South Africa’s bilateral trade relations with Saudi Arabia are conducted within the structured framework of the Joint Economic Commission, established in 195. The 7th Joint Economic Commission session took place in Cape Town, from the 14th to 15th March 2016.
Under the umbrella of the Joint Economic Commission is the South Africa Saudi Arabia Joint Business Council launched in 2009 to strengthen commercial and economic linkages between the two countries. They have identified targeted areas of collaboration to enhance economic, trade, and investment cooperation.
Four key areas:
- Petrochemical Gas Exploration
The exploration and production of oil and natural gas, and the distribution of petrochemical products. Saudi Arabia is well known as the world’s leading producer and exporter of crude oil. Saudi Arabia hopes to utilize South Africa’s expertise and technologies to meet the needs and requirements of the Saudi Arabian Petrochemical sector.
Utilising the agricultural advantages of South Africa to meet the food security needs of both countries and enhance the employment opportunity for South Africa.
- Mining Management and Technologies
Make use of South Africa’s mining expertise and technologies to meet the needs and requirements of the Saudi Arabian mining sector.
- Chemicals, Medical and Pharmaceuticals Sector
South Africa has the largest chemical industry of its kind in Africa; spanning fuel, and plastics, to pharmaceuticals. Petroleum, chemical products, rubber and plastic contribute a significant amount to the country’s GDP – averaging 25%. Similarly, it is little known that Saudi Arabia is also one of the world’s largest producers and exporters of chemicals and polymers. Saudi Arabia’s chemical industry relies heavily on the large amounts of hydrocarbons in the region, including gases and liquids associated with crude oil production and methane production. View Original Source: http://www.aiche.org/sites/default/files/cep/20140864_2.pdf
Other target areas include: the automotive industry and manufacturing; clothing and textiles; advanced manufacturing equipment; forestry, pulp and paper furniture; infrastructure development; financial, banking and insurance sectors; tourism and hospitality infrastructure; South African retail and franchising; Operation Phakisa Ocean Economy initiatives, and defence procurement and partnerships.