Saudi Vision 2030 presents growth opportunities for US business
Saudi Vision 2030 presents growth opportunities for US business
Q: How do you assess the current state of US-Saudi business relations?
A: The US and Saudi Arabia enjoy a strong economic relationship, as the US is the Kingdom’s largest trading partner, and Saudi Arabia is one of the largest US export markets in the Middle East. At the Riyadh summit last May, more than $200 billion of commercial agreements were announced between Saudi and American companies.
Q: How does Saudi Arabia’s position in the world affect business relations?
A: Saudi Arabia’s geopolitical role in the region and globally has grown proportionately to the challenges and crises that both neighbor the Kingdom and that it has been forced to deal with given its own security concerns and its responsibilities to protect those within its borders. The US, under the leadership of President Trump, has recognized the importance of Saudi Arabia as an important strategic partner in addressing these challenges and crises. I firmly believe those bonds will continue to grow in a healthy way and reach new levels over the next 10 years.
As private sectors in the two countries seek new alliances and collaborative relationships, the rapid development of new industries in Saudi Arabia, enhanced integration of its local workforce and expanded localization of Saudi enterprise in serving the needs of the Kingdom will continue to create opportunities for American and Saudi companies.
Q: What kinds of US companies are doing business in Saudi Arabia now?
A: In the early years, the American presence in the Kingdom was largely limited to major companies involved in defense and energy. However, as this relationship has evolved over the past several decades, we have seen a shift toward companies of all sizes and industries entering the market, whether that is via direct export, establishing sales offices or distributors, or creating partnerships with Saudi firms. Medium-sized companies are discovering partners that are actively searching for US firms with technical expertise and quality products for a customer base that increasingly enjoys the “Made in USA” label. Meanwhile, large corporations are realizing that the Saudi government is encouraging investment and technology transfer with highly competitive loan programs, industrial utility rates, and very favorable tax regimes.
Q: What helps them succeed?
A: Our best success stories come from companies with defined goals and a willingness to take the time to understand and invest in the market. For some companies, that means having the patience and financial resources to explore partners, comply with regulations and establish a steady stream of receivables and payments. It is each company’s unique situation and demands that allow us to tailor a solution that ultimately benefits them and their Saudi partners. Keep in mind that for every American company we are successful in facilitating into the Saudi market, there is a Saudi company or government entity that will gain a new partner, investor or supplier.
Q: What industry sectors in the Kingdom are being prioritized for inward investment?
A: With Vision 2030 and the National Transformation Program, Saudi Arabia’s private sector is undergoing unprecedented growth resulting from the government’s economic diversification and liberalization drive. Almost every economic sector in the Kingdom is being overhauled to reduce layers of bureaucracy and stimulate private initiative. These include not only the commonly thought of sectors such as energy, petrochemicals, construction and power generation, but also health care, education, automotive and telecommunications, among others.
Q: How can the US participate in applying Vision 2030 in Saudi Arabia?
A: Saudi Arabia’s Vision 2030, spearheaded by Crown Prince Mohammed bin Salman, has already created billions of dollars’ worth of trade and investment opportunities for US companies across a wide array of industries. Business activities within the Saudi private sector are growing. And within the council, we have recorded a large uptick in the number of American companies contacting us for assistance in market entry or expansion within the Kingdom. The bottom line deliverable of the business council is building partnerships between US and Saudi companies, as well as access to information and to senior decision-makers in both the government and private sector.
Height of adventure: Treading the ‘Edge of the World’ near Riyadh
- Cliffs in Tuwaiq were formed as a result of the movement of the Arabian plate toward the northeast because of the spread of the Red Sea rift
- Several prominent Saudi tour companies offer daylong excursions to the site
Thrill seekers and fitness gurus all over the Kingdom will be pleased to know that their choices for weekend activities have increased.
Several tour operators in Riyadh have started offering trips to the area known as the Edge of the World, making the location more accessible than ever.
With the country’s obesity rates on the rise and many citizens growing more concerned about their physical health and stress levels, people are seeking ways to maintain their fitness without having to restrict themselves to the monotony of a gym routine.
One such solution that has steadily increased in popularity over the past year is hiking, which many have embraced as being much more exciting and fulfilling than spending hours on the treadmill. And most popular of all for hiking and other fitness activities in a natural setting is the magnificent landmark of Jabal Fihrayn, more commonly known as the Edge of the World.
Described as a “window framed by rock,” the Edge of the World offers stunning views of the valley below, a lush grove of acacia trees teeming with wildlife and vegetation. The spot is well-known for being a favorite of visiting picnickers.
Hikers can choose from several trails of varying levels of difficulty, making their way to the top of the Tuwaiq escarpment to take in the magnificent views at the top of the trail, where the colossal cliff faces drop off to reveal the dizzying height from the valley below. In addition to the rich wildlife unique to the location, you can also find samples of fossilized coral and raw mineral deposits in certain areas of the valley.
The cliffs in the areas were formed as a result of the tectonic movement of the Arabian plate toward the northeast because of the spread of the Red Sea rift situated 1,000 km to the west of Tuwaiq.
Due to the increasing popularity of the site, the authorities have built a hardtop that leads to the gates of the sites and arrangements are in place to protect the area and its natural treasures.
Several prominent Saudi tour companies offer daylong excursions to the site. The more intrepid explorer also has the option to go alone; though past visitors recommend that solo travelers take an all-terrain, 4x4 vehicle and extra precaution. Visitors can spend the day at the site and leave before 6 p.m. (when the gates are closed for the night) or stay behind for a night of camping to enjoy the sunset and the breathtaking celestial views of a star-studded night sky.
Nora Alfard, amateur hiking enthusiast and two-time visitor to the location, was quick to offer praise about her trip.
“The trip out there was a bit tiring, but totally worth it,” she said. “The views are stunning, and the hiking itself is not that difficult. Most people should be able to make it to the top without too much trouble.” She said she was likely to go a third time, and encouraged others to do the same.
The Edge of the World is roughly 100km northwest of Riyadh, about 1.5 hours’ drive from the capital. Visitors should be prepared for at least 30 minutes of hiking, possibly more depending on your trail and your level of fitness and experience. Previous visitors recommend bringing water and snacks, and stress the importance of dressing appropriately — hiking shoes only!