RIYADH, 14 May 2007 — On behalf of Riyadh Governor Prince Salman, Deputy Governor Prince Sattam opened the Saudi-UAE Economic Forum here yesterday, which was attended by a large number of Saudi and UAE government officials and businessmen. The forum aims to strengthen relations between the two GCC countries.
In her address, UAE Minister of Economy Sheikha Lubna bint Khaled Al-Qasimi emphasized the vast investment opportunities in both countries, especially in industry, tourism, real estate, education, health and services and urged Saudi and UAE businessmen to make optimum use of them.
“The oil service complex in Abu Dhabi and the industrial center for oil and gas to be established in Dubai will be a major attraction for oil industries in the world,” Al-Qasimi told the gathering. She commended Prince Salman’s support for the forum.
Saudi Arabia is the fourth largest market for UAE products. The Kingdom, which is the ninth largest exporter to the UAE, is also placed fifth in the countries that receive re-exports from the UAE. Al-Qasimi said Saudi investments in the UAE amounted to SR35 billion last year. As many as 2,366 Saudi companies and 66 trade agencies have been registered with the UAE Ministry of Economy, she added.
Commerce and Industry Minister Hashim Yamani said the forum would help to attract more foreign investments to both countries. “Saudi Arabia offers a conducive atmosphere to attract foreign investments. We have licensed 1,389 foreign and joint projects with a capital investment of SR253 billion until 2006, registering a 25 percent rise in investments,” he explained, adding that the Saudi government was planning to draw joint investments worth more than SR300 billion this year.
Yamani called for five steps to promote trade ties between Saudi Arabia and the UAE. Firstly, establish large joint companies that depend on modern technology. Secondly, depend on trained manpower in both countries, thirdly, avoid production of the same items and high production costs caused by small units, fourthly, support the diversification of revenue sources, and fifthly, apply a policy of increasing exports while making use of financial sources available in both countries. Salah Salem Al-Shamsi, chairman of the Federation of UAE Chambers of Commerce and Industry, highlighted the economic progress achieved by his country over the past years, adding that it achieved a growth rate of 23.4 percent last year. He added that nonoil sectors contribute 63 percent of the UAE’s gross domestic product.
He estimated the total value of new projects under implementation in the UAE at $498 billion. He also added that real estate projects among them are valued at $300 billion.
Abdul Rahman Al-Rashid, chairman of the Council of Saudi Chambers of Commerce and Industry, said there was a remarkable increase in joint investment projects between Saudi Arabia and the UAE during the past five years. “Joint investment projects in the Kingdom are valued at SR154.4 billion until the first quarter of this year,” he said, adding that UAE investments in these projects amounted to 20.7 percent. Al-Rashid said foreign investments in the Kingdom rose by 120 percent during the past three years. Saudi Arabia has been placed 38 among 177 countries in terms of better investment climate, he pointed out.
Tariq Alhomayed, editor in chief of Asharq Al-Awsat, emphasized the role of the newspaper in spreading knowledge and building bridges between countries. He commended the success story of both Saudi Arabia and the UAE in various fields and said the forum is the result of joint efforts of public and private sectors in both countries.