JEDDAH, 7 July 2005 — Saudi Arabia is seeking foreign investment to carry out a large number of projects worth SR2.34 trillion ($624 billion) in vital sectors, according to Prince Turki Al-Faisal, the Kingdom’s ambassador to the United Kingdom.
Addressing the Middle East Symposium 2005 titled “Commercial Diplomacy: A Force for Regional Prosperity” in London, Prince Turki said the new projects, which were approved by the government this year, would be implemented within the next 15 years.
“These economic projects are open to local, regional and international investors,” the Saudi Press Agency quoted the prince as saying about the projects offered in petrochemicals, natural gas, electricity generation, water desalination, railway, telecommunications and other vital sectors.
According to Omar Bahlaiwa, secretary general of the foreign trade development committee at the Council of Saudi Chambers of Commerce and Industry, infrastructure projects offer the largest investment opportunity of $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.
Prince Turki highlighted the significance of the landbridge project that aims at linking the Arabian Gulf on the Kingdom’s east with Red Sea on the west, saying the multibillion dollar project would bring about a revolution in the country’s trade and transportation.
In his keynote address to the symposium, which was attended by ministers, ambassadors and economists from Britain, the United States, Europe and Arab countries, Prince Turki emphasized the strength of Saudi economy, saying it is the largest in the Middle East in terms of revenues, banking, capital market and oil reserves and exports.
“Saudi Arabia is one of the 25 major economies in the world and its gross national product (GNP) accounts for one fifth of the total Middle East GNP,” the ambassador said. The Saudi economy makes an annual growth rate of more than seven percent, which is the largest in the region.
Referring to the booming Saudi stock market, Prince Turki said about two million Saudis invest in the bourse, which is the 11the largest in the world as shares valued at about $1.7 billion are exchanged there daily.
He said the government has introduced a series of reforms and legislations to encourage local and foreign investment. “It has also taken a number of initiatives to ensure transparency of the economy,” he added.
The ambassador also referred to the Kingdom’s efforts to promote its educational progress. “Efforts are under way to establish six new universities in addition to the existing eight universities. More than 100 technical and vocational training colleges have been established for both boys and girls,” he explained.
He said the new government policies would encourage Saudi women to invest their wealth in the market.
Saudi Arabia is the largest trading partner of Britain in the Middle East, Prince Turki said, adding that direct British investments in the Kingdom reached $3.5 billion. There are more than 150 Saudi-British joint projects.
Social Affairs Minister Abdul Mohsen Al-Akkas said Saudi Arabia had succeeded in competing with other countries in four areas: petroleum industry, petrochemicals, banking and health service. The Kingdom has fulfilled all requirements to join the World Trade Organization, he insisted.