Following the successful telecom privatization, new investment horizons are being opened up in other sectors.

With GDP for 2005 amounting to around $250 billion, Saudi Arabia has the largest economy in the Middle East and one of the best-performing. In addition, it is extremely open to both trade and investment, and is continuously looking to improve its integration into the world market. The most awaited step onto the global stage is the country’s accession to the WTO, which, after favorable talks between recently crowned King Abdallah and President Bush in April, should happen by the end of the year.

“It is in the country’s best interest to join the WTO. It means better access to industrialized markets for our petrochemicals, which will help to stimulate our economy, leading to higher per-capita income and more jobs,” says Amr A. Dabbagh, Governor of the Saudi Arabia General Investment Authority (SAGIA).

SAGIA is promoting three areas for investment: energy and its sub-sectors (petrochemicals, plastics, water and feedstock), transportation, and information and communication technologies (ICT). “We are not short of capital. What we are short of are ideas, know-how, and knowledge, and that’s where we want our American friends to join us,” says the governor.

ABDULRAHMAN AL-TUWAIJRI Secretary General of the SEC	AMR A. DABBAGH Governor of SAGIA

Government economic reforms over the past few years have been aimed at making the investment climate more attractive and business friendly. In 1999, the Supreme Economic Council (SEC) was established to streamline economic policy; the organization has backed new investment laws and started the privatization process.

“By creating a new legal framework for investors that applies to Saudi and non-Saudi alike, we have ensured that all investors are treated equally and can reap the same benefits. This makes us an ideal investment environment,” says Abdulrahman Al-Tuwaijri, Secretary General of the SEC.