Statement by H.E.Dr. Yousef ALSAADON, Deputy Minister of Foreign Affairs,

For Economic and Cultural Affairs,

Head of the Delegation of the Kingdom of Saudi Arabia

To the Third United Nations Conference

On the Least Developed Countries

Energy Session

Brussels - 17 May 2001

First, I would like to stress the fact that the oil exporting countries, members of the OPEC, are all part of the developing countries. The oil revenues is the main source of their revenues, which is devoted to different development programs in their countries, and to assist the other developing and least developed countries.

As far as the Kingdom of Saudi Arabia is concerned, it has never hesitated to devote a part of its revenues to finance various development programs in the developing countries and in the least developed countries. 73 developing countries, among which 44 LDC, have thus benefited from this aid. The amount of this aid represents 4% of the Saudi GNP and is thus the highest percentage in the world.

I would also like to insist on the fact that the Kingdom of Saudi Arabia attaches great importance to the balance and stability of oil markets and considers this as an unchanging principle of the Saudi oil strategy. Moreover, in order to achieve this aim, the Kingdom of Saudi Arabia suggested to establish a permanent Secretariat of the World Energy Forum and to host it in Riyadh. This Forum should be a place of dialogue and continuous co-operation between all oil producers and consumers in order to guaranty the interests of all parties.

The final prices of the oil products paid by the consumers include various costs in addition to the crude oil cost paid to the producing countries, among which very high taxes imposed by the consumer countries that have to be added to the large profit made by the speculators in the international stock exchanges such as New York, London and the other capitals.

Finally, I would like to stress the fact that when speaking about the current oil price, one has always to speak about the real price and not the nominal price and to compare it to the price of various manufactured goods, such as medicines, equipments, as well as the products needed in the educational, agricultural and industrial sectors. The real cost of all these products has largely increased during

these last twenty years, reaching percentages much more higher than the one of the increase of the oil price. Thus, it is important to take these elements into consideration, and not to make the cost of crude oil bear the responsibility of the slow progress of development in the LDC.