JEDDAH, 23 March 2006 — Economy and Planning Minister Khaled Al-Gosaibi yesterday emphasized the strength of Saudi economy and said the Kingdom was witnessing unprecedented economic prosperity.
“All economic indicators are very positive, be they related to economic growth, investments or the volume of exports and imports,” the Saudi Press Agency quoted him as saying.
Speaking to reporters after attending the opening session of the Saudi-Japanese Business Council in Riyadh, Al-Gosaibi noted the significance of the upcoming visit of Crown Prince Sultan, deputy premier and minister of defense and aviation, to Japan. He said the royal visit would further strengthen cooperation between the two countries in investment, trade exchange, training and other areas.
K. Konaga, co-chairman of the Business Council on the Japanese side, said his country was attaching great importance to Prince Sultan’s visit next month, adding that it would bolster Saudi-Japanese relations.
Konaga expressed his happiness over the growth of Japanese investments in Saudi Arabia over the past years. Saudi Aramco signed an agreement with Sumitomo Chemical of Japan to establish the $10-billion Petrorabigh project, an integrated refining and petrochemical complex in Rabigh, 200 km northwest of Jeddah.
“The time is now ripe to expand cooperation between the two countries in other areas,” Konaga told Saudi businessmen and officials.
Earlier, addressing the business council, Al-Gosaibi said the meeting would discuss topics such as the Kingdom’s accession to the World Trade Organization (WTO) and the country’s Eighth Five-Year Development Plan (2005-2010). He said the eighth plan would focus on issues such as empowerment of women and unemployment and poverty.
While referring to the accession to the WTO, the minister said the steps for it had begun in the sixth and seventh plans. He also drew the attention to the fact that the WTO reports had rated the Kingdom at the top of Arab countries in terms of investment environment.
“The Kingdom advanced to the 38th position among the 155 countries in 2006 while it ranked 76 among 135 countries in the previous report,” the minister pointed out.
Japan is Saudi Arabia’s second largest trading partner and investor. In a recent statement, Japanese Prime Minister Junichiro Koizumi has highlighted the historic ties between the two countries and said they are unshakable.
In a statement marking 50 years of relations between the two countries, Koizumi noted Saudi Arabia’s central role in the Gulf Cooperation Council.
“Being the cradle of Islam, Saudi Arabia also has a powerful influence on the Islamic world as a whole,” he added.
Koizumi underscored the strong economic relations between the two countries. “Japan cooperates with Saudi Arabia by investing in its giant petrochemical projects,” he said. “We look far ahead into the future where our excellent relations are even more essential to international society,” the prime minister said.
The past few years have witnessed a great jump in the size of Japanese investments in Saudi Arabia, particularly in industrial projects. He referred to the agreement of partnership between Saudi Aramco and Sumitomo Chemicals on the Rabigh Project. Saudi Aramco has acquired a 14.95 percent share of Japan’s Showa Shell Company, he added.
Saudi Arabia and Japan established diplomatic relations in 1955. The arrival in Japan of Prince Sultan in 1960 marked the beginning of bilateral visits by dignitaries of both nations, and in 1971 King Faisal visited Japan.
Saudi exports to Japan, estimated at SR49.325 billion ($13.15 billion), include crude oil, petroleum products and LPG while the Kingdom imports from Japan automobiles, machinery and equipment and metals worth SR14.32 billion ($3.8 billion), an official statement said.
