Saudi delegation heads to Ethiopia, key economic deals expected

A high-ranking Saudi Arabian investment and trade delegation is expected in Addis Ababa, Ethiopia, on Tuesday night for a working visit focused on strengthening economic ties.

Hassan bin Mujab Al-Huwaizi, the President of the Federation of Saudi Chambers of Commerce, is leading the team of 79.

Nebiyu Tedla, spokesperson of the Ethiopian Foreign Affairs ministry, said the visit was aimed at bolstering economic ties between the countries and exploring new avenues for collaboration.

Via the social platform X on Tuesday, the Ministry of Foreign Affairs said, "Relevant government stakeholders have finalised preparations to enable the delegation to explore opportunities in agriculture, mining, tourism, energy, transport, logistics, and other key economic spheres.”

An undated picture of Nebiyu Tedla, spokesperson of the Ethiopian Foreign Affairs ministry. (Photo: X/Ethiopian MFA)

The delegation is expected to visit manufacturing sites during its three-day stay in Ethiopia. It is also expected that a memorandum of understanding will be signed between the Ethiopian Chamber of Commerce and Sectoral Associations and its Saudi Arabian counterpart.

Ethiopia, with its rapidly growing economy and strategic location, has become an attractive destination for foreign direct investment (FDI) in recent years. The government has implemented mechanisms, such as tax incentives and exemptions, to encourage investment across different sectors.

Saudi Arabia has grabbed opportunities to deepen its relations with Ethiopia, even as it seeks to strengthen its ties with the African continent.

Saudi Arabia's pursuits in Africa date back to the 1970s and were strengthened in 2018 when it appointed Ahmed bin Abdulaziz Kattan as the Minister of State for African Affairs

In November 2023, the Middle Eastern country held its maiden Saudi Arabia-Africa Summit in Riyadh. It was one of several ‘Africa+1’ summits that have taken place recently, the other parties including Italy, South Korea, Russia, the US, and the European Union (EU).

In the case of Ethiopia, Foreign Minister Taye Atske-Selassie and his Saudi Arabian counterpart Faisal bin Farhan Al-Saud met on May 24, 2024, and discussed ways to deepen diplomatic ties and their countries' long-standing bilateral relationship.

On April 2, 2024, a delegation from Ethiopia, led by Deputy Prime Minister Temesgen Tiruneh and Foreign Affairs minister Taye Atsk-Selassie, undertook a working visit to Riyadh, Saudi Arabia's capital, for bilateral talks on matters including strategies to enhance cooperation in the economic, security, and overseas employment sectors.

According to the Embassy of Ethiopia in London, Ethiopia and Saudi Arabia first established diplomatic relations in 1948 and they have progressed steadily since 1991, having fluctuated in between. At the time, Ethiopia's EPRDF government said, “The Middle East is a region that significantly influences our security and economic development in a substantial way."

"Investment is a growing area of cooperation, and a growing number of Saudi investors are engaged in different sectors in Ethiopia, with a total of $369 million currently involved.," the embassy says on its website, noting the presence of at least 69 companies.

The largest investor is Sheikh Mohamed Al-Amoudi, owner of the Midroc Investment Group, which has ventured into hotels and tourism, construction, mining, agriculture, manufacturing, and education.

"Investment is growing, but taking into account the long-standing relations and strong cultural ties between the two countries, considerably more investment should be expected."

Another area of interest is infrastructure development, the embassy says, adding that Saudi Arabia has helped Ethiopia secure support from organisations including the Kuwait Fund, the (OPEC) and the Arab Bank for Economic Development in Africa (BADEA).

Other shared interests include the Horn of Africa and Red Sea security via fighting terrorism, controlling human trafficking, and preventing drug trafficking and other illegal activities.