RIYADH, 6 March — The Kingdom has sought Japan’s strategic alliance in a mutually beneficial partnership to promote trade and investment in the mining, railroad, desalination and power generation sectors of the Kingdom. Following the recent economic reforms, these sectors have attracted $10 billion in overseas investment, with foreign investors holding 83 percent of the capital.

This message came across at the start of the two-day Saudi-Japan Business Council meeting here yesterday. The session, which over a hundred Japanese and Saudi businessmen are attending, began with opening addresses by Abdullah Zainal, chairman of the Council of Saudi Chambers of Commerce and Industry, and Yoshiyuki Fujisawa, co-chairman of the council.

Abdulrahman Al-Jeraisy, president of the Riyadh Chamber of Commerce and Industry, and Osama Al-Kurdi, secretary-general of the Council of Saudi Chambers, also addressed the gathering. From the Japanese side, Japan’s Ambassador Nobuyasu Abe and Fujisawa provided an overview of their country’s economic policy and energy needs as well as the future demand for oil and gas.

The third business council is being held against the background of the Sept. 11 events that cast their shadows on trade and investment. Japan, the Kingdom’s second largest trading partner, accounts for 9.2 percent of the total Saudi imports. Its exports to Saudi Arabia stood at SR9.6 billion in 1999, while its imports from the Kingdom were valued at SR2.8 billion.

In his welcome address, Prince Abdullah ibn Faisal ibn Turki, governor of the Saudi Arabian General Investment Authority, called for further opening up of the market to foreign investors.

He said the Kingdom could attract $20 billion annually if more sectors are taken off the negative list. He said the GIA only acts as a promoter of foreign investment within the framework of policy guidelines laid down by the Supreme Economic Council. “Every country has certain areas that the foreigners are not allowed to invest in. The GIA can only recommend measures to further open up the economy, and it is for the SEC to decide.”

Al-Jeraisy said Japan, which has ten joint venture projects in the Kingdom, has had lucrative returns on its past investments, especially in the petrochemical sector.

“The potential for increasing such investment was great,” he added.

Dr. Ibrahim Al-Mutrif, deputy governor of GIA, spelled out the salient features of the economic reforms in the Kingdom.