Next two years key for Pakistan’s expansion in Saudi Arabia

January 29, 2025 (MLN): The next two years will be crucial for Pakistan to expand its presence in Saudi Arabia, as the kingdom undergoes a historic economic transformation under Vision 2030.

Highlighting this shift, Pakistan’s Ambassador to Saudi Arabia, Ahmad Farooq, stressed that emerging opportunities in construction, Information Technology, healthcare, and hospitality offer a strategic advantage for Pakistani businesses and professionals.

If we do not claim our share immediately, it will be taken by competitors," he warned.

He added that to seize these opportunities, Pakistan must focus on improving its workforce by providing training aligned with Saudi requirements, while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).

President KCCI Muhammad Jawed Bilwani, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Chairman of the Diplomatic Missions & Embassies Liaison Subcommittee Ahsan Arshad Sheikh, and KCCI Managing Committee Members were also present at the meeting.

The Ambassador stressed that Saudi Arabia aims to become a regional IT hub, creating a substantial demand for human resources and expertise, according to the press release.

This presents a significant opportunity for Pakistan’s IT companies to provide services and products to this rapidly growing sector, which is witnessing multi-billion-dollar investments.

He further noted Saudi Arabia’s focus on cultural and tourism development, leading to massive growth in the hospitality and hotel sector.

Over the next decade, Saudi Arabia will host four major international events, the Asian Football Cup (2027), Asian Winter Games (2029), World Expo in Riyadh (2030), and the FIFA World Cup (2034).

To support these events, Saudi Arabia is investing heavily in infrastructure, including the construction of 250 new hotels.

This expansion creates opportunities for Pakistan’s home textile industry, food exports, and trained workforce in hospitality and housekeeping.

Highlighting the booming construction sector in Saudi Arabia, driven by mega-projects such as Neom City and extensive infrastructure developments, Ambassador Farooq emphasized the vast opportunities available.

He noted that Pakistani contractors have a great chance to participate, as Saudi Arabia faces a shortage of reputable firms in the sector.

“Companies from around the world are securing lucrative contracts, and Pakistan must also seize this opportunity”, he said, adding that the demand for building materials including furniture, marble, electrical cables, LED lights, and fiber optic cables was soaring in Saudi Arabia.

Additionally, the healthcare sector is evolving, providing openings in pharmaceuticals, surgical equipment, and medical tourism.

On the occasion, the Ambassador highlighted a significant 40% increase in exports to Saudi Arabia during 2023-24, with the IT sector witnessing an impressive 50% growth.

The Embassy’s primary focus is on promoting trade and investment.

Last year, two major Saudi business delegations visited Pakistan, which led to the signing of 34 Memorandums of Understanding (MoUs) worth $3 billion.

Of these, MoUs worth $700 million have already entered the implementation stage, marking the beginning of a promising economic collaboration. 

The Envoy identified textiles, agriculture, rice, and red meat (beef and mutton) as priority sectors for Pakistani exports which have seen remarkable growth in Saudi Arabia.

He mentioned that we want large businesses to connect with local distributors in Saudi Arabia to facilitate exports.

A list of key exporters in these sectors should be shared with the Embassy so we can work together to strengthen trade relations, he added.

During his address, he shared insights gained during his tenure as Ambassador, emphasizing the vast opportunities available in Saudi Arabia.

The purpose of my visit is to discuss business opportunities with the Karachi business community and update them on how Pakistan’s Embassy can support them in accessing the Saudi market.

He also emphasized the rising demand for skilled manpower, with over 3mn Pakistanis currently residing in Saudi Arabia.

However, 97% of them are blue-collar workers.

He mentioned that Saudi authorities have advised us to improve vocational training for Pakistani workers to meet the standards required for upcoming projects.

The government must enhance training programs to equip workers with modern technical skills, he added.

Earlier, President Jawed Bilwani, while welcoming the Ambassador, acknowledged the strong trade and economic ties between Pakistan and Saudi Arabia.

He pointed out that Saudi Arabia remains Pakistan’s largest source of remittances, contributing $7.5bn in FY24 while the extension of $3bn deposit to Pakistan’s State Bank has further stabilized the economy.

He also extended full support and cooperation to Pakistan’s Ambassador for all his endeavors to promote trade and investment cooperation between the two brotherly countries.

Senior Vice President KCCI Zia ul Arfeen, in his remarks, said, Pakistan’s imports from Saudi Arabia significantly exceed its exports.

He further stated that enhancing joint ventures and improving the ease of doing business are crucial for balancing trade relations.

Saudi investors should consider Pakistan for investments, particularly in the food sector and Special Economic Zones under CPEC, he added.

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