RIYADH: Saudi Arabia and Spain are set to strengthen cooperation between small- and medium-sized enterprises thanks to a wide-ranging agreement across key sectors.
The memorandum of understanding, signed by Saudi Minister of Economy and Planning Faisal Alibrahim and Spanish Minister of Economy, Trade and Business Carlos Cuerpo in Riyadh, outlines joint efforts in economic modeling and policy-making.
It aims to back SMEs through partnerships and initiatives, as well as facilitating joint projects and bilateral participation in economic events, according to a statement by the Ministry of Economy and Planning.
The agreement comes as the Kingdom’s Vision 2030 plan aims to further elevate the SME sector’s contribution to 35 percent of the gross domestic product by the end of the decade as part of its economic diversification initiative.
The signing of the agreement coincided with the fourth session of the Saudi-Spanish Joint Commission, which convened in Riyadh. The meeting was co-chaired by Al-Ibrahim and Cuerpo, with senior officials from both countries in attendance.
“Officials from both sides joined the session to discuss ongoing and future initiatives aimed at enhancing economic, social, and cultural collaboration between the two countries,” the Ministry of Economy and Planning said on X.
The session focused on strengthening economic, social, and cultural ties, reflecting the deep-rooted partnership and shared ambitions between the Kingdom and Spain.
The MoU also includes the exchange of information and statistics related to industry, technology and innovation to achieve sustainable development goals within the framework of Saudi Vision 2030.
In an interview with Al Arabiya, Cuerpo described the relationship between Saudi Arabia and Spain as a strong and deepening economic partnership, highlighting the Kingdom’s central role as the European country’s primary trade partner in the region and noting the steady growth in bilateral trade in recent years.
“I say over the past three years, it’s grown by 13 percent. Investment has grown, also, heavily over the past few years. But there is still room for us to grow, for us to further collaborate and further diversify our relations, particularly in terms of investment, and particularly also in terms of the presence of Spanish companies here and also of Saudi companies in Spain,” Cuerpo said.
He continued: “Just look at the presence of Spanish companies in the Kingdom, it has grown by 60 percent over the past three years, and in particular in key sectors for the Vision 2030 like energy, infrastructure or others — water, for example.”
In a move to further strengthen their economic ties, the Saudi-Spanish Business Forum kicked off on May 22 in the Saudi capital with the participation of Alibrahim and Cuerpo, along with over 300 officials and investors from both countries.
The event was organized by the Federation of Saudi Chambers in collaboration with the Ministry of Economy and Planning and the Ministry of Investment.
The forum saw the signing of four agreements between Saudi and Spanish companies across various sectors. In addition, it featured sector-focused sessions and workshops highlighting the investment landscape in both states, including available incentives and opportunities in priority industries.
Addressing the audience, Cuerpo said that his country’s current economic conditions are well-suited to strengthening ties with the Kingdom, highlighting that Spain has reached a record level of financing capacity, according to the Saudi Press Agency.
“He also pointed out that tourism is the main driver of the Spanish economy, and that the country ranks among the leaders in attracting renewable energy projects and in research and development activities related to artificial intelligence,” the SPA report stated.
In his remarks, Alibrahim said the Kingdom is moving steadily toward a knowledge-based economy, underpinned by the goals of Vision 2030. He noted that non-oil sectors accounted for 54.8 percent of Saudi Arabia’s gross domestic product in 2024 — the highest in the country’s history.
“He also pointed out that non-oil sector investments have surged by 70 percent since the launch of the Vision 2030 reform plan, driven by more than 900 economic and structural reforms that have boosted investor confidence and improved the business climate,” as per the SPA report.
For his part, Khaled Al-Hogail, chairman of the Saudi-Spanish Business Council, said the two countries are working to unlock investment potential and expand trade in key sectors.
According to official data, the volume of trade between Saudi Arabia and Spain reached SR22.9 billion ($6.1 billion) in 2024. Saudi exports totaled SR12.4 billion, while imports from Spain stood at SR10.5 billion.
In October, Bandar Alkhorayef, minister of industry and mineral resources, discussed ways to develop economic relations with Cuerpo and increase Spain’s investments in Saudi Arabia.
Alkhorayef highlighted the goals of Saudi Vision 2030 to diversify the Kingdom’s economy and, through various incentives, attract foreign investment in the industrial and mining sectors.
