What are the Most Notable Sectors of Saudi-Canadian Collaboration Economically?

According to Jean Linto, the Canadian ambassador to Saudi Arabia, several Canadian businesses across various industries, including those in the technology and infrastructure sectors, are expressing an increasing interest in setting up regional offices in Saudi Arabia.

KSA: Canada’s Largest Trading Partner in MENA

Along with concluding research and development partnerships, exchange programs, and joint commercial projects, the Canadian Ambassador reaffirmed his nation’s willingness to work with Riyadh to transfer health technology to the Vision 2030 health transformation program.

Saudi media said that the October Global Health Exhibition in Riyadh, featuring 15 Canadian firms, demonstrated the vast potential for collaborations in this crucial field.

The Canadian ambassador disclosed that his July visit to Asir strengthened the government’s and Canadian businesses’ decision to invest in the region, which is Saudi Arabia’s fourth-largest economic zone, a burgeoning travel destination, and rich in culture and history.

He mentioned that during his conversations with Asir authorities, he received a reaction and an exchange of ideas regarding potential investment possibilities in sectors including infrastructure, hospitality, education, and tourism.

Three Canadian health businesses that manufacture cancer and diabetic drugs as well as nutritional supplements have set up shop in Saudi Arabia, according to the Canadian ambassador.

The three businesses are BioAro, a genetics and DNA testing company; Health Espress, a digital healthcare and nutritional supplement company; and Apotex, Canada’s biggest generic drug manufacturer, which makes medications for diabetes, high cholesterol, cancer, blood pressure, and eye pressure.

Saudi Arabia is Canada’s largest bilateral trading partner in the Middle East and North Africa region, and 150 Canadian companies operate in Saudi Arabia in key sectors. Ambassador Linto said that Riyadh and Toronto are looking to increase the volume of trade exchange, which amounts to 12 billion riyals in 2023, in light of expectations that it will see record increases in the coming years.

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Saudi-Canadian Relations

Following talks between Canadian Prime Minister Justin Trudeau and Saudi Crown Prince Mohammed bin Salman on the fringes of the Asia-Pacific Economic Cooperation Summit, Saudi-Canadian diplomatic ties, which had been terminated in 2018, have been restored since late May 2023.

A memorandum of understanding to create the Saudi-Canadian Business Council and begin its work was signed by the Federation of Saudi Chambers of Commerce, which also announced the reopening of the path of economic cooperation and the resumption of commercial activities and events between the business sectors in the Kingdom and Canada.

The memorandum is a solid place to start for promoting trade and investment between the two nations in a way that benefits business sectors and capitalises on the enormous potential of the Canadian and Saudi economies.

The Kingdom’s ambassador to Canada, Amal Al-Moallimi, Mohammed bin Nasser Al-Dulaim, the chairman of the Business Council, and several investors attended a roundtable meeting hosted by the Saudi-Canadian Business Council in the Canadian city of Toronto last October.

The Saudi-Canadian Business Council opened its first office in Toronto, the capital, during the roundtable meeting to further the two nations’ economic cooperation. The council’s responsibilities include raising investor awareness of investment opportunities, promoting business community partnerships and investments, and removing barriers and challenges that investors face.

The Saudi-Canadian Business Council facilitates ongoing communication between the business sectors in the two countries, organises conferences, exhibitions, and trade delegation visits, and gives Saudi and Canadian businessmen a platform to showcase their projects and activities and form business partnerships. It also opens up new qualitative areas for economic cooperation.

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New Avenues for Economic Cooperation

Given that Saudi Arabia is Canada’s biggest trading partner in the Middle East, it is important to note that the two nations have robust economic ties.

According to data from the Saudi General Authority for Statistics, the Saudi market imported Canadian goods valued at an estimated 60 billion riyals ($16.2 billion), totalling approximately 134 billion riyals ($35.7 billion) in trade between 2008 and 2018.

In 2019, the Saudi General Authority for Statistics reported the Kingdom’s imports totalled approximately 9,586 million riyals from Canada, with the most significant imports being automobiles, machinery, pharmaceutical products, electrical appliances, medical devices, and optical and imaging equipment.

In 2019, the Kingdom’s exports to Canada totalled 9,430 million riyals, with the most significant national goods exported to it being metal products, inorganic chemical products, aluminium and its products, plastics and their products, and fruits.

According to government figures, Saudi Arabia is one of the biggest importers of Canadian military hardware and the region’s biggest market for Canadian goods, with 1.65 billion dollars in overall exports in 2021.

In 2021, 15% of Canada’s total imports came from Saudi Arabia, making it the country’s second-largest supplier of crude oil.

In 2022, Canada sent $959 million to Saudi Arabia, mostly in the form of beef ($21.3 million), medicines ($58.4 million), and tanks and armoured vehicles ($545 million). Iron pipes ($10.4 million), aluminium coatings ($57.7 million), and crude oil ($2.38 billion) accounted for the majority of Saudi Arabia’s $2.5 billion in exports to Canada.

Moreover, in 2022, commerce between the Kingdom and Canada increased by 8.3% to 16 billion riyals.

The United Nations International Trade Database (COMTRADE) estimates that in 2023, Canada’s exports to Saudi Arabia totalled $1.59 billion, while Saudi exports to Canada totalled $94.44 million.

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