March 19, 2003 The Liberation Of Iraq, Iraq War - Website by Q Madp

Wednesday May 07, 2003

M. Ghazanfar Ali Khan, Arab News Staff

RIYADH, 7 May 2003 — Saudi businessmen, whose cumulative losses may exceed SR1 billion due to the suspension of the UN oil-for-food program and the subsequent US attacks on Iraq, are seeking compensation from the UN.

The Foreign Ministry will entertain compensation claims by Saudi companies through the Saudi Export Development Center (SEDC) which operates under the Council of Saudi Chambers of Commerce and Industry with a mandate to boost non-oil exports. “All companies which signed supply contracts with Iraq after obtaining final UN approval to export goods have been asked to file compensation claims,” said the SEDC. A group of Saudi business leaders have been eyeing a share of the lucrative contracts for post-war Iraq’s reconstruction. A number of supply deals by the Saudi companies with Iraq broke down once the war began. These companies have now been told to send their compensation applications in English, giving details of the contract, final approvals, quantities already sent and remaining quantities.

According to an estimate, the Iraqi government signed contracts worth SR650 million with Saudi companies pending approval by the UN. This was in addition to the millions of riyals worth of goods which were ready for delivery to Iraq before the war began. Saudi exports to Iraq had been steadily increasing within the confines of the UN oil-for-food program before it was suspended in March this year.

An international trade fair in Baghdad late last year gave the UN program a big boost, bringing the value of export contracts signed by Saudi companies to SR548 million compared to SR514 million in 2002. The biggest portion of the exports was food. According to official figures, Iraq imported more than SR3.8 billion worth of goods from Saudi Arabia within the oil-for-food program. “The demand is still there; in fact Iraq now needs more supplies from Saudi Arabia and neighboring countries,” said Wahib Mahmoud, a local businessman. He stated that nearly 430,000 tons of food will be needed every month to feed at least 10 million people, including 100,000 children under five in Iraq. Referring to the team of businessmen set up under Ibrahim Foudah, the SEDC’s executive director, the SEDC said that the team had prepared a detailed list of what Saudi enterprises can do in Iraq while pursuing the legal channels to secure contracts. The Kingdom, it said, had experience and products for major infrastructure projects especially in water treatment and sewage networks. “But, some Saudi businessmen are of the opinion that they should not take part in any reconstruction project unless a legitimate Iraqi government recognized by the Kingdom is installed there,” said Khaled Al-Bawardi, chairman of Al Bawardi Group.