Latvia is looking to strengthen its trade ties with Saudi Arabia, with Latvian companies eager to contribute to the Kingdom’s Vision 2030 social reform and economic diversification agenda. The Federation of Saudi Chambers and the Investment and Development Agency of Latvia recently signed an agreement establishing a joint economic committee designed to improve information sharing and foster cooperation between Saudi and Latvian companies. The agreement focused on several sectors, such as trade, investment, finance, transport and logistics, tourism, agriculture and the food industry, as well as on high-value areas in cutting edge technologies. The recent forum agreement identified 10 priority sectors for cooperation, which included agriculture, logistics, education, and tourism — areas undergoing rapid expansion in Saudi Arabia thanks to the Kingdom’s Vision 2030 agenda to diversify revenues away from hydrocarbons.
Latvian exports to Saudi Arabia were estimated at $149.35 million in 2022, while the Kingdom’s exports to the country totaled $1.41 million in 2021, according to the UN Comtrade Database. Latvia’s exports to the Kingdom include cereals worth $131.6 million; mineral fuels, oils and distillation products worth $5.6 million; electrical and electronic equipment worth $2.8 million; and pharmaceutical products worth $1.2 million.
Latvian companies have shown a readiness to establish their presence in Saudi Arabia, considering it a high-priority market in the Gulf Cooperation Council area. They are also eager to cooperate with their Saudi counterparts to help them expand into Europe by leveraging Latvia’s strategic location, EU membership and strong logistics infrastructure. Although Latvia is a small country, it has “a very strong reach” into EU markets, making it an ideal partner for outside investors.
Latvia’s “Green Channel” initiative offers efficient tools for foreign companies operating within bureaucratic spaces, and provides the necessary education and support to help businesses grow. The main purpose of the initiative, launched by the Ministry of Economics and the Investment and Development Agency of Latvia, is to relieve administrative burdens for high value-added investments. Priority sectors include ICT, bioeconomics, smart materials, photonics, biomedicine and smart energy, as well as construction, transport and logistics linked to these smart industries. Saudi firms are now well placed to benefit also, streamlining their access to European markets.
Latvia’s Economics Minister Ilze Indriksone highlighted the role of the Investment and Development Agency of Latvia, which is actively working in the region. She said her government plans to organize trade missions, disseminate information about the special business and investment regulations, and promote some of the most developed sectors in her country, such as pharmaceuticals. Education and the exchange of information are considered vital to fostering cooperation between the two nations.
Indriksone said a Saudi delegation plans to visit Latvia in July to follow up on the developments at the Riyadh forum and to take steps to establish a business council to deepen cooperation. The recent agreement establishing a joint economic committee will not only be the execution of this specific bilateral agreement but will also develop different connections not only between the businesses but also between ministries.