Saudi-Malaysian trade on expansion course

Saudi-Malaysian trade on expansion course
Updated 27 April 2015

Saudi-Malaysian trade on expansion course

Saudi-Malaysian trade on expansion course

Trade relations between Saudi Arabia and Malaysia have been positive and on the rise, especially in recent years, says Khairul Annuar Abdul Halim, trade commissioner at the commercial section MATRADE in the Consulate General of Malaysia, Jeddah.
In 2014, trade between the two countries increased to $4.02 billion compared to $3.06 billion in 2013, he said, adding that there are indications that the bilateral trade will significantly increase in the future.
For Malaysia, Saudi Arabia is a very important country; the Kingdom is the 19th trade partner of Malaysia, which imports Saudi oil and oil products, Halim added.
Malaysian exports to the Kingdom include palm oil, palm oil products, electrical and electronics products, machinery and wood products.
“Our expectations are high for this year’s bilateral trade and there will be a substantial increase,” Halim said.
Despite the couple of major major tragedies involving Malaysian Airlines (MAS), there has been no adverse impact on tourism. In fact, tourist numbers in Malaysia have increased. More than 100,000 Saudis visited Malaysia in 2014, Halim added.
He said trade delegations from both the countries regularly visit each other to explore further business opportunities.
Last year, five big trade delegations visited Saudi Arabia and this year seven Malaysian teams are expected to tour the Kingdom.
A delegation of Emkay from Malaysia visited Saudi Arabia in March to showcase property projects at events in Makkah, Madinah and Jeddah.
Emkay’s visit was meant to seek Saudi investors for projects in Malaysia and the response from Saudis was encouraging, he said.
Malaysian investors find the Kingdom’s housing projects attractive, according to Halim. "They see bright prospects in the housing sector as there is tremendous shortage of affordable housing. Malaysians are looking for investment, and exploring joint venture prospects for building affordable homes,” Halim said.
This was the Malaysian company’s first visit to Saudi Arabia and it hopes to see bright investment prospects in the housing sector, he added.
Malaysia External Trade Development Corporation (MATRADE) is the national trade promotion agency of the government of Malaysia under the Ministry of International Trade and Industry (MITI) Malaysia.
As part of MATRADE’s continuous export promotional activities in the Kingdom and in an effort to promote and enhance bilateral ties and economic cooperation, MATRADE Jeddah office is organizing and leading a delegation of six Malaysian companies for a trade visit to Jeddah.
“There is much room for expansion of trade relationship in many areas such as machinery, appliances and parts, building and construction materials, palm oil, processed food and beverages as well as wood products,” Halim said.