Editor’s Note:
You can get more information about this landmark event at the SUSRIS Special Section – U.S.-Saudi Business Opportunities Forum.
High-Level U.S. and Saudi Arabian Business, Government and Civic Leaders Discus Finance, Energy, Trade, Industry, Education at First Day of U.S.-Saudi Business Opportunities Forum
Memorandums of Understanding and partnership agreements signed by numerous U.S. and Saudi companies
CHICAGO, April 28, 2010—Today, Chicago welcomed more than 1,100 Saudi Arabian and U.S. senior businesspeople, top government officials, civic leaders and others at the U.S.-Saudi Business Opportunities Forum, a two-day conference that seeks to highlight Saudi Arabia’s growing global financial and economic influence as well as its rapidly expanding economy. A delegation of approximately 200 Saudi government and business leaders traveled to Chicago for the event, held at the Sheraton.
This first-ever U.S.-Saudi Business Opportunities Forum is a major platform to discuss not only the need for enhanced cooperation at the national level but also an opportunity for Chicagobased, Midwest and national companies to network with their Saudi counterparts to identify specific commercial and investment opportunities.
The day kicked off with remarks from the Forum’s Chicago Steering Committee Chairman William M. Daley, Midwest Chairman of J.P. Morgan Chase, who welcomed the Saudi delegation to his hometown, which he called a world-class city with a diverse economy and excellent workforce. Daley noted that his hopes for the conference were to generate business and also for the two countries to learn a great deal from each other. Daley welcomed Caterpillar Chairman and CEO Jim Owens and The Boeing Company Chairman, President and CEO, James McNerney, Jr., who set the theme for the two days.
The first panel, entitled “The U.S. and Saudi Arabia: A New Economic Order,” was moderated by Richard Debs, Advisory Director of Morgan Stanley & Co., and Vice Chairman of the U.S.-Saudi Arabian Business Council (USSABC), and welcomed panelists Dr. Ibrahim Al-Assaf, Saudi Minister of Finance; William Daley; Dr. Abdulrahman Al-Tuwaijri, Chairman and CEO of the Saudi Capital Market Authority and Sir Andrew Crockett, International President of J.P. Morgan Chase. They discussed the two countries’ efforts to rebuild and strengthen their financial orders in the wake of the global economic recession, including ways that the United States and Saudi Arabia can collaborate on building a more stable global economy. Government stimulus packages from both countries have reached unprecedented levels as facets of the private sector work to stabilize following the decline in credit lending. The Saudi Government recently revealed its largest budget on record for 2010, with a forecasted $69.3 billion (SR260 billion) in project funding alone, demonstrating the government’s commitment to spur economic development and encourage banks to increase their lending.
The day’s second panel, “Global Energy Interdependence, Global Responsibilities” was moderated by Ferdinando Beccalli, President and CEO of GE International. Panelists included Ali Al-Naimi, Saudi Minister of Petroleum and Mineral Resources; John S. Watson, Chairman and CEO of Chevron and Peter DuPrey, CEO of Acciona Energy.
Panelists discussed initiatives within the energy industry and advancements both countries are making toward greater energy efficiency. Holding 20 percent of the world’s oil supply, Saudi Arabia plays a critical role in fulfilling the energy demands of the global community, which is particularly relevant to the United States, as it is the largest consumer of energy in the world.
The event’s luncheon consisted of two keynote addresses under the title, “Expanding U.S.-Saudi Trade in a Competitive World.” Dr. Afnan Al-Shuaiby, Committee for International Trade Board Member and Secretary General and CEO of the Arab-British Chamber of Commerce, and James Albaugh, President and CEO of Commercial Airplanes, The Boeing Company, introduced keynote speakers Abdullah Alireza, Saudi Minister of Commerce and Industry and Gary Locke, U.S. Secretary of Commerce. The keynoters addressed the vital relationship between the United States and Saudi Arabia and the role this partnership plays in maintaining sustained growth in the global competitive market. This long-standing relationship dates back to the early 1930s. Amidst the increasing role of globalization and the presence of expanding economies, the United States and Saudi Arabia have continued to maintain the strength of the
countries’ pivotal bilateral relationship, while also seeking ways to further strengthen the ties between the two countries. Today, the Kingdom represents the 20th largest trading partner for the United States as Saudi imports from the United States are valued at $10.8 billion (SR40.5 billion), representing the largest market for American products in the Middle East. In addition, Saudi Arabia was the 14th largest exporter to the United States in 2009, which amounted to $15.7 billion (SR58.9 billion) in goods.
The signing of multiple Memorandums of Understanding (MOU) took place at the luncheon, signifying collaboration between U.S. and Saudi businesses and organizations.
Abdullah Al-Hamoudi, Saudi Deputy Minister of Foreign Trade represented the Saudi Ministry of Commerce and Industry in a signing with Ferdinando Beccalli, President and CEO of GE International. The agreement represented a goal to jointly acquire, develop and co-invest in new technologies and localize manufacturing capability in the Kingdom. Targeted technologies will include healthcare, transportation, energy and water.
