Saudi Ambassador Speech: ALCC Awards Night

Ambassador Nabil M. Al Saleh – Remarks at The  Australian Lebanese Chamber of Commerce,  Diamond Anniversary

Saturday 28 NOVEMBER 2015 – Doltone House, Darling Island Wharf  , Sydney

I’ll begin by thanking The  Charmain of the Australian Lebanese Chamber of Commerce Joe Khattar, for inviting me here today.  And congratulate him and his Chamber for the significant contributions they have made over the past 30 years.

Can I also acknowledge the Honourable Minister of Agriculture, Barnaby Joyce, the Honourable Minister John Ajaka, all parliamentarians and government officials. And of course my diplomatic colleagues.

Ladies and gentlemen,

It is a privilege to speak to such a distinguished audience.

Keeping my talk brief, I want to focus here tonight on the economic opportunities the MENA region has to offer, a matter which is often overlooked.

Because when looking at the MENA region, it is often the case that our region is viewed by Australian businesses as distant and too complex to conduct business in.

As a result, businesses focus overwhelmingly on the familiar.

It is indeed true that this is the “Asian Century”, but this century shouldn’t come at the expense of the opportunities available to Australian businesses in the MENA region.

Opportunities that are being seized by other countries.

Overall trade and investment between the Arab world and Australia pales in comparison with other countries.

For a country like Saudi Arabia for instance, the bilateral trade with Australia is quite minimal;  reaching last year around the 2.7 billion dollar mark.

And that figure has remained constant over the past decade.   The same applies to investments.

12 or so years ago, our trade with Australia was relatively equal to that with China.  In the range of 2 billion dollars.

At present, although Saudi-Australia trade remains within that range, our trade with China has exceeded 69 billion dollars.

For a country that is almost the size of New South Wales and Queensland combined:

•             We have a young population, 35% under the age of 15, and 61% within the working age.

•             Our population is set to double by 2050.

•             We are the sole Arab country in the G20.

•             The Kingdom is the 7th largest economy within the G20 states.

•             It is the 19th largest economy in the world.

•             It is also the largest economy in the MENA region, representing about 25 % of its economic output.

•             And it is also recognised as the third fastest growing economy in the world with an annual average growth of 5 % over the past decade.

•             The World Bank has recently ranked the Kingdom as having the third most rewarding tax system in the world.

•             As well as 49th in the world for ease of doing business.

•             Last but not least, foreign investors can have 100 % ownership of their companies.

Having said this, it is essential to note that we have opportunities across various sectors.

From mining, to education, construction, health, defence, agriculture and services sector just to name a few…

And as an example, in the agricultural sector, our domestic agricultural production has gradually been phased out since 2008 and this process will be completed by next year.

Australia can be an important partner for Saudi Arabia in the area of food security.

But to get first-hand knowledge of the ways to grasp these opportunities, and to ensure success in your investment;

It would be imperative to participate in exhibitions held every year in the Kingdom on each sector.

I am aware that a few companies from within this Chamber have participated in some of these exhibitions.

In this context, I would like to bring to your attention that we are in the process of signing a Civil Aviation Agreement with Australia which will provide direct passenger and cargo flights to the Kingdom.

After all, having a presence in Saudi Arabia ensures access to more than 300 million consumers within three hours flying.

And to facilitate this movement of people and goods, the Kingdom is also in the process of opening a Consulate General in Sydney.

Ladies and gentlemen,

These opportunities need to be complemented by the signing of a double taxation and investment protection agreement.

Because it is through such agreements that we can ensure a level of investment between Saudi Arabia and Australia,

And between our region and Australia, that reflects the true nature of the economic opportunities that are available to all.

I’ll leave it at that.  I look forward to hearing your views and hope to see all of you having a presence in Saudi Arabia and the MENA region as a whole.

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