RIYADH, 15 February — The Council of Saudi Chambers and the Hungarian Chamber of Commerce and Industry have signed two accords, one of them a framework agreement, intended to boost commercial relations. The signing of the framework agreement is expected to facilitate the setting up of a joint business council.
Hungarian Prime Minister Viktor Orban said yesterday that "the agreement indicated the clear intentions to build up relations in the fields of culture, politics and the economy". Orban, who held wide-ranging talks with Custodian of the Two Holy Mosques King Fahd and Crown Prince Abdullah, deputy premier and commander of the National Guard, said Riyadh and Budapest had agreed to conclude an avoidance of double taxation pact and an investment protection treaty.
The visit of Hungarian premier has given a boost to the diplomatic relations as well. The Kingdom has plans to open its diplomatic mission in Budapest by the middle of this year. The opening of the Saudi mission will help boost the two-way trade reported to be at an all-time low of $36 million last year, compared with $60 million some 10 years ago.
Ferenc Miklossy, HCCI's president, said an MoU was also signed by a Saudi company, Al-Shuaibi Contracting, and the Ganz Transelektro Co. of Hungary to set up a joint venture in power sector. The firm will operate in the field of electric transmission and ancillary equipment.
Orban said he briefed the Saudi leaders about the political and economic conditions of the Central European region referring to Hungary's plan to join the European Union within next two years. He called on Saudi businessmen to acquire properties in Hungary where the prices of real estate would sharply shoot up after its acquisition of EU membership.
Orban identified agriculture and tourism as priority sectors where the two sides can jointly promote trade and investment. Hungary has been predominantly an agricultural country with the eastern half of the country comprising a huge stretch of fertile plain. He added that he had invited Governor of General Investment Authority Prince Abdullah ibn Faisal ibn Turki to visit Budapest.
On the Middle East peace process, he feared the persistence of a deadlock in peace negotiations.
He, however, called on Israel and Palestine to ensure peace in the region, hoping that the two nations will be able to reach an agreement. "And we support all the forces and the ideas, which can lead to the peace regardless the fact that the outlook is not very bright", he said.
