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Book exploring the relationship between Saudi Arabia and Australia
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4 | CONTENTS
Table of Contents Participants
Roll of Honour of Participating Companies 4 Advisory Group Chairman’s message, Dr. Glen Simpson 5
ForwardsSaudi Minister for Trade and Industry, HE Abdullah Ahmed Zainal Alireza 6 Australian Minister for Trade, The Hon Dr Craig Emerson MP. 7
IntroductionsKingdom of Saudi Arabia Ambassador, H.E Hassan Nazer 8 Australian Ambassador to Kingdom of Saudi Arabia, Mr Kevin Magee 9
1 Chapter One — The Kingdom of Saudi Arabia–Australian Relationship 10
An overview of the Kingdom of Saudi Arabia–Australia relationship as it stands today, including trade, political, cultural and investment links and key areas of growth opportunity.
Messages: Prince Al Waleed Bin Talal, Chairman of Kingdon Holdings 20
Ms Lubna Olayan, CEO of Olayan Financing Company 21
John Grill, CEO of Wordley Parsons 22
Anthony Abraham, CEO of Macquarie Agricultural Funds Management and Executive Director,
Macquarie Group Limited, Director of Macquarie Alternative Assests Management Limited 23
2 Chapter Two — Challenges and opportunities 28
The Kingdom’s role as the Custodian of the Two Holy Mosques. Islam and Islamic culture. Australia as a multi-cultural country within the Asia-Pacific.
Messages: HRH Princess Mashel bint Faisal, President of the Business Women’s Forum 44
HRH Princess Lowia Al Faisal, Vice Chair, Board of Effat College 45
Dr Abdullah Saeed, NCEIS 46
Mr Al Bishri, Saudi Culture Attache to Australia 47
3 Chapter Three — Bilateral ties 48
A showcase of key business and investment sectors.
3·1 Agribusiness and food 48
3·2 Education 56
3·3 Construction and engineering 60
3·4 Healthcare and medical 66
3·5 International trade and logistics 72
3·6 Engineering and sustainable development 76
3·7 Automotive and manufacturing 80
3·8 Business financial services 84
3·9 Equine trade 88
CONTENTS | 5
Messages: Dr Fawaz Al Alamy, Former Deputy Minister for Commerce and
Chief Negotiator in KSA WTO ascension 92
Dr Amin Saikal, ANU Australia-Saudi Relations 93
Colonel Turki, SANG (Saudi Arabian National Guard) 94
TBA, 95
4 Chapter Four — Doing business the Kingdom of Saudi Arabia 96
Advantages as investment destination; Key government and trade bodies; government and trade bodies, investment attraction support systems: financial markets and regulatory environment; Major cities; major projects and economic cities in the Kingdom; commercial centres; centres of excellence; Systems of government and regulatory framework; Educational system; Business culture, etiquette and style.
Messages: HE Amr Dabbagh, Governer of SAGIA 107
Mr Nick Daicos, Head of Country Al Tamimi 108
Cynthia Dearin, AACCI 109
5 Chapter Five — Doing business in Australia 110
Advantages as investment destination; Key government and trade bodies; investment attraction support systems; Financial markets and regulatory environment; Systems of government and regulatory framework; Educational system and options; Business culture, etiquette and style.
Messages: Tim Harcourt, Chief Economist Austrade 107
Mr Steve Wilson, ABGSA 108
TBD Saudi 109
Seperator between the two halves of the book 158
Chapter One — The Kingdom of Saudi Arabia–Australian Relationship An overview of the Kingdom of Saudi Arabia–Australia relationship as it stands today, including trade,
political, cultural and investment links and key areas of growth opportunity.
Messages: Prince Al Waleed Bin Talal, Chairman of Kingdon Holdings
Ms Lubna Olayan, CEO of Olayan Financing Company
John Grill, CEO of Wordley Parsons
Anthony Abraham, CEO of Macquarie Agricultural Funds Management and Executive Director,
Macquarie Group Limited, Director of Macquarie Alternative Assests Management Limited
IntroductionsKingdom of Saudi Arabia Ambassador, H.E Hassan Nazer Australian Ambassador to Kingdom of Saudi Arabia, Mr Kevin Magee
ForwardsSaudi Minister for Trade and Industry, HE Abdullah Ahmed Zainal Alireza Australian Minister for Trade, The Hon Dr Craig Emerson MP.
