Saudi Arabia and Singapore yesterday agreed to establish a joint company with a capital of SR 100 million for investment in real estate, health, energy, water and IT projects.
The agreement came during a meeting of the Saudi-Singaporean Business Council. Abdullah bin Zaid Melaihi chaired the Saudi side during the meeting.
Speaking to the Saudi Press Agency after the meeting, Melaihi said the new company would approach banks in both countries to obtain funds for setting up companies to carry out specific projects.
He said an agreement for setting up the Riyadh-based company would be signed today. “The new firm will boost activities of Singaporean companies in the Kingdom,” he added.
Melaihi said the new company would also help attract more Singaporean investment to the Kingdom in various fields required by the country.
Speaking about the council’s objectives, the chairman said it works to promote partnership between the two countries and helps the private sector to make use of trade and investment opportunities in both countries.
Speaking about the new company, he said its capital would be equally divided between the two sides, adding that it would serve as a nucleus for establishing many companies in the coming period.
“We’ll discuss arrangement for the visit of a Singaporean business delegation to the Kingdom early next year when a final agreement for setting up the new company would be signed,” Melaihi said.
He said other businessmen and women could also join the new company being an investment firm. “It will not be limited to members of the business council,” he added.
He emphasized the council’s desire to improve trade and investment exchange between the two countries and called upon Singaporeans to make use of the growing investment opportunities in the Kingdom, especially in energy, water, electricity, education and health sectors.
Melaihi highlighted the council’s achievements within a short period of six years, including opening of direct flights between the two countries, issuance of five-year entry visas for Saudi businessmen and women, and marketing of Saudi projects in Singapore.
“We are looking for greater trade and investment cooperation between Saudi Arabia and Singapore and we want to see more Singaporean companies operating in the Kingdom,” he added.