Arabia
11 March 2007
Pretoria: South African President Thabo Mbeki, supported by Minister of
Foreign Affairs Dr Nkosazana Dlamini Zuma, will lead a high powered government
and business delegation on a two day working visit to Saudi Arabia on Tuesday,
13 and Wednesday, 14 March 2007.
President Mbeki will visit Saudi Arabia within the context of South Africa's
commitment to strengthening and consolidating relations with countries of the
Gulf with a view to increasing the flow of investment from and economic
interaction with the region to ensure a shared and faster economic growth in
South Africa.
In this regard, a high level business delegation representing 34 companies
in the mining, construction and property development, telecommunications and
Information Technology (IT), financial services and medical equipment and
hospital services sectors including representatives of Coega and Trade and
Investment KwaZulu-Natal form part of the delegation. The government delegation
on the other hand includes Ministers Mosia Lekota, Mandisi Mpahlwa, Buyelwa
Sonjica and senior government officials.
During this visit, President Mbeki will hold high level political and
economic discussions with His Royal Highness King Abdullah bin Abdul Aziz
Al-Saud which will focus among others on:
* the status of bilateral political and economic relations between both
countries including the support of the government of Saudi Arabia for the
promotion of the Accelerated and Shared Growth Initiative for South Africa
(AsgiSA), New Partnership for Africa's Development (NEPAD) and the African
Agenda, including peace-keeping Missions
* co-operation between South Africa and Saudi Arabia and the exchange of views
on the Middle East, given King Abdullah's mediation initiative between Hamas
and Fatah, as well as the situations in Iraq and Iran.
While in Saudi Arabia, President Mbeki and his delegation are expected to
hold discussions with:
* Prince Salman bin Abdulaziz Al-Saud, Governor of Riyadh
* Mr Abdulrahman bin Hamad Al-Attiyeh, Secretary-General of the Gulf
Co-operation Council
* Dr Saleh bin Humaid, Chairman of the Consultative Council
* Prince Waleed bin Talal bin Abdul Aziz Al-Saud, Chairman of Kingdom
Holdings
* businessmen to be hosted by Council of Saudi Chambers of Commerce and
Industry and the Saudi Arabian General Investment Authority (SAGIA).
Economic Bilateral Relations
Saudi Arabia is the major supplier of crude oil to South Africa. Over the
first 11 months of 2006, 34,2% of South Africa's crude oil was imported from
the Kingdom. It is also a major investor in South Africa, the biggest recent
investment being that of Oger Telecoms (a subsidiary of Saudi Oger), which now
owns 60% of shares in 3CTelecommunications, the holding company of Cell C.
Several South African companies are involved in major projects in Saudi Arabia
(particularly in the mining sector), while the Kingdom is the third largest
market (after Israel and the United Arab Emirates [UAE]) for South Africa's
products in the Middle East.
South Africa's main exports to Saudi Arabia over the first 11 months of 2006
were citrus fruit and iron and steel products, while imports consisted mostly
of crude oil, petrochemical products and chemicals. According to figures
published by the Department of Trade and Industry, the details are the
following:
Year: 2001
SA Exports: R1 040 billion
SA Imports: R14 977 billion
Total Trade: R16 017 billion
Trade Balance: -R13 398 billion
Year: 2002
SA Exports: R1 369 billion
SA Imports: R12 497 billion
Total Trade: R13 866 billion
Trade Balance: -R11 129 billion
Year: 2003
SA Exports: R1 256 billion
SA Imports: R15 050 billion
Total Trade: R16 306 billion
Trade Balance: -R13 794 billion
Year: 2004
SA Exports: R1.523 billion
SA Imports: R17.085 billion
Total Trade: -R15.563 billion
Year: 2005
SA Exports: R1 934 billion
SA Imports: R19 407 billion
Total Trade: R21 342 billion
Trade Balance: -R17 913 billion
Year: Jan-Nov 2006
SA Exports: R1 962 billion
SA Imports: R21 408 billion
Total Trade: R23 837 billion
Trade Balance: -R19 913 billion
South African companies such as Group 5, Bateman, Foschini, Nando's, Mugg
& Bean, Galito and Old Mutual have invested in Saudi Arabia, whereas Saudi
businesses such as Saudi Ogre (which has invested in Cell C), Amintit,
Flowtide, Bin Ladin, Sheikh Zahid, Shabatl, Dallah, Albaraka Bank and Al-Yateen
Trading have invested in South Africa.
South African Expatriate Community
It is estimated that there are between 5 000 and 10 000 South African
expatriates in the Kingdom, most of whom are employed in the health sector,
along with business people and other professionals. Some 20 00 South Africans
visit Saudi Arabia every year for hajj or umrah. While South Africa's quota for
the hajj is only 2 000, the Government of Saudi Arabia allowed this figure to
be increased to 7 500 for the 2005 and 2006 hajj periods.
Tourism
As a result of the increase in flights from the Gulf region to South Africa,
as well as enhanced marketing efforts, there has been a steady increase in the
number of Saudi visitors to South Africa. While South African carriers do not
fly to the Kingdom, Saudi operates two flights a week between Jeddah and
Johannesburg. These are augmented during the hajj season. South African Airways
(SAA) has a code-share agreement with Saudi Arabian Airlines.
Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
11 March 2007
