As regards the water sector, a study has just been finalized on rationalizing consumption by all users. In addition, the Human Resource Development Fund has been established to finance the training of the Saudi nationals for jobs most needed by the private sector, and a new labor law to further enhance flexibility is under discussion. Priority for maintaining a stable and enabling macroeconomic environment, he said, would continue, noting that in the fiscal area, despite the sharp increase in oil revenues, the emphasis is still on improving the budgetary structure and containing expenditure while maintaining the necessary spending for health, education, basic infrastructure and the social safety net. The monetary and financial policy focus remains on maintaining nominal exchange rate stability with the U.S. dollar, low inflation, and a sound banking system. It is difficult to predict oil prices accurately.
Taxation is a recurring influence.
The petroleum industry to a large extent mirrors the economic health of the world, and weakness in any one key region can trigger a ripple effect elsewhere, as happened during the economic crisis in Asia in 1998. He reminded his listeners that oil will remain important as a source of energy for a long time. He said the Kingdom of Saudi Arabia is determined to play a key role in securing a stable oil market and access to petroleum at reasonable prices over the long term, adding that oil prices should reflect the value of the product in the global marketplace, without the shackles of arbitrary taxation, sanctions or restrictions. Minister Al-Naimi concluded by saying that as a natural resource, oil has a vital role on the planet, and it is up to all of us to regard it as such and work toward maintaining its fair and equitable place in our economies. He noted that the Ministry of Finance and National Economy participates in the Forum every year, but this year's forum is attended by a greater number of businessmen and high-ranking officials.