RIYADH, 15 January 2004 — Minister of Economy and Planning Dr. Khaled Al-Gosabi has called on Japanese businessmen to invest in the Kingdom, especially in the IT, industrial, petrochemical and power generation sectors.
In the keynote address at the Fifth Saudi-Japanese Business Council, Dr. Al-Gosaibi said the goal of the Eighth Development Plan (2005-2009) was to achieve 30 percent growth rate in the GDP “to make the Kingdom an international center of refined oil products and export of petrochemicals, minerals and metals as well as regional and international center for advanced industrial technologies.”
Among those present were Japan’s Minister of Economy, Trade and Industry, Morimoto, deputy minister for industrial affairs at the Ministry of Commerce and Industry, Saleh Al-Hussaini, president of the Council of Saudi Chambers of Commerce and Industry Abdul Rahman Al-Jeraisy, Japanese Ambassador Yasuo Saito K. Konaga, co-chairman of the Business Council on the Japanese side, and Yoshitaka Nakamura, director general of Japan External Trade Organization (JETRO). In addition there were more than 100 businessmen from both countries.
Explaining the Kingdom as a destination for overseas investors, the minister said the Kingdom had five of the largest 500 corporations in the world and an enormous capital base.
“According to some banking sources, the total international private placements from the GCC countries may total $1.3 trillion, of which at least half belong to Saudi individuals and Saudi companies. I expect that many Japanese companies will appreciate the contribution from partnering with Saudi business enterprises for their investment in the region, both in terms of spreading risks and improving understanding of the country and region.”
The minister said the Kingdom’s strategic priority was to continue adding value to the barrel “through refining more of our crude oil production domestically, and engaging in the production of petrochemicals and other energy-intensive products.”
He added that Japan, the Kingdom’s second largest trading partner and also investor, was well placed to raise its investments. He pointed out that the Saudi Arabian General Investment Authority (SAGIA) had licensed 2,100 projects worth about $15 billion from 61 countries, with the overseas investors’ share being $12.5 billion. This includes a total of 10 Japanese projects.
Dr. Al-Gosaibi also cited the Kingdom’s economic reforms program covering privatization, plans for a private domestic airline, liberalization of the power generation and telecommunication sectors. To deal with huge investment inflows, the capital market law, effective from next month, will serve as a regulatory framework for conducting all capital market-related activities. A Saudi Securities and Exchange Commission will also be established.
Speaking for JETRO, Nakamura said one of the latest Japanese firms to embark upon a joint venture in the Kingdom was Xenesys which will be involved in a private sector desalination plant. It was also announced that Yellow Hat Japan which specializes in setting up one-stop shops for the sale of car accessories has concluded a franchise agreement with Tamimi Group.
