Almost 77% of the Swedish firms which are operational in Saudi Arabia intend to grow their investments in the kingdom in the coming year, an official of high stature from Sweden revealed. This optimistic projection was expressed by Camilla Mellander who is the Director General of Trade Policy of the Swedish Foreign Affairs. These figures are based on a recent study conducted by Business Sweden which shows deep appreciation of the market in Saudi Arabia.
Mellander, who was in the kingdom for the third session of the Saudi-Swedish Joint Committee, also revealed that Saudi Arabia has the greatest trade volume with Sweden compared to any other country in the Middle East and North Africa, a region where trade has increased by 72% since 2018. The director general pointed out that, out of the 60 or so Swedish companies that are currently in operation in the kingdom, 77 percent have plans to develop their investment in the country with all of the small and medium size businesses surveyed claiming they have intentions to increase their investment.
Much of this uplift, she claimed, is due to the reforms taking place under Saudi Arabia’s Vision 2030, which she thinks have huge scope to lure more foreign direct investment. An estimated 66% of total foreign direct investments made to Saudi Arabia in the year 2022 came from the EU of which Sweden is a member and is the largest investor in the country.
Mellander pointed out an increased need for synergies in other important spheres such as transport, health care, technology, and machinery construction. On top of that, a growing number of Swedish businesses are active in the key Vision 2030 projects in Saudi Arabia, with leaders such as Ericsson, Sandvik, and Volvo Trucks already present in the Kingdom.
Also, during her visit, Mellander spoke about the ways of enhancing relations between countries, such as encouraging Saudi students to undergo internships in Sweden and encouraging Saudi and Swedish incubators to cooperate more with each other to assist young entrepreneurs.
The third session of the Saudi-Swedish Joint Committee, held from November 4-5, resulted in the agreement of 45 new initiatives to promote cooperation in sectors including investment, energy, and education. Trade between the two nations reached approximately $1.7 billion in 2023.
