GREECE has an ancient relationship with the Arab world — and trade has always been part of it. That remains true today — and Saudi Arabia plays a pivotal role. It has for a very long time been one of the top markets for Greek products in the Middle East region, and over the years there has been a high level of cooperation between the governments and the business communities of Greece and the Kingdom. The Greeks were among the first Westerners to arrive in the Kingdom and with their entrepreneurial spirit made a useful contribution in the development of this country. In the 1970’s and 1980’s, Greek construction companies contributed to the rapid infrastructure development of the Kingdom.
The volume of trade between the two countries amounted to $1,0 billion in 2000, $1,12 billion in 2001 and $961,6 million in 2002. Almost 90 percent of this consists of Greek imports of oil and oil products from the Kingdom. Greece is a promising market to Saudi businesses, as well as a gateway for the their entry into the European markets. Greek exports have increased considerably over the past two years — by 26 percent in 2001, amounting to $71 million, and by 20 percent in 2002, amounting to $85 million. They mainly consist of foodstuff (11 percent of the total), aluminum products (11 percent), fuels (12 percent), electricity meters & components (5 percent), electrical appliances & components (5 percent), steel and other metal products (6 percent), marble (4 percent), footwear and apparel (6 percent), plastics (3 percent), machinery (2 percent), pharmaceuticals (2 percent), cosmetics/bath preparations (2 percent), car waxes (2 percent), and cottonseed.
On the investment front, in 1996 Saudi Aramco formed a joint venture with a major Greek oil refinery, and many Saudi companies on Arab News’ Top 100 list have major operations in Greece. According to the Saudi Arabian General Investment Authority (SAGIA), Greek direct investment in the Kingdom is quite small, amounting to $2,8 million for the period since SAGIA’s establishment and $9,18 million prior to that. Some 70 percent of this investment was in the industrial sector, while 29 percent was in services.
The prospects for further strengthening existing trade, investment and general economic ties between the two countries are regarded as excellent. The Greek and Saudi governments are in the process of working jointly on a number of initiatives to enhancing contacts and cooperation between the two countries’ business communities. The two governments have been negotiating an agreement for the mutual protection of investments which, combined with a future agreement on the avoidance of double taxation, will certainly increase investment flows. The tourism and shipping industries, in which Greece with its know-how has a competitive advantage, are also potential areas for cooperation. Education is seen as another potential area for cooperation.
In January 2001, a team from the Athens Chamber of Commerce & Industry paid visits to the main Saudi Chambers of Commerce & Industry and the Ministry of Commerce and had contacts with selected companies in order to explore the possibilities of expanding the scope of bilateral trade and joint ventures. In April 2001 and July 2002 Greek business delegations from the leather industry visited the Kingdom, following their first successful visit in 2000. In July 2003, a Greek delegation from the Ministry of Development and the Institute for Solid Fuel Technology & Applications was received with an unprecedented warmth and interest by the Saudi public sector as well as by the private business and academic communities. A multisectoral Greek business delegation to the Kingdom is planned for the end of this year.
From the Greek perspective, sectors presenting particular potential for cooperation include the food industry, the pharmaceutical industry and medical equipment, environmental technology, energy and natural gas development, fishing and aquaculture, telecommunications, construction, aluminum products, infrastructural development, tourism, educational services, shipping, franchising and waste management.