Korea-Saudi Businesses and Government Discuss Cooperation

(Photo : Rigoberto Banta JR.)

1st Korea-Saudi Business Forum, “Saudi: Good Business Environment for Korean Business”

“Saudi Arabia is an attractive country for investments. Service, manufacturing, R&D among other industries are showing signs of potential for growth.” In the 1st Korea-Saudi Business Forum held last October 30th in Grand Intercontinental Hotel at Seoul’s Samseong-dong, Abdullatif A. Al-Othman, Governor and Chairman of the Board of Directors, Saudi Arabian General Investment Authority (SAGIA), in his opening speech, invites investors to Saudi Arabia. “We are inviting Korean companies to invest in technology,” assuring that “Saudi has increased private investment and will be increasing efforts in expanding free trade agreements and free trade zones.”

Moon Jae-do, Vice Minister of the Ministry of Trade, Industry and Energy (MOTIE), in his opening speech focused on the relations of the two countries. “The two countries share over 40 years of deep-rooted relations from when Korean construction companies first came to Saudi for construction projects.” “I believe that great strides in economic cooperation will take place between Korea’s advanced technologies and Saudi’s infrastructure development.”

After the welcoming address, Muhammed Al Helal, Aramco Asia Procurement Director, assures that making business in Saudi Arabia is at its best, during the first session that tackled commercial and industrial cooperation platforms. “Saudi’s monetary situation is very stable, and in addition, corporate tax is low while there is no consumption tax.” “There is government-wide support for businesses that offers low prices for industrial rents and bank loans among other support programs.” Kim Daehoon, President, Korea Institute for industrial Economics and Trade (KIET), says that, “While Korea-Saudi trade volume is very high, investments are quite low.” “As investments are limited only to construction, investment diversification is needed.”

Gibreen A. Al Gibreen, Director General of Economic Policies and Financial Stability, Saudi Arabian Monetary Agency explains, “With the decreased reliance of Saudi Arabia in the oil industry, the dependence to the non-oil sector is steadily increasing.” “While Saudi experienced the effects of the financial crisis, the country has experienced a steady increase in its financial credibility.” He adds that, “Various tax privileges in different sectors available provide a friendly environment for investors.” He points that housing construction sector and automobile industry shows great potential for investments as well.

Various sectors are opening up for investments in Saudi Arabia, according to Saud Al Sayyari, Financial Analyst, Public Investments Fund. “Petrochemicals, education, real estate are just some of the sectors that are opening up.” “As for foreign companies, finance and banking, agriculture, petroleum, and pharmaceuticals among others show a lot of promise.”

The business forum was co-hosted by the Korea-Saudi Friendship Society (KSFS, President, Lee Jong-cheon), Saudi Arabia’s Ministry of Commerce and Industry, the Saudi Export Development Authority (SEDA) and Council of Saudi Chambers (CSC), which was held from October 29 to 31. In the said forum, about 10 ministers and vice ministers for economy and planning, trade, energy, and investment, 30 members of the royal family and high-ranking government officials, CSC chairman, and about 210 businessmen have attended. For the Korean side, representatives from businesses related with finance, textile, education, renewable energy, ICT and individuals interested with trade in Saudi Arabia have come to take part of the one-on-one consultations provided in the forum.

Since 2008, the government of the Kingdom of Saudi Arabia has organized the said business forum in various countries including United Kingdom, France, Italy and the US. In Asia, it was held in Japan (2012) and Korea is the second country to host the event.