Skip to main content

Saudi Arabia's example of investing oil wealth at home

Dr. Abdulrahman Al-Zamil, Chairman of Saudia Arabia's multi-industry conglomerate Zamil Group and CEO of National Chemical Carriers Ltd., said here Thursday that Gulf Arab states shall follow Saudi Arabia's example of investing oil wealth at home rather than buying assets abroad.

Speaking at the three-day annual Gulf Petrochemicals and Chemicals Association (GPCA), Al-Zamil said that Saudi-Arabia's conservative investment policy has saved the kingdom from the full impact of financial crisis. He urged all members of the Gulf Co- operation Council (GCC), to build up their own industries and to export "petrochemicals and pharmaceuticals, rather than barrels of oil," said Al-Zamil.

The industry tycoon added that oil was sold Thursday in Europe at world market prices of 110 U.S. dollars per barrel although it is only stored there, "but the GCC states have much higher costs and less benefits from exporting pure barrels."

Unlike sovereign wealth funds in Kuwait, Abu Dhabi or Dubai, Saudi Arabia hosts the world's largest petrochemical producer, Saudi Basic Industries (SABIC). According to research data compiled by the GPCA, petrochemicals account for 72 percent of Saudi Arabia's non-oil exports, compared to 61 percent in Kuwait and 9 percent in the UAE.

Investing most of oil export revenues abroad and hoarding money on bank accounts was the wrong way for the GCC, said Al-Zamil. " Look at Libya, it lost billions by investing abroad. Look at the Kuwaiti banks or Dubai, both of which were hit badly by the global financial crisis," he said, adding that public funding by the Saudi government paid off in 97 percent of all projects, while " global shopping tours" were much more risky.

In fact, Kuwait's largest investment bank Global Investment House, which avoided a near-bankruptcy in 2008 after suffering losses in foreign exchange trading, has still not overcome the crisis as the lender agreed a week ago with creditors to restructure 1.7 billion dollars of debt. State-funds of the emirate of Dubai and Abu Dhabi divested from a number of engagements abroad.The Abu Dhabi sovereign wealth fund Aabar Investments sold its remaining 3 percent stake in Germany's Daimler AG in October.

Comments

Post a Comment

Popular posts from this blog

Bohol's Che Delos Reyes Avoids Drug Test, Sparks Public Suspicision

by Sunday Post Bohol Gov. Chatto negative for drugs but where's Che? Is she a false accuser? Gov. Edgar Chatto has tested negative for illegal drugs or any dangerous substances in separate credible examinations to which his falsely accusing political opponent did not submit herself. Not even a shadow of gubernatorial contender and Carmen Mayor Conchita De los Reyes did turn up for the twin drug tests at the state hospital and police crime laboratories on Monday. Many thought should she refuse examination for reason she only could tell, her mere presence would have saved her from inexcusable flak for her own dangerous gimmick that the governor is "engaged in illegal drug activities." Both the laboratory analyses of the Gov. Celestino Gallares Memorial Hospital (GCGMH) and Philippine National Police (PNP) Crime Laboratory at Camp Dagohoy proved Chatto to have not indulged in prohibited drugs. As a consequence, the moral authority and ascendancy of the reelectionist govern...
Post a Comment
Read more

Workers’ Party of North Korea Kim Jong-un

First Secretary of the Central Committee of the Workers' Party of North Korea Kim Jong-un came out with two speeches at the party's plenary session here on Sunday. The session focused "on tasks the party faces in making a decisive turn in the process of accomplishing the Juche revolutionary course." The party's strategic priorities will embrace "reconstruction of the economy as well as a qualitative and numeric strengthening of nuclear delivery forces for self-defence purposes," the North Korean leader said at the session after visiting the mausoleums of his father Kim Jong-il and grandfather Kim Il-sun in Kumsusun Palace. He was accompanied by members of the Politburo of the Central Committee of the Workers' Party of Korea and of the Central National Defence Commission. North Korea "is not eager to use the nuclear weapons as goods for buying American dollars or as a bargaining tool for receiving humanitarian aid," he said. "W...
Post a Comment
Read more

Panglao Island Environmental Problems

By Romy Teruel One environmental and tourism issue that will keep on cropping up unless decisive actions are done is the issue of easement along beaches as prescribed by the Water Code of the Philippines.  This has cropped up before and now it is here again.    The conference that Gov. Erico B. Aumentado held with the hotel and resort owners of Panglao and Dauis last Friday is an example of laws wanting in implementation. While the laws are clear and guidelines are prescribed, willing compliance has remained a problem.  The Water Code of the Philippines prescribes a 20-meter easement from the high water mark on the beach towards inland where no permanent structure can be constructed whatsoever.  We need not send experts however to know that compliance is more in the breach than observance.  This prompts observers to ask "What happened to Bohol's thrust on eco-tourism and environmental conservation and protection?"  And this is usually followed by "They are killing...
Post a Comment
Read more