Participants Roll of Honour of Participating Companies
Advisory Group Chairman’s message, Dr. Glen Simpson
ADVISORY GROUP | 7
Advisory Group Chairman’s messageDr. Glen Simpson
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus. Praesent tempor aliquet luctus.
Nullam augue mi, tristique eu elementum dictum, eleifend in risus. Sed id nunc nisi, et fermentum
diam. Donec condimentum lacinia urna, eu porttitor diam tempor ut.
Proin in suscipit ligula. Nam turpis nisi, consequat a consequat ut, cursus nec arcu. Aenean venenatis
ornare placerat. Fusce venenatis diam ac enim euismod nec porta velit convallis. Proin sit amet arcu eu
justo mollis sodales eu semper diam. Vestibulum vel lacus sem. Morbi lectus ligula, porta ut semper in,
viverra ut dui. Maecenas nec eros dolor, non cursus quam. Nunc quis nulla sed eros dignissim porta.
Nam a ultrices sem. Nam augue sapien, tempor sed pharetra a, lacinia lobortis ante. Praesent et sapien
urna. Nunc vitae sodales lacus. Cras ac erat diam. Donec tempor iaculis mauris eu dignissim. Vestibulum
est ante, accumsan eget porta nec, iaculis sit amet justo. Fusce eget neque nisi. Aliquam ligula elit,
sodales laoreet sodales vitae, mollis sed nulla.
Praesent pharetra massa vitae leo vulputate aliquet. Vestibulum est lacus, mollis sit amet rutrum
vulputate, condimentum vel ligula. Sed viverra rutrum ligula, sed facilisis est gravida a. Aliquam a augue
magna. Vivamus mollis porta mauris eget facilisis. Nam faucibus imperdiet leo. Duis eu tellus nibh,
in pellentesque justo. Pellentesque et faucibus lacus. Etiam at diam non tellus euismod pellentesque
semper et massa. Nam laoreet tempor lacus aliquet volutpat. Nunc porta risus vitae dolor congue in
vulputate dolor tempor.
Dr. Glen Simpson
8 | FORWORD
Forward Saudi Minister for Trade and Industry, HE Abdullah Ahmed Zainal Alireza
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus. Praesent tempor aliquet luctus.
Nullam augue mi, tristique eu elementum dictum, eleifend in risus. Sed id nunc nisi, et fermentum
diam. Donec condimentum lacinia urna, eu porttitor diam tempor ut.
Proin in suscipit ligula. Nam turpis nisi, consequat a consequat ut, cursus nec arcu. Aenean venenatis
ornare placerat. Fusce venenatis diam ac enim euismod nec porta velit convallis. Proin sit amet arcu eu
justo mollis sodales eu semper diam. Vestibulum vel lacus sem. Morbi lectus ligula, porta ut semper in,
viverra ut dui. Maecenas nec eros dolor, non cursus quam. Nunc quis nulla sed eros dignissim porta.
Nam a ultrices sem. Nam augue sapien, tempor sed pharetra a, lacinia lobortis ante. Praesent et sapien
urna. Nunc vitae sodales lacus. Cras ac erat diam. Donec tempor iaculis mauris eu dignissim. Vestibulum
est ante, accumsan eget porta nec, iaculis sit amet justo. Fusce eget neque nisi. Aliquam ligula elit,
sodales laoreet sodales vitae, mollis sed nulla.
Praesent pharetra massa vitae leo vulputate aliquet. Vestibulum est lacus, mollis sit amet rutrum
vulputate, condimentum vel ligula. Sed viverra rutrum ligula, sed facilisis est gravida a. Aliquam a augue
magna. Vivamus mollis porta mauris eget facilisis. Nam faucibus imperdiet leo. Duis eu tellus nibh,
in pellentesque justo. Pellentesque et faucibus lacus. Etiam at diam non tellus euismod pellentesque
semper et massa. Nam laoreet tempor lacus aliquet volutpat. Nunc porta risus vitae dolor congue in
vulputate dolor tempor.
HE Abdullah Ahmed Zainal Alireza
FORWORD | 9
Forward Australian Minister for Trade, The Hon Dr Craig Emerson MP
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus. Praesent tempor aliquet luctus.
