13/10/2009
Saudi-Italian Trade Ties Set to Grow
Trade relations between Saudi Arabia and Italy are set to grow further after a number of trade promotional activities undertaken in both private and government levels.
Mr. Sergio Marini, President of the Arab-Italian Chamber of Commerce, said this in a meeting at the Asharqia Chamber yeaterday. He pointed out the upcoming Saudi-Italian Joint Commission (SIJC) meeting, which is scheduled to take place on October 14, 2009 in Riyadh. Italian Foreign Minister, Mr. Franco Frattini, is expected to attend the meeting.
In the SIJC meeting, a number of important trade related issues including the implementation of the avoidance of double taxation agreement will be discussed. The avoidance of double taxation accord has already been signed by the two countries, but still awaits final ratification from the Italian government.
Mr. Marini noted the visit of the Custodian of the Two Holy Mosques, King Abdullah Bin Abdulaziz, to Italy in November 2007, which, he said, heralded a new era in Saudi-Italian relations on both trade and political fronts. During his visit, six trade related agreements were signed including an important one for the promotion and protection of investments in both countries.
Mr. Marini highlighted the cross investment scheme jointly set up by the Italian financial company (SIMEST) and the Arab-Italian Chamber of Commerce. This scheme aims to overcome some difficulties that hinder the development of industrial partnership between the companies of the two countries.
Mr. Zamil Abdullah Al Zamil, Board Member of Asharqia Chamber, urged Italian firms to consider joint venture projects in cooperation with their Saudi counterparts by taking advantage of enormous investment opportunities in the Kingdom particularly in its Eastern Province. The Eastern region, he observed, is now called "Industrial Capital of the Gulf" for its world-class industries located in the Jubail Industrial City One. Another industrial estate, the Second Industrial City is being developed in Jubail, which is expected to attract more than SR 220 billion in foreign investments, he added.
Mr. Al Zamil noted that after the impressive economic reforms and the announcement of a package of new incentives for overseas investors, the World Bank has rated Saudi Arabia as the Arab world’s best investment environment. These incentives included tax reduction on foreign firms from 45 percent to 20 percent, permission for setting up 100 percent foreign-owned company, equal treatment of foreign companies along with local firms and liberalized credit facilities from the Saudi Industrial Development Fund.
The trade exchanges between Saudi Arabia and Italy have gone up significantly in recent years. In 2008, Saudi imports from Italy rose by 9.4 percent to 3.3 billion euro while Saudi exports to Italy during the period increased by 16.7 percent to 4.2 billion euro. During the first 6 months of 2009, Saudi imports from Italy amounted to 1.3 billion euro while Saudi exports to Italy accounted for 850 million euro.
The Italian mission represented a number of important Italian companies engaged in the field of industrial machinery, construction, foodstuffs, maintenance, furniture, vocational training and environmental consultancy.
