JEDDAH, 5 June — Custodian of the Two Holy Mosques King Fahd yesterday urged Saudi businessmen to invest their funds inside the Kingdom and said their participation in major investment projects would serve as a big boost to the national economy. “Our economy is recovering and it requires the joint efforts of the state and the private sector to accelerate the process,” the king said while opening the Shoura Council’s new four-year session.

King Fahd’s call to the private sector comes a day after the signing of landmark agreements with eight oil majors to develop the Kingdom’s gas fields. The accords, part of the Kingdom’s gas initiative, are to draw an estimated foreign investment of more than $100 billion.

He said the decision to open the Kingdom’s lucrative gas industry to foreign firms would help solve unemployment among Saudis. “We are undoubtedly looking forward to reaping rewards from these (gas) projects which will, God willing, greatly benefit the economy and also absorb some qualified Saudi labor,” he said.

“Our main concern is the vital issue of finding jobs for our graduates and we are looking to the private sector to help us address this major challenge,” he told the gathering, which included Crown Prince Abdullah, deputy premier and commander of the National Guard, and Prince Sultan, second deputy premier and minister of defense and aviation.

King Fahd said high levels of petroleum taxes in the West, and not OPEC, were to blame for inflated oil prices in consumer countries. “OPEC must not be held responsible for damage to the world economy caused by price rises,” he stated.

King Fahd, echoing the Caracas Declaration adopted in September, called for consumer states “to revise their policies and ease the burden of taxes, in their own interests.” The king stressed the need for “cooperation and solidarity” among members of the Organization of Petroleum Exporting Countries to protect their interests.

“The stability of the  oil market is a joint responsibility,” he said and called for stronger links between oil producers and consumers. He hoped that the Kingdom’s offer to host the general secretariat of the World Energy Forum would open new channels of dialogue between oil producers and consumers.

Referring to the Middle East conflict, King Fahd asserted Arabs’ desire to establish real peace in the region as a strategic choice. He urged Washington to play a “decisive role” in bringing peace to the region and called for a UN force to “protect” the Palestinians.

He predicted a bleak outlook for the region because of the ongoing Israeli-Palestinian conflict. He complained of the “total inability of the international powers” to halt “a real war in which the Zionists are using all sorts of weapons of mass destruction.”

“Will the United Nations and the UN Security Council be able to come to the help of our Palestinian brothers by sending an international force to stop the flow of martyrs and victims?” he asked. He warned that “the situation into which the Zionists have pushed the region inspires no hope in the short or long run.”

Saudi Arabia will “continue to support our Palestinian brothers by all means,” the king said, recalling that Riyadh had pledged $250 million to the two funds instituted by the Arab League to support Palestinian resistance.

The king emphasized the government’s plan to provide jobs to the country’s growing number of graduates. “I take this opportunity to call the private sector to employ more Saudis, because it’s their national duty.” He stressed the need for revising decisions related to Saudization of jobs at private and public sectors.

King Fahd called for a new recruitment strategy that would consider developments in the local job market and the growing number of Saudi job seekers.

He highlighted the economic reforms introduced by the Kingdom in recent months including the new foreign investment law, the General Investment Authority and the Higher Tourism Authority. He said the new laws related to national construction strategy, real estate ownership by non-Saudis, social insurance, press and publication system and the committee to take care of prisoners were drafted and endorsed by the Shoura Council.

King Fahd highlighted the Shoura Council’s achievements during the past eight years since it was introduced by the king in 1993 as part of his political and administrative reforms.

“The Shoura takes its root and inspiration from the past and conducts its studies with a futuristic vision. It brings past and future together without any contradiction,” he explained.

“I feel happy whenever the world understands the desire of this country to follow the Shoura system... This reaffirms that the Shariah is suitable for all ages and places,” he said, adding that the Islamic Shoura system has dominated modern studies and research works.

“Your Council has contributed toward reinforcing the pillars of Shoura by introducing this unique Islamic system to the world,” the king told the Shoura members who represented the cream of Saudi society.

“I am happy to know that the Shoura Council takes up its mission with responsibility and takes its decisions in the light of Shariah, looking at the interests of the Ummah. This strengthens our confidence in the Shoura,” he added. “We work as one team for the development of the country and to uphold its honor.”

He said the number of Shoura members was increased from 90 to 120 to enhance the participation of citizens in the country’s decision-making process. He said he selected the members from a long list of prospective candidates. “It shows that our country is replete with qualified hands.”

King Fahd advised the Shoura members to exert efforts to promote the country’s development.

In his wide-ranging address, King Fahd also urged Arabs and Muslims to strengthen their unity and solidarity and expand cooperation. He underscored the border treaties signed by Saudi Arabia with Yemen, Kuwait and Qatar as well as the security agreement with Iran.

He hoped that these accords would lead to greater cooperation between the Kingdom and the neighboring countries.

Referring to the government’s efforts to train Saudis, he said the education and training sectors have received the lion’s share of this year’s budget. “We made that allocation to help universities and colleges to accommodate more students,” he said and urged the private sector to play a major role in training Saudis. He pointed out that the ongoing Seventh Five-Year Development Plan (2000-2005) had focused on manpower development.

He emphasized plans to improve production efficiency and performance along with prudent spending and better utilization of resources. He said the government had established the Saudi Electric Company with a capital of SR33 billion to enhance private sector participation in vital projects.

On the privatization, the king said it was aimed at expanding private sector participation, encouraging national and foreign investment and enhancing the economy’s competitiveness.

He said the Sixth Five-Year Development Plan saw the establishment of 29 hospitals with 4,630 beds. During the same period we started work on 71 new hospitals with 8,300 beds. The plan also witnessed the opening of 17 colleges, 2,835 schools, 10 technical colleges, 17 secondary technical institutes, 250 health centers and 60 first-aid centers.

He said the capacity of technical education centers had been expanded to reach 55,000 students by the end of last year, adding that 50,000 students graduated from these centers during the last five years.

Muhammad ibn Jubair, president of the Shoura, Bakr ibn Saleh Shatta, vice president, Dr. Hamoud Al-Badr, secretary-general, and the Shoura members took oath yesterday in front of the king.

In his address, Jubair said the Shoura had taken up 553 topics and issues and taken 435 decisions related to international agreements, administrative systems and reports of government agencies during the past eight years. The Shoura had held 445 meetings during the past two sessions.