Grand Mufti Asks Govt to Fix Price Problem

Grand Mufti Asks Govt to Fix Price Problem
P.K. Abdul Ghafour, Arab News

JEDDAH, 3 February 2008 — Sheikh Abdul Aziz Al-Asheikh, the Kingdom’s grand mufti and top religious authority, yesterday urged the government to fix prices of essential commodities in order to control rising prices.

“Every effort should be made to contain rising prices of goods all over the Kingdom,” the mufti said in comments published yesterday. “When we check prices of goods we can clearly see the greediness of traders who increase prices without any justification.”

He said increasing prices without any genuine reason was against the teachings of Islam. “There is nothing wrong in making profit but it should be within a reasonable limit and it should not harm others.”

He emphasized the need for price ceilings of every product in order to prevent traders from inflating prices by exploiting consumers’ assumptions that those price increases are due to inflation.

The mufti made this comment during Friday sermon at Imam Turki ibn Abdullah Mosque in Riyadh. He urged businessmen to fear God and warned them against making gains through prohibited activities and being greedy, without considering the interest of the country and people.

In a related development, the consultative Shoura Council has invited Finance Minister Dr. Ibrahim Al-Assaf for a meeting on Feb. 17 to discuss rising inflation and prices of essential commodities even after the 17-point program adopted by the Cabinet to contain the problem.

According to press reports, Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA), which is the Kingdom’s central bank, will also attend the meeting to discuss major economic issues, including the de-pegging of Saudi riyal from a declining US dollar.

The six-nation Gulf Cooperation Council (GCC) suffered a loss of $60 billion in 2007 as a result of the linkage of their currencies to the dollar, whose value declined by 10 percent during the past year.

According to preliminary reports the six countries, including Saudi Arabia, suffered a loss of $37 billion due to a fall in the value of their exports and $23 billion as a result of an increase in the value of imports.

Shoura sources said the 150-member consultative body would discuss with the finance minister prospects of increasing budget allocations for different government departments and agencies.

Apart from increasing rates of inflation in the Kingdom, which rose to a record 6.2 percent in December last year, the GCC currency union and the delay in implementing some government projects will also figure high during Al-Assaf’s meeting with the Shoura.

Al-Assaf has ruled out suggestions that the Shoura was putting pressure on the government to lift the riyal’s peg to the US dollar. “The meeting is a good opportunity to discuss major economic issues and hear the views and proposals of Shoura members,” the minister told reporters.