Revitalized Saudi foreign business councils have key role to play
Despite the pandemic and a slowdown in global economic activities, Saudi Arabia has continued to attract foreign capital. The authorities in the Kingdom are leaving no stone unturned to establish and strengthen business partnerships with foreign investors to diversify the sources of income in line with the Vision 2030 reform plan. Moreover, the authorities are making good use of digital tools to ensure continuity of training programs for youth to help them acquire the skills required to allow them to be absorbed in the local labor market without compromising on the best global practices.
The revitalization of Saudi foreign business councils would be a useful means of further attracting foreign investment.
As the name suggests, the councils have been established mainly to strengthen Saudi Arabia’s economic ties with other countries and to organize meetings with local and global business leaders. They come under the purview of the Council of Saudi Chambers with the support of the General Authority for Foreign Trade.
It has been noted that members of the business fraternity seek to join these bodies without realizing the key role they could play in the development of the national economy.
Through the councils, members can familiarize representatives of other countries with direct and indirect investment opportunities available in the Kingdom, communicate with relevant authorities in other countries, discuss obstacles encountered in any joint cooperation, and propose appropriate and logical solutions to fix those obstacles.
The councils regularly issue reports about existing investment between the Kingdom and partner countries. These reports also highlight the economic needs of the Kingdom and other countries. Based on these statistics, members of the business councils can make suggestions to explore different sectors for investments abroad and existing opportunities for foreign investors in the Kingdom.
The role of the councils is not limited to commerce. They also play a key role in organizing joint training programs that can be used to support national cadres.
Increasing the effectiveness of the councils and broadening their outreach will help Saudi Arabia to emerge as a global trade hub and an ideal destination for foreign investments.
In order to benefit from the councils, it is necessary to understand the regulations that govern them. The Ministry of Commerce recently amended several rules to improve the overall performance of the councils.
The ministry has set a performance measurement standard for them that includes establishing an executive plan and the submission and online publication of an annual report.
Under the new rules, the councils are required to activate their respective websites and update them regularly with reports on meetings with their foreign counterparts.
With the General Authority for Foreign Trade in the picture, the game has changed and expectations have been raised in terms of developing international cooperation efforts and promoting foreign investment.