Nullam augue mi, tristique eu elementum dictum, eleifend in risus. Sed id nunc nisi, et fermentum
diam. Donec condimentum lacinia urna, eu porttitor diam tempor ut.
Proin in suscipit ligula. Nam turpis nisi, consequat a consequat ut, cursus nec arcu. Aenean venenatis
ornare placerat. Fusce venenatis diam ac enim euismod nec porta velit convallis. Proin sit amet arcu eu
justo mollis sodales eu semper diam. Vestibulum vel lacus sem. Morbi lectus ligula, porta ut semper in,
viverra ut dui. Maecenas nec eros dolor, non cursus quam. Nunc quis nulla sed eros dignissim porta.
Nam a ultrices sem. Nam augue sapien, tempor sed pharetra a, lacinia lobortis ante. Praesent et sapien
urna. Nunc vitae sodales lacus. Cras ac erat diam. Donec tempor iaculis mauris eu dignissim. Vestibulum
est ante, accumsan eget porta nec, iaculis sit amet justo. Fusce eget neque nisi. Aliquam ligula elit,
sodales laoreet sodales vitae, mollis sed nulla.
Praesent pharetra massa vitae leo vulputate aliquet. Vestibulum est lacus, mollis sit amet rutrum
vulputate, condimentum vel ligula. Sed viverra rutrum ligula, sed facilisis est gravida a. Aliquam a augue
magna. Vivamus mollis porta mauris eget facilisis. Nam faucibus imperdiet leo. Duis eu tellus nibh,
in pellentesque justo. Pellentesque et faucibus lacus. Etiam at diam non tellus euismod pellentesque
semper et massa. Nam laoreet tempor lacus aliquet volutpat. Nunc porta risus vitae dolor congue in
vulputate dolor tempor.
The Hon Dr Craig Emerson MP
10 | INTRODUCTION
IntroductionKingdom of Saudi Arabia Ambassador, H.E Hassan Nazer
Lorem ipsum dolor sit amet, consectetur adipiscng elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus. Praesent tempor aliquet luctus.
Nullam augue mi, tristique eu elementum dictum, eleifend in risus. Sed id nunc nisi, et fermentum
diam. Donec condimentum lacinia urna, eu porttitor diam tempor ut.
Proin in suscipit ligula. Nam turpis nisi, consequat a consequat ut, cursus nec arcu. Aenean venenatis
ornare placerat. Fusce venenatis diam ac enim euismod nec porta velit convallis. Proin sit amet arcu eu
justo mollis sodales eu semper diam. Vestibulum vel lacus sem. Morbi lectus ligula, porta ut semper in,
viverra ut dui. Maecenas nec eros dolor, non cursus quam. Nunc quis nulla sed eros dignissim porta.
Nam a ultrices sem. Nam augue sapien, tempor sed pharetra a, lacinia lobortis ante. Praesent et sapien
urna. Nunc vitae sodales lacus. Cras ac erat diam. Donec tempor iaculis mauris eu dignissim. Vestibulum
est ante, accumsan eget porta nec, iaculis sit amet justo. Fusce eget neque nisi. Aliquam ligula elit,
sodales laoreet sodales vitae, mollis sed nulla.
Praesent pharetra massa vitae leo vulputate aliquet. Vestibulum est lacus, mollis sit amet rutrum
vulputate, condimentum vel ligula. Sed viverra rutrum ligula, sed facilisis est gravida a. Aliquam a augue
magna. Vivamus mollis porta mauris eget facilisis. Nam faucibus imperdiet leo. Duis eu tellus nibh,
in pellentesque justo. Pellentesque et faucibus lacus. Etiam at diam non tellus euismod pellentesque
semper et massa. Nam laoreet tempor lacus aliquet volutpat. Nunc porta risus vitae dolor congue in
vulputate dolor tempor.
Kingdom of Saudi Arabia Ambassador to Australia, H.E Hassan Nazer
INTRODUCTION | 11
IntroductionAustralian Ambassador to Kingdom of Saudi Arabia, Mr Kevin Magee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam commodo dignissim nibh vel luctus.
Curabitur at ante at enim volutpat dapibus. Vivamus lacinia lectus vitae odio semper interdum. Duis in
justo eget metus blandit posuere. Nunc bibendum, quam eget lacinia tempor, enim neque laoreet justo,
nec mattis quam eros sit amet ipsum. Sed tincidunt placerat dapibus. Praesent tempor aliquet luctus.
