Business ties between Saudi Arabia and Australia are set to gain momentum following the signing of a significant building and construction deal worth $27 million in Riyadh the other day.
The agreement was signed between the Kingdom-based Abdel Hadi Al-Qahtani and Sons Co. and Australia’s SSS Group to collaborate in the production of scaffolding systems in Saudi Arabia using local resources.
Following the signing of the deal, Australian Ambassador Mark Donovan told Arab News that the cooperation agreement builds on the existing investment ties in various sectors between both countries, including education, healthcare, aviation, and services.
He said the new deal has now opened “the door to” the construction industry as well as “the mining and resources sector.”
“What we are seeing is a very large deal in a new sector that we have not traditionally been involved in, so this is an important message for Australian companies that Saudi Arabia is genuinely open for business and that a new and transformed Saudi Arabia is looking for business relationships around the world, and that’s what we’re very pleased to be a part of,” the envoy said.
Donovan added: “Australia is a lot more like Saudi Arabia than European countries or North American countries. We’re both big countries, we’re both G20 economies, we both have the same challenges with water scarcity and a few other things like that, we also think in a very similar way, so what makes us different is that we intuitively understand what it is that Saudi Arabia needs, and we understand the commonality between our two countries.”
The top diplomat said Australia stands out from other nations due to its predictability and stability.
“We are a very predictable country, we have a regulatory system that does not change, and we don’t introduce protectionist measures because we believe very much in free trade, and we respect that about Saudi Arabia.”
Australian Trade and Investment Commissioner to Saudi Arabia Todd Miller said: “We’ve had between seven and 10 Australian companies coming through every week, coming and exploring the Kingdom in all sectors.”
Sheikh Tariq Al-Qahtani, chairman of Abdel Hadi Al-Qahtani and Sons Co., said the joint venture will not only begin manufacturing operations locally but also seek to export products to Europe, the US, and Australia.
“The raw materials will be 50 to 70 percent from Saudi Arabia,” he added.—AN
