CONTENTS:
o NEWS
· REGION
-U.N. SANCTIONS IMPASSE
-DISNEY BOYCOTT
-YEMEN ELECTION
· QATAR
-COUP TRIAL STARTS
· SAUDI ARABIA
-KING FAHD TO RETURN
· UAE
-ISLANDS ISSUE RAISED AT U.N.
o BUSINESS
· REGION
-OIL FUTURES
-OIL LIMITS CONTINUE
-OPEC CHIEF IMPASSE
-MARKET TARGET
-UTILITY PRIVATIZATION
-GROWTH SLIDE
· BAHRAIN
-INVESTMENT TREATY
-BAPCO UPGRADES
-EXHIBIT CENTER
· KUWAIT
-PRICE HIKES
· OMAN
-LOAN PLAN DUMPED
-TRADE TALKS WITH IRAQ
-OIL CONCESSION
· SAUDI ARABIA
-AIRLINE PRIVATIZATION
-FINANCIAL MARKET REFORMS
· UAE
-BUDGET BOOST
· PERSPECTIVES
OPPORTUNITY
LED GROWTH: SAUDI ARABIA AS A CASE STUDY
· LAST LINES
~~~ SNAPSHOTS ~~~~~~ SNAPSHOTS
~~~~~~
· REGIONAL
U.N. SANCTIONS IMPASSE
Representatives of the five permanent members of the U.N.
Security Council
failed to reach agreement on the future of sanctions imposed on
Iraq
according to the BBC on Thursday. Talks are to continue.
Complete
report...
DISNEY BOYCOTT
Arab League Secretary-General Ismat Abdel Meguid said Friday
that Arab
foreign ministers meeting in New York accepted assurances from
Disney on a
contentious exhibit. The foreign ministers were told there
would be no
depiction of Jerusalem as the capital of Israel. The
apparent resolution of
the on-again, off-again boycott threat may not be the last
word. A day
later UAE Minister of Information and Culture Shaikh Abdullah
bin Zayed Al
Nahyan said the Arab position against Disney was undermined and
more
concessions could have been won. Source: BBC, Khaleej
Times
YEMEN ELECTION
President Al Abdallah Saleh was reelected Thursday, defeating
Najib
Al-Shaibi, a relatively unknown member of Saleh's own
party. An official
report noted President Saleh received 96.3% of the votes. Complete
report...
President Saleh's Victory Speech
· QATAR
COUP TRIAL STARTS
A trial has begun in the case of Sheikh Hamad bin Jassem bin
Hamad al-Thani,
a cousin of the Emir, who is charged with leading a failed coup
in 1996.
Over 120 others who have been tried since 1997 in connection
with the coup
face a mass verdict in December. The current Emir deposed
his father in a 1995 coup. Complete
report...
· SAUDI ARABIA
KING FAHD TO RETURN
The Saudi Press Agency on Saturday reported King Fahd was due to
return to
Saudi Arabia this week. The King who has a history of
health problems has
been in Spain since mid-July. Source: Arabia.com
· UAE
ISLANDS ISSUE RAISED AT U.N.
UAE Foreign Minister Rashid Abdullah told the 54th session of
the U.N.
General Assembly that successive governments in Tehran
deliberately followed
a provocative policy regarding islands jointly claimed by Iran
and the UAE.
"Iran's occupation of the three UAE islands for 29 years
goes against the
peace overtures made by the GCC and at the same time, exposes
the real
intentions of Iran to violate the regional sovereignty of the
UAE," the
minister said. Source: Khaleej Times
~~~ BUSINESS ROUNDUP ~~~~~~ BUSINESS
ROUNDUP ~~~
· REGIONAL
OIL FUTURES ($/BBL)
JUL09 AUG 13 SEP 3 SEP 10
SEP 17 SEP 24
Light Crude 19.94
21.77 22.00 23.54
24.20 24.73
NYM
JUL09 AUG 13 SEP7 SEP
10 SEP 17 SEP 24
Brent Crude 18.47
20.50 21.47 22.79
22.80 23.90
IPE
Source: CNNfn.com
****************************************************************************
ENERGY COMMODITY INFORMATION (Oil Futures, Heating Oil, Unleaded and
Natural
Gas price charts and tables) - Data from July 1999 through this week
****************************************************************************
ENERGY INFO RESOURCE - - > DOE/EIA COUNTRY
ANALYSIS BRIEFS
****************************************************************************
OIL LIMITS CONTINUE
Ministers from OPEC member states meeting in Vienna last week
agreed to
maintain production limits - that resulted in dramatic price
increases - at
least through next March, according to the BBC on Wednesday.
