Saudi Arabia is partnering with Ethiopia in their mutual effort to increase their economic cooperation, with a particular emphasis on agriculture, manufacturing, and tourism. Their officials met during a forum held in Riyadh, which represents an important landmark for their bilateral ties, as well as the joint willingness to advance toward economic collaboration.
Riyadh Summit: Where Economies Come Together
The Ethiopian-Saudi Arabian Business Council conference, organized by the Saudi Chambers Federation, saw participation of over 150 attendees from both the public and private sectors of Saudi Arabia and Ethiopia. This marks the first major engagement since the formation of the Saudi Ethiopian Business Council in the preceding year, which shows the moving momentum toward enhanced economic interaction.
A New Economic Era: Recognizing Undeveloped Opportunities
This initiative fits within the boundaries of the forethought strategy of Saudi Arabia to reinforce its economic relations with nations in Africa, considering the African continent bears a huge potential and developing economy. Ethiopia has a relatively large population and a fast-growing economy and therefore prominent investment opportunities, making it an important trade access point for Saudi Arabia to penetrate the broader African market.
Ethiopia Invites Investment Offers
The Saudi investors were specifically targeted by Abdulhakim Mulu, who is the state minister for trade and regional integration. He encouraged them to consider the investments available in Ethiopia’s agriculture, food industries, and tourism, as well as the hospitality and industrial sectors. Mulu highlighted Ethiopia’s rapid economic growth along with the improved infrastructure, creating a favorable sentiment towards investment.
Saudi Arabia’s view: The gateway to Africa
Hassan Al-Huwaizi, the CEO of the Federation of Saudi Chambers, focused the attention towards Ethiopia, saying that Saudi Arabia is willing to invest in African countries, primarily focusing on Ethiopia due to its strategic growth. Al-Huwaizi neglects the lack of trade offered between both nations, drawing attention instead to the vast resources the country has, ensuring abundant opportunities for investment.
The Business Council: A Catalyst for Growth
Ethiopia and the Saudi Business Council have been officially registered, under the auspices of Saudi Arabia’s Foreign Trade Authority, since last year. The council is predicted to serve as a major driver for increased economic activity. It fulfills productive agreements made during a previously held forum in Addis Ababa on June 5th, which illustrates the enduring dedication from both sides. The council is predicted to be a major driver in creating the prospects for collaboration, enhancing the value of trade at a greater scale, and attaining more advanced economic relations between Saudi Arabia and Ethiopia.
Ethiopia’s Economic Ascent: A Continent’s Giant
A report by the World Bank in 2024 shows that Ethiopia has a population of around 126.5 million as of 2023, which also makes it the 2nd most highly populated country in Africa. More importantly, it is also one of the fastest-growing economies in the world, with an astounding 7.2 percent growth rate in the 2022/2023 fiscal year. Ethiopia’s economic growth gives out as a sign that the country’s trade partnerships will have a positive outlook in the coming years.
Building A Brighter Future: Ethiopia’s Development Goals
Currently, Ethiopia, with its gross national income per capita of $1,020, is one of the world’s poorest countries. Still, the nation aims to achieve a lower-middle-income status by 2025. This is possible due to years of infrastructure development, which has been instrumental in alleviating poverty and improving the access of essential services to the large population.
A Partnership with Promise
The Saudi Arabian and Ethiopian emerging economic collaboration enables mutual benefits for both nations. Focusing on critical areas of investment, ideally, the landscape of Ethiopia’s growth potential and Saudi Arabia’s investment capabilities are two crucial pieces that can stimulate new opportunities and further drive economic diversification. The Saudi-Ethiopian Business Council is best positioned to develop this engagement and improve the enduring economic cooperation between the two countries.
