RIYADH, 13 September 2005 — Saudi Arabia and Switzerland will sign two major economic agreements in order to boost bilateral links. “The draft of a Saudi-Swiss investment promotion and protection agreement has been finalized and the two sides are working simultaneously to set up a joint business council,” Dominik M. Alder, the Swiss ambassador, said yesterday.
The ambassador also spoke of cooperation in the tourist sector, especially training Saudi students to work in the hospitality industry. He said that Riyadh and Bern had also evinced keen interest in banking cooperation. Alder said that Swiss banks consistently receive high marks from the main credit rating agencies and that a large portion of all internationally-managed private assets are in Swiss banks.
On the commercial front, the two countries have forged closer relations. Last week, the Buhler Technology Group of Switzerland was awarded a contract by Saudi Arabia for a large grain mill. The total worth of the turnkey order based on state-of-the-art grain milling technology is $32.34 million. The Kingdom’s Grain Silo Flour Mills Organization awarded the contract for the large-scale installation. The new facility will be built near Madinah. The contract includes - in addition to the buildings - the entire electrical installation, mechanical equipment and control system plus installation and start-up. The milling installation will have a processing capacity of 600 tons a day. Other plant sections include a grain storage silo, a pre-cleaning system, a finished products storage system, three bagging lines and a product load-out section. The facility is scheduled to start operation within about two years.
The Kingdom and Switzerland have reported consistent growth, with Swiss exports exceeding $1 billion last year, said Alder. He said that the major Swiss exports comprise pharmaceuticals, watches, precious metals, jewelries and machinery. The two countries have also set up 12 joint projects with a cumulative capital of SR1.573 billion. He said that Switzerland has also emerged as a favorite destination for healthcare and education besides tourism.