Source: BBC
OPEC CHIEF IMPASSE
The task of picking a new Secretary General of OPEC was
postponed until the
end of the year when ministers failed to narrow the field of
candidates,
according to the BBC on Wednesday. Nominees from Iran,
Saudi Arabia and
Iraq were considered for the post during OPEC's session in
Vienna last week. Source: BBC
MARKET TARGET
Thailand's Deputy Prime Minister of Commerce, visiting Sharjah
for a trade
exhibition, told Gulf News his country sought to expand its
business base
throughout the Middle East. Thailand suffers from a trade
imbalance with
the region due to its reliance on Middle East oil. Source:
Arabia.com
UTILITY PRIVATIZATION
Gulf Power Industry Turns to Private Sector -- Analysis at:
Expired Link Source: Arabia.com
GROWTH SLIDE
The International Monetary Fund's semi-annual economic outlook
report
forecast negative growth rates for Saudi Arabia and Kuwait in
1999. The IMF
forecast real GDP slides of 2 percent for Saudi Arabia after a
1.6 percent
growth rate in 1998, and 1.1 percent for Kuwait after growing
2.2 percent
last year. The IMF study noted this year's boost in oil
prices would result
in a growth rate rebound. Source: Arabia.com
World Economic Outlook: A Survey by
the Staff of the International Monetary
Fund
· BAHRAIN
INVESTMENT TREATY
U.S. Ambassador to Bahrain Johnny Young sounded an optimistic
note for
American firms doing business there in advance of the signing of
a bilateral
investment treaty, according to the Bahrain Tribune.
However, Ambassador
Young called on U.S. businesses to work harder if they wanted to
influence
economic developments in Bahrain.
BAPCO UPGRADES
The state-owned BAPCO oil refinery will get $800 million in
upgrades aimed
at improving efficiency and product output, making it more
competitive.
Contract awards are set for next year.
EXHIBIT CENTER
The new $6.6 million Bahrain International Exhibition Center (BIEC)
extension opens this week. The 6300 square meter extension
will improve
Bahrain's competitive position in the global exhibitions market
according to
BIEC general manager Ahmed Al Shamlan. Source: Gulf
Daily News
· KUWAIT
PRICE HIKES
The decision to boost prices on basic services in response to
mounting
economic woes was defended by Foreign Minister Sabah Al-Ahmad
Al-Sabah who
told Al-Qabas newspaper, "The government will defend its
economic policies
because the structural economic problems we have are too
huge." Source: Arabia.com
· OMAN
LOAN PLAN DUMPED
A plan to borrow $400 million to balance the budget is no longer
seen as
necessary as oil price increases are expected to drive up
Muscat's revenues. Source: Khaleej Times
TRADE TALKS WITH IRAQ
A delegation of Iraqi businessmen met with their Omani
counterparts in
Muscat on Saturday to discuss ways of increasing trade within
the
constraints of the U.N. "oil for food" regime.
Omani exports to Iraq, which
have lagged since the 1991 Gulf War, jumped to $3 million in
1998, up from
$90,000 in 1997. Source: Arabia.com
OIL CONCESSION
Oil and Gas Minister Mohammed bin Hamad al Rumhi signed an oil
concession
agreement calling for a consortium of companies to spend $36
million for
exploration in northern Oman over the next nine years.
Source: Khaleej Times
· SAUDI ARABIA
AIRLINE PRIVATIZATION
Prince Sultan bin Abdel Aziz, Minister of Defense and Aviation
announced on
Tuesday the formation of a committee to prepare for privatizing
Saudi
Arabian Airlines, according to the Saudi Press Agency.
