Coll 6/19 'Arabia: (Saudi Arabia) Hejaz-Nejd Annual Report.' [‎122r] (244/540)

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Commerce.
172. The absence of official statistics makes it as difficult as in previous
years to deal with this subject. The general economic survey in contemplation
for some time past (see paragraph 152 of the report for 1934) is still in course
of preparation and will review the available information more fully than is
possible in this report.
173. Generally speaking, it may be said that the year witnessed a further
modest step towards economic recovery. Chiefly owing to the increased
pilgrimage, greater activity has been reported in the local markets. Both
Messrs. Gellatly, Hankey and Co. (Sudan) (Limited), and Messrs. Sharquieh
(Limited) are believed to have completed a satisfactory year on closing their
books after the 1935 pilgrimage. In the latter part of the year a less healthy
stimulus was given to trade by the effects of the war in East Africa. A reaction
is to be feared early in 1936, and may prove unpleasant to those who have
incautiously yielded to the local propensity to lay in excessive stocks.
174. Imports for the year 1353 a.h. (ending the 4th April, 1935) are stated
by a competent observer to have been about 10 per cent, greater than the previous
years as regards quantities, although in value they remained much the same at
about £1 million gold.
175. The chief articles of merchandise imported into this country, and their
countries of origin, are as follows :—
Piece-goods .—Japan supplies possibly 80 per cent, with the United
Kingdom and India supplying small quantities, the Manchester product
being of better quality.
Petroleum .—Egypt and the Sudan and small quantities from the United
Kingdom.
Rice .—The bulk of requirements are supplied by Rangoon, with
Calcutta also shipping certain quantities.
Sugar. —Belgium, United Kingdom, Czechoslovakia, Java and Egypt
share the market.
Flour .—France is the largest supplier and small quantities are received
from Iraq, India and Australia.
Cement .—Is imported from Belgium, Yugoslavia, Italy and Egypt.
Coffee .—From East Africa and the Yemen.
Tea .—From India, Java and Ceylon.
176. The Saudi Government continued to import a large portion of their
own requirements, employing for the purpose the local firm of Haji Abdullah
Alireza and Co. This led to complaints from other merchants, and on one
occasion a protest regarding a consignment of rice caused a somewhat wider
distribution of Government favours to soothe the malcontents. The Government
imported no large quantities of arms, but see paragraph 185 below as regards
samples.
177. Sharqieh (Limited) continued to have the lion’s share of the importa
tion of motor vehicles, under the Ford monopoly described in paragraph 156 of
the report for 1934, but Messrs. Gellatly, Hankey and Co. imported in 1935 fifteen
Chevrolets and three Buicks. Sharqieh (Limited) have had to adapt their
arrangements with the Government to some extent to the new situation caused by
the creation of the transport monopoly described in paragraph 163 above. There
was some discussion in the summer about a possible contract for supplying the
petrol requirements of this monopoly, but nothing definite was arranged. The
Egyptian Shell Company supplies the bulk of the Government requirements, and
a proposal to give the contract for supplying the monopoly to the producers of an
American brand, Citex, apparently fell through owing to the expense of insuring
against war risks.
178. A small but growing trade in wireless sets has sprung up as a result
of the legislation to be described in paragraph 200 below. Cheap sets of
American and Dutch manufacture, imported direct or through Egypt, are mostly
in demand.