The Kingdom of Saudi Arabia stressed on Tuesday the necessity of enhancing reforms in the world financial system in order to support the efforts of the developing countries to achieve economic growth along with social equality.
In a statement, on behalf of the Kingdom of Saudi Arabia, at the Arab-South American Summit, Prince Saud Al-Faisal, the Foreign Minister, said that the reforms must include tools more adequate to prevent and to manage financial crisis and to give more role to the developing countries in the decision-making process in the financial multi-party organizations without disrupting the interests of other countries.
The Following is the full text of Prince Saud's statement at the Summit:
"President Luiz Inacio Lula Da Silva Of Federal Republic of Brazil, Majesties, Presidents, and Excellencies, heads and members of the delegations, May God's peace be upon you.
I have the honor on behalf of the government of the Custodian of the Two Holy Mosques King Fahd bin Abdulaziz Al Saud, King of the Kingdom of Saudi Arabia, to convey his greetings and sincere wishes for the success of this summit.
I also express in the name of the delegation of the Kingdom of Saudi Arabia the great appreciations for the efforts of the Federal Republic of Brazil for the preparations of this summit which will help us to reach the desired goals topped by enhancing the cooperation among our countries to achieve our common interests and benefit our peoples.
The history of the relations between the Arab world and the Latin American countries goes back more than five hundred years during which the Arab sailors started to arrive in this part of the world. And throughout the 19th century, the wave of the Arab migration to Latin America reached high levels under which the Palestinian, Lebanese and Syrian communities were able, because of the acceptance by the Brazilian people of newcomers, to integrate into the Brazilian society and other Latin American societies.
Mr. President
Despite the Arab presence in this part of the world, the size of the trade exchange and investment between the Arab countries and Latin American countries are currently not up to the level of the available resources and capabilities of both sides. In 2004, the volume of trade exchange between Arab and South American countries was $ 10 billion representing 1.13 % of its total external trade and this is not consistent with the ambitions of our peoples.
"And we view the initiative of President … to hold this important conference a good opportunity to correct this reality by determining the obstacles that prevent theenhancement in different fields of cooperation which affirm the adoption of programs and plans to assure the elimination of these obstacles.
We also should pay attention to ensure the necessity of encouraging and supporting the flow of investments, exchange of experiences and the transfer of technology as a response to global changes that have taken place during the past years which lhas ed to creation of a united economic world which could pave the way for a large flow of investment through borders.
In the world of globalization and information technology, we must take the opportunities to develop our joint economic capabilities. This means in the first place, the elimination of barriers that prevent the free flow of capitals and investment projects. The most important one is the taxation barrier which is imposed on the foreign investors and the complicated administration procedures for their investments.
In this context, the Kingdom of Saudi Arabia has issued a new regulation for foreign investment. It provides a full list of assurances and incentives that enable the investor to keep pace with all modern changes and developments.
The Kingdom of Saudi Arabia was keen in line with joint international efforts to meet the international developments in the international trade regulations by stressing the necessity of enhancing the reforms in the world financial system in order to support the efforts of the developing countries to achieve economic growth along with social equality.
The Kingdom of Saudi Arabia also stresses that the reforms must include tools more adequate to prevent and to manage financial crises and to give a greater role to developing countries in the decision-making process in the financial multi-party organizations, without disrupting the interests of other countries.
"With respect to the stability of the international energy markets, the Kingdom of Saudi Arabia has worked to ensure the consuming countries of the assurance of oil supplies to meet the possibility of the shortages whatever the reason despite the high cost of this assurance.
The crises that have taken place in the region proved the credibility of the Kingdom's policy and its balance approach in this field along with its keenness that this run-out commodity is dealt with, in a manner suited to its importance. This comes by not imposing high tax of negative impacts on the demand and not limiting investment in its development and improving its uses.
Mr. President
The project of the communiqué of the summit has good ideas about ways of facing poverty, starvation and the importance of tackling the developmental and social issues.
Despite the fact that the Kingdom of Saudi Arabia is a developing country with increasing financial needs, it still contributes in financing the developmental, economic and social efforts in the developing countries. In this regard, the Kingdom's total un-recovered aids and soft developmental loans through the bilateral and multi-party channels in the last three decades was about $83 billion which forms 4 percent of the annual average of the Gross Domestic Product (GDP) of the Kingdom in those years. This has exceeded the official goal of the developmental aid which is determined by the United Nations.
As many as 73 developing countries in different continents including the South American continent benefited from these assistance.
"I would like to point out here to the cooperation in this field with South American countries.
There had been active participation of companies and contractors from South America in implementing developmental projects in African continents financed by the Saudi Fund For Development (SFD).
The Kingdom of Saudi Arabia also took the initiative to contribute its full share in the fund initiative for reducing the debts of the poor countries that are burdened by debts to the International Monetary Fund. The Kingdom of Saudi Arabia freed a number of poor countries from these debts before the launch of the new international initiative in this respect.
Mr. President
We realize that this conference is concerned by the economic aspects, but we feel that the desired economic development must be based on a stable situation. And this makes me move to mention a number of important political causes in our region which formed an obstacle before the development and the matter will remain (unresolved) as long those issues are not dealt with.
These issues are toped by the Palestinian cause which still awaits a just and lasting solution based on establishment of a Palestinian state as was stated in the Arab peace initiative and the road map. If the peace process is to be moved forward, then Israel must fulfill its obligations according to the signed agreements and treaties and to respect the resolutions of the international legitimacy and the 'land for peace' principle.
The existence of equal opportunity in the participation in the political process for all Iraqi people is the committed assurance to protect the unity of Iraq, its independence and sovereignty. We hope that formation of the new Iraq government will result in positive steps in the road of the political process towards its desired goal. We also see what deserve the appreciation in the procedures that have been undertaken by the transitional Iraq government. My country also support the outcome of the Istanbul meeting for the Iraq's neighboring countries which stressed on the protection of the sovereignty and unity of Iraq, land and people and the right and freedom of the Iraqi people for the self-determination and its control of its natural resources.
Lebanon has witnessed a number of political developments of high importance which we hope will result in a bright future that achieves for Lebanon what it seeks in terms of freedom, sovereignty and independence. For its part, the Kingdom of Saudi Arabia, has exerted constant efforts to help the Lebanese people to reach their ambitions and at the same time keep the historical and distinguished relations that link Lebanon with its neighboring sister Syria.
"Mr. President,
The Kingdom of Saudi Arabia has stressed in all events that terrorism is the most dangerous phenomenon that the International community has faced. And, in order to fight this phenomenon which does not have a religion or nation or nationality, the Kingdom of Saudi Arabia took the initiative to call for an international conference to combat terrorism. The conference was held in Riyadh last February. A number of important recommendations were adopted by the concerned participating bodies, topped by the suggestion of Crown Prince Abdullah bin Abdulaziz to set up an international center for combating terrorism. The conference's final recommendations, we hope, would be adopted by the United Nations.
Mr. President
The culture, heritage and civilization of any society is the main key for understanding the nature of that society. The importance of culture is clear as it is an active element and a bridge for contacts among peoples. There is a need to enhance the academic cooperation among educational foundations through scholarships in all sciences and knowledge, the cooperation in the training and technology field, enhancing programs of culture exchange, and the interaction among the intellectuals with emphasis on the importance of the cultural diversity of our countries and its protection to enhance the understanding among us and to formulate joint interest that benefit our peoples.
Finally, I extend my thanks to you Mr. President, the people and government of the Federal Republic of Brazil for your hospitality and distinguished efforts which contributed in the success of this summit.
May God's peace be upon you," Prince Saud concluded in his statement.
