The first is the dual pricing of natural gas.
Saudi companies can buy gas cheaper than foreign competitors.
The Saudis argue that this is not a subsidy, and in any case, the issue could be resolved at the WTO if it were a member.
But EU states such as Poland are concerned that backing down on Saudi dual-pricing now would set a dangerous precedent for when Russia, another gas-rich economy, eventually joins the WTO.
While early intelligence suggests the EU has won on this issue, the second -- insurance -- has deadlocked negotiations.
`SHARIAH'
According to Sabbir Patel, of the International Co-operative and Mutual Assurance Federation, there are three elements of Shariah law that prevent insurance companies from operating.
Gharar (uncertainty) is illegal and it is uncertain whether a payment will be made and how much it will be.
Maisir (gambling) is illegal. A small amount of premium is paid in the hope of gaining a large sum.
And riba (interest), also illegal, is paid in order to raise capital for insurance funds.
As a result, however, there are co-operative insurance models that comply with Shariah law, but also Saudi insurance funds based abroad but with branches in the country.
FRAMEWORK
Foreign insurers want to open branches in Saudi Arabia and to invest up to 60 percent in a local co-operative. However, the EU is pushing Saudi to allow European companies to do so with 100 percent equity and hopes to lay the framework for a traditional insurance industry in the country.
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