Saudi Arabia will be one of the world's fastest-growing economies says AACCI President and National Chairman Mohamed Hage OAM.
(See translation in Arabic section)
Saudi Arabia is aiming to develop sectors that will expand its economy to be both sustainable and progressing. The Kingdom is implementing optimal initiatives in efforts to build a framework suitable to make the country a mining hub capable of supporting large mining operations across the region and the entire middle east. Building a mining service and technology sector is part of this objective, which would provide a significant amount of economic and trade possibilities.
AACCI President and National Chairman Mohamed Hage OAM said “Australia has proven to be among the leading and largest producers of minerals in the world with significant expertise in the mining sector. Saudi Arabia is also seeking to implement sustainable practices in which Australian companies have deep capabilities in”.
Foreign direct investment has also increased in the kingdom while business activity in the non-oil sector has expanded. The government has taken active steps to promote international trade, increase foreign direct investment and strengthen the kingdom's public and private sectors.
Hage said “Saudi Arabia has several opportunities for Australian businesses seeking to expand into other sectors in one of the fastest growing developed economies. The government is empowering sectors that include education, health, mining, vocational training, renewable energy and the food sector.”
Education and vocational training present excellent opportunities for Australian companies, while the growth in the tourism sector would need to be supported by a strong hospitality sector. Saudi Arabia’s tourism sector is expected to boom that would expand the demand for Australian food and beverages and other products and services into the kingdom.
“The kingdom remains on track to be the fastest growing economy in 2023. This reflects the success Saudi Arabia has had in diversifying and opening its economy”. Hage said
In July 2007, Free Trade Agreement negotiations commenced between Australia and the GCC. Negotiations with the GCC have since paused since 2009, however there has been renewed interest in commencing an FTA with Australia and the GCC.
“The future resumption of negotiations on an Australian-GCC Free Trade Agreement would be a positive step in fostering stronger trade and investment initiatives between Australia and the GCC.” Hage said
Australia and Gulf Cooperation Council (GCC) countries share economic relationships across a broad range of sectors. The GCC is also seeking new trading opportunities with countries such as Australia. In 2020, two-way goods and services between Australia and the GCC was worth in excess of $11 billion.
An FTA agreement between Australia and the GCC presents an opportunity for greater trade diversification,” Mr Hage said.
“Australia companies are now operating in key industries across the GCC and an FTA agreement with the GCC would create more opportunities for Australian companies to expand among one of the world’s fastest growing economies such as Saudi Arabia and the wider GCC countries.”
His Excellency Saudi Arabia’s Ambassador to Australia Musaed bin Ibrahim received in his office at the embassy the President of the Australian-Arab Chamber of Commerce and Industry, Mr. Mohamed Hage OAM.