Sri Lanka Seeks Strategic Partnership with Saudi Arabia, Activation of 10 Bilateral Agreements

Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
TT
20

Sri Lanka Seeks Strategic Partnership with Saudi Arabia, Activation of 10 Bilateral Agreements

Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)

Sri Lanka’s Ambassador to Saudi Arabia Omar Lebbe Ameer Ajwad revealed ongoing efforts to establish a strategic partnership with Saudi Arabia and implement 10 signed agreements across various sectors to foster mutual growth.

Such efforts also aim to launch collaborations in projects aligned with Saudi Vision 2030, with hopes of boosting bilateral trade and investments in technology and agriculture.

The diplomat highlighted that the inaugural session of the joint committee between the two countries, held in 2023, identified 63 areas of cooperation spanning 20 sectors, including the economy, science, defense, technology, culture, youth, and sports.

He noted that Saudi Arabia has been a long-standing development partner for Sri Lanka. Over the years, the Saudi Fund for Development has extended $438 million (1.5 billion SAR) in concessional loans, financing 15 development projects in the country.

Among these projects are the Colombo Water Supply and Sewerage Project (1981), Kinniya Bridge—the longest in Sri Lanka, the Neurotrauma Unit at Colombo National Hospital, the Kalu Ganga Development Project, the Medical Faculty at Sabaragamuwa University, the Wayamba University Township, and the Peradeniya-Badulla-Chenkaladi Road.

Ajwad stated that Sri Lanka and Saudi Arabia have so far signed 10 bilateral agreements and memorandums of understanding (MoUs) in addition to other agreements under consideration. These cover aviation services, customs duties, workforce, economy, trade, investment, technology, culture, skills verification, youth and sports, political consultations, avoidance of double taxation, and foreign direct investment.

With the implementation of Vision 2030, Ajwad emphasized that bilateral relations are entering a new phase, particularly in 2024 as the two countries celebrate 50 years of diplomatic ties. He noted that collaboration opportunities include the Colombo Port City Special Economic Zone, tourism and hospitality, agriculture and food security, renewable energy, and information and communications technology (ICT).

The official further mentioned that Saudi Arabia is Sri Lanka’s 24th largest export market and 11th largest source of imports, with plans to expand economic cooperation in trade and investment. In 2023, Sri Lanka exported goods worth $99.9 million to Saudi Arabia, while imports from the Kingdom amounted to $288.84 million.

Key Sri Lankan exports include tea, rubber products, fruits and vegetables, frozen fish, coconut products, and cloves. Imports from Saudi Arabia primarily consist of petroleum oils, liquefied petroleum gases, fertilizers, chemicals, and plastic products.

Ajwad also highlighted potential value-added exports to Saudi Arabia, such as spices, tea, kithul products, coconut-based goods, fresh produce, processed foods, organic agricultural products, and seafood. Sri Lanka’s industrial exports to Saudi Arabia include rubber products, gemstones, jewelry, apparel, ceramics, and porcelain.

He noted that Sri Lankan companies have also invested in Saudi Arabia, including Sierra Construction, which operates in the electromechanical sector.

The ambassador said that Saudi Arabia’s Minister of Economy and Planning, Faisal bin Fadhil Alibrahim, discussed creating an economic roadmap during his recent visit to Sri Lanka, which covers trade, investment, energy, tourism, cultural exchange, digital transformation, and employment opportunities.

In the second half of 2024, Sri Lankan companies participated in major international exhibitions in Saudi Arabia, including the Riyadh Travel Fair 2024, Saudi Food Expo 2024, Saudi Agriculture Exhibition 2024, the Saudi Workforce Exhibition, and the Saudi International Handicrafts Exhibition (Banan).

Ajwad emphasized that bilateral relations have seen significant growth since the establishment of diplomatic ties in 1974. Sri Lanka opened its first embassy in Jeddah in 1983, which was later relocated to Riyadh in 1985. Saudi Arabia established its first resident embassy in Colombo in 1996 and appointed its first ambassador in 2001.

Since the 1980s, many Sri Lankans have traveled to Saudi Arabia for work. Today, an estimated 200,000 Sri Lankans reside in the Kingdom. At the same time, Sri Lanka has become a preferred travel destination for Saudi tourists.

The diplomat stressed that the two countries have maintained strong ties at bilateral, regional, and multilateral levels. They cooperate in organizations such as the Non-Aligned Movement (NAM), the Indian Ocean Rim Association (IORA), the Asian Cooperation Dialogue (ACD), the ASEAN Regional Forum (ARF), and various United Nations bodies.

In 2024, Sri Lanka and Saudi Arabia will celebrate 50 years of diplomatic relations—a significant milestone reflecting the depth of their friendship and strategic partnership. The economic ties between the two nations trace back centuries to trade in goods such as pearls, gemstones, sandalwood, cloves, cinnamon, pepper, coconuts, and ivory.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
TT
20

Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.