SAUDI ARABIA - Renewed Focus On Economic Liberalisation.Economic reform is at present the highest priority for the Saudi leadership, with ministers announcing new liberalisation n. 1. Same as liberalization. Noun 1. liberalisation - the act of making less strict liberalization, relaxation alleviation, easement, easing, relief - the act of reducing something unpleasant (as pain or annoyance); "he asked the nurse measures virtually on a weekly basis. The acceleration in reforms began in the second half of 1999. Changes being implemented at present cut virtually across all sectors of the economy, with trade liberalisation, deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the investment regime, privatisation, capital market and fiscal reforms being priority issues. Importantly, the mechanisms for overseeing liberalisation in the post-Fahd era are being put in place as well. In late August 1999, King Fahd (then still vacationing in Spain), ordered the establishment of a Supreme Economic Council (SEC) under the chairmanship of Crown Prince Abdullah. King Fahd appointed his powerful full-brother, Prince Sultan (2nd deputy premier, defence/aviation minister & inspector general), as deputy chairman. The other SEC members are the ministers of finance/economy, oil, industry/electricity, trade, PTT (1) (Postal, Telegraph & Telephone) The governmental agency responsible for combined postal, telegraph and telephone services in many European countries. (2) See push-to-talk. PTT - Post, Telephone and Telegraph administration , public works/housing, planning, labour/social affairs, three state ministers, Saudi Arabian Monetary Agency The Saudi Arabian Monetary Agency (SAMA), established in 1952, is the central bank of the Kingdom of Saudi Arabia. History At the time of its establishment, Saudi Arabia did not have a monetary system of its own. (SAMA sama In Sufism, the practice of listening to music, chanting, and dancing as a means of producing a state of religious ecstasy and mystical trance. Practitioners hold that music prepares the soul for a deeper comprehension of divine realities and a better appreciation of ) governor, and 10 leading Saudi businessmen representing the private sector. The SEC, formed in early September, is to study the country's economy, annual budgets, the current and future five-year plans Five-Year Plans Method of planning economic growth over limited periods, through the use of quotas, used first in the Soviet Union and later in other socialist states. , economic reform requirements such as privatisations and partial market deregulations, projects to diversify the economy, and monetary and fiscal policies. It will have some executive powers, but only in getting its decisions to be approved and issued by the Council of Ministers. It will issue regular reports to the Council of Ministers on the state of the economy. In a major policy statement, Prince Abdullah on Oct. 19 announced that the investment laws will be amended and obstacles will be swept away. Foreign ownership of real estate will be allowed, tax rates on foreign companies will be cut and the pace of privatisations will be accelerated. (Currently foreign companies can only own property through a Saudi sponsor. Current taxes on foreign companies reach 45% after a five-to-ten year grace. Until now privatisations have been extremely slow. The government has been hesitant in reforming an extensive welfare state and in removing hurdles to private sector investment). The mutual fund market has been opened up for foreign investment, while overseas investors are to be permitted to own majority shares in local joint ventures. Crown Prince Abdullah said in late October that the goal of "expanding the base of our economy, diversifying the sources of income and reinforcing the role of the private sector... requires us to improve the local investment climate". Another key objective of the government is to get wealthy Saudis to bring back at least part of an estimated $400 billion in assets held abroad. On Jan. 4, a royal edict A decree or law of major import promulgated by a king, queen, or other sovereign of a government. An edict can be distinguished from a public proclamation in that an edict puts a new statute into effect whereas a public proclamation is no more than a declaration of a law announced the creation of the Supreme Council for Petroleum and Mineral Affairs, to be headed by King Fahd. The edict said the council would define and approve petroleum and gas policies "in light of circumstances and national interests", according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Saudi Press Agency The Saudi press agency (SPA) was established in 1971 as the first national news agency. The main goal of its establishment was to serve as a central body to collect and distribute local and international news in the kingdom of Saudi Arabia and abroad. (SPA). The council would "determine all matters of investment in petroleum, gas, and other hydrocarbons...including exploration, prospecting and production, and will approve development and operation agreements and other investment contracts with the companies concerned", SPA added. It also said the council would draft the general policy of state oil company Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. and vet its production, exploration and investment plans. The members of the council include Crown Prince Abdullah, Defence Minister Prince Sultan, Foreign Minister Prince Saud Al Faisal, Oil Minister Ibrahim Al Naimi and Finance Minister Ibrahim Abdel Aziz Al Assaf. |
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