The Federation of Saudi Chambers: Driving Economic Growth and Global Partnerships
In an inspiring move towards fostering international trade and economic relations, the Federation of Saudi Chambers has been instrumental in reviving the Saudi-Canadian Business Council after a five-year break. This initiative is part of the Federation’s ambitious strategy to enhance the Kingdom’s global trade connections, aligning with the Vision 2030 economic diversification objectives.
Strengthening Global Alliances
Earlier this year, Mohammed bin Nasser Al-Duleim was appointed as the chairman of the newly revived Saudi-Canadian Business Council, following an agreement between the two nations to resume the council’s activities. This development is just one of many under the Federation’s umbrella, which now oversees 70 foreign business councils with key economic players like China, the US, Japan, and the UK, among others.
Economist Mahmoud Khairy highlights the value of these councils, noting that they provide a vital platform for ongoing dialogue, enabling countries to better understand each other’s economic policies and interests. This enhanced communication fosters transparency, trust, and collaboration on trade-related issues such as tariff reduction and investment facilitation, ultimately attracting foreign investors to the Saudi market.
Saudi Arabia’s trade relationship with Canada serves as a testament to the success of these efforts. In 2022, Saudi Arabia was Canada’s leading trading partner in the Middle East and North Africa region, with bilateral trade totaling approximately $5.1 billion. This robust exchange underscores the potential for further growth and collaboration in diverse sectors, including energy, technology, and healthcare.
Opportunities for Investors
The Federation of Saudi Chambers, established in 1980, remains the sole representative of the Saudi business community. It actively promotes bilateral trade and investment opportunities, advocating for policy improvements and facilitating business dialogues. The international councils aim to raise awareness of investment prospects, resolve commercial disputes, and emphasize training and knowledge transfer.
Economist Talat Hafiz underscores the significance of these councils in supporting the Kingdom’s non-oil GDP by boosting exports. Although challenges such as currency fluctuations and export costs exist, they can be managed by ensuring the economic feasibility of expansion efforts.
Saudi-Canadian Trade: A Promising Future
The Saudi-Canadian Business Council offers a platform for business leaders to forge partnerships and explore economic opportunities. As Ahmed Samir Islam, president of the Canada Saudi Business Council, notes, the bilateral relationship encompasses shared interests in energy security and humanitarian affairs, with Canadian contributions in education and healthcare being particularly significant.
Khairy points to areas like digital healthcare, artificial intelligence, and venture capital as promising fields for collaboration. As Saudi Arabia becomes the second-largest market for Canadian exports in the Middle East, the potential for the economic relationship to flourish further is immense.
Hafiz also identifies sectors poised for growth, including industrial, tourism, technology, and education, which will have positive economic impacts on both nations over time. Notably, Saudi Arabia was the top non-US destination for Canadian military goods in 2022, reflecting the depth of their trade ties.
In conclusion, the Federation of Saudi Chambers is not only a catalyst for economic growth but also a beacon for international cooperation, paving the way for a prosperous future for Saudi Arabia and its global partners.
