RIYADH, 29 November 2005 — Saudi and South Korean businessmen met at the headquarters of the Council of Saudi Chambers of Commerce and Industry yesterday to discuss ways of boosting trade and investment opportunities between the two countries.
The meeting was attended by Lee Won-gul, vice minister, Ministry of Commerce, Industry & Energy, who attended on behalf of the prime minister. It was also attended by Kim Sun-dong, chairman of the Korea-Saudi Business Council. Some 20 members of various major Korean companies were also present.
Dr. Abdulrahman Al-Rashed, chairman of the Council of Saudi Chambers of Commerce and Industry welcomed the visiting delegation and briefed them on the investment opportunities in the Kingdom.
He also said that the Kingdom has issued new flexible regulations and incentives to attract foreign investors. Commenting on the Kingdom’s economy, the chairman said that Saudi Arabia’s economy was among the top 20 in the world. “The year 2004 was the best year in balance performance,” he said. He also said that non-oil sectors in the Kingdom, particularly in the gas, power, and telecommunication sectors were growing rapidly.
“We have the largest volume in the stock market in the Arab world. It grew 800 percent from what it was in 1999. It also has grown almost 100 percent in just one year,” Al-Rashed said, commenting on the performance of the Saudi stock market.
According to the chairman, Saudi Arabia will have investment opportunities worth $624 billion in oil, gas, petrochemical, desalination plants, and in other areas in 15 years.
Total investments that have been licensed by the Saudi Arabian General Investment Authority (SAGIA) from Korea are estimated at $21.8 billion, he said.
Dr. Abdulrahman Al-Angari, co-chairman and vice chairman, Saudi-Korean Joint Business Council, said that Korea and the Kingdom shared a long history of relations that were built on investment and mutual respect.
“The Saudi business community is looking for a joint venture with Korea,” he said, adding that “we are optimistic that the future is going to be very bright.”
He also said that the second meeting would help encourage more business opportunities between the two countries.
The Saudi side gave a presentation on the status of the economy and the country’s growing gross domestic product (GDP) rate. The Kingdom’s GDP grew by 16 percent last year to $250.6 billion.
Saudi Arabia’s GDP outweighed the total values of eight Arab states put altogether last year including countries such as Egypt, Morocco, Lebanon, UAE, and others. The country’s exports for 2004 were $126 billion and its imports were $50 billion.
It also mentioned several reasons why Koreans should investment more in the Kingdom due to its strategic location, economic and social stability, strong purchasing power, no personal income tax laws, open economy, and also because it has two of the largest industrial cities in the Middle East - Jubail and Yanbu.
The presentation highlighted the several steps taken by the government to attract more foreign investment such as restructuring public bureaucracy, development of money and stock market, and developing the IT and communication sectors.