May 28, 2004

IN HIS SPEECH BEFORE THE NATIONAL QUALITY CONTROL CONFERENCE IN RIYADH, PRINCE ABDULLAH IBN ABDUL AZIZ: THE CONFERENCE IS A STEP FORWARD AND A BASIC SUPPORT FOR THE NATIONAL STRATEGY FOR QUALITY. PRINCE MOHAMMED IBN FAHD AT THE OPENING OF THE SAUDI GAS FORUM: WE HOPE THAT THE KINGDOM WILL BE CAPABLE OF PLAYING A LEADING ROLE IN THE FIELD OF GAS INDUSTRY. PRINCE TURKI AL-FAISAL AT THE WORLD ECONOMIC FORUM IN JORDAN: REFORMS MUST BE COMPATIBLE WITH THE SHARIA ON WHICH THE RULE IN THE KINGDOM IS BASED. On behalf of Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard, Minister of Commerce and Industry Dr. Hashim Yamani opened the National Quality Control Conference organized under the title of "Toward Perfection and Distinction'. Speaking on the occasion, Dr Yamani said the Kingdom of Saudi Arabia, within the framework of its intensive efforts to join the World Trade Organization (WTO), has been doing its best to improve the quality of its products. Underlining the importance of the Conference, Dr Yamani said that the Conference would shed light on the concepts of quality. Meanwhile, Crown Prince Abdullah Ibn Abdul Aziz, in his speech read on his behalf by Dr Yamani, hoped that the Conference would yield positive results, and said the conference is a step forward and basic support to the national strategy for quality. The first-ever conference on quality control in the Saudi Arabia has been well attended, with visitors coming from other GCC states as well as the Kingdom. "We are pleased with the response," said one of the organizers, "and it is a good sign for the planned conference on counterfeit products in September." In an exhibition accompanying the Quality Control Conference on its first full day, the Saudi Arabian Standards Organization (SASO) explained its function in the process to visitors. "Our function is to research and set standards for the products and processes in the Kingdom," said Khaled Al-Khalaf, its director general. But enforcement falls under the Ministry of Commerce, he said. "There is a process by which the standards can be enforced for the general public and a complaints procedure. The first step for any individual is their municipality office and chamber of commerce." The exhibition emphasizes the need for strict quality control in the Kingdom. The SASO stand has an impressive display of some of the products faked and imported into the Kingdom. There is a quality control mark that companies may print on their products if they meet the standards set by SASO. On the other hand the gas sector came under intense focus at a major conference held in the Eastern region. Prince Mohammed Ibn Fahd Ibn Abdul Aziz, the Governor of the Eastern Region, patronized the inaugural ceremony of the First Saudi Gas Forum. The 3-day Forum was organized by the Chamber of Commerce and Industry in the Eastern Region in cooperation with the Ministry of Petroleum and Mineral Resources and the Saudi Aramco Company. Prince Mohammed Ibn Fahd was welcomed by Eng. Ali Al-Naimi, the Minister of Petroleum and Mineral Resources, and a number of senior officials. Speaking on the occasion, Abdul Rahman Al-Rashid, the Chairman of the Chamber of Commerce and Industry in the Eastern region, said investment in the field of gas comes within the framework of the systems and measures taken by the Saudi Government to ensure the growth and development of the Saudi economy. On his part, Ali Al-Naimi said the Saudi Government launched in 1975 a gigantic program for the Kingdom's industrial development. He noted that the gigantic program aimed at utilization of natural gas and its liquefied products in the best possible manner. Al-Naimi pointed out that the Kingdom's gas production has jumped to about seven billion cubic feet per day. Citing the importance of investment in the gas sector, Al-Naimi said it would provide the citizens with more job opportunities, and moreover it would positively contribute to the diversification of the Saudi industrial base and to boosting the role of the private sector in the process of economic development in the country. Al-Naimi said the gas agreements recently signed by the Saudi Government and a number of international companies would make it possible to increase the gas reserves and production in a manner that meets the requirements of the development process and diversifies the sources of income. 'With the grace of Almighty Allah, the Saudi strategy in the field of gas investment will yield positive results', he added On his part, Prince Mohammed Ibn Fahd hoped that the Kingdom would be capable of playing a leading role in the field of gas industry. He reiterated the keenness of the Saudi officials on extending all possible facilities and incentives to the investors. Prince Mohammed Ibn Fahd highlighted the unique experience of the Saudi private sector in the field of natural gas, and said it had made big strides in this respect in cooperation with the Saudi Aramco Company Prince Mohammed Ibn Fahd deplored and denounced the subversive acts perpetrated by certain people in the Kingdom, and said these subversive acts run counter to the teachings of Islam. The function was attended by a number of princes, senior officials and businessmen. Eastern Province Governor Prince Muhammad Ibn Fahd has assured local and foreign investors of the Kingdom's complete