ECONOMIC NEWS ..... 

OPEC SECRETARY-GENERAL IN KINGDOM

Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz received in Jeddah on June 1 Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Ali Rodriquez. Mr. Rodriquez, who is also president of Venezuela’s national oil company, was in the Kingdom for talks with Minister of Petroleum and Mineral Resources Ali Al-Naimi. The two oil ministers discussed the international oil market situation and bilateral cooperation. In a statement issued after the meeting, both ministers expressed agreement on the importance of cohesion among OPEC countries at all levels to contribute to the stability of the market and to keep prices within the targeted range in a way that serves OPEC producers without negatively affecting the growth of the global economy. They also expressed satisfaction with the current production ceiling and quotas, adding that oil prices were within the desired range. “The state of oil stocks is satisfactory; it is normal, neither low nor high,” Minister Al-Naimi said. “Stability is what we are interested in. We do not want to see any increase or decrease in stocks that might put pressure on prices. As regards supply and demand, they are in a state of equilibrium and this is expected to continue during the coming months.”

BRITISH MINISTER VISITS KINGDOM TO PROMOTE ECONOMIC RELATIONS

Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz met with British Minister of State for International Trade and Investment at the Foreign Office, Baroness Patricia Hewitt, on June 12. The British official was in Saudi Arabia for meetings with Minister of Finance and National Economy Dr. Ibrahim Al-Assaf on ways of enhancing economic cooperation between the two countries. In an interview with the Arabic daily Okaz Baroness Hewitt gave assurances of British support for Saudi Arabia’s accession to the World Trade Organization (WTO), pointing out that the recent economic reforms introduced by the Kingdom would effectively increase its chances of acceptance. The British government, she said, encourages British investors and multinational companies to invest in the Kingdom.

SHARES FOR STC TO BE OFFERED SOON

The Ministry of Finance and National Economy, and the Ministry of Posts, Telegraphs and Telephones  issued a joint statement on May 26 saying partial public subscription to the shares of the Saudi Telecommunications Company (STC) will be offered before the end of the year in accordance with the directives of the Supreme Economic Council (SEC). The statement announced that a contract has been signed with an international company to study and evaluate the company’s market value and publish a report providing potential investors with all necessary information, pointing out that this move comes as an important part of the privatization of the telecommunications sector.

SAMBA LARGEST BANK IN THE MIDDLE EAST

The Saudi American Bank (SAMBA), with a capital of 2.57 billion U.S. dollars, remains at the top of the list of the 25 major banks in the Middle East region, according to the latest survey by the Gulf Banking Consultants’ Services in Manama, Bahrain, released on May 20. Riyad Bank was a close second, with a capital of 2.56 billion dollars, followed by the Arab Bank of Jordan and another Saudi bank, Al-Rajhi Banking and Investment Corporation.

PLANS TO CONNECT GCC ELECTRICITY GRID

Minister of Industry and Electricity Dr. Hashim Yamani chaired in Cairo on May 28 a meeting of the ministers in charge of electricity affairs of Saudi Arabia, Egypt, Kuwait, Libya and Jordan. Dr. Yamani presented a summary of what has been accomplished regarding linking power grids among Arab countries, pointing out that the Gulf Cooperation Council (GCC) has set up a power grid commission headquartered in Dammam. The GCC power grid project is being executed in three phases. The first will link Saudi Arabia, Kuwait, Bahrain and Qatar, with the second connecting Oman and the United Arab Emirates, and the third linking these two grids. Eventual linkage of the Arab grid with Europe will take three paths: the first through Turkey following its linkage with Syria; the second from Morocco, through an undersea cable to Spain; and the third through Italy from a North African location not yet determined.

KINGDOM AT WORLD FOOD SUMMIT

Minister of Agriculture and Water Dr. Abdullah bin Muammar told the World Food Summit in Rome, Italy, on June 11 that Saudi Arabia is committed to playing a major role in assisting developing countries. He noted that the Kingdom has provided more than 70 billion U.S. dollars in funding for social and economic projects worldwide, and has contributed to a number of international financial institutions. The World Food Summit conference discussed ways of eradicating poverty and hunger in underdeveloped countries.