US chamber inks major deal to spur KSA trade

The Council of Saudi Chambers (CSC) signed a memorandum of understanding (MoU) with the US Chamber of Commerce on Thursday to enhance trade cooperation between the two sides and promote investment in both countries for mutual benefits.
The MoU was signed by CSC Vice Chairman Fahad Al-Rabiah and Executive Vice Chairman of the US Chamber of Commerce David Chavern in the presence of Saudi trade attaché in Boston Abdel Al- Mubarak and a group of businessmen from both sides.
The agreement was signed by the CSC on behalf of the Saudi business sector representing the various chambers of commerce and industry of the Kingdom. The US chamber represents the largest organization which represents over 3 million American companies.
Stressing the importance of this agreement in strengthening relations between Saudi Arabia and the United Sates, Al-Rabiah noted that the deal reflects mutual trust in both countries' economies.
He added that Saudi-American relations have witnessed a big leap over the past decades, growing from $160 million in 1970 to more than $76.5 billion in 2012, with the investment credit of American countries in the Kingdom increasing to more than $23 billion.
Chavern described the CSC as a vital partner to enhance cooperation between both countries' business sectors, noting the US chamber's role in encouraging the companies to invest abroad as well as inviting foreign investments into the country.
He revealed that the chamber's current membership exceeds 300,000, allowing access to over 3 million American companies.
The MoU included several key issues of concern to the trade sector, such as exchanging information, exploring opportunities, transferring technology and facilitating business deals and arbitration matters between the two countries.
During the past 10 years, the bilateral trade between the two countries have increased from $26 billion to $74 billion. Some 120 US companies entered the Saudi market in 2013.
Last year, the two-way trade reached $71 billion. And for the first time monthly exports from the United States to the Kingdom topped $2 billion in December. There is a growing demand for American cars, aircraft, machines, renewable energy technologies and large-scale infrastructure in the Kingdom .
Saudi Arabia is the ninth largest trading partner to the United States with $74 billion trade in 2012 and has exhibited a 31 percent increase in the number of exports from the United States to the Kingdom in the period from 2011 to 2012.
The FY-2013 budget projected a spending level of $221 billion, the largest in the Kingdom's history and the financial liquidity generated from oil and gas reserves have resulted in $960 billion worth of projects either planned or under way in the Kingdom.
A significant $700 billion worth of these projects are reserved for mega-projects, making construction, project management, architectural engineering and design, and renewable energy sectors prime opportunities for US companies to consider increasing their investment.