JEDDAH, 6 May 2005 — Saudi Arabia is offering investment projects worth SR2.3 trillion ($613 billion) to American companies. A 50-member Saudi delegation begins a visit to five US states tomorrow to introduce the projects in petrochemicals, natural gas, electricity generation, water desalination, telecommunications and other vital sectors.
The move follows the successful visit of Crown Prince Abdullah to the United States last month when he met with President George W. Bush in his Texas ranch, opening a new chapter in bilateral ties. The crown prince’s visit, according to Foreign Minister Prince Saud Al-Faisal, brought Saudi-US relations back to normal, reviving their warmth, vigor and dynamism.
The 10-day US visit of the delegation, led by Khaled ibn Musaed Al-Saif, chairman of the foreign trade development committee at the Council of Saudi Chambers of Commerce and Industry (CSCCI) comes at the right time. “Prince Abdullah’s successful visit will make our mission much easier,” Al-Saif said, adding that the delegation would hold road shows in New York, Atlanta, Houston, Chicago and San Francisco to promote Saudi Arabia.
“The delegation will offer investment projects worth SR2.3 trillion to American businessmen,” Al-Saif said. The figure represents the Kingdom’s investment requirements until the year 2020. The Saudi government plans to privatize state-run corporations and institutions with a total value of SR3 trillion ($800 billion) within the next 10 years, he added.
Omar Bahulaiwa, secretary general of the committee, said the new investments would create at least 500,000 jobs annually. “Even if we get a quarter of this amount, it would be great,” he added. Infrastructure projects offer the largest investment opportunity, Bahulaiwa said, adding that the sector provides projects worth $140 billion. The petrochemicals sector comes second with $92 billion projects followed by electricity and water $88.9 billion, telecommunications $60 billion, tourism $53.3 billion, natural gas $50 billion, agriculture $28.3 billion and information technology $10.7 billion.
“This is the largest business delegation visiting the US to promote Saudi Arabia since the Sept. 11 events,” Bahulaiwa said about the May 8-18 visit. The Commerce and Industry Ministry, the Saudi Arabian General Investment Authority, Saudi Aramco and CSCCI are the delegation’s sponsors in the Kingdom. In the United States, the sponsors are: ChevronTexaco, ExxonMobil, the Department of Trade and the Department of Energy and the Federation of American Industrialists. During his recent visit, Crown Prince Abdullah invited American businessmen to invest in Saudi Arabia, especially in its gas and mining sectors. “Economic reforms in the Kingdom have created a new investment-friendly environment that welcomes investors,” he told a reception held in his honor by the Saudi-American Business Council (SABC).
Prince Abdullah spoke extensively about the Kingdom’s economic reforms. “We have enacted a clear and flexible taxation law, reorganized the capital market so that it matches international standards and have expedited the privatization process,” said Prince Abdullah.
Abdul Aziz Al-Quraishi, chairman of SABC on the Saudi side, described Saudi Arabia as the largest economy in the Arab world. “The Kingdom offers a free market and open economy and allows free and unrestricted movement of capital. It has a strong banking system that offers advanced banking services,” he explained.
The United States is the Kingdom’s largest trading partner. Bilateral trade rose from $160 million in 1970 to $26 billion in 2004. There are at present 360 joint projects worth more than $20 billion. Economists say growing oil prices would further increase investment opportunities in the Kingdom.
Bahulaiwa underscored the six-decade-long friendship between Saudi Arabia and the United States.
The Kingdom’s relations with American companies date back to 1938 when they took part in oil drilling works in eastern Saudi Arabia.
“Since then, the US has been the largest supplier of products and services to the Kingdom,” Bahulaiwa said and emphasized the importance of Saudi-US partnership.
