RIYADH, 21 January — Foreign Minister Prince Saud Al-Faisal said yesterday that there was a historic opportunity for Saudi Arabia to attract massive foreign investment in all economic sectors. "This will not only boost economic growth but will create more jobs for Saudis," he said in an interview with Asharq Al-Awsat Arabic newspaper, a sister publication of Arab News.
Prince Saud, who heads the negotiating team with international oil giants on upstream gas projects, said he expected direct investment worth SR150 billion ($40 billion) in the gas sector. "More investments will follow the opening up of the gas sector," he added.
Prince Saud expected each dollar invested in the gas sector would result in the investment of five to eight dollars in other economic sectors. He hinted at a plan to hold meetings with Saudi businessmen to inform them about new investment opportunities in the gas sector. He said the Kingdom had informed the foreign firms that it wanted Saudi investors to have a "fundamental role" in the new investment projects.
The foreign minister said each project offered would be implemented through a consortium of companies led by one of the qualified firms. He added that the leaders of the consortiums would be identified by the end of next month. He said a memorandum of understanding with the foreign firms would be signed in April.
In the gas sector, investments are invited in projects such as excavation, production, treatment, transportation and distribution. Other projects are in electricity, desalination of water and petrochemical industries.
The prince said yesterday's meeting in Riyadh with the representatives of foreign oil companies was an opportunity for them to discuss the projects in detail and clear their doubts. "I hope the companies will come out with a clear picture on the projects which require large investments. The companies should know all details of the projects."
He said the Kingdom had received positive response from foreign companies which expressed enthusiasm to participate in the proposed projects. "All companies have signed letters of intent as we requested them. It shows their interest in the projects and their confidence in the Kingdom's investment climate." He said the Kingdom expected competition from international firms for projects to receive better offers. "From these firms we'll select strategic partners," he added.