protection. Prince Muhammad was delivering his keynote address at the First Saudi Arabian International Gas Conference at the Eastern Province Chamber of Commerce and Industry here last night amid tight security. The three-day conference was attended by over 600 business executives and experts from the Kingdom and abroad including representatives from the six oil and gas companies which recently signed a gas deal worth SR11 billion with Saudi Arabia. Three joint ventures Lukoil Saudi Arabia, Sino-Saudi Gas and Enirespa Gas have been established for the implementation of the projects in the Rub Al-Khali or Empty Quarter, in which Saudi Aramco has a 20 percent stake each. The projects are expected to fetch total investment worth SR75 billion in five years. In December last year, Shell, Total and Saudi Aramco established the first upstream gas development joint venture, South Rub Al-Khali Company. Prince Muhammad said the new gas initiative represented a decisive step for a country so far dependent primarily on oil and closed to foreign investment, and the Kingdom was determined to protect it and crush the terror threat that sent oil prices skyrocketing on the international market. The development of the gas sector, Prince Muhammad said, will introduce new technology to the country and contribute to creating more jobs as well as presenting new business opportunities to the private sector in a range of industries. Saudi Aramco has estimated that the three gas projects will create 150,000 indirect jobs and 35,000 direct jobs Minister of Petroleum and Mineral Resources Ali Al-Naimi told the inaugural session that the opening of the Saudi gas sector to international investors would be of mutual benefit to the Kingdom and its partners. With the new gas initiatives, Saudi Arabia plans to enhance its gas production to 12 billion standard cubic feet by 2025, he said. The Kingdom currently produces 6.9 billion standard cubic feet of gas per day. Abdul Rahman Rashid, the chairman of the Chamber of Commerce and Industry in the Eastern Province, also highlighted the significance of the conference and its impact on the local economy. Saudi Arabia is currently evaluating its gas reserves and consumption to see if more gas projects are needed in the future, according to Prince Faisal Ibn Turki, adviser in the Ministry of Petroleum and Minerals. Prince Faisal was making his lead presentation on "The Kingdom's Gas Strategy" during the second day of the First Saudi Arabian International Gas Conference at the Eastern Province Chamber of Commerce and Industry. He said gas sector was an important factor in the Saudi economy, contributing SR100 billion to the national income and representing 15 percent of the country's GDP. It also created more than 150,000 jobs including 35,000 direct jobs in the Kingdom. According to the prince, the projected industrial investment using gas during 2006 to 2009 will be about SR75 billion and projects signed with foreign partners will boost the national industry because the international oil companies will buy 40 percent of their products from the Saudi market. On the employment front, he said the projects will have to achieve 65 percent Saudization after their first year of operation and 75 percent by the end of their third year. Responding to a question, the prince maintained that there is enough gas currently produced to supply the new projects. "The gas allocated (for the SR75 billion industrial and petrochemical investments) is available from currently producing projects or others under construction," he said. "The gas will not be supplied from any of the new ventures (in Rub Al-Khali). For the next five years, the gas will be mainly from Hawiyah and Haradh," he added. Saudi Aramco Vice President Abdullah Al-Saif said that the oil company will invest between 20-30 percent into each of the four new projects. "However, the actual capital investment is yet to be determined," he clarified. During his keynote address, Minister of Petroleum and Mineral Resources Ali Al-Naimi said once the new gas projects go on stream, the increase production will open a new source of revenue for the Saudi economy and provide excellent business opportunities to the domestic private sector. "The Kingdom's objectives for these investments are to increase gas reserves; to increase production and meet development requirements and to diversify income sources," Al-Naimi said. The initial investment required during the first exploration phase of an agreement signed in January this year is expected to exceed SR3 billion. The agreement is part of Kingdom's concerted effort to expand its reserves of non-associated natural gas obtained from gas wells independent of oil-field production and its gas production capacity. He hoped that the new investments in the gas sector will enhance production in the country and support the Master Gas System. The demand for gas, he said, is expected to rise to 12 billion cubic feet per day by 2025 with the new projects more than able to meet the domestic requirements. Surplus production will be exported. Al-Naimi said that the focus of the new ventures would be on areas where no exploration work has been undertaken. The minister said Saudi Arabia relied heavily on gas for its energy consumption needs and ranked highly among countries that depended on this resource