The Middle East Is Becoming The New China, Cont'd

The government's aspiration to develop six highly planned cities is steadily turning into reality. The first, King Abdullah Economic City, will offer a perfect balance between manufacturing, financial services in a central business district, a seaport, a residential zone, an education zone and a tourist resort. There will be an opportunity for foreign investors to take part. Past perceptions that foreign investment in Saudi Arabia has been difficult are being allayed as the Saudi Arabian General Investment Authority (SAGIA) rolls out the red carpet. SAGIA now offers one-stop shopping for foreign investors at its offices – it now takes only about two weeks to set up a business in the Kingdom, and the list of restrictions is shrinking rapidly. It is natural to wonder about the issue of security in Saudi Arabia. The need to drive through a winding maze of concrete barriers and pass through airport-like security to enter a hotel is at first unnerving, yet ultimately reassuring. There is a growing sense that security is no longer an issue, but it has become a part of life. A shortage of workers was the problem most often mentioned, and this is compounded by requirements that projects have a specific percentage of Saudi workers. The population is young, though, and investment in education should relieve this constraint through time. And, most business people are highly preoccupied with political stresses in the region, expressing concern about how the situation in Iran might evolve and how that might affect their future. The bottom line? The outlook for Saudi Arabia is so positive it is difficult to put into words. In practical terms relevant to Canada, investments in oil, mining, water, power, transportation and the environment will be huge. While participating in this is likely to demand that exporters establish a local presence, taking that step has never been easier. http://www.edc.ca/english/docs/ereports/commentary/publications_14028.htm

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