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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.
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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. |
..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.. |
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 ½ 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?
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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. |
..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.. |
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?
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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. |
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. |
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?
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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
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. |
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. |