Nullam augue mi, tristique eu elementum dictum, eleifend in risus. Sed id nunc nisi, et fermentum
diam. Donec condimentum lacinia urna, eu porttitor diam tempor ut.
Proin in suscipit ligula. Nam turpis nisi, consequat a consequat ut, cursus nec arcu. Aenean venenatis
ornare placerat. Fusce venenatis diam ac enim euismod nec porta velit convallis. Proin sit amet arcu eu
justo mollis sodales eu semper diam. Vestibulum vel lacus sem. Morbi lectus ligula, porta ut semper in,
viverra ut dui. Maecenas nec eros dolor, non cursus quam. Nunc quis nulla sed eros dignissim porta.
Nam a ultrices sem. Nam augue sapien, tempor sed pharetra a, lacinia lobortis ante. Praesent et sapien
urna. Nunc vitae sodales lacus. Cras ac erat diam. Donec tempor iaculis mauris eu dignissim. Vestibulum
est ante, accumsan eget porta nec, iaculis sit amet justo. Fusce eget neque nisi. Aliquam ligula elit,
sodales laoreet sodales vitae, mollis sed nulla.
Praesent pharetra massa vitae leo vulputate aliquet. Vestibulum est lacus, mollis sit amet rutrum
vulputate, condimentum vel ligula. Sed viverra rutrum ligula, sed facilisis est gravida a. Aliquam a augue
magna. Vivamus mollis porta mauris eget facilisis. Nam faucibus imperdiet leo. Duis eu tellus nibh,
in pellentesque justo. Pellentesque et faucibus lacus. Etiam at diam non tellus euismod pellentesque
semper et massa. Nam laoreet tempor lacus aliquet volutpat. Nunc porta risus vitae dolor congue in
vulputate dolor tempor.
Australian Ambassador to the Kingdom of Saudi Arabia, Mr Kevin Magee
1
Q1 is the highest residential
building in the world. Gold Coast,
Queensland, Australia.
PHOTO: Jenny Bonner
The Kingdom of Saudi Arabia and Australia share many common interests and values. The two countries
have experienced challenges in common of often harsh and dry environments, building modern
national infrastructures with limited populations, dispersed over large distances, and endeavouring to
deploy their immense wealth of natural resources to ensure the future wellbeing of their peoples. Both
countries achieved nationhood in the 20th Century, yet both have cultures and values forged from
ancient traditions and from solid beliefs that continue to inform and enrich their everyday life.
Saudi Arabia and Australia are both of considerable strategic importance in their respective regions
of the world. They are energy giants: Saudi Arabia in oil and gas and Australia in coal, uranium and,
increasingly, in natural gas. Both are mindful of the need to conserve and protect what is perhaps their
most precious and precarious resource: water.
This publication provides an in-depth review of the importance and growing potential of the
relationship between these two significant countries — both vital to world trade. In addition to
reviewing the many facets of their commercial engagement and raising awareness of mutual business
THE SAUDI — AUSTRALIAN RELATIONSHIP | 13
The Saudi–Australian Relationship
PART 1
opportunities, the aim is to consider the cultural and
social aspects of life in both countries that underpin their
value systems, and thereby help to bring about a deeper
understanding of each other’s culture and character.
Shared economic outlookSaudi Arabia and Australia have weathered the global
financial crisis better than most. Through judicious
management of their financial systems and sound
governance principles they have avoided the excesses that
have forced many countries into recession and long periods
of economic austerity.
Australia and Saudi Arabia entered the crisis on a solid
financial footing. Both governments took rapid, decisive
action to support aggregate demand, whilst setting early
targets to restore budgetary balance. Both are resuming
their trajectories of growth — and are well positioned to
share in its each other’s burgeoning business opportunities.
The commercial environmentTo many people, the relationship between the Kingdom of
Saudi Arabia and Australia seems largely one of trade – of
hydrocarbon products swapped for agricultural produce.
Whilst this perception may have had some resonance in the
past, the reality is far different today.
In 2009, Saudi Arabia was Australia’s second largest
export market in the Middle East, with merchandise
exports exceeding $A1.7 billion. In the same year, Saudi
Arabia was Australia’s 17th largest global market, and
the major market for Australian-made passenger motor
vehicles, which alone were worth $A811 million.
