Saudi Arabia hopes to broaden trade cooperation with China: official-by Huang Xingwei

RIYADH, Apr 24, 2003 (Xinhua via COMTEX) -- Saudi Arabia regards China as one of its most important strategic trade partners and hopes to broaden bilateral trade ties in the future, said Fahad S. Al-Sultan, secretary general of Saudi Chambers of Commerce and Industry.

In an exclusive interview with Xinhua on Wednesday, Fahad noted that the economies of both countries are supplementary, so there is big room for trade cooperation between China and Saudi Arabia.

At present, China ranks the kingdom's fifth largest trade partner in terms of Saudi imports and the seventh largest in terms of Saudi exports.

Official statistics show the trade volume between the two countries reached 4 billion US dollars in 2001 with a 1.37-billion- dollar surplus for Saudi Arabia, and the figure increased 25 percent to 5.1 billion dollars in 2002.

In January this year, bilateral trade reached 500 million dollars, a dramatic rise of 83 percent over the corresponding period of last year.

Saudi exports to China are mainly petrol-chemical products, while China's exports to Saudi Arabia are mainly textile products, shoes, leather products and food, Fahad said.

Buoyed by the robust development in Saudi-Sino relations, Chinese investors have secured six licenses from the Saudi Arabian General Investment Authority (SAGIA), namely, petrochemical, Pharmaceutical, tire manufacturing and construction material projects in Riyadh, Jeddah and Yanbu.

Fahad said Chinese investment projects in Saudi Arabia has totaled 240 million Saudi riyals (10.7 million dollars) so far.

Fahad welcomes Chinese businessmen to invest in petrochemical, mineral resources, service and tourism sectors, noting the kingdom has adopted an open-market policy with free trade and low tariffs.

He termed Saudi Arabia's investment environment as "attractive", and listed its advantages, such as political and economic stability, rich and relatively cheap energy, good infrastructure facilities, and timely and effective investment procedures.

"Saudi Arabia has the largest oil reserves in the world, amounting to 26 percent of the world's total," Fahad said with pride. "We also have advanced banking service and a good geographic location as the gateway between East and West."

He also recalled his visit to China in January with a Saudi delegation comprising 73 leading Saudi businessmen, saying he was quite impressed by the strong economic growth of China and the delegation inked a number of contracts during the tour.

"During my visit to China, I found many high-quality goods in China's shopping malls which are far better than those sold in Saudi Arabia," he said. "I am sure such high-quality goods can find their market in Saudi Arabia."

The Saudi customers have started to care more about the quality of products, while in the past they were concerned more about prices, Fahad noted.

According to the commercial chief, the consumption concept of the Saudis has changed, and "quality has become the most important thing."

"China should issue laws and regulations to restrict the export of low-quality products, or it would damage its images overseas," Fahad added.

He also called on business sectors of both countries to set up a hot line to exchange information.

"I think mutual understanding and frequent exchanges of information will contribute to promoting bilateral trade ties," he added.