11/12/2010
21.9 billion $ for American-Saudi joint projects
The US wants to remain the top investor in Saudi Arabia, said Mr. Francisco J. Sanchez, Under Secretary of Commerce for International Trade of the US Department of Commerce, in an interview with the Saudi Commerce and Economic Review at Asharqia Chamber today.
During his visit, The US Under Secretary who met with a group of local Saudi businessmen led by Asharqia Chamber Chairman, Mr. Abdulrahman Rashed Al Rashed. They discussed various ways and means to improve partnerships between the businessmen of the two countries. Mr. Sanchez also met with a team of Saudi business women led by Ms. Samira A. Al Suwaigh, Board Memebr of Asharqia Chamber.
US companies continue to be the leading international partners in joint ventures in the Kingdom, said Mr. Sanchez pointing to a number of recently established large scale joint ventures between DOW Chemical and Saudi Aramco, Alcoa and Saudi Arabian Mining Company (Madeen). There are currently more than 360 Saudi-US joint venture projects in the Kingdom with a capital investment valued at $ 21.9 billion.
US Foreign Direct Investments (FDI) in Saudi Arabia currently account for more than 25 percent of the total Saudi inward FDI. Major US corporations like Exxon Mobile and others are now looking at new joint ventures in the Kingdom.
On the trade front, there has been significant increase in bilateral trade volumes in recent years, disclosed Mr. Sanchez. In 2009, tow-way trade between the two countries reached over $33 billion. During the first half of 2010, US exports to the Kingdom rose by 8 percent.
The US and Saudi Arabia enjoying currently a very strong trade relations, observed the US Under Secretary. He emphasized on reciprocal visits of trade missions to further improve the relations not only in the trade front, but also in other sectors like education, training and culture. At present, over 38,000 Saudi students are studying in various US universities and educational institutions. "We encourage Saudi students to pursue higher education in the US," said Mr. Sanchez.
To facilitate visits of Saudi students and businessmen, US visa processing has been eased significantly, noted Mr. Sanchez. Over the last year especially, the Dhahran Consulate General has made remarkable strides in facilitating the visa process. The wait time for an interview has been reduced from two months to less than two weeks. The Consulate has added a second Vice Consul position and hired additional local staff to accommodate the demand for U.S. visas.
In the first eight months of 2010, more visas have already been printed compared to the whole year of 2009. The period of January-August 2010 saw a 67% increase in interviews and a 61% increase in printed visas compared to the same period last year. Emergency appointments are liberally granted on a regular basis to students and to those traveling for medical treatment.
Mr. Sanchez has reiterated US support toward development of a knowledge-based economy in the Kingdom. "We have much to offer to Saudi Arabia since US has been the number one country in the world which spends huge funds on the R&D," he said.
This was Mr. Sanchez's second business trip to the Kingdom this year. In last June, he led the highest level trade mission to Saudi Arabia since September 11, 2001.
