21/11/2009
Saudi-Dutch Trade Ties Set to Grow,
Says Al Abdulkarim
Trade relations between Saudi Arabia and the Netherlands are set to grow significantly in years to come. This was the view expressed by Mr. Khalid Abdulrahman Al Abdulkarim, Board Member of Asharqia Chamber after his recent visit to the Netherlands as the leader of a Saudi business delegation.
Among other members in the Saudi delegation were another Asharqia Chamber Board Member, Mr. Rashed Abdulaziz Al Hussan, Mr. Abdullah Al Majdouie of the Al Majdouie Group, Mr. Mohammed Al Moajil, Chairman of the Al Moajil Group, Mr Abdullah Abdulaziz Al Hamad, Deputy Director General of Dammam Port and Mr. Sami Sarhan of Naizak Group.
Mr. Al Abdulkarim noted that there have been a number of reciprocal visits of trade missions organized by both the countries in recent years. More Saudi trade missions have been planned to travel to the Netherlands and a Dutch oil and gas mission led by the Netherlands Minister of Economic Affairs will visit the Kingdom in the next February. "These are encouraging signs of growing trade relations between the two countries," he said.
During the visit, Saudi businessmen met with representatives of about 100 Dutch companies engaged in petrochemicals, oil & gas, transport, ship-building, logistics, water, training and education. They discussed various ways and means to improve trade relations between the two countries. At least three Dutch companies have finalized deals to enter the Saudi market with their products and services in oil, gas and ship-building industries. These Dutch firms will open their offices in the Eastern Province, disclosed a member of the Saudi delegation.
Members of the Saudi delegation participated in Europort 2009, an international maritime exhibition at the Rotterdam City. On the view at the show were the products and technology from 600 Dutch companies engaged in the fields of ship-building, ship repair, machinery and other related equipment.
During their tour, Saudi businessmen visited the New Headquarter of Aramco Overseas Company (AOC) in The Hague and met AOC Manging Director Mr. Ahmed Al Zayyat and SABIC Europe CEO Mr. Boy Litjens. Representatives of these companies briefed the Saudi delegation about their activities in the Netherlands as well as in other European countries.
Saudi Ambassador to the Netherlands, Mr. Abdullah A. Alshaghrood met with the members of the Saudi delegation and highlighted the importance of the strategic location of the Netherlands at the heart of Europe. He extended Saudi Embassy's support and cooperation to Saudi firms which are willing to establish business contacts with their Dutch counterparts.
Members of the Saudi delegation met with representatives of the Dutch ministries of foreign and economic affairs and the Netherlands Foreign Investment Agency. They discussed possible cooperation in the fields of culture, education and training.
During the meeting at the Rotterdam Chamber of Commerce, Mr. Al Abdulkarim urged Dutch companies to consider setting up joint ventures in manufacture in Saudi Arabia through transfer of technology. The Kingdom is now offering enormous investment opportunities, he said pointing to many mega projects in the areas of railway, oil & gas, petrochemicals and four economic cities being developed in Saudi Arabia.
He pointed out that the Netherlands has already been a major investor in Saudi Arabia. According to Saudi Arabian General Investment Authority (SAGIA), the Netherlands is ranked 6th worldwide and second among the European countries in Foreign Direct Investments in Saudi Arabia. Until the end of 2008, Dutch total volume of investments in the Kingdom amounted to around $7.5 billion in over 119 investment projects.
Saudi Arabia has also good investments in the Netherlands particularly by its petrochemical giant, Saudi Basic Industries Corporation. SABIC has purchased petrochemical part of DSM and recentlyestablished a new company, SABIC Capital Ltd in the Netherlands.
Mr. Al Abdulkarim observed that on the trade front, Saudi Arabia has very strong relations with the Netherlands. These trading relations, he said, have grown significantly in recent years with two-way average annual trade volume reaching over SR25.3 billion. In 2008, Saudi imports from the Netherlands rose to SR7.8 billion, as against SR7.4 billion in the previous year. During the period, Saudi exports to the Netherlands increased to SR17.5 billion as compared to SR16.3 billion the year before.
