RIYADH, 7 August — Italy, which has invested in 54 joint venture projects in Saudi Arabia, is scouting for new vistas of investments, particularly in small and medium size projects. A high-level Italian trade mission will visit the Kingdom next month and an exclusive Saudi jewelry mission will tour Italy on Sept. 13 to boost bilateral trade and promote joint investments.
Addressing a press conference at the Italian Embassy here yesterday, Massimiliano Mazzanti, first secretary, and Dr. Maurizio Bocchini, trade commissioner, said the two countries are seeking to develop a network of small and medium-size industries (SMIs), which represent one of the most important elements in the Saudi policy of economic diversification. The briefing was also attended by Silvia Limoncini, first secretary, and Cristiano Gallo, counselor. Referring to efforts on the part of Rome and Riyadh to promote joint investments, Mazzanti and Dr. Bocchini said “we are waiting for Saudi Arabian General Investment Company (SAGIA) to cut down the negative list further to ensure opening of more sectors for foreign investments”. They said a special delegation of Saudi jewelers will visit Italy to explore possibilities of cooperation in the jewelry sector. They noted that the Kingdom has been importing SR64 million worth of Italian jewelry annually though there are several Saudi jewelry boutiques franchised by leading Italian designers. They pointed out that Italian jewelry, especially of gold and diamond, have maintained an upper hand worldwide because of their “creative designs, competitive prices and excellent craftsmanship.”
Asked why Rome has intensified efforts now to promote joint investments, Mazzanti and Dr. Bocchini said a number of new initiatives have been launched by the Kingdom to improve its economic environment. “We’re confident that these initiatives like the privatization plan, the comprehensive revision and introduction of new foreign investment laws, the changes in tax code and the efforts to join WTO will make Saudi Arabia even more attractive for investment”, they said. Mazzanti and Limoncini explained that Italy and the Kingdom have forged closer relations in various fields. Italian companies are involved in 54 joint venture projects with a paid-up capital of SR2.4 billion.
This represents about two percent of the total joint ventures in Saudi Arabia. They include 24 joint ventures in the construction sector, 23 in manufacturing and six in the service sector.
The diplomats called on businessmen of the two countries to speed up negotiations to set up joint SMIs besides intensifying efforts to promote cooperation in other areas like culture, science and technology.
To this end, Bocchini noted that the Italian Trade Commission (ITC), which has 80 offices worldwide, has opened its chapter in Riyadh with a mandate to promote Saudi-Italian commercial relations. The ITC, they said, seeks to promote, assist and develop trade by providing a comprehensive range of services including training and consultancy. It has planned to organize several promotional events like trade fairs, seminars and Italian participation in specialized Saudi exhibitions. They said the commission will also provide technical assistance to Saudi enterprises during their search for Italian commercial partners or importers.
An investment protection agreement between the Kingdom and Italy is already in place, helping to foster economic cooperation and encourage private sector investment initiatives.
Riyadh and Rome have also signed a memorandum of understanding for holding regular political consultations. Another accord reached earlier by the two sides seeks to combat drug trafficking, terrorism and organized crime.