Meanwhile, the
Kingdom has begun granting 10-year concessions to private firms
on an
operate-maintain-manage basis for port terminals in Jeddah,
Dammam and
Jubail. Source: Arabia.com
FINANCIAL MARKET REFORMS
Mr. Hamad Saud Al-Sayyari, governor of the Saudi Arabian
Monetary Agency
(SAMA) said the Kingdom should deepen the financial markets,
make them more
transparent and encourage a secondary debt market, according to
Reuters last
Monday. "Commercial banks appear to be less enthusiastic in
promoting
secondary market trading due to the perception of losing their
deposit
base," he said. Source: Arabia.com
· UAE
BUDGET BOOST
In contrast to other Gulf states -- many are rolling back
expenditures --
Dubai plans to increase government spending 10 percent next
year. Mr.
Khalfan Harib, Director General of Finance, told Gulf News,
"This is a
normal increase, as in other years. We do not want to increase
the budget
outlay and are working towards reduction in expenditure, but
economics and
ground realities have dictated certain other terms."
Source: Arabia.com
~~~ PERSPECTIVES ~~~~~~ PERSPECTIVES
~~~~~~
The 8th Annual U.S. Mideast
Policymakers Conference, held 12-13 September
1999 addressed the transformations underway in the GCC and Arab
world.
Among the critical examinations undertaken at the Conference
were
discussions of the reforms and advances being made by key
leaders in the
region. Mr. Kevin Taecker spearheaded the session that
addressed the
economic transformation in Saudi Arabia. He provided this
report.
* *GW* *
OPPORTUNITY-LED GROWTH: SAUDI
ARABIA AS A CASE STUDY
Against the backdrop of earlier
discussion about the weaknesses underlying
the oil market, this panel explored the potential for economic
growth that
does not depend on oil prices and government spending, taking
Saudi Arabia
as a case study. Mr. Saleh Al-Naim, the Director General
of the Saudi
Industrial Development Fund, emphasized the importance of the
Kingdom's
political and economic stability. Its low foreign debt,
free repatriation
of capital, and many industrial development programs represent
attractions
for foreign joint venture partners. He talked what Saudi
Arabia was doing
to privatize activities where the government role had been
large. Certain
institutional changes are underway to add to these attractions,
for example
the establishment of a Saudi "Ex-Im" bank. He
reaffirmed the Kingdom's
commitment to become a member of the WTO soon, and noted that
the newly
established "Supreme Economic Council" will work under
the leadership of
Crown Prince to bring upon such other changes to economic
policies as this
may require.
Mr. Adel Al-Jubair also emphasized
the importance of stability, gave
insights from Saudi history and experience to demonstrate the
Kingdom's
capacity to make economic changes when needed. He
emphasized that the
Kingdom has many resources to bring to meet its current
challenges, and is
not lacking for the political will and ability to continue to
meet its goals
and obligations to continue to improve the living standards for
all of its
people.
Mr. Kevin Taecker provided an
analysis of Saudi Arabia's GDP. To understand
the sources of economic growth since before the oil booms, he
focused on the
supply side of the economy. Some economic subsectors were
highly cyclical
(rising and falling with oil prices and government spending),
while others
were non-cyclical. For the future, one challenge will be
to reduce this cyclicality. The privatizations that are in process and
steps to
restructure the foreign investment laws and capital markets
should help.
Because of its success to develop infrastructure and industry,
the
demographic trends, and changes in the regional and global
economies, it is
also in a good position more fully to develop the demand side of
its
economy. More demand represents more business opportunity
for Saudi
companies, and for their foreign partners. Joining the WTO
will be very
beneficial for the development of this demand, and also will
help to make
the Kingdom more investor-friendly, both for foreign and
domestic investors.
