industry. He replaces Dr. Hashim Abdullah Yamani.
A royal decree issued by the king said Yamani has been relieved of his position at his request.
Alireza, who hails from a distinguished business family, has been hitherto a state minister in the Cabinet. Before that he was the chairman of
Jeddah Chamber of Commerce and
Industry.
As one of the most successful private sector leaders in the Arab world, Alireza headed the team that negotiated the Kingdom�s accession to the
World Trade
Organization.
Saudi entrepreneurs welcomed Alireza�s appointment.
Among others, Jeddah-based businessman Mohammed Al-Khereiji said, �Alireza brings with him a wealth of experience to his position. He is certainly the most knowledgeable minister of commerce Saudi Arabia has ever had.� Added Saleh Mutabagani: �In this age of globalization, Alireza is the right person in the right position at the right time. He comes from a business family that holds the first commercial registration in Jeddah.�
Source: Arab News
Editorial: Encouraging Sign
5 March 2008
![H.E. Abdullah Zainal Alireza [Photo: Patrick W. Ryan]](https://www.saudi-us-relations.org/images2008/IOI/2008_03_05b250.jpg)
The appointment of Abdullah ibn Ahmed Zainal Alireza as commerce and industry minister was wholly unexpected but it is an encouraging development. Alireza is probably the most experienced person in the country for the job. A fervent deregulator and reformer with a reputation for new ideas and getting things done, he comes from one of the leading Jeddah merchant families, has served as chairman of the
Jeddah Chamber of Commerce and
Industry, has been a Cabinet minister without portfolio, an adviser to the
Supreme Economic
Council, helped negotiate Saudi Arabia�s accession to the World Trade Organization and for the past five years acted as a roving trade ambassador.
Although very approachable, he neither surrounds himself with yes men nor is he afraid to mince words. Last year, when in the US, he went out of his way to meet New Jersey Rep. Mike Ferguson, who in addition to being a member of the House Energy and Commerce Committee which oversees foreign trade is also a fervent champion of Israel and virulent critic of the Kingdom. There had never been a meeting like it before. Just last month, he could be heard telling an audience in Florida that Saudi Arabia has �an obligation to tell our friend what we feel about parts of America that became drunk on muscular power.�
![T.H. Sheila Jackson Lee and H.E. Abdullah Zainal Alireza, Minister of State, Kingdom of Saudi Arabia, at the US-Arab Economic Forum during a session titled US-Arab Relationship in 2020. The US-Arab Economic Forum (www.usaeforum.org) was held in Houston, Texas (June 26-28, 2006) [Photo: Patrick W. Ryan]](https://www.saudi-us-relations.org/images2006/IOI/2006_07_07c250.jpg)
Such straightforward thinking is certainly required at what is one of the most important ministries in the country. High oil prices can fund the latest boom but industry and commerce are the real keys to Saudi growth. What is needed from the ministry is more support and less red tape. Setting up new industries can involve vast amounts of permits, with businessmen running from pillar to post just to get started. The system has to be streamlined. That must inevitably involve rationalizing what is an overstaffed ministry.
The new minister can help in other ways. There has to be more support for women in industry and trade, more support for young entrepreneurs. The role of the Council of Saudi Chambers of Commerce and Industry needs to be boosted, with less interference from the ministry. Is there any reason why the ministry should still appoint members to CSCCI committees? Why not elect all of them? Many Saudis will see this appointment as a response to public concern about inflation. Indeed it is reported the new minister will give the king his plans on the issue next week.
![H.E. Abdullah Zainal Alireza in January 2007 in the annual meeting of the World Affairs Councils of America in Washington. [Photo: Patrick W. Ryan]](https://www.saudi-us-relations.org/images2008/IOI/2008_03_05c250.jpg)
It would be wrong, though, to imagine that Alireza is going to produce a quick fix. If there were easy answers they would be already in place. Perhaps there will be a more rigorous action against profiteering � but that is only part of the problem, and a small part at that. It would be naive, however, to imagine that he will recommend price cuts or subsidies; that goes against the whole grain of the government�s (and his) commitment to the free market. Nor will there be any depegging from the dollar. He himself was categoric about that in Florida last month: Uncoupling the two currencies would be like Saudi Arabia shooting itself in the foot, he said.
That leaves reducing the money supply, soaking it up by issuing bonds. The government does not want to increase debt by doing so � but it is a proposal the new minister will have to consider seriously.
Source: Arab News
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