Increasingly focused on Tunisia: Saudis bet on a “highly strategic” direction

Amid the successive visits of Saudi political and economic delegations to Tunisia, the press of the Kingdomhas been questioning lately the reasons behind such a choice.

Reminding that Saudi investments in Tunisia will focus on five sectors, namely automotive, renewable energies, pharmaceuticals, healthcare, and food security, many Saudi media outlets have indicated that the investment of a billion dollars in the Tunisian economy is not seen as a gift. According to them, it is rather seen as a strategic orientation. Especially since the recent visit of a Saudi delegation of over 100 businessmen and investors accompanying the Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, resulted in concrete proposals and clear synergies. The two countries have therefore developed large joint projects.

Among the most prominent businessmen in the delegation were the general manager of the Saudi Exim Bank, Saad Alkhalb, the president of the Federation of Saudi Chambers of Commerce and Industry, Hassan Al-Huwaizi, and the president of the Tunisian-Saudi Business Council, Omar Al-Ajaji.

“Together towards 2030” and the euphoria of a major Saudi transformation

The visit of the Saudi minister and the delegates accompanying him to Tunisia was crowned by the signing of seven memoranda of understanding on tourism, environment, agricultural research, meteorology, climate, water, and labor.

Commenting on this news, the Saudi press hailed this rapprochement, which it believes bodes well for a good Tunisian-Saudi relationship, as the Kingdom is preparing to embark on major projects for the future. In the same vein, Saudi officials and media have highlighted the Saudi investment opportunities offered to Tunisia as part of the Kingdom’s Vision 2030.

Driven by its willingness to cooperate with an active partner, the Kingdom seems determined to boost bilateral trade with Tunisia, following Riyadh’s development plan. The Kingdom aims to forge regional and international alliances as part of diversifying its economy and geostrategic partnerships.

According to the Saudi press, with a low amount of 310 million dollars per year, Tunisia ranks fifteenth among the Kingdom’s trading partners in the Arab region.

Tunisia and its valuable assets

During the Saudi-Tunisian investment and partnership forum, Alkhorayef discussed the “great opportunities” available to both countries, particularly emphasizing Tunisia’s favorable geographical location.

In line with him, many Saudi media outlets referred to maps to confirm the importance of the strategic commercial gateway linking the north and south of the Mediterranean, as well as the Maghreb to the Levant. For them, Tunisia, this “gateway to sub-Saharan Africa,” can only be a key ally of a Kingdom firmly focused on the future.

“Tunisia is thus at the gates of markets encompassing 1.4 billion consumers and benefits from commercial partnership agreements with several blocs. These include the association agreement with the European Union, the Agadir multilateral free trade agreement, the Greater Arab Free Trade Area, the Common Market for Eastern and Southern Africa (Comesa), and the African Continental Free Trade Area (AfCFTA),” commented the Saudi press.

It is worth noting that the same agreement also includes bilateral agreements aimed at establishing a free trade zone with Libya, Egypt, Morocco, Jordan, and Iraq, as well as an agreement to establish a free trade zone with Turkey.

The new Saudi Exim Bank, established in February 2020, will facilitate the strengthening of bilateral trade and access to new markets. This financial institution’s mission is to promote the development and diversification of Saudi exports, enhance their competitiveness, guarantee export credits with competitive advantages to build confidence in Saudi exports, penetrate new markets, and reduce non-payment risks. It also provides credit facilities for imports.

By the end of 2022, the Saudi Exim Bank had allocated 200 million dollars to finance Tunisian imports of Saudi oil derivatives. It is now up to the Tunisians to act.