Trade and Finance
Based on her recent visit to the
region, Ms. Molly Williamson reviewed her
impressions of the opportunities for greater U.S.-Mideast trade
and
investment. From country to country, she discussed how the
steps for
fiscal, financial, and capital market reforms, and for greater
transparency
and openness had or would help to improve conditions for greater
real
economic growth. Mr. Hani Behyum gave insights into the
experience and
outlook of a prominent Saudi company that has already
"globalized" in many
respects. While noting the challenges that moving into the
WTO would bring,
he noted how several attractive areas of opportunity were
already starting
to open up -- for example, for the company to establish a
broader regional
footprint in order to take advantage of larger market
opportunities
and economies of scale. Mr. Taecker summarized inputs from
the
International Investor Group, which is finding ways to meet
rising demands
for Islamically acceptable investments while working with
conventional
western financial institutions and markets.
In a lively discussion, the
panelists and audience probed for what it will
mean for Saudi Arabia and the other Mideast countries to
harmonize their
policies to those of the WTO, and any other steps that could
help to
develop the region's markets. Significant impediments to
the process were
noted, particularly the relative lack of investment in the
region from its
own major investors, the lack of transparency and other
difficulties for
foreigners to do business, the attitudes and institutions that
may oppose
change, and the slow pace and half hearted nature of some
reforms. A
particular point was made about privatizations, where some
examples from the
region fall well-short of actually transferring ownership and
control from
governments to the private sector.
* *GW* *
KEVIN TAECKER, an economist
specializing in the Saudi economy, heads
Enterprise -- Saudi Arabia, a Washington-based consulting
company and is the
1999-2000 International Affairs Fellow at the National Council
on U.S.-Arab
Relations and the U.S.-GCC Corporate Cooperation
Committee. He was
previously chief economist of Saudi American Bank in Riyadh and
the U.S.
Treasury Department's specialist for world energy markets and
the Arabian
Gulf economies. Mr. Taecker is a regular contributor to
"GulfWire."
* *GW* *
============================================================================
CURRENCY CONVERSIONS [IN BRACKETS] MADE USING MONEY.CNN.COM
============================================================================
CLICK
HERE TO SUBSCRIBE TO GULFWIRE
============================================================================
*************************
LAST LINES
*************************
Independent commentary provided in
‘GulfWire’ and materials contained in the
linked Internet sites do not necessarily reflect the views of the National
Council on U.S.-Arab Relations or the U.S.-GCC Corporate Cooperation
Committee. News extracts and links contained in GulfWire have been
reported
in various media. GulfWire and the National Council on U.S.-Arab
Relations/U.S.-GCC Corporate Cooperation Committee have not independently verified
the
accounts referred to and do not vouch for their accuracy or the
reliability
of Internet links.
Internet links were active the day of
publication in GulfWire. Some
hyperlinks are longer than one line of text and may not properly ‘wrap
around’ in your email. You may need to cut and paste these links
to your
Web browser.
The ‘GulfWire’ is an information
service of the National Council on
U.S.-Arab Relations and the U.S.-GCC Corporate Cooperation Committee
Secretariat. Please feel free to forward this edition of the ‘GulfWire’
to
your friends and colleagues, and suggest additions to our mailing list.
CLICK HERE
For more information on the National
Council on U.S.-Arab Relations and the
U.S.-GCC Corporate Cooperation Committee visit the web sites of the National
Council on U.S.-Arab Relations and the U.S.-GCC
Corporate Cooperation Committee or call (202)293-0801.
****************************************************************************
National Council on U.S.-Arab Relations
President and CEO: Dr. John Duke Anthony
U.S.-GCC Corporate Cooperation
Committee
Secretary: Dr. John Duke Anthony
1140 Connecticut Avenue, NW
Suite 1210
Washington, DC 20036
Tel: 202.293.0801
Fax: 202.293.0903
PATRICK W. RYAN
Editor-in-Chief, GulfWire
mailto:gulfwire@ArabiaLink.com
C. R. TRISDALE
Deputy Editor, GulfWire
mailto:CRTrisdale@ArabiaLink.com
|
The GulfWire e-newsletter and Web
site are developed, produced and
maintained by Ryan &
Associates. |
 |
Copyright © 1999, GulfWire
All rights reserved.
The contents of this newsletter may not be reproduced in any commercial
document or in any material sold, nor used in any other manner without
permission of GulfWire. Links to Internet sites should not be seen
as an
endorsement of the sites, or the information contained in them.
