JEDDAH, 2 March 2006 — Petrochemical industries dominate the Kingdom’s business scene and tend to overshadow smaller business opportunities that are attractive to individual or smaller foreign investors. Certainly in the US at least, the name of Saudi Arabia is associated almost exclusively with oil.
“Most people equate Saudi business with hydrocarbon export,” said Stephen Case, a partner in C and C Managers, a project development business in New York. “Other than that I am hard pressed to think of a presence in the Eastern US of Saudi business.”
Case specializes in developing projects using proven technology and local labor and business support. On a speculative tour of the Kingdom seeking opportunities to invest and develop projects, he was attracted to the Kingdom by reports of a lively market and open mindedness that he gained from Muslim and Saudi contacts in the US. “It became clear that if we were going to invest in the Muslim world that Saudi Arabia was the only place we should begin with.”
Case was not motivated by the recent liquidity in the Saudi economy that followed the rise in oil prices. One of a new inflow of post-WTO accession entrepreneurs, he seeks to finance 100 percent of projects he takes on. “It was the reputation of the open mindedness of the business leaders in Jeddah and Riyadh,” he said, “that made these the places we should start.” With a successful de-icing salt mine in Rochester in NY State in his portfolio, Case said that his partnership liked to build things that people need and that create jobs. Water purification - both inland brackish and seawater - mining, industrial facilities all fall within his purview.
“In the US we are looking at bio-diesel opportunities and have looked at ethanol opportunities. All are proven technologies, not cutting edge,” he said. “We normally look to be equity investors and part owners.”
He said that the deciding issue for him was; “is it a good opportunity and can we assemble the skills to exploit it rather than bringing in outside expertise?” On first assessment, he thought it was.
With the increasing number of young men and women looking for jobs, the focus on utilizing in-country labor and skills makes sound economic sense. “That’s the only way to do it. We built in Rochester with local partners and local people; in the American south with bio-diesel we would have strong local partners and build with local labor.” He saw no reason why that should not be the case here and hopes to leave with the experience gained from visiting a Muslim country reinforced.