The current leader in automotive exports is Toyota
Motor Corporation Australia (TMCA), which in October
2010 exported its 500,000th vehicle to Saudi Arabia.
TMCA has been manufacturing vehicles in Australia since
1963, and in 2009–10 the company produced 105,826
Australian-made cars for the Australian and overseas
14 | THE KINGDOM OF SAUDI ARABIA — AUSTRALIA: REGIONAL PARTNERS, GLOBAL LEADERS
The Australian Stock Exchange at 20 Bridge Street, Sydney.
markets. The Toyota Camry has strong acceptance for
reliability — and has been a vehicle of choice for the taxi
industry in Gulf countries — although competition from
Korea and elsewhere is growing.
The General Motors Holden (GMH) Caprice, badged
Chevrolet Caprice for the Middle East market, is also a
strong performer in Saudi Arabia, appreciated for its rear-
wheel drive performance, as was its previous stablemate,
the Statesman. The Holden Commodore, re-badged the
Chevrolet Lumina, is also doing well. The Middle East is the
strongest performing market for GMH.
All Australian vehicles are acknowledged as well suited
to Saudi Arabia’s hot and dry weather conditions. They
have superior dust control and robust air-conditioning,
built as they are to perform in the extremes of the
Australian climate.
Australia’s other major exports to Saudi Arabia include
barley, meat products (excluding beef) and dairy goods,
as well as vehicle parts and accessories. Saudi Arabia was
Australia’s third largest market in the Middle East for live
sheep in 2009 — importing 576,000 head that were valued
at $A55 million.
In response, Saudi Arabia direct exports to Australia
totalled $A631 million in 2009, with approximately half
these exports being crude petroleum. The other exports,
reflecting the sophistication of the Saudi petrochemical
industries, were principally fertilisers, liquefied propane
and butane, as well as primary ethylene polymers.
The most prominent producer in this field is Saudi
Basic Industries Corporation (SABIC), which is a world
leader in the manufacture of petrochemicals (such as
olefins, oxygenates and aromatics, as well as a range of
chemical intermediaries used in everyday essentials like
textiles, soaps and plastics), fertilisers (including urea
and phosphates), as well as steel production. SABIC is the
largest public company in Saudi Arabia, which in 2008
THE SAUDI — AUSTRALIAN RELATIONSHIP | 15
Australia and Saudi Arabia entered
the crisis on a solid financial footing.
Both governments took rapid, decisive
action to support aggregate demand,
whilst setting early targets to restore
budgetary balance.
was ranked the No. 1 chemical producer in Asia and No. 4
in the world.
In addition to this direct merchandise trade, a substantial
indirect trade in petroleum products exists through
Singapore’s major oil refining installations, where the
refined products of lighter Australian crude oil and those of
heavier Saudi crudes are extensively swapped for different
market applications throughout the Asia Pacific region.
In the services sector, many Australian companies
and more than 4000 Australian professionals, other
experts and their families are living in Saudi Arabia, and
contributing to Saudi Arabia’s rapid modernisation and
economic growth. Australians are well represented in
construction and engineering, the oil industry, mining
and agribusiness, financial services, health, hospitality
and education.
In May 2010, Australia and Saudi Arabia signed a
memorandum of understanding in higher education to
build stronger cooperative ties between their respective
higher education institutions, encouraging research
cooperation and the exchange of academic staff, researchers
and students between the two nations. An example of the
quality of this collaboration is the signing of a research
collaboration agreement in DNA replication between
the prestigious King Abdullah University of Science and
Technology (KAUST) and the University of Wollongong in
October 2010. This research partnership is similar to ones
that KAUST has in place with universities of the calibre of
Harvard, Stanford and Oxford.
Other areas of research where there is a special
commonality of interest between Saudi Arabia and
Australia is in the field of dry-land farming, including
the use of medics and other legumes to increase the
productivity of land. In this context, it is interesting to
note the achievements of South Australian agronomists
and farmers in the introduction of exotic legumes to
Australian soils. A number of the original medics were
sourced from the Middle East early last century and further
cultivated in Australia. Both Australian and Saudi Arabian
agricultural experts are also deeply engaged in redressing
the problems of soil salinity that afflict the soils of both
countries, as well as the preservation of aquifers and overall
water conservation and utilisation.
