Saturday, August 06, 2005

Saudi Arabia faces economic challenges :: GN

Jasem Ali, head of the Economic Research Unit at the University of Bahrain, writes:
The third challenge concerns looking for ways to reduce the hefty debt level. The public debt is estimated at $177 billion, representing more than 80 per cent of GDP.
. . .
The fourth challenge has to do with removing restrictions placed on foreign investments. The Foreign Investment Law (FIL) of 2000 has a list of 20 sectors where foreign investment is prohibited. Barred activities include exploration, drilling and production of oil.

The list has underminied efforts by the Saudi Arabia General Investment Authority (Sagia) to attract investments into the country. Authorities appreciate that investments encourages growth and is essential to find suitable jobs for Saudi nationals.

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Blogger EclectEcon said...

The crippling of initiative in the Saudi economy will likely cause long-run adjustment problems in the future. And these problems will likely be more than economic. This is a matter of serious concern.

3:02 AM  

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