During the 3rd Saudi Arabia-Singapore Joint Committee Ministerial Meeting on 17th October 2023 the Singapore Business Federation (SBF) signed two MoUs that will help to strengthen ties and open new avenues for trade and investment
SINGAPORE companies seeking to expand their presence in the Middle East have gained a significant boost with the recent Memorandums of Understanding (MOUs) signed by the Singapore Business Federation (SBF). The agreements, inked during the 3rd Saudi Arabia-Singapore Joint Committee Ministerial Meeting on October 17, 2023, aim to enhance economic cooperation between Singapore and the Kingdom of Saudi Arabia (KSA) as well as the United Arab Emirates (UAE).
Under the MOU between SBF and the Ministry of Investment Saudi Arabia (MISA), both parties are set to explore investment opportunities between KSA and Singapore. Additionally, they will facilitate the exchange of economic information and statistics, aligning with the laws and regulations of both countries.
A separate MOU between SBF and the Federation of Saudi Chambers (FSC) paves the way for the formation of the Saudi-Singapore Business Council (SSBC). This council will act as a conduit for business opportunities, aiming to bolster bilateral trade, investments, and economic cooperation. The SSBC is poised to become a vital forum for fostering interaction and boosting economic cooperation in various sectors.
Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Dr Tan See Leng, along with H.E. Saleh Al-Jasser, the Minister of Transport and Logistics for Saudi Arabia, witnessed the MOU signings. The SSBC is slated to convene in Singapore in the latter half of 2024.
The bilateral relationship between Singapore and KSA has witnessed robust growth, with annual total trade value surging by 47 percent from S$9.6 billion in 2021 to S$14.1 billion in 2022. Singapore’s strategic position has made it a gateway for Saudi businesses into Asia, solidifying its role as a key partner in KSA’s economic diversification efforts.
In the UAE, particularly in Abu Dhabi and Dubai, Singapore companies have made significant inroads in sectors like oil, water, and waste treatment. The total bilateral trade between the UAE and Singapore reached S$29.8 billion in 2022, highlighting the strong trade and investment ties between the two nations.
As part of this effort, SBF CEO Mr. Kok Ping Soon led a delegation of 32 high-level business representatives from 27 Singapore companies on an overseas market workshop to KSA and UAE. The delegation engaged with in-market experts, visited renowned organizations, and gained valuable insights into potential sectors for investment.
According to SBF’s National Business Survey 2022/2023, 8% and 7% of Singapore businesses expressed interest in venturing into UAE and Saudi Arabia respectively. Through the GlobalConnect@SBF program, SBF has provided advisories and facilitated successful projects in both countries.
In response to these developments, Mr. Kok Ping Soon, CEO of SBF, emphasized the abundant opportunities for Singapore businesses in the KSA and UAE. He urged companies to leverage this momentum for their growth.
Ms. Yong Hsin Yue, Vice-Chairman of SSBC, and Deputy Honorary Secretary of the SBF Council, expressed excitement about the strategic partnerships, foreseeing enhanced trade and investment opportunities between the two nations. Mr. G. Jayakrishnan, Executive Director of Enterprise Singapore for South Asia, Middle East, and Africa, highlighted the potential for collaboration across various sectors and welcomed companies from the region to tap into Singapore’s strategic position in Southeast Asia.
