The South African–Saudi Arabia Business Council has pledged to enhance trade between the two nations.
Recent trade statistics reveal positive trends, with South Africa’s exports to Saudi Arabia reaching R7.3 billion in 2023, up from R6.6 billion in 2022.
However, imports from Saudi Arabia declined, dropping to R54.6 billion in 2023 from R73.6 billion the previous year.
The exported goods encompassed a range of products, including agricultural goods, motor vehicles, and basic chemicals.
Conversely, imports from Saudi Arabia comprised refined petroleum, related products, and crude oil.
Co-Chair of the South African–Saudi Arabia Business Council, Stavros Nicolaou, emphasised the need for increased trade and investment during a press briefing on Wednesay, honoring a visiting Saudi business delegation.
Nicolaou noted the substantial growth opportunities for South African companies in the Gulf region, citing local companies establishing a presence in Saudi Arabia.
Ongoing engagements between South African President Cyril Ramaphosa, Minister of Trade, Industry, and Competition Ebrahim Patel, and their Saudi counterparts have facilitated increased business collaboration.
Local businesses successfully gained a foothold in the Saudi market due to these engagements.
Vice-Chairman of the Saudi–South Africa Business Council, Dr. Hisham Al Amoudi, affirmed Saudi Arabia’s commitment to investing in South Africa.
Al Amoudi highlighted the significance of the South Africa and Saudi Arabia Joint Economic Commission and the Business Council as platforms for progress and increased inward investments between the two countries.
“We are committed to increasing investments for mutual benefits and supporting South Africa’s economic growth. Our current investments contribute to South Africa’s Gross Domestic Product,” stated Al Amoudi.
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The Saudi business delegation’s visit aims to fortify existing trade relations and explore opportunities for South African companies to expand market access with products with high export potential to Saudi Arabia.
These products include motor vehicles, fruits, mineral resources, chemicals, machinery, and electrical equipment.
The Business Council focuses on key workstreams, including Energy and Renewable Energy, Tourism, Hospitality, and Entertainment, Healthcare and Pharmaceuticals, Mining and Commodities, and Food and Agro-processing.
These areas aim to leverage investment capital from Saudi Arabia while capitalising on South Africa’s opportunities in these sectors.
With Saudi Arabia currently being the largest investor in South Africa’s local renewable energy sector, the visit underscores the commitment to deepen economic collaboration between the two nations, with an estimated Saudi investment in South Africa amounting to $1.62 billion.
