U.S. Deputy Secretary of Commerce Bruce Andrews delivered keynote remarks to the American Business Group of Riyadh (ABGR), which serves as a platform for American businesses in Saudi Arabia. In his remarks, he highlighted the United States’ desire to help Saudi Arabia fulfill the goals of its Strategic Partnership for the 21st Century – the Saudi Government’s commitment to diversifying their economy, creating a better environment for investment and innovation, and expanding job opportunities for youth.
Remarks As Prepared for Delivery Thank you, Ambassador Westphal, for the kind introduction and for the generous hospitality you and your team have shown me here in Riyadh.
This is actually my second visit to Saudi Arabia. I first came here two years ago with Secretary Pritzker during a business development mission to the Gulf region, and it’s great to be back this week.
No matter where I travel, I always love to meet with local American business networks. Each one of you serves as an invaluable source of knowledge, insight, and guidance. We are grateful for all that you do to strengthen our country’s economic ties with Saudi Arabia.
As you all know, the United States and Saudi Arabia share a deep and enduring strategic relationship. Our commercial partnership has remained strong for more than 80 years. American oil firms first discovered oil here in the 1930s, forever transforming this country’s economy. And in the decades since, many more companies have found business success here in the Kingdom.
Today, our economic partnership is thriving. In 2015, U.S. companies exported more to the Kingdom of Saudi Arabia than they ever have in the history of our bilateral relationship – over $19 billion. This increase in trade has occurred during a period of low oil prices, demonstrating that our commercial relationship is now much broader than just oil.
Last September, King Salman and leaders from the Saudi Government visited Washington to meet with President Obama and discuss the state of our bilateral relations. During that trip, Saudi leaders announced plans for the Strategic Partnership for the 21st Century. We applaud the Saudi Government’s commitment to diversifying their economy, creating a better environment for investment and innovation, and expanding job opportunities for youth.
The primary goal of my visit this week is to better understand how the United States can support Saudi Arabia through this Strategic Partnership. We’re approaching this partnership from two different angles. First, our country has learned many lessons – some of which we gained the hard way – about economic development, attracting foreign investment, creating competitive sectors, encouraging research and development, and training workers. We are eager to share with the Saudi Government our experiences as they may apply to the Kingdom.
Second, the Strategic Partnership presents significant opportunities for you in the U.S. private sector. Saudi leaders recognize that the innovative technologies, solutions, and expertise that American firms bring will be essential to meeting Saudi Arabia’s economic goals. They have said that the Kingdom must improve its efficiency and further develop civil society to grow its economy and broaden prosperity. U.S. companies across a range of sectors have solutions that can help save money and contribute to a more competitive economy. But if we are to maximize the impact of U.S. companies, there are a few lingering challenges we must address together.
The U.S. Government is supportive of Saudi Arabia’s challenging transition – but I want to underscore our intention to ensure that U.S. companies are not discriminated against or negatively impacted along this road by national transformation plans.
Today, during my meetings with the Saudi government, I plan to address several of these issues. First, U.S. companies must get paid on time. Second, as Saudi Arabia undertakes the hard work of transforming its economy, the Kingdom must engage with private sector leaders and use their feedback to shape new trade policies.
I want to encourage Saudi Arabia to consider the WTO government procurement agreement. This would help create more transparency and predictability in Saudi Arabia, and it would level the playing field for U.S. companies competing here. In addition, it is tempting for a country that is experiencing sharp revenue cuts and high unemployment to “capture” or “force” investment out of foreign companies operating in the market.
I want to emphasize that it is vastly more beneficial to establish a trade policy framework and business environment that is attractive to investors. Countries all over the world are taking steps to make their markets more attractive to international firms. In a world with mobility of capital, it is not enough to simply make your market slightly more attractive or to make it slightly easier to do business. You must do everything you can to make your market the most attractive investment destination it can be.
By tackling business climate concerns, we can deepen the already strong ties between our private sectors and our governments. Put simply: the United States wants Saudi Arabia to succeed, and American companies want to help Saudi Arabia fulfill the goals of the Strategic Partnership.
At the Department of Commerce, we are committed to expanding business-to-business opportunities for American exporters. For example, last October, we brought representatives from 15 U.S. firms to Riyadh and Jeddah as part of an architecture and engineering trade mission. The companies were some of the world leaders in designing and constructing buildings that minimize electricity consumption through green build technology. They saw firsthand the opportunity here in Saudi Arabia.
It is not surprise that – as the Saudi economy grows – electric demand will also increase. In fact, Saudi Arabia experiences an average annual electricity growth rate of 10 percent each year. I believe U.S. companies focused on power generation, distribution, and efficiency solutions can play an essential role in helping the Kingdom keep up with this demand. And they can do it by providing cutting edge technology solutions that will make the Kingdom more sustainable.
We also see healthcare as another key sector for collaboration. Our Department has organized a delegation from around 20 leading American hospitals, health IT companies, and healthcare training providers that will visit Saudi Arabia next month. This delegation will learn how their expertise can support Saudi Arabia’s goal of modernizing its healthcare system.
As Saudi Arabia undertakes the challenging but fulfilling work of engaging in this Strategic Partnership, we have a moment of opportunity. Now is the time to strengthen the bonds between our countries and develop relationships that will help both of our nations achieve their goals.
In addition to the healthcare trade mission I just mentioned, our Department has plans to lead two other missions to Saudi Arabia in the next year – one focused on safety and security solutions, and another featuring electric power technology companies. These missions – and my presence here today – send a clear message to the Saudi Government: we want to work with you to seize this moment of opportunity.
This is a long term game. I am confident that the Saudi Government’s new priorities will ultimately bring greater prosperity to its people and prove beneficial to your companies. For nearly a century, business leaders like you have played a key role in maintaining strong overall ties between our nations. If done right, the Strategic Partnership can cement our private sectors as the backbone of the U.S.-Saudi relationship for decades to come. Thank you.
Source: U.S. Department of Commerce
