GREECE has a longstanding relationship with the Arab world. Saudi Arabia has for a very long time been one of the top markets for Greek products in the Middle East region, and food has always been one of the top categories of Greek exports to the Kingdom. Greek exports, which have been increasing at a considerable pace over the past two years, by 9 percent in 2007, amounting to $72.8 million, and by 19 percent in 2008, amounting to $89.7 million, mainly consist of foods (representing 33 percent of the total), building material products, electrical appliances and components, steel and other metal products, plastics and cottonseed.

The prospects for further strengthening the existing trade, investment and general economic ties between the two countries are particularly encouraging as the Saudi and Greek governments are in the process of working jointly on a number of initiatives for enhancing contacts and cooperation between the two countries’ business communities. In April 2008 a Greek business delegation visited the Kingdom, following their first successful visit in 2005. More visits of Greek business delegations are being planned for by the end of this year and the beginning of next year. Greece is a member of all the big international organizations and of course the European Union and the Euro zone. Today its per capita income is very close to the average of the EU.

During the last five years, Greece has entered into a course of restoring its public finances and enhancing its growth potential which remained strong after the 2004 Olympic Games. Thanks to the reforms which took place in recent years, we are witnessing positive developments for the Greek economy in basic sectors. The rate of increase in exports substantially rose from 2004 to 2006, with an average rate of increase of 8.7 percent. The exports of goods are estimated to have increased in 2008 by 3.9 percent, reflecting an increase by 7.7 percent of the exports of services and a decrease by 1.1 percent of the exports of goods. These developments denote a contribution to the increase of GDP by 0.93 percent. Tourism and shipping remain the most important service industries in Greece.

Investment

opportunities

Greece is a promising market to Saudi businesses, as well as a gateway for their entry into European markets. The entire picture of investments is improving; private investments, excluding residences, will demonstrate an increase of 4.2 percent in average during the period 2009-2011. The Investment Incentives Law offers very strong motives for private investments, with the subsidy percentage amounting up to 60 percent, and it has been very well received by enterprises. In the framework of the Investment Incentives Law, already 5,170 projects have been approved, which corresponds to investments of 9.8 billion euros and to the creation of 27,400 new job positions. Taxation for enterprises and individuals is being reduced from 2004. The Greek banks were not exposed to the so-called toxic products. In its overwhelming majority, the country’s financial system continues, despite the crisis, to generate profits and added value.

Furthermore, the Greek government introduced legislation for the increase of the limit of its guarantee for deposits from 20,000 euro to 100,000 euro, for a period of at least three years. At the same time, it confirmed its political commitment for protection of all deposits, held with all the banks operating in Greece. The infrastructures, both in tourism and in the telecommunications and transportation sector, are substantially improved.

The Greek economy had entered a course of fiscal adjustment long before the crisis broke out. The negative international developments of the last months do not stop — nor of course do they reverse this course. On the contrary, they lead to the precipitation of the necessary reforms. This way, when the crisis comes to an end, the growth in our country will be enhanced with a faster pace and in a sounder environment.

For more information, contact: Greek Economic & Commercial Office in Jeddah, Tel: 02 6690824, Fax: 02 6692644, e-mail:[email protected]