for energy. "In Saudi Arabia, of the total energy consumption in 1990, 35 percent was used in form of gas. This rose to 40 percent in 2002 and is expected to reach 51 percent in 2008. He said that the proven gas reserves in the country were around 235 trillion cubic feet. It currently produces 6.9 billion cubic feet of gas per day in the Master Gas System. The country also produces 345 million barrels of natural gas liquids per year and is the world's largest exporter. Saudi Arabia is pushing for more gas development to meet its increasing domestic demand for power generation, water desalination and petrochemical plants. On another note, during a press conference, Al-Naimi said that Saudi Arabia, was capable of producing an extra 2.5 million barrels of oil per day "within a week" if needed. "We have 10.5 million bpd production capacity and based on today's OPEC quota, there was 2.5 million bpd of spare capacity. "No one should cast doubt on Saudi Arabia's ability to produce what it says it will produce." The conference had three sessions primarily concentrating on emerging investment opportunities in primary upstream petrochemical projects. The First Saudi Arabian International Gas Conference came to an end with participants sounding optimism over the phenomenal growth prospects of the gas sector in the Kingdom, which will create jobs and provide opportunities for the private sector. The adviser at the Ministry of Petroleum and Minerals, Prince Faisal Ibn Turki said the conference was a big step for the gas sector and hoped that the conference would pave the way for the smooth execution of new ventures. The third and the concluding day of the conference focused on petrochemicals and highlighted various aspects of investment opportunities in primary upstream petrochemical projects. The conference also discussed potential secondary and tertiary investment opportunities in petrochemicals. In Jordan the Chairman of Shoura Council of the Kingdom of Saudi Arabia Sheikh Dr. Salih Ibn Humaid emphasized the importance of meetings of Parliaments' speakers of Iraq's neighboring countries in Amman. In a statement to the Saudi Press Agency, Dr. Ibn Humaid noted that the meetings give an opportunity for discussing the tragic situation in Iraq and the best way for ending the deteriorating situations and regaining security and stability there since events in Iraq have consequences on countries in the region. Earlier today, Saudi Ambassador to Jordan Abdul Rahman Al-Owhali held a banquet in honor of Dr. Ibn Humaid and his accompanying delegation. Chairman of the Saudi Shoura Council Dr. Saleh Ibn Humaid has condemned the abuses committed against Iraqi prisoners by the US-led coalition troops as "hideous", and warned the latest violation of human rights in Iraq could "exacerbate" the risk of terrorism. "The suffering of the Iraqi people has been aggravated by the latest media revelation of the hideous scenes of human rights violations against Iraqi prisoners," Dr. Ibn Humaid told prominent Parliamentarians from eight countries who met to consider ways to help Iraq emerge from its current plight. Parliamentary speakers from Jordan, Saudi Arabia, Kuwait, Egypt, Syria, Bahrain, Iran and Turkey, who had started a two-day meeting in Amman, underscored the importance of the United Nations playing a "pivotal role" in efforts to restore stability in Iraq. "The occupation authorities should not show any leniency toward such practices and must put those responsible on trial because they have committed grave violations against international agreements," Sheikh Ibn Humaid was quoted as saying in a press statement. Sheikh Ibn Humaid warned that the continuation of violations and bloodshed against civilians in Iraq "could give rise to a fertile environment for terrorism to grow in the region instead of stifling it." "The cycle of violence, turmoil and lack of security in Iraq represents a source of concern for Saudi Arabia and other neighboring countries," he said. "Averting bloody confrontations in Iraq will only be possible through a speedy transfer of sovereignty with all its aspects to the Iraqis," he added. Bahrain's House of Representatives Speaker Khalifa Al-Thahrani expressed similar views and condemned "the ugly abuses committed against Iraqi prisoners." "We urge such humiliating practices are never repeated," he said. The speaker insisted that the outcome of all investigations conducted by the occupation authorities be published along with any sentences given. Speaker of Turkish Parliament Bulent Arinc labeled the unfolding of events of the mistreatment of prisoners as "distressful." "I believe these incidents that have taken place at Iraqi prisons have not only hurt the pride and dignity of the Iraqis, but also the common values of humanity," he said. Meanwhile Prince Turki Al-Faisal, Saudi Ambassador to the United Kingdom and Ireland and the Chairman of King Faisal Center for Islamic Research and Studies, had arrived in Amman to take part in the meetings of World Economic Forum. At Queen Alia International Airport, he was received by the Secretary General of Jordanian Foreign Ministry Omar Rifae and Saudi Ambassador to Jordan Abdul Rahman Al-Owhali. Prince Turki Al-Faisal, the Saudi Ambassador to the United Kingdom and Ireland, has underscored the importance of the Arab unity, and said 'it is