From energy and innovation to culture and tourism, Saudi-Italy bonds are stronger than ever

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Updated 17 December 2022
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From energy and innovation to culture and tourism, Saudi-Italy bonds are stronger than ever

  • Growing trade exchange between Saudi Arabia and Italy exceeded $8 billion in 2021
  • Saudi logistics, petrochemical and telecom companies have gained a foothold in Italy

RIYADH: It was in February 1932 that Saudi Arabia and Italy signed a Treaty of Friendship that marked the origin of the bilateral relationship between the two countries — and 90 years on the partnership is more fruitful than ever.

In 2021, the trade exchange between Saudi Arabia and Italy exceeded $8 billion, higher than the pre-pandemic period, showing an accelerating economic relationship between the two countries. 

Italy is currently the seventh biggest exporter to Saudi Arabia and the second within the EU, while the Kingdom is Italy’s 21st highest exporter, supplying about 9 percent of Saudi Arabia’s oil imports.

As Saudi Arabia leapfrogs in the business sector through economic diversification, a strong strategic partner like Italy could also reap benefits. 




The Italian Pavilion at SaudiBuild includes more than 25 companies exposing advanced and sustainable materials and technologies for construction solutions. (Twitter/@ItalyinKSA)

In line with the goals outlined in Vision 2030, Saudi Arabia is now steadily diversifying its economy, which has been dependent on oil for several decades. The Kingdom now eyes becoming one of the world’s top tourist destinations by 2030, along with accelerating the flow of foreign direct investments to the nation.

With several regulatory reforms and by creating a business-friendly environment, Saudi Arabia is attracting foreign companies to the Kingdom.

These firms are now enjoying all the benefits, guarantees, support and incentives offered to Saudi entities, and the government even allows full foreign ownership in most industries.

Until now, Italy’s capital expenditure in Saudi Arabia focused mainly on manufacturing and wholesale and retail trade, but these regulatory reforms could help Italian entrepreneurs to explore more sectors in the Kingdom.

Meanwhile, Saudi Arabian firms are also establishing a foothold in Italy, with SABIC being the most prominent one operating in the European nation.

FASTFACT

About 160 Italian companies operate in Saudi Arabia in management and consulting services, engineering and construction projects, telecommunications, health care, artificial intelligence, new technologies, art and culture, renewable energy and many others.

Other notable firms from the Kingdom operating in Italy include Saudi Arabian Airlines in the logistics and storage sectors and Gulf Infonet in the telecommunications sector.

Earlier in June, in an exclusive interview with Arab News on the sidelines of the Italian-Saudi Joint Commission, Luigi Di Maio, Italy’s then-foreign minister, stressed the importance of consolidating his country’s historic relations with the Kingdom.

Di Maio said: “Italy was one of the first countries to establish diplomatic relations with the Kingdom of Saudi Arabia in the early 1930s and 2022 marks a very important anniversary in our longstanding friendship.”

 

Di Maio further noted that high-tech Italian companies could contribute to Saudi Arabia’s economic diversification journey, especially in the fields of sustainability and energy transition. 

On the sidelines of the event, the Saudi Space Commission signed a memorandum of understanding with the Italian Space Agency (ASI) to collaborate on projects of common interest in Earth observation, technology and communication in deep space, scientific missions and human exploration programs, as well as joint efforts in satellites and training. 

“ASI and SSC agree to cooperate through the exchange of information and scientific data, the joint organization of seminars and workshops and the development of joint projects and research activities,” a spokesman for ASI told Arab News.

Saudi Arabia and Italy already have strong bilateral exchanges on energy, innovation, machinery and space. As the countries celebrate the 90th anniversary of diplomatic relations, these ties could be further extended to other sectors like culture and tourism.

 

Decoder

IN NUMBERS:

* $4.5bn Foreign direct investments from Italy to Saudi Arabia in 2020.


Saudi official elected vice chair of organization that sets standards for global food trade

Updated 28 November 2024
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Saudi official elected vice chair of organization that sets standards for global food trade

  • Saudi Food and Drug Authority says selection of Khalid Al-Zahrani by Codex Alimentarius Commission is a ‘milestone’ and ‘testament to our commitment to global food safety
  • Al-Zahrani has represented the Kingdom on several international committees, including at the World Trade Organization

RIYADH: Saudi official Khalid Al-Zahrani was chosen on Wednesday to be vice chair of the Codex Alimentarius Commission, which sets the standards for the international food trade that are designed to ensure products are safe and protect consumer health.

Representatives of the Saudi Food and Drug Authority who were present for the vote at the commission’s 47th annual session in Geneva, Switzerland, congratulated Al-Zahrani on his election.

“This is a significant milestone for Saudi Arabia and a testament to our commitment to global food safety and standards,” said Hisham Aljadhey, the authority’s CEO.

