Al Majid: Saudi Arabia can mold a new economic future for the region

The exhibition and the forum ended with a presentation by Mr. Suleiman Al Majid, Chairman of Tanmiyat Investment Group.

Here Sheikh Suleiman Bin AbdulAziz Al Majid, the Group's chairman, said that the Kingdom of Saudi Arabia has strategically moved towards developing economic cities and away from the oil sector, with the ambition of being one of the leading nations in the field of developing this category of mega-project by 2010.

He also addressed at the forum, the benefits economic cities provide and their ability to generate investment opportunities for investors and companies interested in operating their business, where they can take full advantage of the industrial, residential and services facilities provided.

He also stated that the government has supervised such projects for a long time, laying the foundation for the country to develop an array of different industrial projects from constructing material to petrochemicals. These industries have not only revolutionized the Kingdom but also the region on a whole due to the efforts of its leading organizations and companies.

Al Majid believes that these economic cities will greatly enhance the country's industrial and service sector, including the infrastructure for transportation, allowing for the Kingdom to play an effective role in molding a new economic future for the region: "The great interest and care that the different parties from different parts of the world are having in developing economic cities shows the importance of these projects, in addition to its expected effect on the regional and international economy."

The benefits the economic cities will provide in reducing the Kingdoms unemployment rate was also a benefit Al Majid stressed, stating that Saudi teenagers represent 60% of the population. These economic cities also positively influence internal emigration, curbing the exodus from towns, suburbs and rural areas, to big cities - balancing out the population. The most important and obvious benefit the Kingdom can gain from these initiatives is that its economy can become more rounded, diversified and less depended on oil.

However Al Majid sees that some challenges related to the private sector environment will continue until such developments are fully underway: Currently there is still a difference between small and moderately sized businesses and large multinationals which has resulted in disequilibrium in competitive fairness; a consequence of these small firms inability to effectively participate in the market. This is contrary to the law of economics that recognizes that small companies are an important component to the economic progress of a country.

Al Majid spoke about their projects in Mecca and Madinah which are exclusively dedicated to Saudi investors, but also asked that non-Saudi investors be given an opportunity in the market as well. He stressed that their contribution is essential to the continued growth of the Saudi economy and without encouragement, the Kingdom risks loosing them to other markets that can provide them with opportunities, support and care.

Sheikh Suleiman Bin AbdulAziz Al Majid ensures that from here comes the demand in the Kingdom to support small companies and entrepreneurs, and ease the operations of financing them, and avoid the problems 'start up' companies may face when establishing themselves. It has being proved internationally that small operations can help in the national economy. For example, 60% of the American national production stems from small establishments; whereas 20% from American imports are from the production of established organizations.

Finally, Mr. Ali Bin Saleh Al Othaim, President of the organizer committee, awarded Sheikh Suleiman Bin Abdel Aziz Al Majid, Chairman of Tanmiyat Investment Group an honour medal, thanking him for his effective participation in the forum.