The past month has seen several historic developments on the Kingdom’s economic front. The decision to allow foreign investment in the school building project drew flak rather than kudos from several quarters. The explanation given for inviting foreign contractors into an area where the Kingdom’s contractors are competent is not so convincing. As Dr. Abdullah Al-Fouzan, a writer, stressed the Kingdom’s private sector is experienced in undertaking such lucrative contracts as the construction of school buildings. Al-Fouzan also pointed out that awarding foreigners contracts in areas where local investors can compete among themselves was outside the scope of the General Investment Authority.
According to Dr. Abdullah Sadiq Dahlan, another writer, no other Saudi project has received the amount of local or international media coverage as did the contract for building the schools won by an American consortium. The Saudi public in general has been concerned because it apparently failed to understand the reasons behind what was evidently an unexpected move.
According to another writer, Badriah Al-Bishr, the contract has created such large-scale confusion that some members of society expressed the view that no foreign investor should be given any contract while others felt that Saudi contractors had been denied their genuine rights. A statement by Education Minster Dr. Muhammad Al-Rasheed, which denied his knowledge of the project has further confounded the situation.
However, last month’s most significant development was a bid to shift the Kingdom’s economic base from oil to natural gas. The gas will hopefully replace oil as a major source of fuel and energy for the rapidly expanding domestic industrial sector. The reduction in domestic oil consumption will obviously increase the volume of oil exports. The new industrial projects will also create plenty of employment opportunities. Foreign investment is required in the gas sector which needs advanced expertise.
In a statement by Foreign Minister, Prince Saud Al-Faisal, he made it clear that six out of a total of 18 multinationals, which competed for the gas projects, were selected the decision on the remaining companies will be made after further studies. The foreign companies will not be allowed to trespass upon areas earmarked for the Saudi Aramco, though the operations of the foreign companies will boost Aramco’s activities indirectly as competition is an essential ingredient of a healthy market. Prince Saud revealed that the project which will increase the national income is primarily aimed at the welfare of citizens. The development in the Kingdom will also benefit other Arab countries as the Arab League is expected to make an important decision on inter-Arab cooperation for this decade. Citizens are so deeply interested in the economic progress of the Kingdom that one of my friends expressed his sincere wish for the success of the objectives targeted by the projects. He blamed the media for not supplying the public with details pertaining to the investments in this vital sector. The media should make an effort to rouse people’s interest and instill in them a keen desire to invest in it. The media should also make it clear to people that the government welcomes investments from domestic investors as well. Saudi journalists and economists can contribute greatly by expressing their views and putting forward their suggestions to encourage people to buy stakes in the national joint stock companies operating in the sector instead of taking their money somewhere else. In short, the media should strive to grasp the spirit of the government’s decisions which aim at restructuring the national economy so that dependence on oil will be replaced by other diverse energy sources apart from providing employment opportunities for citizens and opening up new areas for profitable investment and progress.
