RIYADH, 27 February 2006 — US Secretary of Commerce Carlos M. Gutierrez said that political differences on regional issues would not hamper business relations between the US and its allies in the Middle East, including Saudi Arabia.
Addressing a press conference here yesterday, Gutierrez commended the Saudi leadership and the security forces who prevented an attack on the Abqaiq oil facility. “The attack foiled by the Kingdom is a great testament to its leadership, to its security mechanisms currently in place and the quality of Saudi security services.”
Minister of Oil and Mineral Resources Ali Al-Naimi, in his meeting with Gutierrez, said that the Kingdom would “ensure the flow of oil despite the terrorist threats.” The Saudi minister said that the attack “did not affect operations at all” and that exports continued to flow.
Gutierrez is on an eight-day visit to the Middle East to encourage economic reform and promote commercial relationships. He is scheduled to travel to Bahrain and Egypt before he leaves the region on March 2.
Asked about the difference of opinion concerning the funding of Hamas which might affect US business relations with its regional allies such as Saudi Arabia and Egypt, Gutierrez said economic relations with the Arab states were too strong to be affected by political skirmishes.
“If the private sector sees the environment is conducive to investment, we believe that investments will happen,” said Gutierrez.
The commerce secretary spoke about a number of issues including the US visa system and the possibility of a free trade agreement with Saudi Arabia and the Middle East.
Earlier, addressing a meeting of US businessmen, Gutierrez said: “The reforms begun by Custodian of the Two Holy Mosques King Abdullah will bring greater diversity and opportunity to the Saudi economy.” He pointed out that economic reforms “often help countries make other improvements that advance the lives of their citizens.” “Building a civil society, allowing for more public participation in the political process, expanding education, strengthening the rule of law, establishing commercial law and instituting greater transparency are all ways to attract capital and create jobs,” said Gutierrez.
On the matter of Riyadh’s accession to the World Trade Organization, he said: “The Kingdom’s accession is an acknowledgment of its commitment to participate actively in the global economy. Saudi Arabia began reforming its economy 10 years ago and WTO accession is the crowning achievement of this continuing effort.”
“The Kingdom’s reforms have already brought positive changes to the economy as a whole,” said the US commerce secretary, specifically mentioning the move on the part of Riyadh to loosen equity caps on foreign business ownership within Saudi Arabia. “This move would signal investors that the country welcomes even more foreign investment and therefore it would compete for capital with larger economies,” said Gutierrez.
Asked about the watch list maintained by the US concerning intellectual property rights and copyrights in Saudi Arabia, Gutierrez said: “The laws have been strengthened and the important thing to watch now is how much enforcement is taking place. We can not allow the creation of a world environment where patents, trademarks and copyrights don’t mean anything.”
