South African Trade and Industry Minister Dr Rob Davies and his Saudi counterpart, Dr Tawfiq Al-Rabiah, revealed at the fifth session of the South Africa-Saudi Arabia Joint Economic Commission (JEC) earlier this month that total trade between the two States nearly trebled over a four-year period, increasing from R29.7-billion in 2009 to R80.1-billion in 2013.

Davies further noted that South Africa’s trade deficit with the Arab State grew to R74.8-billion in 2013 from R 62.2-billion in 2012, adding that South Africa was “keen” to strike a more equitable trade balance between the two countries.

In January this year, Saudi Arabia overtook Germany to become South Africa’s second-largest source of imports, with China being the biggest.

“We have expressed our desire to collaborate with the Saudis in the promotion of investments between [our] two countries, which can be achieved through [trade missions].

“To this end, South Africa will make available its top ten investment projects to its Saudi counterparts. We also invited the Saudis to arrange a technical visit for possible Saudi investors to South Africa,” Davies commented.

The JEC was an initiative agreed upon between the two countries to strengthen economic ties, attract foreign direct investment from Saudi Arabia into South Africa in targeted sectors and promote sound business-to-business cooperation.

Among the key outcomes of the JEC, which was held in Pretoria from March 18 to March 20, was a commitment by the countries to “use all means” to enhance further trade growth.

This followed a resolution made by the two States at the fourth session of the JEC, held in Riyadh, Saudi Arabia, in 2012, to increase total trade between the two countries to a targeted R60-billion within five years. 

Davies added that the two countries had agreed to finalise negotiations of a proposed agreement on cooperation in the fields of agriculture, livestock and fisheries. 

“In this regard, we have proposed to have one umbrella agreement, which will be submitted through diplomatic channels,” he noted.

Davies further highlighted that the JEC had also resolved to promote and develop aspects of cooperation in the fields of oil, gas and minerals through participation in conferences and specialised seminars in both countries.

“This will be achieved through the exchange of meetings between oil and mining companies in both countries and the establishment of bilateral meetings to discuss joint investment opportunities and possible areas of cooperation,” he said.

The parties agreed to increase aspects of cooperation in the field of mineral resources, mineral beneficiation and exchange of expertise for professionals in the field of mining in both countries. 

“Such exchanges would involve learning about mining investment systems, the training of professionals, capacity building in the field of information technology-related data bases, exchange of information and research and development cooperation in the mining sector,” Davies indicated.