“By assuming the role of vice chair of Codex, (Saudi Arabia) aims to further strengthen international collaboration, promote sustainable food practices and ensure the well-being of consumers worldwide.”

Al-Zahrani has served as the Codex chairperson for the Near East region since 2020 and was reelected to the position in 2023.

He also represented Saudi Arabia on several international committees, including the World Trade Organization’s Technical Barriers to Trade, the Gulf Cooperation Council Standardization Organization, and the International Organization for Standardization’s Food Products Committee.

He works closely with the Kingdom’s Food and Drug Authority, which aims to prioritize sustainability and enhance efficiency, inclusiveness and transparency within food systems. The authority was recognized in January by the World Health Organization as one of the first five countries in the world to eliminate the use of industrially produced trans fats in food, alongside Denmark, Lithuania, Poland and Thailand.

“Al-Zahrani’s election highlights the exceptional quality of Saudi staff at the SFDA and the authority's efforts in food-safety legislation and oversight,” the authority said.

The Codex Alimentarius (Latin for “Food Code”) is a collection of internationally recognized standards, codes of practice, guidelines and other recommendations related to food production, labeling and safety, published by the UN’s Food and Agriculture Organization and the WHO.


Saudi development fund chief meets Congo’s finance minister

Updated 27 November 2024
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Saudi development fund chief meets Congo’s finance minister

CEO of the Saudi Fund for Development Sultan Al-Marshad met Congo’s Minister of Finance Doudou Fumba Likunde, the Saudi Fund said on X on Wednesday.

During the meeting, they reviewed development cooperation between the two sides that began 40 years ago, as well as discussing ways to enhance economic cooperation to develop vital sectors in Congo.

Ambassador of Saudi Arabia to Congo Abdulaziz Al-Badi was present during the meeting.


Saudi Arabia halves desalination costs, boosts efficiency by 80%, official says

Updated 27 November 2024
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Saudi Arabia halves desalination costs, boosts efficiency by 80%, official says

  • Technological advancements have played a critical role in the Kingdom’s water conservation efforts

RIYADH: Saudi Arabia has improved its desalination efficiency by 80 percent and halved costs by 50 percent in recent years, a top official from the Kingdom has said.

“Our achievements in desalinated water production in the last eight years are equivalent to what was achieved in the previous four decades,” Deputy Minister of Environment, Water and Agriculture Mansour bin Hilal Al-Mushaiti said.

He outlined the accomplishments at the 2025 Budget Forum hosted by the Ministry of Finance in Riyadh, calling the progress a “historic milestone” for the Kingdom, according to the Saudi Press Agency.

Daily desalinated water production has surged to 6 million cubic meters, contributing to a total capacity of 11.3 million cubic meters daily, he added.

The improvement is testament to the Kingdom’s commitment to water security, environmental sustainability and Vision 2030, the deputy minister said.

He highlighted the monumental scale of the Kingdom’s water infrastructure, noting that water production facilities are primarily located along the coasts, requiring water to be transported across thousands of kilometers.

“The water transmission network we have built spans more than 14,000 km — double the length of the Nile River,” he said. “It crosses mountain peaks, valleys and deserts to deliver water to communities across the Kingdom.”

Strategic water storage capacity has also seen a significant boost, rising from 13 million cubic meters in 2016 to more than 25 million cubic meters today.

“This expansion ensures the Kingdom’s resilience in times of crisis, guaranteeing reliable access to water for all regions,” said Al-Mushaiti.

He attributed the achievements to strong government support and private-sector collaboration.

“We have implemented 29 water projects worth SR28 billion ($7.46 billion), of which 30 percent — SR8 billion — is foreign investment,” he said.

Looking forward, Al-Mushaiti announced plans for private sector projects worth SR58 billion.

“We are building a system where public and private sectors work hand-in-hand to achieve national goals,” he said.

Technological advancements have played a critical role in the Kingdom’s water conservation efforts.

Al-Mushaiti said that by using innovation and sustainable practices, the Kingdom is saving more than 9 billion cubic meters of groundwater annually.

“That’s equivalent to the water consumption of the entire Kingdom’s population for three years,” he added.

During the COVID-19 pandemic, the water sector installed 2 million electronic meters, enabling more efficient billing and consumption monitoring.

“These meters send notifications to users when their consumption exceeds normal levels, promoting the principle of ‘responsible consumption’,” Al-Mushaiti said.

Furthermore, water rationalization initiatives in government agencies saved more than 31 million cubic meters of water in 2023 alone.

The ministry’s efforts have also spurred growth in the agricultural sector, which has seen its contribution to gross domestic product rise from SR64 billion in 2016 to SR109 billion in 2023.

“We achieved self-sufficiency rates for many crops that now exceed 100 percent,” Al-Mushaiti said, adding that these gains reflect the success of policies aimed at conserving water resources while boosting productivity.

