RIYADH: Malaysia has called on Saudi businessmen to make use of the incentives it is offering to foreign investors. “I and my delegation have come to Saudi Arabia with the view of promoting Malaysia among Saudi businessmen as an investment haven. Aside from what we call sunshine industries, we also offer generous incentives to foreign investors. These include full repatriation of capital to the Kingdom, tax exemption on machinery and equipment among others,” said Malaysian Minister of International Trade and Industry Mustapa Mohamed after meeting officials and businessmen in Riyadh.
Capping his three-day visit to the Kingdom by holding talks on Monday with Minister of Health and acting Minister of Commerce Dr. Abdullah Al-Rabea, Mustapa said he was upbeat about his visit to the Kingdom. The minister who was heading a 25-member delegation said that Malaysia was a small country but it has great potential for foreign investors.
As of May 2009, there were ten manufacturing projects in Malaysia approved for participation from Saudi Arabia with investments amounting to $6.2 million. Saudi investments were mainly in manufacturing, electronics, textile, plastic products and machinery and equipment.
On Saturday night, Mustapa held a press conference at the Al-Faisalia Hotel during which he outlined the existing close bilateral ties between the two countries not only in trade and industry but also in investment. Malaysian investment in the Kingdom has increased significantly in the last three years. The number of companies registered with the Saudi Arabian General Investment Authority (SAGIA) totals 87 in which 17 companies are involved in the industrial sector with total investment of $4.3 billion, 70 companies are involved in the services sector with an investment of $238.6 million.
In terms of ownership, 34 out of 87 companies are registered with 100 percent Malaysian ownership while 53 companies are registered as joint ventures with Saudi as well as foreign companies. “Two areas in which we need to develop cooperation with the Kingdom is shrimp production and downstream oil production,” Mustapa said, adding that this could further increase the bilateral trade volume, which is in favor of Saudi Arabia.
