Stable Saudi Arabia attracts US companies

Riyadh: Pinning hopes on overcoming the current global financial crisis, scores of US companies are looking forward to getting a slice of the cake in the lucrative market of Saudi Arabia, one of the least affected countries in the economic meltdown.

More than 300 new US companies entered the Saudi Arabian market during the current year, according to a senior official of the US Saudi Business Council. These companies are navigating the Saudi market in order to capitalise on the great opportunities the country offers to potential investors.

David Callaghan, deputy president of the Council for Business Promotion, said that most of the US companies are keen not only to market their products and services, but also to set up joint ventures.

US-Saudi ventures

Speaking at a gathering of businessmen in the eastern city of Alkhobar, he said that there are 357 US-Saudi joint ventures with a total investment of 82 billion riyals (Dh80.36 billion) in various regions of the Kingdom.

"This huge volume of investments has made the United States the largest investor in the kingdom. The US still maintains its position as the top-trading partner of the kingdom with a total bilateral trade exchange amounting to more than 193.3 billion riyals in 2007," he said.

Saudi Arabia's imports from US rose to 45.9 billion riyals while its exports soared to 147.4 billion riyals during the year.

Abdul Wahab Al Ansari, assistant secretary general of the Chamber of Commerce and Industry in the Eastern Province for public relations and media, said that the investment in the kingdom could be the least affected by the global financial turmoil.

Addressing a meeting of business delegations from Pennsylvania, he said that Saudi Arabia is currently witnessing robust economic growth. "The kingdom is offering vast investment opportunities in different sectors of its booming economy, especially in the sectors of oil, gas, petrochemicals, energy and water, mining and food industry.

"We have to maintain this steady growth in order to support the growing younger generation in the kingdom," he said while noting that more than 60 per cent of the population is under the age of 40.

Oil and gas projects

Referring to the vast opportunities in various sectors, Abdul Wahab Al Ansari unveiled plans of Saudi Aramco to make investments worth 400 billion riyals in oil development projects as well as 20 billion riyals in gas projects and 350 billion riyals in the water and sewage sectors.

Pennsylvania's Department of Community and Economic Development and its Centre for Trade Development joined hands with the US-Saudi Arabian Business Council in organising the business development mission to Saudi Arabia.