Essential Economic Information and Data
The Kingdom of Saudi Arabia represents:
- the major producer and exporter of petroleum in the world.
- the country with the greatest oil reserve in the world.
- the country with the highest GNP in the Middle East.
- the country classified as the 20th greatest economy in the world.
- a country with a constant growing demand for both capital and consumer goods with solid economic base and a marketplace with a demographic annual growth of 3%.
- a country with stable with sound economic policies supported by the following data:
1. GNP real growth of 5.3%
2. an inflation rate at 0.2%
3. a diminishing public debt at the rate of 15%
4. an evergreen economic classification of (A) Grade by Standard & Poors.
Saudi Arabia Short-term Economic Goals:
- to reduce dependency of the economy on oil revenues by expanding and diversifying the economic base through the investment of the oil revenues in other sectors of the economy.
- to accelerate the process of the privatization of the public sector.
- to create new industrial areas.
Note: with an enormous financial liquidity, the Kingdom shall be afforded to realize above objectives within the next 15 years with an investment outlays of 630 billion dollars.
What the Kingdom Offers As a Major Destination for International Investors.
- An enormous current account surplus from high oil prices.
- a growing financial market for consumer credit.
- the establishment SAGIA as one stop-shop destination to facilitate FDI investment.
- a favorable tax reform to encourage FDI investments. Further information on tax reforms is available at the SAGIA web site www.sagia.org and ICE Office.
Italy and the Kingdom of Saudi Arabia
Italy maintains an excellent diplomatic relationship with the Kingdom of Saudi Arabia and the Italian investment takes part in almost all sectors of the economy thanks to the efforts made by both countries in this regard through continuous contacts and visits at the governmental level.
The Private Sector:
- during the year 2004-2005 the Italian entrepreneurs have obtained licenses worth more than 5 billion dollars to invest in the Kingdom.
- an increasing number of successful Italian small and medium sized businesses are operating in the Kingdom.
- on 13 July 2005 the Saudi-Italian Joint Business Council was established.
Institutional Cooperation:
- exchange of high level official visits to promote economic cooperation in vital economic sectors such as health, industry and agricultural sectors.
- In 2002 the Saudi-Italian Joint Commission for Economic and Industrial Cooperation was established.
- the signing of other economic and commercial bilateral agreements, more recently the agreement on the elimination of double taxation between the two countries.
On this occasion, special reference shall be made to the official visit of the Minister of Foreign Affairs of the Kingdom of Saudi Arabia HRH Prince Saud Al-Faisal Bin AbdulAziz to Italy on 24 June 2005.
List of some Italian Firms Operating in Various Sectors of the Saudi Economy:
- Augusta Corporation
- Alcatel Italia Corporation
- Ansaldo Energia Corporation
- Alstrom Power Italia Corporation
- Ansaldo Industria Corporation
- Ansaldi Corporation
- BAI-Brescia Antincendi ltd.
- BEA Ltd.
- Belleli Energy Ltd.
- Comerint Corporation
- Design 2000 Ltd.
- Eni Corporation
- Facco & C. Corporation
- Fagioli Corporation
- Gas Turbine Technologies Corporation
- Foster Wheeler Italia Corporation
- Gavazzi Imp. Corporation
- Ignazio Messina Corporation
- Impresilo Corporation
- Ital Consult Corporation
- Iveco Corporation
- Ligabue Catering
- Mariani Battista Ltd.
- Merzario Corporation
- OCRIM Coporation
- SAE Sadelmi Corporation
- SAIMA Avandero Coporation
- Safilo Group Ltd.
- SAIPEM Corporation.
- Snamprogetti Corporation
- TECHNIP Italy Corporation
- TECNIMONT Termomeccanica Pompe
The Italian-Saudi Business Council
This Council is a non profit body established in Rome on 13 July 2005 by the Council of the Chambers of Commerce and Industry of the Kingdom of Saudi Arabia and Italy’s Unioncamere with the objective of acquainting the entrepreneurs of both countries, through a continuous exchange of information, with the business opportunities offered by both economies. The ultimate goal is to promote the creation of joint ventures investments in all sectors with emphasis on the transfer of know how as an added value. The Memorandum of Understanding signed between both countries in this regard can be accessible by clicking here.