The billlions of dollars worth of agreements Saudi Arabia plans to sign with US companies on Saturday will be primarily focused within the kingdom, the Saudi oil minister said.
“The agreements that have been prepared to be signed and be announced today exceed $200 billion,” Khalid Al Falih said in Riyadh at the first Saudi-US CEO Forum that coincides with the US president Donald Trump’s visit to the kingdom.
“A big percentage of these is in the kingdom [and] include the localisation of strategic industries that have a high value added, and technologies, and job opportunities,” said Mr Al Falih.
The planned agreements come as part of the kingdom’s 2030 Vision to diversify the economy away from oil by attracting investments and creating local jobs and industries.
The agreements cover various areas including defence, Information Technology and energy, such as power generation, renewables, refining, petrochemicals and new mining industries such as silicons, he added.
“Vision 2030 is the umbrella for all initiatives in the Saudi kingdom,” he said.
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Saudi launched its Vision 2030 last year to wean itself off oil by increasing the contribution of the private sector to GDP to 65 per cent from 40 per cent.
The plans also include increasing localisation of oil and gas sectors from 40 per cent to 75 per cent. More than 50 per cent of military spending is also envisaged to be sourced locally by 2030.
The national energy company Saudi Aramco plans to sign today contracts with US companies worth approximately $50bn, its chief executive said earlier.
Aramco, the world’s biggest oil producing company, will sign agreements with 13 US chief executives of firms that include the oil services company Schlumberger and Jacobs Engineering Group.
“The memorandums of understanding with these CEOs are for projects that will be done in the kingdom,” said Mr Nasser.
“Definitely, a lot of them will include trade on both sides.”
Saudi-US trade topped $35bn last year, but the two countries want to bolster their economic ties as part of creating new jobs for their citizens.
Mr Trump’s visit to the kingdom is the first international trip since he because president and is part of an eight-day world tour.
dalsaadi@thenational.ae
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