JEDDAH, 29 February 2004 — Malaysia and Saudi Arabia are negotiating several agreements to facilitate investments, trade, business and commerce between the two countries, according to Minister of International Trade and Industry Rafidah Aziz.
She is leading a team of officials and a large delegation of businesspeople attending the Malaysia-Saudi Arabia Business Opportunities seminar.
Rafidah told the seminar the agreements include avoidance of double taxation and prevention of tax evasion and an accord on gold.
“Bilateral relations have strengthened over the recent years,” she said.
In his welcome address, Ghassan Ahmad Al-Sulaiman, vice chairman of the Jeddah Chamber of Commerce and Industry, said bilateral trade in 2003 totaled 3,765.8 million ringgit, an increase of 27 percent compared to 2,966 million ringgit in 2002. Exports increased by 6.4 percent to 1,549 million ringgit.
Between 1990 and 2003, total trade grew more than four-fold from $212 million to $991 million, with Malaysian exports increasing from $108 million to $408 million and imports from Saudi Arabia increasing from $104 million to $583 million.
In 2003 Saudi Arabia was Malaysia’s second largest trading partner in the region after the United Arab Emirates and its third-largest trading partner in the Organization of Islamic Conference (OIC).
Deputy Minister of Commerce and Industry Abdullah bin Abdul Rahman Al-Hamoudi Al-Hamoudi said the new investment law in Saudi Arabia had opened up more investment opportunities for Malaysian businesses.” So far only eight Saudi Arabia-Malaysia joint ventures, worth SR129 million, have been set up in the Kingdom.
Malaysia’s major exports to Saudi Arabia were palm oil, furniture, television sets, jewelry items, and veneers and plywood. Major imports included petroleum and petroleum products.
