"The Kingdom, with its new cities planned for development including King Abdullah Economic City, has tremendous potential to attract foreign direct investment," Al-Turki said. The Kingdom's is part of G20 and gained much in importance. The global meltdown has not impacted the Kingdom due to its rich resources and strong regulatory systems. The ongoing construction boom is a distinct indication of the buoyancy in the Kingdom's economy. However, there are challenges. Families and individuals own a great majority of local companies. The Kingdom has eight million foreign workers. Of the 2.3 million workers in the construction sector, 93 percent are non-Saudi. The advantage with foreign labor is they come trained and cheaper than their local counterparts. So the training sector is wide open for overseas investors.
Earlier, Khalid A. Alireza, vice chairman, Xenel Industries Ltd. welcomed the visitors and spoke about the strong bilateral ties. Amin M. Al-Shibani, interim vice president, economic development, King Abdullah University of Science and Technology (KAUST), gave a presentation on the university's progress since its inception. "KAUST is a young university having opened on Sept. 23, 2009, coinciding with the Kingdom's national day, where we conduct research programs on a global scale attracting best talents representing 60 nationalities," he said, adding that KAUST is already credited with some new inventions.
Edward Burton, president and managing director of the USSABC, said Russell 20-20 members include executives from global pension funds, endowments, foundations and investment management organizations who together represent about $80 trillion in investment capital. "The current visit of the group, which earlier toured Riyadh, is a unique opportunity to showcase the Kingdom's hospitable investment climate and myriad areas of potential investment before a group whose opinions are greatly valued by many global investors," he added.
He added that the USSABC was an organization of business leaders in both countries working together to increase trade and investment by promoting broader understanding among US and Saudi companies, as well as specific business opportunities. It was incorporated in the US in 1993 and maintains offices in the Washington, DC, metropolitan area and Riyadh. The council is co-chaired by Abdulaziz Al-Quraishi, former governor of the Saudi Arabian Monetary Agency, and Managing Director Ali Zaid Al-Quraishi & Brothers Co., and Peter J. Robertson, vice chairman (retired), Chevron Corporation. Its board of directors consists of prominent businessmen from the two countries.
The visitors, who were visibly impressed with the unparalleled market opportunity the Kingdom represents, said they were confident that the future augured well for the bilateral relations to prosper and flourish. In terms of its size, transparency, progressive reformation of its economy and financial institutions, the Kingdom is among the world's most attractive targets for foreign investment today, one of them said.
