Pak-Saudi trade ties: Potential and prospects

A photo taken on August 13, 2017 in Lahore shows decoration lights to mark Pakistan's Independence day. (AFP)
Updated 13 August 2017
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Pak-Saudi trade ties: Potential and prospects

Ever since its establishment in 1947, Pakistan has enjoyed close relations with Saudi Arabia. The two sides have established time-tested strategic ties.
Saudi Arabia has always extended economic cooperation to Pakistan in the hour of need. Workers remittances from this brotherly Islamic country play a substantial role in strengthening the balance of payment of Pakistan. When seen in the backdrop of this overall picture, one aspect of the ties i.e. bilateral trade seems relatively less pronounced and depicts a story of unrealized potential.
Pakistan mainly imports oil and oil products from Saudi Arabia, which accounts for 90 percent of our total import bill for the Kingdom. In turn, Pakistan supplies rice, meat, meat products, spices and fruit, home textile products, chemicals, footwear and leather goods. The total value of the merchandise being traded between the two countries is around $2.5 billion. Pakistan’s exports to Saudi Arabia are worth about $0.5 billion whereas the rest comprises the value of items imported by Pakistan.
Pakistan’s exports to Saudi Arabia have seen consistent growth and have tripled in value during 2001 and 2014. There has been a slight downward trend since 2014, which may be partly attributed to somewhat slowing down of economic activities in Saudi Arabia due to falling oil prices.
However, even if one disregards the phenomenon of temporary slow growth in Saudi Arabia, it is still palpable that the magnitude of trade relations between the two countries is not in sync with their long-established close-knit ties.

The fact of the matter is that Pakistan caters to a merely 0.3 percent of the import market of Saudi Arabia. Considering the manufacturing base of Pakistan and our thriving services sector, Pakistan has much more to offer to Saudi Arabia and actually, there is a huge potential of bilateral trade lying unrealized between the two countries.
Due to Pakistan’s geographical location, bilateral trade is comparatively feasible both through air and sea routes. Moreover, Saudi Arabia hosts the largest expatriate community of Pakistan in the world. Pakistani citizens are employed in almost all the large business groups and companies where they are offering valuable services and are ultimately contributing to the strengthening of the local economy. The presence of this large expatriate community can play a significant role in furthering the bilateral trade relations.
There are a number of areas in which the trade volume can be possibly enhanced. Pakistan specializes in textiles products, which account for more than half of our total global exports. But in the case of Saudi Arabia, textiles comprise merely 20 percent of our export mix. The share of textiles especially value-added garments can see a big jump if circumstances are aligned. Similarly, Pakistan manufactures state-of-the-art surgical instruments and world-class sports goods, which can easily find their place in the Saudi market. There is also a great scope for food products. Pakistan can easily cater to the rapidly growing sector of organic foods in Saudi Arabia. Similar potentials exist in the services sector be it financial services, insurance sector, facilities management, IT services, entertainment industry etc.
A free-trade agreement between Pakistan and the Gulf Cooperation Council (GCC) is already on the cards. The agreement will help boost trade between Pakistan and the entire Gulf region. The signing of a bilateral investment treaty between Pakistan and Saudi Arabia is also a possibility in near future. This agreement will liberalize, promote and reciprocally protect investments made by companies of the two countries and will help them capitalize on the opportunities arising on both sides i.e. the Vision 2030-related investments opportunities in Saudi Arabia and projects related to China-Pakistan Economic Corridor (CPEC) in Pakistan.
Apart from this, bilateral business bodies are warranted to play an active role. Frequent exchange of business delegations and enhanced business-to-business interactions are guaranteed to accelerate the commercial relations. Liberalized business visa regimes on both sides will greatly facilitate such interactions.
Pakistan and Saudi Arabia both understand the significance of enhanced economic and trade relations and the two sides are already making progress in various areas. Pak-Saudi Joint Ministerial Commission exists since 1970, which serves as the apex body to discuss all bilateral matters relating to trade and commerce. The commission is slated to meet this year.
It is sincerely hoped that coming days shall see Pakistan emerging as a major trading partner of Saudi Arabia.
• The writer is Commercial Secretary at the Pakistan Consulate in Jeddah.


34th Saudi Build Exhibition opens in Riyadh

Updated 04 November 2024
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34th Saudi Build Exhibition opens in Riyadh

  • Event features more than 600 exhibitors from 31 countries
  • Show provides ‘insights into the future of the industry,’ exhibitor says

RIYADH: More than 600 companies from 31 countries are taking part in this year’s Saudi Build Exhibition, which opened on Monday in the Saudi capital.

The largest platform for the construction industry in the region, the event runs until Thursday at the Riyadh International Convention and Exhibition Center. It was officially opened by Deputy Minister of Municipalities and Housing Ehab Ghazi Al-Hashani, who visited several of exhibitors to see for himself some of the latest innovations in the sector.

