|
SR2.3
Trillion Projects Offered to US Firms
P.K.
Abdul Ghafour, Arab News
JEDDAH,
6 May 2005 — Saudi Arabia is offering investment projects worth
SR2.3 trillion ($613 billion) to American companies. A 50-member
Saudi delegation begins a visit to five US states tomorrow to
introduce the projects in petrochemicals, natural gas, electricity
generation, water desalination, telecommunications and other vital
sectors.
 The
move follows the successful visit of Crown Prince Abdullah to the
United States last month when he met with President George W. Bush
in his Texas ranch, opening a new chapter in bilateral ties. The
crown prince’s visit, according to Foreign Minister Prince Saud
Al-Faisal, brought Saudi-US relations back to normal, reviving their
warmth, vigor and dynamism.
The
10-day US visit of the delegation, led by Khaled ibn Musaed Al-Saif,
chairman of the foreign trade development committee at the Council
of Saudi Chambers of Commerce and Industry
(CSCCI) comes at the right time. “Prince Abdullah’s successful
visit will make our mission much easier,” Al-Saif said, adding
that the delegation would hold road shows in New York, Atlanta,
Houston, Chicago and San Francisco to promote Saudi Arabia. [see
below for itinerary]
“The
delegation will offer investment projects worth SR2.3 trillion to
American businessmen,” Al-Saif said. The figure represents the
Kingdom’s investment requirements until the year 2020. The Saudi
government plans to privatize state-run corporations and
institutions with a total value of SR3 trillion ($800 billion)
within the next 10 years, he added.
Omar
Bahlaiwa, secretary general of the committee, said the new
investments would create at least 500,000 jobs annually. “Even if
we get a quarter of this amount, it would be great,” he added.
Infrastructure projects offer the largest investment opportunity,
Bahlaiwa said, adding that the sector provides projects worth $140
billion. The petrochemicals sector comes second with $92 billion
projects followed by electricity and water $88.9 billion,
telecommunications $60 billion, tourism $53.3 billion, natural gas
$50 billion, agriculture $28.3 billion and information technology
$10.7 billion.
“This
is the largest business delegation visiting the US to promote Saudi
Arabia since the Sept. 11 events,” Bahlaiwa said about the May
8-18 visit. The Commerce and Industry Ministry, the Saudi
Arabian General Investment Authority,
Saudi
Aramco
and CSCCI
are the delegation’s sponsors in the Kingdom. In the United
States, the sponsors are: ChevronTexaco, ExxonMobil, the Department
of Trade and the Department of Energy and the Federation of American
Industrialists. During his recent visit, Crown Prince Abdullah
invited American businessmen to invest in Saudi Arabia, especially
in its gas and mining sectors. “Economic reforms in the Kingdom
have created a new investment-friendly environment that welcomes
investors,” he told a reception held in his honor by the Saudi-American
Business Council
(SABC).
Prince
Abdullah spoke extensively about the Kingdom’s economic reforms.
“We have enacted a clear and flexible taxation law, reorganized
the capital market so that it matches international standards and
have expedited the privatization process,” said Prince Abdullah.
Abdul
Aziz Al-Quraishi, chairman of SABC on the Saudi side, described
Saudi Arabia as the largest economy in the Arab world.
“The Kingdom offers a free market and open economy and allows free
and unrestricted movement of capital. It has a strong banking system
that offers advanced banking services,” he explained.
The
United States is the Kingdom’s largest trading partner. Bilateral
trade rose from $160 million in 1970 to $26 billion in 2004. There
are at present 360 joint projects worth more than $20 billion.
Economists say growing oil prices would further increase investment
opportunities in the Kingdom.
Bahlaiwa
underscored the six-decade-long friendship between Saudi Arabia and
the United States.
The
Kingdom’s relations with American companies date back to 1938 when
they took part in oil drilling works in eastern Saudi Arabia.
“Since
then, the US has been the largest supplier of products and services
to the Kingdom,” Bahlaiwa said and emphasized the importance of
Saudi-US partnership.
Reprinted
with permission of Arab
News.
|