There are some 12,500 Saudi students currently
enrolled in Australian educational institutions, including
undergraduate, postgraduate and research students.
Since mid-2010, most, if not all, Saudi students studying
in Australia have been on full-support scholarships,
provided by the King Abdullah Scholarships Program.
Previously a small number of students covered their
own expenses. The new provisions, recently introduced,
are not restricted to the types of courses undertaken,
although there are guidelines with regard to the
institutions selected for those programs.
Saudi students have been well accepted in Australia and
play an active role in their local communities. The Saudi
Government also provides considerable social support, in
addition to financial assistance, to meet the needs of its
His Royal Highness Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud
16 | THE KINGDOM OF SAUDI ARABIA — AUSTRALIA: REGIONAL PARTNERS, GLOBAL LEADERS
students studying in Australia, and has established the
Saudi Arabian Cultural Mission (SACM) under the aegis of
the Royal Embassy of Saudi Arabia and the Saudi Ministry
of Higher Education. SACM’s regional office for the Asia-
Pacific region was moved to Canberra in 2004, and sees to
the interests of Saudi students; it monitors their progress
and helps them to overcome issues that may impact their
lives and impede their studies.
Investment linksIn investment terms, Australian investments in Saudi
Arabia in 2009 were estimated to total some $A64
million. There are signs that this is increasing as a result
of interest from the Australian mining and exploration
industries. In June 2010, the Citadel Resource Group
(ASX: CGG) closed a $A250 million capital raising for a
joint venture in a high-grade copper and gold project at
Jabal Sayid, some 350km northeast of Jeddah. Citadel,
with its Saudi company, Bariq Mining, is focusing its
exploration activities particularly on the Arabian Shield
region that flanks the Red Sea.
Saudi investment interest in Australia is also increasing
significantly, although it is difficult to quantify investments
as Saudi interests often do not need to disclose their
holdings as readily as publicly-listed foreign corporations.
Saudi investments tend to be made through private or
government owned corporations. A relatively recent
acquisition, in mid-2008, was Bemax Resources Limited,
a leading Western Australian mineral sands miner, by
a holding company of the Saudi National Titanium
Dioxide Company Limited (known as Cristal), which is
headquartered in Jeddah.
Kingdom Holding Company (KHC), one of the world’s
largest and most diversified private investment companies,
founded by the financial visionary, HRH Prince Alwaleed
Bin Talal Bin Abdulaziz Alsaud, holds a 5.5 per cent
interest in News Corporation’s common voting stock and is
exploring possible media ventures with News Corp in the
Middle East. In May 2009 Prince Alwaleed met with the
then Foreign Minister, the Hon. Stephen Smith, to discuss
a range of matters, including future potential investments
of benefit also to Australia. The Minister invited Prince
Alwaleed to visit Australia to explore further business
opportunities.
Another significant Saudi organisation with interest in
developing closer investment links with Australia is the
THE SAUDI — AUSTRALIAN RELATIONSHIP | 17
Processing from mining resources
in Australia.
Olayan Group, a major private sector conglomerate with
over 50 subsidiary companies. It is also a global investor
in public and private equities. Olayan’s subsidiary, General
Trading Company (GTC), is among the largest importers
and distributors of consumer goods in Saudi Arabia, and
has long-standing links with SunRice of Australia, one of
the largest branded rice companies in the world.
In terms of mobilising more capital for foreign
investment, Saudi Arabia is in the process of creating
a sovereign wealth fund (SWF). The vehicle, Sanabil
al-Saudia, is managed under the umbrella of the Public
Investment Fund (PIF), which was established in 1971 to
facilitate the development of the country. In 2008 Sanabil
al-Saudia was formed, with an investment capital of $US5.3
billion, initially to focus on investments in the technology
sector. Market observers suggest that Sanabil al-Saudia is
likely to broaden its investment focus as it beds down its
management teams and investment strategies.
Also in 2008, the Saudi Government unveiled the
Hassana Investment Company as a new vehicle to
invest public pension funds in global equity markets.
