Alabbar calls for governments to exit from core sectors of economy and provide leadership, direction to facilitate economic growth

He said that the role of the government is that of a leader that provides the vision for its people and direction for the economy, while creating and facilitating the environment for growth.

Speaking at the main plenary session today at the Jeddah Economic Forum being held here today, Mr. Alabbar said that governments should focus on providing the core framework essential for the efficient operation of complex modern markets. He said that the primary role of government was to remove barriers and facilitate economic growth by initiating investor friendly regulations that encourage foreign investment. This could only happen if the public sector adopted the model of private sector corporations in order to provide efficient services.

"Our focus must be on creating improved transparency and disclosure, resulting from government performance-based budgeting systems, linking spending with measured results and outcomes. And this can only happen when the public sector begins to measure itself with the same yardstick as the private sector," said Mr. Alabbar.

Mr. Alabbar was speaking at the plenary session entitled: "The Role of Government: Leader, follower, arbitrator?" Other panelists at the session included Professor Tim Niblock from the Institute of Arab & Islamic Studies, University of Exeter, United Kingdom and Mr. Hassan Heikal Co-Chairman & CEO, EFG-Hermes Holding. Egypt. The session was moderated by Mohammad Abdullah El- Khereiji, Chairman, El-Khereiji Group, Saudi Arabia.

While Mr. Alabbar agreed that many mature economies had begun to downplay the role of the government and moved from government-protectionist approaches to policies allowing more open competition and exposure to market forces, he acknowledged the significant responsibility of governments, suggesting that the need for efficient government mechanisms had never been more evident than in present circumstances.

"The role of a government should be largely designed to creating the necessary legal and regulatory systems in line with international best practices since all governments, regardless of political colour, are concerned with maximizing output from a nation's resources," he said.

Mr. Alabbar stressed the need for strong public private sector partnerships that would enable the government to provide more efficient services for its citizens. He specially highlighted the significance of education in the knowledge-based economy, calling for greater private sector participation in this sector, with a growing focus on delivering premium quality education that is aligned to the needs of the market.

Earlier in the day, Mr. Alabbar also participated in a special selective session on the ambitious Emaar joint venture with its Saudi partners: "Greenfields for the Future - King Abdullah Economic City," where he discussed Emaar's recently launched King Abdullah Economic City. Representing the single largest private sector investment in Saudi Arabia with an investment of SR100 billion (US$26.6 billion), the King Abdullah Economic City is a signal of the dawn of a new era of economic prosperity for the citizens of the Kingdom.

The City will be a mixed-use development located north of the commercial hub of Jeddah. A massive 55 million square metres of greenfield land with a 35 km shoreline close to the industrial city of Rabegh has been earmarked for the master development. The City will have six distinct components - a modern world-class Seaport, Industrial District, Financial Island, Education Zone, Resorts and The Residential Area. Completion of the overall project will be done in stages with the first batch of businesses and residents moving into the City in a period of 24 to 36 months. It will also create 500,000 jobs for Saudi Arabia and signify the dawn of a new era of economic prosperity for the citizens of the Kingdom.