With plans to spend $400 billion over five years on major infrastructure projects and as Saudi Arabia’s population grows, the Saudi economy continues to represent huge opportunities for both British exporters and investors.
The Kingdom is taking moves to diversify the economy away from dependence on oil and gas, through economic reform programs and market liberalization and an emerging and growing private sector.
To capitalize on the opportunities the Saudi economy presents, Neil Wilson of the British Trade Office Alkhobar, in association with UK Trade & Investment Yorkshire and the Humber, organized a targeted UK government-sponsored Inward Trade Visit to Britain in this month. The objective of the mission was to take a dozen top Eastern Province Saudi companies to the UK and to introduce them to British contacts. This was achieved by Yorkshire and the Humber organizing a two-day forum to illustrate high-technology, niche and value adding products and services that British industry can offer the Saudi market.
During the visit the Saudi companies were introduced to carefully selected British firms who were felt could meet the requirements of the ever sophisticated Saudi market, and who have something innovative to offer. Neil also met companies who might be interested in assembling or manufacturing products in the Kingdom, or through a joint venture with a Saudi partner.
An important message that we relay to British companies is that there are competitive advantages in many strategic sectors to forming a joint venture with a Saudi partner.
Saudi Aramco, for example, currently purchases approximately 20 percent of its goods and services through Saudi companies, but has stated that within the next few years it will double this figure as it has a strongly stated preference, under its Saudization policy, for local procurement.
To ensure British companies continue to conduct business with Saudi Aramco and other public and private sector bodies, we are encouraging UK businesses to come to Saudi Arabia to manufacture under license, enter into strategic joint ventures or establish a local company.
This would provide the route to the UK providing quality products to Saudi Aramco and other major Saudi players, as well as creating employment in the Kingdom.
David Harries, head of British Trade Office, commented: “All of the above, of course, requires a huge commitment by the British company. For those companies, however, who are prepared to dip their toes in the water, and who are then prepared to set up a commercial entity in the Kingdom, the benefits can be substantial.”
(For more information, contact the British Trade Office, Alkhobar. Tel: 038825288 or e-mail: [email protected])
