RIYADH, 26 October 2006 — Minister of Commerce and Industry Dr. Hashim Yamani will head a delegation to Kazakhstan from Oct. 29 to 31. The visit is part of the Kingdom’s initiative to expand its trade and economic relations with the 57-member countries of the OIC (Organization of the Islamic Conference). “There will be discussions on a wide range of issues concerning bilateral cooperation and key international problems of mutual interest,” an official spokesperson at the Ministry of Foreign Affairs of Kazakhstan, announced yesterday.
Dr. Yamani’s last visit to Astana, the Kazak capital, was in March 2004 on the occasion of the second session of the Saudi-Kazakhstan Joint Commission which he co-chaired with Teymur Khan Hanibitouv, the governor of Astana City. The minister said his visit was intended to explore all possible means of boosting trade relations between the two countries. At the last joint commission meeting, the two sides agreed to establish five working committees for commerce and economy; education, culture, information, youth and sports; technology; business and scientific cooperation.
According to informed sources, the upcoming visit is also intended to promote investment opportunities in projects in the oil, gas, petrochemical and other sectors. Nimir Petroleum Company, owned by Abdul Rahman and Sultan bin Khalid bin Mahfouz, is currently operating in Kazakhstan, Azerbaijan and Russia. The Dabbagh Group, another Saudi organization, has undertaken joint ventures with the state oil company, Kazakhstan Caspishelf (KPS) and Kazak Gas, and is also involved in the country’s hotel, airlines and telecommunications sector through its Jeddah-based subsidiary, Red Sea Housing Services.
Kazak companies figure among the top 100 OIC companies identified by the US-based business strategy e-magazine Dinar Standard. Fifteen Saudi companies made it into the top 100 ranking for 2005 for businesses from the 57 member OIC countries.
At another level, it is explained that some major Saudi companies are seeking to diversify their market outlets in the countries of Middle East, North Africa and Central Asia. One such company is the Savola Group, which has embarked on a major expansion of its market in various countries, including Kazakstan. Savola, which began as a producer of edible oil, has diversified its investment portfolio into other areas including real estate, IT and petrochemicals. The company is one of the 10 largest firms on the Saudi stock market and operates in Iran, Egypt, Jordan, Kazakhstan, Morocco and Sudan.