Luigi Di Maio, the European Union’s special representative to the Gulf region, said that more than 350 European companies have been licensed to relocate their regional headquarters to Riyadh, according to Al Eqtisadiah.
He confirmed that large European groups would be among those companies seeking a presence in Saudi Arabia. The Saudi government aims to attract 480 companies to open regional headquarters by 2030.
He added that the European Union and Saudi Arabia are key trading partners. The total combined trade in goods between them (2023) and services (2022) amounts to 87.91 billion euros. Four-fifths of this total consists of merchandise trade, worth 70.75 billion euros.
Di Maio explained that the European Union supports the establishment of the first European Chamber of Commerce in the Gulf to sustain private sector engagement with Saudi Arabia. Notably, the chamber will be officially inaugurated next May in Riyadh.
The establishment of the chamber aims to assist European companies in consolidating their presence in Saudi Arabia. It also seeks to facilitate business operations in this market and connect the companies with various European markets.
Trade in services for 2022 (the latest available data) showed an increase of 42.4%, from 12.06 billion euros to 17.17 billion euros. Bilateral foreign direct investment stocks also increased by 50% from 63.6 billion euros to 95.4 billion euros.
Furthermore, direct foreign investment stocks from Saudi Arabia to the European Union reached 65 billion euros (from 48 billion euros in 2021). The main destinations for this important activity were the Netherlands, followed by Luxembourg and Germany.
Besides, direct foreign investment stocks from the European Union to Saudi Arabia doubled to 30.8 billion euros in 2022 (from 15.7 billion euros in 2021). Major investors were Luxembourg followed by the Netherlands, Italy, France, Germany, and Spain.
According to the European Commission, more than 1,300 European companies invest in Saudi Arabia and operate in a wide range of sectors. These sectors include energy, manufacturing, transportation, infrastructure, and others. He also added that approximately 25,000 citizens from the 27 EU countries reside in Saudi Arabia.
It is worth mentioning that the Minister of Economy and Planning Faisal bin Fadel Al-Ibrahim discussed bilateral economic and trade relations with Luigi Di Maio. The discussion took place during a meeting in Riyadh on Thursday. They addressed ways of enhancing cooperation in various fields between Saudi Arabia and the European Union, and topics of mutual interest.
Al-Ibrahim said that the European Union is very optimistic about future economic cooperation with Saudi Arabia.
He added that the economic transformation and diversification open up many sectors where both sides can work together. Al-Ibrahim stated that the European Union and European companies have expertise in organizational cooperation, technological knowledge, and management exchange.
He explained that the European Union is ready to open up and provide opportunities for businesses from the Saudi side as well. This includes fields like renewable energy or green hydrogen production.
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