RIYADH, 4 February 2003 — Saudi Arabia and Italy have finalized plans to set up a major Italian-Saudi holding company before June this year to strengthen investment relations. This was announced here today following talks between Prince Abdullah ibn Faisal Al-Turki, governor of Saudi Arabian General Investment Authority (SAGIA) and the visiting Italian Minister of Industrial Activities Prof. Antonio Marzano.
Marzano, who also held talks with Prince Sultan, second deputy premier and minister of defense and aviation and Ali Al-Naimi, minister of petroleum and mineral resources, said that Italy is also seeking support of the Kingdom to endorse the candidature of an Italian national, whose name has been proposed by Rome for the post of the secretary general of the International Energy Forum (IEF).
Of late, the IEF has emerged to be a prestigious forum for dialogue between the oil ministers of energy producing and consuming countries. The aim of the dialogue is to promote better understanding among producers and consumers on diverse global energy issues. The Kingdom hosted the IEF’s biennial meeting in November 2000 whereas Japan hosted this meeting in December 2002. The first energy forum was held in France in 1991. The Kingdom is the second largest exporter of oil and petrochemicals to Italy. Referring to his wide-ranging talks with SAGIA Governor Prince Abdullah and Minister of Finance & National Economy Dr. Ibrahim Al-Assaf, Marzano said that the Italian-Saudi holding company will be the first joint investment body of its kind to be set up by the two countries. To this end, he noted that an agreement has already been endorsed by SAGIA and SIMEST (an apex Italian institution to support businesses abroad) — to formalize the setting up of this organization. This new initiative will help to set up 30 to 40 Saudi-Italian SMEs at a cost of SR375 million within the next one and half years, said Massimiliano Mazzanti, first secretary at the Italian embassy. The SIMEST will deploy an expert at SAGIA to ensure better coordination with the entrepreneurs. The SIMEST is an Italian institution, which seeks to promote joint ventures abroad and provide them technical and financial support. The SIMEST’s shareholders include a number of Italian banks, businesses and trade associations. Referring to his talks with Minister of Industry & Electricity Dr. Hashim Abdullah Yamani and Council of Saudi Chamber of Commerce and Industry (CSCCI), the Italian minister said that there are several Italian companies, which have shown interest to participate in joint projects.
Saudi Arabia and Italy have forged closer relations in trade and investment sector. The two-way trade exceeds SR13 billion annually, which includes SR7.5 billion worth of Italian imports mainly comprising Saudi oil and petrochemicals. Besides, Italian companies are currently involved in 54 joint-venture projects with a paid up capital of SR2.4 billion. This, in fact, represent about two percent of the total joint ventures by foreign firms in Saudi Arabia.