Prince Saud bin Turki Al-Faisal, chairman of Riyadh Exhibitions Co. which organized the exhibition, thanked Al-Hashani for his support and said that this year’s show — its 34th edition — would contribute to the Kingdom’s ambitions to build a diverse and sustainable economy.

He also highlighted the latest techniques being used in the industry that align with the ministry’s strategy and wider objectives of Vision 2030.

The Saudi Build Exhibition was first held in 1981 and is now an annual event. It is the longest-running building and construction exhibition and summit in the region. This year’s show coincides with a high point in the Kingdom’s construction industry, including the development of major projects for Expo 2030.

Among the products and technologies on show are sustainable building materials, smart city solutions, energy-efficient building systems, the latest equipment and machinery, and water and waste management solutions.

Mohamed El-Toukhy of Al-Zamil Group, which is one of the exhibitors, told Arab News: “It is a big platform for us working in this sector and a good opportunity for networking as it provides a valuable platform for local and international companies to showcase their products and services, network with industry professionals and explore new business opportunities.

“It also offers a unique opportunity for visitors to learn about the latest trends and innovations in the construction sector and gain insights into the future of the industry.”


Saudi interior minister launches digital transformation project to boost Kingdom’s security capabilities

Updated 04 November 2024
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Saudi interior minister launches digital transformation project to boost Kingdom’s security capabilities

  • Prince Abdulaziz visited the Special Forces Command for Security and Protection in Riyadh to oversee the progress of operations

RIYADH: A new digital transformation project aimed at advancing the Kingdom’s security capabilities was inaugurated on Monday by Saudi Minister of Interior Prince Abdulaziz bin Saud bin Nayef bin Abdulaziz.

Prince Abdulaziz visited the Special Forces Command for Security and Protection in Riyadh to oversee the progress of operations and launch the new initiative.

Commander of the Special Forces for Security and Protection Marine Maj. Gen. Mansour bin Nasser Al-Fayez presented an overview of the project, which involves the development of 12 administrative systems designed to streamline processes and improve operational efficiency, the Saudi Press Agency reported.

Command and control centers will be enhanced with artificial intelligence technologies to support strategic operations, SPA added.

Prince Abdulaziz was also briefed on the deployment of “smart patrols,” which are outfitted with the latest tracking and monitoring equipment, security documentation tools, and drones to enhance field operations.

These high-tech patrols aim to bolster the forces’ ability to respond rapidly and efficiently to various security needs.

Prince Abdulaziz was joined on the visit by several officials including his deputy Nasser bin Abdulaziz Al-Daoud and Maj. Gen. Shaya bin Salem Al-Wadani, director-general of the Saudi Border Guards.


Saudi Crown Prince congratulates Tunisian president on re-election, discusses relations

Updated 04 November 2024
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Saudi Crown Prince congratulates Tunisian president on re-election, discusses relations

RIYADH: Saudi Crown Prince Mohammed bin Salman held a phone call with Tunisian President Kais Saied on Monday to discuss relations between the Kingdom of Saudi Arabia and the Tunisian Republic, focusing on enhancing cooperation across multiple sectors.

During the conversation, Prince Mohammed extended his congratulations to Saied on his recent re-election for a second term, reaffirming the Kingdom’s support and well-wishes for continued success.

President Saied won a resounding 90 percent of the vote in last month’s election, according to Tunisia’s electoral commission.

The two leaders reviewed opportunities to expand collaboration in areas that benefit both nations, underscoring the “strong and brotherly relationship between Saudi Arabia and Tunisia,” Saudi Press Agency reported.


Alliance Francaise opens new center at Jeddah’s Hayy Jameel

Updated 04 November 2024
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Alliance Francaise opens new center at Jeddah’s Hayy Jameel

  • Learning language ‘builds understanding,’ French ambassador to Kingdom says
  • New facility joins others in Riyadh and Alkhobar

JEDDAH: Alliance Francaise, the international institute and cultural center for the French language, on Sunday celebrated the grand opening of its new branch in Hayy Jameel, Jeddah.

The event was attended by various personalities and diplomats and included speeches from French Ambassador to Saudi Arabia Patrick Maisonnave, French Consul General Mohammed Nehad, Art Jameel founder Fady Jameel and Alliance Francaise President Zahir Al-Monajed.

“Learning a language, especially in today’s world, demonstrates a genuine curiosity and openness to other cultures. It fosters dialogue, builds understanding and ultimately contributes to a more peaceful global dynamic,” Maisonnave told Arab News.

“Through centers like Alliance Francaise, we can create partnerships beyond language such as in business, art and beyond to show the world that the French language is both accessible and enriching.”

Maisonnave said Alliance Francaise now operated in more than 150 countries and that its goal was to foster interest in the French language as a cultural bridge to connect societies.

