Sweden’s Minister for International Development Cooperation and Foreign Trade Benjamin Dousa stressed that the Future Investment Initiative, currently underway in Riyadh, was an ideal opportunity to bolster experiences and create a transformation in the cooperation and trade movement.
In an interview with Asharq Al-Awsat, he underlined the need to create economic integration with African countries and benefit from their natural resources to boost cooperation and sustainable development and combat poverty.
He also emphasized the importance of trade, private investment and loans to achieve sustainable development goals. No country can be removed from poverty by solely relying on development assistance, he remarked.
* What is your assessment of Saudi-Swedish relations? What are the most prominent areas of cooperation? What is the volume of trade exchange and what is the growth rate?
Saudi-Swedish relations are excellent. Saudi Arabia is an important partner for Sweden and our largest trading partner in the MENA-region. Trade and investments, with a focus on innovation and green solutions, are at the heart of our cooperation and constantly growing.
Over the last five years, Swedish exports to Saudi Arabia increased with 72% to 1.3 billion USD. To me, these figures clearly prove that Swedish companies have a lot to offer in the fast and impressive reformation of the Saudi society in line with Vision 2030. Swedish companies, such as Ericsson, Siemens Energy, Scania, Astra Zeneca and the Volvo Group, are ready to contribute with their expertise in telecom, energy, the automobile industry, and life sciences.
Swedish companies, such as Hitachi Energy and Molnlycke, see great potential in the Saudi market and have made significant investments into local manufacturing, creating new jobs, transferring knowledge and contributing to in-country investment.
* What is the nature of your participation in the Future Investment Initiative (FII) in Riyadh? What are the most important topics that interest you at this event?
The FII-conference serves as a perfect opportunity for me, as a newly appointed Swedish minister for foreign trade, to get a crash course on the Saudi market and Swedish business interests in Saudi Arabia. I especially look forward to learning more about Vision 2030 and the giga-projects, which are truly impressive. I will be speaking at a panel on economic integration in Africa. My visit to Riyadh is also an opportunity for me to meet Saudi cabinet ministers and other high ranking Saudi officials. I know that my predecessor was very pleased with his visit to FII last year.
* Is there a new project under study and research for cooperation between the two countries and what is its nature?
The cooperation between King Abdulaziz City for Science and Technology (KACST) and Ericsson is exemplary in this regard. Beyond working together on research and science, they have just announced a joint program with The Garage, a Saudi hub for innovation and entrepreneurship. The project aims to support Saudi game developers. Swedish innovators have a lot of experience to share in this field.
I would also like to highlight the third Swedish-Saudi Joint Commission that will take place in Riyadh next week. The Joint Commission is an excellent showcase of the multifaceted cooperation between Sweden and Saudi Arabia. The commission serves as a government-led platform for identification of concrete actions in support of trade and cooperation in areas ranging from export financing instruments, trade policy, healthcare, energy, tourism, to innovation and promotion of small and medium enterprises.
* What is the Swedish plan to maximize development cooperation and increase foreign trade?
Sweden is a strong proponent of free trade. I am convinced that fewer trade barriers and simplified trade procedures boost competition and productivity and reduce global value chain vulnerabilities. Unfortunately, in recent years, we have seen many countries introducing new trade barriers and export restrictions. I believe that free, sustainable, and rules-based international trade and globally accepted standards is the only way forward. Sweden’s own journey from a poor country based on farming to one of the world’s most innovative nations was only possible through international trade.
My government is changing the course of Swedish development cooperation. Sweden will continue to be major donor of both development assistance and humanitarian aid, but we are putting a much stronger emphasis on the essential link between trade and development.
Trade, private investment, loans, and domestic resource mobilization is necessary for countries to achieve the Sustainable Development Goals. No country can be lifted out of poverty with the help of development assistance alone. Swedish development cooperation should contribute to creating conditions for developing countries and for people to go from poverty to prosperity through trade and economic development.
* What is the impact of geopolitical events in the region on development cooperation, foreign trade and supply chains?
I am deeply worried by the ongoing escalation in the region. Sweden fully supports diplomatic efforts for regional de-escalation and ceasefires in Lebanon and Gaza. We greatly appreciate Saudi Arabia’s initiatives for peace and de-escalation, as exemplified by the kingdom’s efforts to, again, bring new momentum for a two-state solution.
The Houthi attacks on free trade in the Red Sea have now been impeding trade flows for over a year. Over 12 percent of the world maritime trade used to pass through the Red Sea. This is a global concern. Many Swedish businesses have been affected by delayed deliveries linked to the situation in the Red Sea. Sweden is contributing to the EU defensive military force Operation Aspides in the Red Sea, aiming at protecting vessels. The attacks on free trade must come to an end for the benefit of all.