These moves were regarded as a significant break from
tradition, as the Government of Saudi Arabia has
pursued conservative investment polices, managed
through the Saudi Arabian Monetary Authority (SAMA),
Saudi Arabia’s central bank. The Financial Times reported
in March 2009 that “85 per cent of the Kingdom’s
foreign reserves of some $US500 billion are in dollar-
denominated, fixed-income securities and, unlike other
Gulf states, it does not yet have an active sovereign
wealth fund.’ Saudi Arabia is known to be a strategic
investor that takes the long view. It prepares carefully as
it enters new fields.
These developments, however, suggest that it is the
intention of the Saudi investment authorities, similar to
their private sector counterparts, to broaden the geographic
spread of their investment portfolios. Australia, as a highly
attractive, low-risk and business-friendly environment,
appears likely to attract significant interest.
The political contextSaudi Arabia and Australia enjoy a long-standing
friendship. Australia established its first embassy in Jeddah
in 1974, and this subsequently was moved to Riyadh in
1984. Saudi Arabia established its embassy in Canberra
in 1983 with the presentation of credentials by the
Ambassador, HE Abdul Rahman Nasser Abdula Alohaly.
Australia recognises the Kingdom’s strategic importance
in the Middle East and appreciates the key role it plays
in promoting stability in the region — as well as in
international energy markets. Both countries have shared
interests in combating terrorism and extremism within the
region and across the world, and work together to promote
collective security.
As members of the Group of Twenty (G20) major
economies, Australia and Saudi Arabia consult and
cooperate on matters relating to the international financial
system. Finance ministers and central bank governors
18 | THE KINGDOM OF SAUDI ARABIA — AUSTRALIA: REGIONAL PARTNERS, GLOBAL LEADERS
Hon. Stephen Smith MP, Minister for Foreign Affairs
of G20 countries meet on a regular basis, and heads of
government attend G20 summits. The importance of the
G20 was recognised during the GFC in 2008, when all
member countries introduced a number of coordinated and
far-reaching measures to restore confidence and re-balance
international financial markets.
Australia is also in dialogue with the Gulf Cooperation
Council (GCC), the high-level, consultative body of the six
Arabs states of the Gulf region of which Saudi Arabia is
a key member. The other five states are Bahrain, Kuwait,
Oman, Qatar and the United Arab Emirates (UAE). The
headquarters of the GCC is in Riyadh. Negotiations have
been proceeding since 2007 on a free trade agreement
(FTA) covering goods (rules of origin, government
procurement, customs procedures, technical barriers to
trade and sanitary and phytosanitary measures), services
(including cross border trade, education, movement of
natural persons, e-commerce, telecommunications and
financial services), investment, intellectual property,
competition policy, institutional and framework provisions,
as well as dispute resolution. At this time it is not possible
to estimate when the agreement will be finalised as
there are several differences of definition and approach
remaining to be resolved.
The Australian Government also maintains dialogue
with the Organization of the Islamic Conference (OIC),
which has its headquarters in Jeddah. The OIC is a highly
influential, collective voice of the Muslim world and has a
membership of 57 states. It is also the world's second-
largest international organisation after the United Nations.
Defence relationsAustralia and Saudi Arabia maintain close relations
between their respective defence forces. Two Australian
defence attachés are accredited to the Australian Embassy
in Riyadh and are responsible for liaison with the Saudi
Ministry of Defence with respect to defence policy issues,
training and other matters related to defence procurement,
acquisition and industry activities.
Cultural connectionsIn Australia today there are more than 360,000 people
who identify themselves as Muslim. Close to 40 per cent
of these people are Australian-born. The remainder come
from a wide range of countries, principally from the Middle
East (especially Lebanon and Turkey) and North Africa. The
numbers of Muslims resident in Australia of Saudi Arabian
origin are small, and in the main are comprised of students
and their families who intend eventually to return to home
after completing their studies.
Muslims in Australia have a special affinity with the
Kingdom of Saudi Arabia as the centre of the Islamic world
and site of the Holy Cities of Makka and Medinah. The two
great pilgrimages, of the Hajj and Umrah, attract several
THE SAUDI — AUSTRALIAN RELATIONSHIP | 19
Group leaders at the G-20Summit 2010 in Seoul, South Korea. Pictured above in the top row, third from the left is Saudi Arabia's
Foreign Minister, Prince Saud al-Faisal, and in the middle row, third from the right the Australian Prime Minister Julia Gillard.
thousand Australians Muslims each year. Many others
travel the same route at other times of the year, and this
type of visit is known as the Umrah, or lesser pilgrimage.
