25/04/2011
Saudi, US businessmen look for synergies
Businessmen from the Eastern Province and the state of Minnesota met Sunday at the Asharqia Chamber on Sunday
US Congressman Keith Ellison with Asharqia Chamber board members Faisal S. Al-Quraishi, left, and Abdul Hadi H. Al-Zoubi, right, in Dammam on Sunday.
Businessmen from the Eastern Province and the state of Minnesota met Sunday at the Asharqia Chamber to explore opportunities for collaboration.
Keith Ellison, a Minnesota Democrat and the nation’s first Muslim congressman, accompanied the delegation and said he was upbeat about the potential in Saudi Arabia.
“I was here last year leading a group of companies. In fact, one of those companies is here this time too, but not as part of this delegation. It has already set up its business here and is nurturing the business. So we have success stories,” Ellison said.
According to him, there has got tobe more people-to-people initiatives.
“I am not a businessman; I am a congressman. My focus is not on just commercial aspects. My focus is on people-to-people contacts,” said Ellison.
“Saudi Arabia and the US have a lot in common. They have common interests and aspirations. Both can support each other to grow and to build on the excellent relationship that has existed all this while.”
“We are here to create relationships between Saudi Arabia and Minnesota, and we are hoping to connect Minnesota companies with Saudi companies,” said Katie Clark, executive director of the Minnesota Trade Office. “Most of the 10 companies are small and mid-size companies. We want to increase commerce between the two countries.”
“US firms are now showing keen interest in the Saudi market. A number of major industrial giants such as Dow Chemical, Alcoa, ITT, Flowserve, Cooper Industries and Thomas & Betts have made new investments, and many more are in the pipeline to take advantage of ongoing trade and investment opportunities here,” said Asharqia board member Faisal S. Al-Quraishi.
“Trade and business opportunities in the Kingdom have received a new boost after the recent announcement of a SR500 billion social-spending package by Custodian of the Two Holy Mosques King Abdullah. The US is already the largest investor as well as the largest trading partner of Saudi Arabia. I hope that US companies will consolidate their position in the Saudi market in the years to come.”
Al-Quraishi said the overall improvement in the Kingdom’s business environment and its standing in World Bank rankings as well as a significant reduction in tax rates for foreign businesses.
“This is the result of meaningful reforms undertaken by the Saudi government and the announcement of a package of new incentives for foreign investors,” Al-Quraishi said.
“These incentives include tax reductions on foreign firms from 45 percent to 20 percent, permission for setting up 100 percent foreign-owned companies, equal treatment of foreign companies along with local firms and liberalized credit facilities from the Saudi Industrial Development Fund.”
Ellison agreed.
“Both governments are aware of the fact that things should be made easier for the private sector to build trade ties — to boost economic activity for the benefit of our people. And so together we will prosper, and together we will grow,” Ellison said.
“This is not just a one-year or two-year plan; this is a long-term plan, and it needs constant care. That is why these visits are important.”
Ellison and Al-Quraishi also agreed that Saudi-US relations were on the upswing.
“Saudi Arabia is a very important country, and I think the relationship is making significant progress every day,” said Ellison.
“When President Obama was to give his historic Cairo speech and address the Muslims of the world, his first stop was Saudi Arabia before he headed to Egypt. That just shows our president understands the history and importance of the relationship with Saudi Arabia and understands how important it is to convey respect to King Abdullah, so our relationship is improving.”
“There is no doubt that such visits help build a strong understanding between the two countries. After the visit of high-level officials in recent years, the Saudi-US relations have strengthened significantly,” Al-Quraishi said. “Saudis are now granted five-year multiple entry-exit visas facilitating the visit of Saudi businessmen and students to the US. More than 24,000 Saudis are currently studying at various US universities.”
Khalid A. Al-Abdulkarim, CEO of Alkhobar-based Al-Abdulkarim Holding Co., said the business delegation would include more traders in the initiative.
“Such visits help small to medium-size companies. Large companies already know their way and have their connections. It is difficult for some of those companies to penetrate the Saudi market, so these visits help them get a push and to network,” Al-Abdulkarim said.
“There are huge opportunities here. We all know that technology comes from the West, and so we need US companies to come here and tie up with our companies. Saudi Arabia is one of the few growing economies in the world, and everybody would like to be with a growing economy.”