On the environmental front, Saudi Arabia is making strides with its Saudi Green Initiative.

Al-Mushaiti said that in just three years, the country has planted more than 95 million trees using renewable water and supplementary irrigation.

“This number will surpass 100 million by the end of the year, marking the start of a green era for the Kingdom,” he said.

The deputy minister also highlighted Saudi Arabia’s leadership in addressing global water challenges.

“Water is the backbone of life and development, and achieving sustainability is one of the greatest global challenges,” he said.

In this regard, Crown Prince Mohammed bin Salman in 2023 announced the establishment of the Global Water Organization, headquartered in Riyadh.

The decision underscores Saudi Arabia’s commitment to advancing water sustainability worldwide, Al-Mushaiti said.

He added that the World Bank has recognized Saudi Arabia’s water system as unique and a model that others should study.

As Saudi Arabia pushes forward with its ambitious plans for water security, agriculture and environmental sustainability, Al-Mushaiti concluded with optimism: “The journey so far has been remarkable, but the best is yet to come.”


Saudi Geological Survey celebrates excellence in research, innovation

Updated 27 November 2024
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Saudi Geological Survey celebrates excellence in research, innovation

  • Makkah Deputy Gov. Prince Saud bin Mishaal and Minister of Industry and Mineral Resources Bandar Al-Khorayef attended the event
  • CEO Abdullah Al-Shamrani reviewed 25 years of accomplishments, emphasizing the survey’s role in advancing geological sciences

JEDDAH: The Saudi Geological Survey recently celebrated its 25th anniversary with a special event in Jeddah, marking a quarter-century of excellence in geological research and exploration.
Makkah Deputy Gov. Prince Saud bin Mishaal and Minister of Industry and Mineral Resources Bandar Al-Khorayef attended the event.
The event highlighted the survey’s achievements, future initiatives, and contributions to geological research and innovation. Guests shared insights from their experiences with the organization.
CEO Abdullah Al-Shamrani reviewed 25 years of accomplishments, emphasizing the survey’s role in advancing geological sciences, supporting national development, and managing resources sustainably.
He also outlined plans to raise awareness of geological risks via the “Rawasi” platform, preserve Zamzam water sustainability, and complete digital transformation of technical services.
Al-Shamrani affirmed a commitment to advancing technical achievements, implementing projects, and supporting development for a promising future through skilled Saudi cadres.
Al-Khorayef said that since the start of the millennium, the Kingdom had made intensive efforts in mineral resource research and exploration. Led by SGS employees, this had yielded significant discoveries over the past 25 years, impacting the mining sector by boosting investment and developing mineral wealth.
He added that the aim was to position the Kingdom as a global leader in earth sciences and geology through ambitious plans, aligning with its international standing.
These efforts included fully uncovering its mineral wealth, meeting geological needs, building a global earth sciences database, and creating a platform for stakeholders worldwide, the minister said.


Saudi Ministry of Culture to cooperate with King Charles’ school on craft training

Updated 27 November 2024
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Saudi Ministry of Culture to cooperate with King Charles’ school on craft training

  • Kingdom’s initiative will help Saudi artisans to develop skills in design, craftmanship and traditional arts
  • Ministry of Culture’s goal is to ‘regenerate and renew Saudi craft traditions across different regions of the Kingdom’

RIYADH: Saudi Arabia’s Ministry of Culture has signed an agreement with King Charles’ School of Traditional Arts to cooperate in the programs of the Year of Handicrafts 2025 initiative. 

The signing ceremony on Wednesday was attended by Prince Bader bin Farhan, minister of culture, at the Saudi International Handicrafts Week Exhibition (Benan), currently held at the Roshn Front in Riyadh.  

Khaled Omar Azzam, director of the traditional arts school at The King’s Foundation, and Hamed Fayez, deputy minister of culture, also attended the signing of the agreement, which aims to revive and promote handicrafts in Saudi Arabia throughout 2025. 

A series of sessions and trainings will be launched to revive craft production in several Saudi regions through the “Regeneration of the Crafts of Saudi Arabia” comprehensive program, which will start in January 2025. 

The King's Foundation School of Traditional Arts will curate programs, training and initiatives that focus on design and crafts, the Saudi News Agency reported. 

“The primary goal is to regenerate and renew Saudi craft traditions across different regions of the Kingdom,” a Ministry of Culture statement said. 

The King’s Foundation, a British charity established in 1986 by King Charles III when he was Prince of Wales, has been at the forefront of educating traditional arts alongside urban design and traditional architecture. 

The agreement between the Saudi Ministry of Culture and The King’s Foundation school is part of the national culture strategy under the umbrella of Saudi Vision 2030. 

Saudi Arabia aim to help Saudi artisans, through training, to develop their skills in design, craftmanship and traditional arts.