The Saudi royal family and government have been
generous to the Australian Muslim community and
supported the construction and maintenance of a large
number of mosques and schools across the country.
Sporting tiesSport is one of the strongest links between countries.
Australia has much closer relations with India, for example,
as a result of cricket, than might otherwise be the case. In
the past, sporting links between Saudi Arabia and Australia
have been relatively limited, other than through the
Olympic movement. Since 2006, however, when Australia
was accepted into the Asian Football Confederation (AFC),
the two countries have begun to meet more regularly on
the sporting pitch.
Football is one of Saudi Arabia’s major national sports,
and Saudi football teams have been amongst the most
prominent in Asian and world competition. Saudi Arabia
has won the Asian Cup on three occasions (in 1984, 1988
and 1996) and has been runner-up three other times (in
1992, 2000 and 2007). It qualified for the final rounds
of the four World Cups between 1994 and 2006, and
narrowly missed qualifying again in 2010.
In Australia football is played in a number of codes, from
Australian Rules, through Rugby League and Rugby Union.
For many years, soccer, as it was previously known, was the
junior partner. In the last few years, however, the game has
grown rapidly in popularity under the stewardship of the
Football Federation of Australia (FFA), formerly known as
Soccer Australia. The sport is now attracting much larger
audiences, especially after Australia placed 16th in the
2006 World Cup and qualified again for the Cup in 2010,
although eliminated in the first round.
Both Saudi Arabia and Australia will be represented in
the final rounds of the Asian Cup in Qatar in 2011, and
there will be many opportunities for Saudi Arabian and
Australian teams to meet on football fields in future. The
games will attract large spectator and viewing audiences in
their respective countries, thus building more people-to-
people contacts and extending sporting links.
In terms of other sports, horse racing, endurance
riding and show jumping are popular pursuits in
both countries, and will be covered in the section on
the equine trade. Camel racing is of appeal, too, and
Australian camels have raced with some success in the
20 | THE KINGDOM OF SAUDI ARABIA — AUSTRALIA: REGIONAL PARTNERS, GLOBAL LEADERS
Like Australia, Saudi Arabia has
increased its development assistance
in recent years…from $US1.7 billion
in 2004 to $US5.6 billion in 2008.
region. Scuba diving, windsurfing and sailing are also
very popular in both countries.
Development assistance programsBoth Saudi Arabia and Australia have extensive bilateral
humanitarian assistance and development programs. Both
are active in international agencies, such as the various
United Nations assistance programs, the World Food
Program and the International Monetary Fund (IMF), as
well as the International Committee of the Red Cross.
Saudi Arabia’s bilateral aid program has contributed
to close to 4000 projects in over 70 countries (including
over 40 African and 25 Asian countries, and five other
countries, such as Bosnia, Kosovo and Albania) since
its inception. The Saudi Development Fund (SDF) was
established in 1975 as the prime agency to deliver
development assistance through a range of instruments,
including concessional loans for in-country projects,
budgetary and policy support, as well as debt relief
programs. Like Australia, Saudi Arabia has increased its
development assistance in recent years. According to
the Development Cooperation Directorate of the OECD,
Saudi Arabia’s development assistance increased from
$US1.7 billion in 2004 to $US5.6 billion in 2008. Based on
these figures, the Kingdom’s development assistance as a
percentage of gross national income grew from 0.5 per cent
in 2005 to 1.5 per cent in 2008 — a three-fold increase.
The Australian Agency for International Development
(AusAID), established in 1974, is the Australian
Government agency responsible for managing Australia’s
overseas aid program. It operates across an arc of
countries from the Pacific Islands, through southeast
and south Asia, into the Middle East and Africa.
AusAID plans and coordinates Australia’s poverty relief
programs, development assistance, as well as responses to
humanitarian disasters previously undertaken by a range
of government departments. AusAID’s current program
for the financial year 2009–10 is valued at $A3.8 billion.
It gives priority to programs that generate employment,
develop sustainable agriculture and deliver basic services
such as healthcare and education. It is targeted to provide
assistance to the most vulnerable.
THE SAUDI — AUSTRALIAN RELATIONSHIP | 21
Hon. Simon Crean MP Mister for Trade
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