the only way for the preservation of the Arab rights and interests and serving the Arab causes in this contemporary world'. Prince Turki Al-Faisal, who was speaking to the media on the fringes of the International Economic Forum, currently in progress in Amman, said the Arabs should follow the example of the European countries and work for realizing integration in the economic and commercial spheres in the first stage. Prince Turki Al-Faisal underlined the importance of the International Economic Forum, and hoped that it would yield positive. Prince Turki Al-Faisal, the Saudi ambassador to Britain and Ireland, said that a great deal of reform has been made by the kingdom. Prince Turki explained that the kingdom is keen to make reforms compatible with the Islamic law (Sharia) -- on which the government in the kingdom is based -- and Saudi traditions. He added that reforms should emanate from the region and not from foreign influence. Prince Turki highlighted various reforms made by the kingdom including political participation, women's contribution to development, education and other fields. Meanwhile King Abdullah II of Jordan had received Prince Turki Al-Faisal, Ambassador of the Custodian of the Two Holy Mosques to the United Kingdom and Ireland, who is currently participating in the World Economic Forum summit. During the reception, they discussed a number of topics on the agenda of the forum and means of utilizing other countries' experiences for the Arab countries. Prince Turki Al-Faisal has participated in a number of seminars of the forum during which he highlighted Saudi Arabia's achievements in various fields, particularly the economic, trade, investment and education sectors. King Abdullah II had opened the deliberations of the World Economic Forum, which brought together 1350 world figures including five state leaders, and ten foreign ministers including the US Secretary of State Colin Powell. In remarks at the WEF, His Majesty said that " We in Jordan have been working tirelessly for reform, development and peace, noting that the Arab world is poised to achieve significant growth in the coming period. "For our region, there is, clearly, further to go. And progress will demand more than simply renewing our efforts," he said, adding that it is time for a fresh commitment to shared values-equality, human dignity, tolerance and freedom. The King went on to say that it is time to reenergize our global partnership- a partnership of ideas and relationships that can help our region achieve its potential. "Perhaps most important, it is time to find new approaches to achieving the future we seek-effective new approaches that provide answers to Palestinian children who are asking about their future, that rekindle hope among Iraqi mothers, that fuel energy of Arab youth. Approaches that will reserve the skepticism of Israeli society and build bridges across divides," the King said in his remarks before the participants in the forum. Following is the full text of King Abdullah's speech:- Today I believe that the Arab world is in a unique position to forge a new, consensus driven vision- a vision of change by the year 2010. The approach I suggest looks forward, not to a remote and distant future, but to an attainable new present. And it is a comprehensive approach, one that deals with the region's core needs: peace based on justice, progress based on reform. This vision, is, in one sense, not new. It resets on Islam's age-old humanistic values. Our heritage teaches us that human potential prospers where there is freedom, tolerance and mutual respect. Indeed, the recent attacks on innocents in Saudi Arabia, Morocco and Spain, and the attempted attacks in Jordan and elsewhere, should unite us all against the culture of terror and destruction. In stark contrast, true Islam supports a democratic environment that respects human life, human rights and the rule of law.. It upholds accountable, transparent governance. These are the values that make people shareholders in, and protectors of, society. As we more forward with a regional consensus, on reform, we must keep our eyes on the prize' real and effective improvement in people's lives. Elements of a successful plan should include clear goals, a definite end-game and practical step that can be benchmarked, measures and assessed. Governments and business, civil society and the media, all have a critical role to play. Significant work has already been done by the UNDP Human Development Task Force, the Arab Business Council, the Alexandria Library Conference, and at the Sana'a meeting on Democracy and Human Rights, soon, some of the best and the brightest in the Arab world will begin defining a more specific "Vision of the Middle east in 2010". They will be guided by a group of leading members of Arab civil society. I hope their main conclusions can be presented at next January's meeting of the World Economic Forum. The friends of peace and reform speak for millions of Arabs, who know that positive change is vital. Most Arabs agree on the need for reform. They also agree that for reform to succeed, it must emerge from within our societies, and not through external influence. Recently, there has been a great deal of focus in the West on the issue of Middle east reform. But, quite simply, there is no trust in the region for a blueprint of