Jameel said: “We are delighted that Alliance Francaise is joining Hayy Jameel to make a significant contribution to the cultural community here. In recent years, we have witnessed and proudly supported the growth of Saudi-French cultural ties.

“Our French partners have been instrumental in enhancing the Saudi art scene in the Kingdom and we look forward to further developing this relationship.”

Nehad said: “We chose Hayy Jameel as our new home because it’s a vibrant and cultural hub, which makes it an ideal place to reach more Saudi students and expand our activities.

“Our mission here in Jeddah is, first and foremost, to teach French to both Saudi and international students and to foster a creative atmosphere with activities in art, cinema and drawing.”

He described Alliance Francaise as “our cultural partner” and said several new initiatives were being considered, including a 48-hour film challenge and collaborative digital art projects.

“As the cooler season approaches, we view this as an ideal opportunity to roll out a variety of creative activities, from cinema and music to collaborations with French artists in Saudi Arabia,” he said.

Larry Lamartiniere, managing director of the Jeddah branch of Alliance Francaise said: “This is not just a language center, we aim to ensure that culture plays a significant role in our promotion of the French language. Relocating to Hayy Jameel was an ideal decision.”

The new location would allow the organization to screen French films at the independent Hayy Cinema and engage in art and culinary collaborations, he said.

Lamartiniere also noted the center’s close ties with the French Embassy and Consulate.

“Every cultural initiative organized by the officials includes Alliance Francaise as a partner,” he said.

The center currently has about 80 students per session and offers classes for various ages and proficiency levels, as well as weekly cultural workshops, storytelling and craft projects for children.

Lamartiniere said that a new session of classes would start later this month covering language, digital art, music and painting.

“Now that many people are fluent in English, they’re turning their curiosity to other languages. French remains one of the top languages globally and many Saudis want to learn it before traveling to France,” he said.


Treasure trove unveiled at Jewels of the World in Riyadh

Top local and international jewelry designers are displaying their latest pieces at the Jewels of the World exhibition in Riyadh
Updated 04 November 2024
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Treasure trove unveiled at Jewels of the World in Riyadh

  • The event will run until Nov. 6, and features brands showing watches, necklaces, rings, earrings, as well as a range of pieces incorporating diamond, gold, and silver

RIYADH: Everything that glitters could be gold at the Jewels of the World exhibition in Riyadh, where top local and international jewelry designers are displaying their latest pieces to entice the region’s clientele.

The event, inaugurated by Karim Al-Anzi, president of the National Committee for Precious Metals and Gemstones, will run until Nov. 6, and features brands showing watches, necklaces, rings, earrings, as well as a range of pieces incorporating diamond, gold, and silver.

The opening night drew crowds of jewelry enthusiasts eager to meet top designers and trendsetters in the industry.

The Jewels of the World is an exclusive boutique event “celebrating the elegant craftmanship of these distinctive pieces,” according to Nader Freiha, the organizer of the exhibition.

The event, inaugurated by Karim Al-Anzi, president of the National Committee for Precious Metals and Gemstones, is organized by Nader Freiha (R). (Supplied)

Saudi Arabia is making major strides toward solidifying its status as a global hub for many industries by hosting various events, he told Arab News.

The exhibition “gathers prominent talent from around the world to showcase their creativity and amazing designs,” he added.

“We are excited to celebrate our 10th jewelry and watches exhibition in the Kingdom, having started this journey in 2016,” Freiha said. “To mark this special occasion, we’ve created 10 unique AI-generated paintings, each reflecting one of the past editions we’ve held. You can view all 10 paintings on display as we commemorate this milestone.”

One of the exhibition highlights is designer Karen Suen’s display featuring a necklace crafted with about 80 carats of emeralds and diamonds.

Designer Karen Suen poses with her display. (Supplied)

The Jewels of the World exhibition features more than 60 jewelry brands from around the world whose collections reflect various styles, from contemporary to one-of-a-kind designs. With their diamond, gold and other precious gemstones, the intricate and innovative craftmanship on display is captivating guests.

Atef Nsouli, chairman of Nsouli Jewelry, noted a significant upward trend in jewelry design, with both local and regional markets showing great promise. He said that the Saudi community has a sophisticated taste for jewelry and diamonds, actively seeking the best pieces while keenly following the latest fashion trends and high-quality craftsmanship.

Nsouli expressed optimism about the sector’s future, emphasizing that quality lies at the forefront of competitiveness among manufacturers and retailers.

Rashid Al-Emadi, executive director of Qatar’s Blue Diamond Group, commented on the continuous evolution of the jewelry sector within the Qatari group to meet the needs of connoisseurs in the Gulf country and the region.

He said people in GCC countries have developed a deep understanding of jewelry, including its types and the precision involved in its production, adding that the regional audience has a refined sense of style and knows exactly what to wear for any occasion.

Al-Emadi also noted that the Saudi market is experiencing intense competition, particularly when it comes to innovative design.