Minister Al-Hamoudi was also the signatory for an MOU with Thomas Culligan, Executive Vice President of Raytheon Company, in which they agreed to collaborate to bring Raytheon’s engineering innovation capabilities and renewable energy technologies to the industrial development goals of the Kingdom.
Abdulaziz Al-Fahad, Chairman of the Saudi Committee for International Trade, signed an agreement with World Business Chicago President Rita Athas and Chicagoland Chamber of Commerce President Jerry Roper to generally promote economic activities between Saudi Arabia and the Chicago area, with a focus on industry, trade and investment, knowledge management and technology transfer, industrial technology and telecommunications, entrepreneurship and innovation, and industry and export.
The day continued with a third panel entitled “Strategies to Promote Economic Growth/Saudi Industrial Strategy,” moderated by Joe Fuller, Co-Founder and CEO of Monitor Group. Panelists Dr. Ihsan Ali Bu-Hulaiga, Chairman of Joatha Business Development Associates; Dr. Khaled Al-Sulaiman, Saudi Deputy Minister for Industry; Dr. Ibrahim Babelli, CEO of National Industrial Strategy and Azzam Shalabi, President of Saudi Arabia’s National Industrial Cluster Development Program, discussed the Kingdom’s initiatives to promote economic growth and opportunities with American businesses. The National Industrial Strategy of Saudi Arabia is designed to further diversify and expand the Kingdom’s industrial sector and economy in order
to position Saudi Arabia to compete in the global market. The National Industrial Clusters Development Program (NICDP), an important component in reaching this goal, seeks to double the Saudi manufacturing sector’s contribution to the country’s gross domestic product by 2020 through focusing on the development of the automotive, construction, metals processing, plastic packaging, and consumer goods sectors. The National Industrial Strategy will not only expand the Saudi economy, but will also promote balanced regional diversification and aid in the development of the national workforce.
The first day of the Forum concluded with an education and innovation-focused panel, entitled “Education: Saudi Arabia’s Commitment to its Future.” Moderator Steve Clemons, Director of the American Strategy Program at the New America Foundation welcomed panelists Her Royal Highness Princess Loulwa Al Faisal, Vice Chairman of Effat University; Dr. Khaled Al Sabti, Vice Minister in the Saudi Ministry of Education; Dr. Ali S. Al-Hakami, General Manager of King Abdullah Bin Abdulaziz Public Education Development Project and Andre Lewis, Deputy Assistant Secretary of the U.S. Department of Education. At a time when Saudi Arabia has identified education as a vital component in the Kingdom’s efforts to diversify and expand its economy in order to compete in the global market, the panelists discussed ways in which U.S. companies and universities can take a prominent role in this initiative. The Saudi Government’s
commitment to the development of education is evident in its 2010 budget allocations, which amounts to $36.5 billion (SR137 billion) for education, manpower, and development, accounting for more than 25 percent of the total budget. Saudi Arabia has supported the development of world-class universities, such as King Abdullah University for Science and Technology, the world’s newest, state-of-the-art graduate research institution, which boasts a $10 billion (SR37.5 billion) endowment. In addition, the Kingdom regularly collaborates with prominent U.S. universities and companies to develop advanced curriculums and vocational programs for Saudi youth that will aid in providing employment opportunities for the growing population.
In addition to the Forum, members of the visiting Saudi delegation are partaking in three days of public outreach in the Chicago community, consisting of meetings with local organizations, academic institutions, religious leaders and local businesses.
The Committee for International Trade (Saudi Chambers of Commerce) and the U.S. Saudi Arabian Business Council are the primary organizers of the Forum. U.S. event partners include the U.S. Chamber of Commerce and the U.S. Department of Commerce.
Saudi event partners include: the Ministry of Commerce and Industry. Chicago event partners include: The Office of the Mayor of Chicago, the Chicagoland Chamber of Commerce, Economic Club of Chicago, Illinois Department of Commerce and Economic Opportunity, U.S. Department of Commerce Chicago and Midwest Commercial Service Offices, World Business Chicago and Chicago Council on Global Affairs.
The U.S.-Saudi Business Opportunities Forum thanks the following sponsors for their generous support: Al Jazirah Vehicles Agencies; El Seif Group; Saudi Arabian Airlines; Xenel Group; Zahid Group; Caterpillar; Atheeb Group; The Boeing Company; Chevron; The Dow Chemical Company; ExxonMobil; General Electric; Honeywell International; Said Ali Ghodran and Sons, Co., Ltd.; Baker & McKenzie; Fluor Corporation; Grosvenor Capital Management, LLC; Ma’aden/Alcoa; The Olayan Group; Trust Company of the West; Al Abdulkarim Holding Group; AlphaMetrix; AlphaMetrix; Aquatech International; The Cohen Group; Dhahran Palace Hotel; Kinder Morgan; KMD Architects; L-3 Communication, LLC; NetSol Technologies; Northern Trust Corp.; The Shaw Group and USAA Real Estate Company.
{ 1 trackback }