Crown Prince Sultan’s ten-day Asian tour, which ended yesterday in Pakistan began in Japan and then went on to Singapore. In Japan there were important agreements pertaining to mutual investments; in Singapore there were deals for establishing a long-term economic partnership and expanding cooperation in the energy sector.
The crown prince’s mission should be seen in the wider context of Saudi Arabia’s growing international engagement, especially with Asia, which was demonstrated in January when Custodian of the Two Holy Mosques King Abdullah made his first foreign trip. It began in China and then moved to Malaysia and India and ended, like Prince Sultan’s, with a visit to Pakistan. The 21st century will see the inexorable economic and political rise of Asian states. Therefore these visits by the king and the crown prince are important indicators of the part that the Kingdom intends to play in the new century’s trends and developments. The ambitious new Five Year Development Plan, the Kingdom’s largest ever budget with its massive emphasis on education and the extraordinary $26.6 billion King Abdullah City, set to be the world’s largest ever civil investment project, represent colossal opportunities for Asian companies and investors. Sultan told local businessmen that the Kingdom was open for investment in key sectors such as desalination, power generation, gas exploration, minerals, air transport, airports, seaports, services and telecommunications. Meanwhile, exciting Asian developments, particularly in India and China offer Saudi investors substantial opportunities in those countries.
The importance of these two high-level visits this year is that they make it abundantly clear that the Kingdom is open for international business and wishes to play a wider world role. In January King Abdullah was accompanied by a very large delegation of Saudi businessmen. In truth, however, the real business takes place after the bilateral deals have been signed and the climate for mutually beneficial cooperation and investment established. Many large contracts will of course be let by Saudi ministries and state organizations but arguably of greater long-term importance will be the partnerships established between the Saudi private sector and Asian companies.
The most significant political part of Sultan’s trip came in Pakistan, where he reiterated Saudi Arabia’s desire for a speedy and successful completion of negotiations with India over Kashmir. In addition, he joined with the government of President Pervez Musharraf in calling for a peaceful resolution of the crisis over Iran’s nuclear program. Reflecting the leading role that both Saudi Arabia and Pakistan play in the Organization of the Islamic Conference, both men also emphasized the need for the Western perception of Islam to be corrected from one of terror, as its enemies claim it is, to that of a religion of peace.
With these two top-level Saudi visits to Asia this year, there can be no doubt that the Kingdom is serious about its entry into world markets.
