RIYADH: Saudi Minister of Commerce Majid Al-Qasabi highlighted on Tuesday a significant shift in the country’s trade focus during a panel discussion at the World Economic Forum, which runs until Jan. 19 in Davos.
The event, “Frictionless Services,” was moderated by CNBC Africa senior anchor Fifi Peters and included Martin Eurnekian, CEO of Corporacion America Airports, and Andre Esteves, chairman of Banco BTG Pactual SA. It covered a wide range of topics, including banking, insurance, tourism, education, and logistics.
Al-Qasabi said that when he first assumed his role at the ministry he noticed that the prevailing trade culture was heavily centered around goods and commodities, with services being largely overlooked. This observation, he explained, had led to a pivotal redirection in trade policies.
The minister praised the services sector for its central role in global trade, pointing out that it attracted more than three-quarters of foreign direct investment. He also highlighted the sector’s potential in promoting gender equality as it tended to employ a higher proportion of women compared to other sectors.
The minister expressed a commitment to prioritizing the trade of services and addressing the challenges that hindered its development. This shift is part of Saudi Arabia’s broader strategy for economic diversification, which is a key objective of the nation’s visionary transformation plan.
To reinforce this new direction, comprehensive strategies have been developed across all sectors, including specialized regional strategies for key areas such as Makkah, Riyadh, and AlUla.
Al-Qasabi spoke of the importance of overhauling the legal infrastructure and streamlining business operations as fundamental steps toward global competitiveness.
The minister said: “Bureaucracy and red tape is the enemy of investment.”
When asked about the Saudi-Africa summit, which took place in November in Riyadh, Al-Qasabi said: “Africa has only focused on two out of 12 sectors, and 65 percent of trade of services in Africa is only in tourism and distribution. So there are huge opportunities in the remaining 10 sectors, finance, education, health, logistics, and the list goes on.”
He outlined a three-pronged approach: identifying opportunities in Africa in collaboration with the private sector; resolving regulatory barriers for smoother operations; and tackling remaining challenges.
