01/11/2009
Belgian Firms Keen to Invest in Saudi Arabia
Belgian companies are exploring trade and investment opportunities in Saudi Arabia. Mr. Michel Latschenko, Belgian Ambassador to the Kingdom disclosed this in a meeting at Asharqia Chamber on Oct. 28. He was leading a Belgian trade mission to the Eastern Province.
Mr. Zamil Abdullah Al Zamil, Board Member of Asharqia Chamber received the Belgian mission. Mr. Ahmad N. Al Swaidan, Vice- President of the Arab-Belgian-Luxemburg Chamber of Commerce and Mr Adnan A. Al Nueim, Secretary General of the Chamber were present on the occasion.
Mr. Latschenko noted that a large 250-member Belgian trade mission led by Belgian Crown Prince Philippe is currently visiting Saudi Arabia with the objective of strengthening bilateral relations between the two countries. During the visit of Belgian Crown prince, a number of agreements were signed to initiate cooperation between the two countries in various economic sectors.
He pointed out that Belgian companies are very much keen to invest in Saudi Arabia by setting up joint ventures in cooperation with their Saudi counterparts. He identified a number of sectors including energy, power, water and construction in which there is bright potential for collaboration between the companies of the two countries.
Mr.Latschenko also highlighted investment opportunities in Belgium saying that it is the heart of Europe and center for international decision-making. "Belgium's location and its favorable tax advantage have made the country most attractive place for foreign investors," he observed.
When asked regarding the delay in issuing visas, he noted that it takes only 10 to 12 days to issue a visa for Saudi citizens. "We are trying to deliver visas within a few days, but there is a lengthy procedure," he said pointing to a problem of 27- member European Union. Belgium is currently issuing three-year multiple visas for Saudis.
Mr. Al Zamil in his welcome speech urged members of Belgian mission to look into possibility of establishing profitable manufacturing bases for their products in Saudi Arabia. He said that the Kingdom is the largest market in the Gulf region and its strategic location is another advantage to market products in other GCC countries. He also noted a package of attractive incentives being offered to foreign investors for the establishment of their production facilities here.
Mr. Al Zamil said that Belgium is a major trading partner of Saudi Arabia with annual two-way trade volume reaching over 2 billion euro. But, the Kingdom, he added, has an unfavorable trade balance with Belgium. In 2008, Saudi imports from Belgium rose by 17.4 percent to around 1,085.1 billion euro, while its exports to Belgium declined by 3.2 percent to 971.2 million euro.
Saudi-Belgian Trade Exchanges
(million euro)
2007
2008
Saudi Imports from Belgium
924.9
1,085.8
Saudi Exports to Belgium
1,003.1
971.2
He sought cooperation from the Belgian businessmen to reverse the declining trend in Saudi exports to Belgium by introducing Saudi-made products there. "Since Belgium is an important country as the headquarters of the European Union and other international organizations, it can help us market our products in other European countries," said Mr Al Zamil.