reform that doses not address people's concerns as they see them-including a solution to the Palestinian-Israeli conflict. While we do not need outside leadership on the issue on reform, we do hope for international support. Next month, the G-8 Summit is expected to respond to our reform process with a statement of support. That can help bridge Arab and Western views, and contribute to global partnership. It is just as important to have the international community's active support for regional justice and peace. This must include peace and security for Israelis and Palestinians, and the creating of an independent Palestine. Ten days ago, President Bush assured me of his continued commitment to this goal. The failure of the international community to help make that commitment a really will only nurture more division. Let the world's leaders demonstrate, once and for all, that they serious about Palestinian freedom. It is also urgent for the international community to be an active partner in building a legitimate, inclusive, and effective political process in Iraq. Questions about the credibility of that process will encourage extremism and obstruct the process of regional reform. Iraqis deserve the world's wholehearted support in their quest for stability, sovereignty and freedom. We must respect the national identity of Iraq, and never forget Iraq's historical contribution to human civilization from the time, more hundred years ago, when it established the world's first legal code. Professor Schwab, My Friends, We who seek reform are inspired by deep and noble goals, justice, equity, opportunity, peace. Our new, practical approach will match the vitality of these principles. The people of the Middle East deserve all the benefits of this century. To make that real, there is no substitute for having clear goals, specific plans, and a meaningful timeframe. In Jordan, the process of reform is well underway, We have taken specific measures to boost economic growth and make the economy open, innovative and fair. In education, new standards of excellence are giving our young people the skills they need to participate in today's global economy. Last year, Jordan held parliamentary elections, and the new Parliament is sitting. We are implementing an aggressive program of civic initiatives-providing for judicial independence, political participation, gender equality, human rights, and a thriving media. Our reforms are designed to create better lives and futures for our people. But we chose our road, not only for our own country's sake, but also to set an example of what it is possible to achieve. We have opted for positive change, for optimism and for tolerance, and for peace. Our region is more than capable of peaceful, democratic civil life, it is capable of being a worldwide model of innovation and greatness. It is in our hands to create a world of prosperity and peace, a world in which every human being can thrive, a world in which all can share in the promise of the 21st century. It's time to forge ahead on the road of reform and progress. it's time to think out of the box about the real challenges--for the sake of our region, our youth, and our future. This is the hope, indeed the right, of men and women throughout the Arab world. With God's Blessing, with faith in humanity, and with a collective will to act, I ask you to help is answer their call. Meanwhile U.S. Secretary of State Colin Powell called on Middle Eastern governments to stand behind the new government in Iraq, promising that the industrial world would do its part to ensure stability. Group of Eight foreign ministers meeting in Washington "discussed how to put the full weight of the industrial world behind Mr. Lakhdar Brahimi", the U.N. special envoy for Iraq, Powell said. G8 foreign ministers were meeting to prepare the agenda for an upcoming G8 summit, which Powell said would "reach out to the Arab world". Addressing the WEF symposium, Powell called on Middle East governments to support the interim Iraqi government slated to supplant the U.S.- led occupation government on June 30. Outlining a handover Powell said was still being planned, he said Paul Bremer, the top U.S. civilian in the occupation government, would conclude his work with the handover. Bremer would be replaced immediately by the interim Iraqi government, not John Negroponte, the U.S. ambassador to Iraq. Powell said the Iraqi government and Negroponte would cooperate closely. Although Bremer's powers would devolved to the interim government, the U.S. military would remain "for some time", Powell said. Powell met prior to the WEF speech with Palestinian Prime Minister Ahmed Qureia and chief Palestinian negotiator Saeb Erekat at the Amman airport. In his address, Powell defended backing given by U.S. President George W. Bush to unilateral proposals by Israeli Prime Minister Ariel Sharon to remove a small number of Jewish settlements in Palestinian territories. At the same time, Powell said the U.S. continues to support the "road map" multilateral peace plan. "The process was not working", Powell said. "It was an opportunity we thought we should seize because for the first time we were seeing removal of settlements." "We remain totally committed to the simple proposition that final solution issues must be settled between the parties involved," Powell said.