The president was addressing at the committee room on the sidelines of the Gulf-Africa Investment Conference 2010, which was inaugurated in Riyadh on Saturday.

"This is possible because they have the expertise, experience and resources to play a catalyst role in our economy and turn our potential into wealth," Guebuza said, adding that this event indeed be historic if it could pave the way for further strengthened trade and investment flows into Mozambique.

He said that his country has introduced new reforms to attract the foreign investors.

"They include flexible labor law, new commercial code, added fiscal benefits for investments and speedy licensing process for foreign investors," he said.

Answering a question from Arab News, he said that Mozambique could produce food for the Kingdom and other GCC countries.

"Saudi investors are already in Mozambique in the hospitality trade," the president said.

Enumerating the opportunities,he said agriculture is the top area where foreign investors could come in. Agriculture provides a wide range of opportunities for the production of cereals, fruits, flowers and vegetables for the local and export market.

"We also have the potential to raise sheep, goats and cattle and even to cultivate grass for animal consumption. Aquaculture is a virgin area in the agriculture sector," he said.

"We also have potential for road and rail construction using the public private partnership model," he said, adding that there are opportunities in energy generation.

Mozambique could boast of the availability of clean and cost effective sources of energy combining hydro, solar and wind power. Energy is fundamental to agriculture and the dams not only regulate floods but also provide for irrigation schemes."

Tourism is another area that needs foreign investment for its development.

"We have 2,000 kilometers of coastline with white sandy beaches with pristine waters which are warm all the year round.

"Along the coast paradise-like islands stand out to welcome investors and visitors who look for absolute tranquility. In the interior, we have wildlife parks where the big five can be spotted."

Another vantage point in investing in Mozambique is its easy access to a wide range of important markets such as the countries in the European Union and United States.

"The southern African Development Community, a grouping of 14 southern African countries including Mozamabique with a market of more than 250 million consumers," he said