Madrid has revealed its intentions to increase trade and economic cooperation with Riyadh through a new action plan with the Saudi-Spanish Business Council. The goal is to enhance trade between the two countries and expand their respective investments. Currently, trade between Spain and Saudi Arabia exceeds $8.1 billion.
Jorge Ibañez Serrador, the Spanish Ambassador to Saudi Arabia, stated to the Middle East News, “Work has already begun through a new meeting of the Joint Economic Cooperation Committee, which was the fourth meeting, with the last one held in Madrid in October 2022. The next meeting is scheduled to take place in Riyadh in 2024. The Saudi-Spanish Business Council has many measures and seminars planned for the coming months.”
He further mentioned, “Economic and trade relations are of particular importance to us. In 2021, Spanish exports to Saudi Arabia amounted to nearly $3 billion, while Spanish imports from Saudi Arabia reached $5.1 billion.” Serrador emphasized the significance of expanding trade beyond oil and energy sectors, working closely with their Saudi counterparts to diversify their economic engagement.
Spain and Saudi Arabia have notably strengthened their energy cooperation in recent months. Minister of Energy Prince Abdulaziz bin Salman has communicated with Teresa Ribera, Spain’s Deputy Prime Minister and Minister for Ecological Transition. Additionally, tourism has been given a high priority in their bilateral relations.
Regarding the volume of joint investments, Serrador said, “In 2022, compared to the previous year, Spanish goods exports (€2.965 million) increased by 55%, while imports (€5.116 million) increased by 72%. The number of Spanish exporting companies to Saudi Arabia (1,759) remained stable compared to the previous year, while the number of Saudi exporting companies to Spain (155) decreased by 5%.”
Spain remains the fifth-largest exporter from the European Union to Saudi Arabia and the fifth-largest importer from the EU, following Germany, the Netherlands, Italy, and France. Spanish investments in Saudi Arabia reached €483 million as of December 31, 2020, according to the latest data from the Spanish Investment Registry (March 2023).
Serrador also pointed out that Spanish investment in Saudi Arabia has witnessed significant fluctuations in recent years, stating, “In terms of net value, investments amounted to €234 million in 2019 but decreased to €21 million in 2020. In 2021, there was a withdrawal of €48 million in the insurance sector in the Kingdom, primarily due to the COVID-19 pandemic. From January to September 2022, net investment inflow was €12 million, mainly concentrated in the construction sector.”
The Ambassador emphasized the historical, cultural, and familial ties between the two countries, including the enduring impact of Arabic culture in Spain. He concluded by saying, “We are content with the current level of our relationship, but we aspire to enhance it and achieve a qualitative leap by strengthening our political, economic, and cultural ties and seizing the numerous opportunities presented by Saudi Arabia’s ambitious transformation program, Vision 2030.”
Spain is actively seeking to strengthen its economic ties with Saudi Arabia through increased trade and investment. The two nations have a history of collaboration, and Spain sees significant potential in diversifying its economic engagement with Saudi Arabia beyond the energy sector. Spanish exports to Saudi Arabia have been on the rise, and both countries are working together to explore new avenues of cooperation.
The Spanish-Saudi Business Council plays a crucial role in facilitating this partnership, and the focus is on expanding trade, fostering investments, and capitalizing on the opportunities presented by Saudi Arabia’s Vision 2030 transformation program. This renewed commitment reflects Spain’s aim to enhance its relationship with Saudi Arabia across political, economic, and cultural dimensions.
