Saudi Arabia looks to U.S. companies for environmental technologies - includes a related article on Department of Commerce's international trade missions

The Middle East environmental technologies (ET) market is growing rapidly. For example, the market for ET products in Saudi Arabia is expected to grow from $35 million in 1994 to more than $50 million in 1998. At the same time, U.S. exports of ET goods are expected to increase 7-8 percent per year. Overall, the World Bank has estimated the investment needs of the environmental sector in the Middle East at more than $100 billion over the next 10 years; Saudi Arabia is looking to build even closer commercial relations with U.S. ET firms to fulfill these regional needs. "Five years ago there was little discussion about the environment, but now everybody is talking," according to the American Embassy in Riyadh, Saudi Arabia. Adding to this increased attention is the fact that the country's industrialization and urban growth since the late 1970s have increased levels of pollution and waste. Now, one of the best ways for U.S. firms to get involved is to participate in the first U.S. Government-supported environmental trade show and conference in the region, Saudi Envirotech '97, September 21-24, 1997. To sign up for the show, contact the Riyadh Exhibition Company Ltd. in Saudi Arabia, tel. 011-966-1-454-1448, or fax 011-966-1-454-4846.

Increasing Concern

Concern for the environment runs high in Saudi Arabia. The Saudi Arabian Government has stepped up participation in international and regional forums concerning environmental issues. They have also hosted numerous environmental seminars involving senior public officials and the private sector. Recently, efforts to preserve the environment are being recognized in Saudi Arabia. Last May, the Second Deputy Prime Minister and Minister of Defense and Aviation Prince Sultan Ibn Abdul Aziz received the Arab Man of the Environment Award for 1996 in Jeddah. This award reflects the appreciation of the Arab world for the efforts made by Saudi Arabia in the field of the environment and the country's support for environmental activities.

Best Prospects for U. S. Exports

Environmental solutions are needed in Saudi Arabia and the Middle East region to sustain economic development without damaging the environment. The best prospects for U.S. exports include equipment and technology for improving wastewater treatment, sewage treatment, recycling, solid waste management systems, air pollution control equipment and, monitoring devices. In addition, more than $2.5 billion worth of desalination plant projects and $3 billion in power plant projects and upgrades offer excellent opportunities for American ET exports to the Gulf region over the next couple of years.

Project Opportunities

* Construction of a waste recycling plant is under construction in Jeddah. This waste recycling plant will process 250,000 tons per year of food, paper, and wood. There are also plans to establish separate plants in other cities such as Micah and Yanbu.

* Another recycling venture is planned for the Eastern Region, which will convert the country's estimated 400,000 barrels of daily oil residues into useful products.

* The Saline Water Conversion Corporation (SWCC) is implementing the third phase of an $830 million reverse osmosis power plant on the East Coast of Saudi Arabia. SWCC is also building a $1 billion desalination and power plant at Shuaiba. By 1998 a total cost of $80-84 million will be spent to build another desalination power plant at another location.

* Plans for the construction of a $100 million waste recycling plant and a sanitary landfill in Jeddah are underway. Jeddah is also looking to build a state of the art sanitary landfill to deal with the country's increasing disposal concerns.

Financing Incentives

There are no trade regulations against U.S. exports of environmental technologies into Saudi Arabia. In most cases, U.S. environmental equipment can be exported to the country duty-free. The Saudi Arabian Government (SAG) strongly encourages joint ventures in this sector. There are no restrictions on the movement and repatriation of capital, nor on derived profits from local investments in Saudi Arabia. Other incentives such as long-term, low-interest loans for environmental projects may be available from the SAG.

Saudi

Envirotech '97

U.S. companies are strongly encouraged to participate in the USA Pavilion that is being organized by the Riyadh Exhibition Center and supported by the American Embassy and consulates in Saudi Arabia at the Saudi Envirotech '97 trade show and conference. This international trade exhibition is the environmental event of the year for the Middle East. Industry professionals, senior government officials, and decision-makers will meet their international counterparts to discuss the latest environmental solutions and evaluate evolving technology and environmental equipment and products. More than 100 environmental firms are expected to exhibit at the show, and our goal is for the USA Pavilion to be the largest of all. The USA Pavilion will include an opening ceremony by Anne L. Alonzo, Deputy Assistant Secretary for Environmental Technologies Exports, and a reception for American firms to meet key decisionmakers.

For information about the show, contact Corey Wright or Cindy Dabner, U.S. Department of Commerce, Environmental Technologies Exports, tel. (202) 482-5225, or fax (202) 482-5665.

To reserve your space now, contact Hubeeb Saeed at the American Embassy-Riyadh, Saudi Arabia, tel. 011-966-1-488-3800, or fax 011-966-1-488-3237, and relay your request for an exhibition booth to the Riyadh Exhibition Company.

                   1994(*)  1995(*)    1996(*)  Projected Average
                                     Growth Rate
Import Market       30.8      32.5      34.5       5.6 percent
Local Production     5.0       5.5       6.0       10 percent
Exports              0.5       0.6       0.7       20 percent
Total Market        35.3      37.4      39.8       7-8 percent
Imports from U.S.    8.5       9.1       9.8       7-8 percent
Exchange Rates      3.75      3.75      3.75       n/a

COPYRIGHT 1997 U.S. Government Printing Office
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