Enormous scope exists to expand the economic relations between Saudi Arabia and Pakistan, says Mazen Batterjee, vice chairman of Jeddah Chamber of Commerce and Industry (JCCI).

The two countries could expand trade ties through initiating joint efforts and by signing memorandums of understanding (MoUs), Batterjee said while addressing the Lahore Chamber of Commerce and Industry (LCCI) last week.

LCCI President Ijaz A. Mumtaz, SVP Mian Nauman Kabir, VP Syed Mahmood Ghaznavi and JCCI Board Member Khalaf bin Housaan Al-Otaibi also spoke on the occasion.

Batterjee maintained that expansion of trade will ensure that only the qualified and skilled people go to Saudi Arabia so that more demand for Pakistanis will be created, Business Recorder said in a report.

Saudi businessmen could be motivated to come and invest in Pakistan to set up dairy industries. There are other areas of mutual interest where investment can be made on a reciprocal basis, Batterjee said.

Emphasizing the need for involving chambers of the two countries in expanding economic ties between the two countries, he said people from the chambers of the two countries could sit together to thrash out ways and means to accelerate the process of expansion of trade. He said that businessmen from both countries should be encouraged for participation in exhibitions held in Pakistan and Saudi Arabia.

He was of the view that investors from Saudi Arabia should also be invited to visit Pakistan to familiarize them with a conducive investment environment existing in Pakistan. If the Kingdom’s businessmen start visiting Pakistan frequently, it will raise the level of confidence of Saudi investors and entrepreneurs who would then think positively about investing in Pakistan. This could be a major breakthrough, he added.

LCCI Chief Ijaz A. Mumtaz said Saudi Arabia is one of the largest trade partners of Pakistan and there exists lucrative opportunities for Saudi investors in the fields of oil and gas, petroleum and petrochemicals, power (coal-, hydel-, gas-based), textile manufactures, banking and financial services, fertilizers industries, gems and jewelry, light engineering, furniture, food and fruit processing, packaging, livestock, dairy farming, fisheries, infrastructure, IT and telecom.

Ijaz A Mumtaz said: “Our Saudi counterparts can come and invest in Pakistan as foreign investors are allowed to invest in industrial projects on 100 percent equity basis. Similarly, we are also ready to invest in Jeddah if there are good business opportunities available for us there.”

Establishing a Saudi desk at LCCI and a Pakistan desk at JCCI will go a long way in strengthening bilateral trade ties, he suggested.

Pakistan mainly imports oil from Saudi Arabia, which is almost 76 percent of total imports. Saudi Arabia comes at 4th place among the top importing countries for Pakistan and its total value is $3.84 billion dollars in 2013. The total worth of Pakistan's exports to Saudi Arabia is $494 million dollars in the same year.