Cities such as Madrid, Barcelona or Marbella are popular among Saudi families. However, Spain has much more to offer. It is currently one of the 10 largest economies in the world. It represents more than 2.1 percent of the world’s total GDP and its economy relies on a strong business and industrial technology base.
According to Forbes, four of the world’s top 100 companies are Spanish. Our firms excel in the industries of renewable energies, water treatment, rail and civil engineering. In the railway sector, this year we expect to be world leaders in high-speed trains when it comes to track kilometers.
Our metro system is also remarkable. Madrid’s is the world’s third largest metro system. These strengths are underpinned by our world-class education system.
Spanish universities and business schools are internationally renowned. Spain is recovering from its economic crisis caused mainly by over-reliance on the construction sector and rebalancing its growth pattern toward a more diversified basis, which relies more importantly on productivity, innovation and the internationalization of our companies.
The main lingering disequilibria of the country, the persistent current account deficit and a high unemployment rate, are being addressed by the government by means of a wide set of fiscal and structural policies (notably a bold labor market reform) and therefore, are in a process of long-lasting correction.
Saudi Arabia is Spain’s most important partner in the Middle East. Our bilateral trade accounts for over $4,000 million in 2009. Spanish investment in Saudi Arabia reached more than $200 million in 2008, being the seventh largest European investor in the Kingdom.
Energy cooperation is an important aspect of our ties. Spain is one of the 10 largest importers of Saudi oil and is also a member of the International Energy Forum, based in Riyadh. A Double Taxation Avoidance Agreement is in force since October 2008. A joint business council is in a development stage since 1998.
A Foreign Investment Promotion and Protection Agreement was signed in 2006, although it has not been ratified yet. Every year, over 30 trade delegations from Spain visit Saudi Arabia, which highlights the strong interest of Spanish companies in this country. We count on our excellent relations with the Kingdom to improve our economic and commercial ties to a level that truly represents the potential of collaboration between our two countries.
A special mention of all the Spanish companies established in the Kingdom, who contribute so much with their activity to the knowledge and good image of Spain, on the occasion of the Spanish National Day.
