- Saudi Arabia explores investment opportunities in Caribbean at special summit
A senior Saudi minister told the opening of CARICOM-Saudi Arabia summit in Riyadh that the Kingdom is keeping a “keen eye” on Caribbean business potential.
Tourism Minister Ahmed Al-Khateeb was among several officials, chiefs of state, and corporate sector leaders at the event, which focused on strengthening bilateral relations and forming new collaborations between the Kingdom and the 15-member Caribbean Community.
Public Investment Fund, Aramco, Saudi National Bank, SABIC, and Saudi Fund for Development were in attendance.
Al-Khateeb told the audience, “We want to build steps by connecting you with Saudi investors… with a keen eye on investing in your region.”
SFD has employed $670 million in CARICOM, with $200 billion in projects under consideration, said Saudi Minister of State for Foreign Affairs Adel Al-Jubeir at the summit.
Saudi Investment Minister Khalid Al-Falih inaugurated the summit by saying, “The Caribbean is a high-priority economic investment and business opportunity for Saudi Arabia.”
He added: “The historic and important inaugural Saudi-CARICOM Roundtable Meeting marks a new and exciting chapter in the partnership between the Kingdom and CARICOM.”
SFD CEO Sultan Al-Marshad signed two development memoranda with St. Vincent and the Grenadines and St. Kitts & Nevis.
The $50 million arrangement with Saint Vincent and the Grenadines funds the renovation of many natural disaster-damaged buildings and facilities.
The fund said funding this project will repair critical infrastructure and boost economic resilience.
The firm will invest $40 million in Saint Kitts and Nevis’ Needsmust Power Plant expansion under the second contract. This project strengthens the energy industry, improves quality, and expands access.
Al-Marshad stated at the meeting that the Saudi Fund has provided long-term loans to CARICOM nations for over 40 years, funding 25 projects in education, health, energy, and logistics.
Looking ahead, he said the body has technical teams ready to review CARICOM’s development projects and help prepare for loan clearance.
Tourism is vital to the Caribbean economy and attracts investors. Financial services group BDA Aruba estimates that the sector accounts for 20% of the GDP of the 34 nations in the area.
Tourism accounts for 10% of Caribbean exports to Ecuador and Peru.
The Minister of Investment stated Saudi Arabia may consider a direct flight from the Kingdom to Caribbean nations through its own airline, Riyadh Air, to strengthen regional ties.
A direct 12-hour flight between Saudi Arabia and the Caribbean was successfully tested on Nov. 15 as a potential “gateway” to South America, according to CARICOM chairman Roosevelt Skerrit.
“The Caribbean, though we are small island developing states, we have tremendous opportunities for significant investments (as) we have great logistics opportunities for shipping and air connectivity,” Jamaican Prime Minister Andrew Holness said.
He noted that the countries had “incredible opportunities in tourism” with many unknown jewels they hope would attract Saudi investment.
“If we focus on investment as the strategic direction for development, our investors can rest assured that the entire region has made commitments to strengthen and deepen our institutional frameworks to protect investment,” said Holness.
In front of renewable energy leaders, the minister of state called for state collaboration before COP 28 and beyond.
Saudi Arabia’s ACWA Power Chairman and founder Mohammad Abunayyan told the meeting that the world’s most competitive and largest renewable energy storage company is “more than happy” to share its technology, capacity, and knowledge with Caribbean nations.
ACWA Power produces 7.6 million cubic metres of desalinated water everyday, he said.
With $78 billion in assets under management and over 50 gigawatts of power produced, it has invested in 14 nations in renewable desalination and, most recently, green hydrogen.
Saudi climate ambassador Adel Al-Jubeir told the event that the Kingdom is committed to the Paris Agreement, which guarantees climate change fairness and renewable energy for developing nations most vulnerable to global warming.
“We have a strong bond with your nations and believe in helping climate-affected nations. This was done quite laterally. We believe that is the best path forward,” he said.
On the global climate change agenda. We want fairness in the system. We reject hypocrisy. We reject contradictions. We don’t score political points. We believe in problem-solving. We value science, Al-Jubeir said.
Saudi Arabia will invest $1 billion in a company to promote rising nations. Within “a few months,” the minister stated this project will launch.
Al-Jubeir claimed the Kingdom is one of the “very few countries” that met UN commitments “decades ago” to provide 0.7 percent of GDP for international assistance.
The ministry of investment announced plans to arrange one-on-one meetings between Saudi Arabian private sector enterprises and Caribbean delegates. These workshops will facilitate in-depth investment talks.
Aramco Trading currently has storage in CARICOM countries and wants to expand to offer items to the region.
At the meeting, Aramco trading’s representative said, “We have examined and we’re now reviewing various processing deals with the existing oil refineries in (CARICOM), where we can provide and handle all the off-take and supply of crude oil feedstocks and refined products to CARICOM
Al-Jubeir said: “We need partnerships” as the Kingdom embarks on Vision 2030’s “tremendous transformation”. Engage with the world. We want global participation.”
