JEDDAH: The prospects are bright for Saudi Arabia and Canada to expand their relations in all spheres of activity. This was emphasized at a meeting of the Jeddah Chamber of Commerce and Industry held in honor of the Canadian minister of international trade and minister for the Asia-Pacific Gateway, Stockwell Day, yesterday. The minister addressing a press conference later said: “Opportunities are great in the Kingdom, especially when the new economic cities are under way. The new economic cities are a very positive and visionary aspect of the Kingdom’s ongoing all-round development.”
Canada’s banking system is similar to that of the Kingdom, he said. “Our banking system is stable like yours (the Kingdom’s). We have regulations in place like yours. We both share some of the conservative processes in terms of finances. So, these factors enable the flow of (your) investment into Canada,” the minister said. Canada has an economic action plan focused on infrastructure and this could be an area for attracting overseas investment. “We have been encouraging Saudi investors to come to Canada and also making their investments more attractive,” Day said.
“Our companies find a lot of opportunity to participate in building the new cities, especially those involved in products and technology, as well as services related to infrastructure, including roads and rail, water treatment, communication technology and medical services. “The opportunity here is amazing and we are impressed,” Day said.
During the current economic downturn, Canada is focusing on tax advantages. “When such downturns come, economies go down but they also go up. This is the business cycle.” He added that credit can be difficult in this (economic) situation, but we have an organization that can assist you in all aspects of business, from the issuance of business visas to doing business with Canadians,” Day said. “The visa procedure is something to be improved upon on our side. When I get back to Canada, this will be one of the issues that I’ll address.” He added that Saudis need not submit their passports for visa purposes. “We had a great dialogue and suggestions on our visa services that need to be streamlined. We need only copies of your passports so that you can travel with your passports pending issuance of Canadian visas.”
Saudi Arabia is currently Canada’s second largest trading partner in the Arabian Peninsula and the second largest export market, after the UAE, in the Middle East and North Africa regions. Canada’s two-way trade with the Kingdom was close to $3.4 billion in 2008. Canadian exports were more than $1 billion in 2008. Canadian imports of over $2.3 billion were mainly of oil from the Kingdom.
In 2008, cereals, mainly barley, represented 22.4 percent of all Canadian exports to the Kingdom at $225.7 million, a 41.3 percent increase from 2007. Machinery at $160.9 million is the second largest Canadian export category and paper and paperboard products at $107.1 million are number three. Mineral (Iron) ores, electrical machinery, wood pulp and vehicles are among the top Canadian exports to the Kingdom.
Day said 20 percent of Canada’s cereal and grain exports go to the Kingdom. “While these exports are increasing, other products and technology are also expanding their presence in the Kingdom.”
Day said Canada was in the process of free trade agreements. “We are going to sign one such agreement with Jordan in my upcoming visit. This should encourage the GCC to discuss such free trade agreements with Canada.”
During the current visit, the Canadian delegation comprising major companies accompanying their minister signed three agreements with three Saudi companies, all based in the Eastern Province. Al-Awad Group for Trading and Contracting signed a deal with Canada’s Water Works, King Fahd Specialist Hospital signed with NORTEL and Al-Jedaie with a Canadian firm.
