Saudi Arabia seeks SR 650 bn in foreign investment
Saudi Arabia is seeking foreign investments worth SR 650 bn ($ 173.33 bn) in vital projects including petrochemicals,
power generation and water desalination.
Commerce and Industry Minister Dr Hashim Yamani said a Saudi delegation would present the investment projects to
American businessmen during its upcoming visit to the United States. The minister said the Saudi delegation would
visit five US states to introduce investment opportunities.
A Saudi business delegation, which recently visited China to take part in a business conference, invited Chinese
businessmen to invest in the projects. Abdullah Al-Mubti, head of the delegation and chairman of the Abha Chamber of
Commerce and Industry, said the Arab-China Business Conference in Beijing was successful as it helped strengthen
mutual confidence. He said the organizers have agreed to hold the second conference in an Arab country. More than 200
Arab businessmen took part in the conference.
He said Saudi-Chinese trade exchange grew from $ 300 mm in the beginning to $ 10 bn (SR 37.5 bn) last year. He called
for similar meetings with the participation of Saudi and Chinese businessmen to boost relations. There are joint
economic interests, Al-Mubti said, adding that both sides required investments.
Talaat ibn Dhafer, director general of the Arab Organization for Industrial and Mining Development, spoke on Arab
strategy for industrial development for the next 10 years, adding that it has been approved by the Algiers
summit.
"The strategy aims at achieving at least 7 % growth rate and make the contribution of downstream industries to gross
domestic product to 20 %," he added. The strategy also aims to enhance inter-Arab trade to reach at least 15 % of the
total trade as well as to increase Arab investments to 12 % of the total Arab foreign investment and promote Arab
industrial exports to 45 %.
Dhafer hoped that Chinese businessmen could contribute to strategic industrial development projects in Arab
countries.
"We also wanted to expand Arab-Chinese partnership in productive, service and development projects," he said and
called for joint centres for research and development. China's trade with Arab states is expected to triple in the
next five years as the world's seventh largest economy expands and its appetite for crude oil and petrochemical
products grows.
"Trade between China and Arab countries was $ 36.7 bn last year, and we expect the volume to reach $ 100 bn in five
years' time," said Commerce Minister Bo Xilali.
China's long-term demand for crude oil and petrochemical products from the region would continue, Bo said while
Chinese exports of products like textiles and machinery are "proving quite popular because of good quality and
reasonable prices." Bo also told the Arab-China conference that China encouraged Chinese investment in the region and
welcomed investors from Arab states.
Last year, Chinese investment in Arab states was $ 5 bn, while Arab investment in China hit $ 700 mm, the Chinese
Commerce Ministry said.