NZ Middle East Business Council gets Saudi breakthrough with MOU to establish joint council

Tuesday 5th April 2016

The New Zealand Middle East Business Council has signed a memorandum of understanding to set up a joint business council with the Council of Saudi Chambers of Commerce and Industry, seen as a key step in increasing two-way trade with the kingdom.

The MOU was signed in Riyadh overnight and witnessed by Foreign Affairs Minister Murray McCully. NZMEBC chairman Stewart Germann described it as "a welcome private, non-governmental initiative to increase trade and economic cooperation between the two countries" which had the support of the government.

"To our knowledge, there are at least 28 Kiwi businesses operating within Saudi Arabia, all involved in supplying goods and services and contributing to our growing bilateral trade," Germann said.

The joint business council would promote "economic, industrial and technological cooperation through joint ventures, transfer of technology, licensing and reciprocal arrangements between council members," as well as provide a forum for discussion, he said. Establishing the council had been a lengthy process "involving high-level endorsement with Saudi Arabia".

Two-way trade with Saudi Arabia was worth about $1.2 billion in the 12 months through February, comprising $647 million of exports to the kingdom and $590 million of imports.

Relations have been strained and efforts to forge a free trade agreement with Gulf States have been on ice following the New Zealand government's decision to continue a halt on the live sheep trade, which led in turn to a politically contentious decision to fund a model New Zealand sheep farm and abbatoir in the desert kingdom in an attempt to placate Saudi business interests angered by the ban.

(BusinessDesk)

BusinessDesk.co.nz

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