10 priority sectors.. Areas of economic cooperation between Saudi Arabia and Latvia

Latvia is strengthening trade relations with Saudi Arabia, allowing Latvian companies to contribute to the kingdom's Vision 2030 of social reform and economic diversification agenda, said Ilze Endriksson, Minister of Economy of Latvia.

Speaking after the conclusion of the Saudi-Latvian Business Forum in Riyadh earlier this month, Endrickson emphasized the need to expand economic cooperation, boost bilateral trade, and increase investment in research, development and technology.

Joint Economic Commission

"The establishment of the joint economic committee will not only be an implementation of this specific bilateral agreement (signed in Riyadh), but will also work to develop various links not only between companies but also between ministries," she said.

On June 7, the Federation of Saudi Chambers and the Latvian Investment and Development Agency signed an agreement to establish a joint economic committee aimed at improving information exchange and strengthening cooperation between Saudi and Latvian companies.

Cooperation sectors

The agreement focused on several sectors, such as trade, investment, finance, transportation, logistics, tourism, agriculture, and the food industry, as well as high-value areas in the latest technologies.

The forum was attended by representatives of government agencies, members of the local business community and 20 Latvian companies.

Speaking about the recent forum, Endriksson said that Latvian companies have shown great interest in a range of Saudi sectors, including biomedical, pharmaceutical, construction, information and communication technology, and creative industries.

 History of relationships

The Kingdom of Saudi Arabia and Latvia established diplomatic relations for the first time on March 21, 2003, at the headquarters of the Permanent Mission of the Kingdom of Saudi Arabia to the United Nations in New York.

The signatories were the ambassador and permanent representative to the United Nations at the time, Gents Gegermanis, and the former Saudi ambassador, Fawzi bin Abd al-Majid Shobokshi.

Following the signing of the protocol, the two ambassadors expressed their hope that the establishment of official relations would follow concrete steps to enhance understanding and trade exchange between the two countries.

The evolution of relationships

Since then, Saudi-Latvian relations have developed into a prosperous relationship, enhanced by cooperation and partnerships in various sectors.

Latvia's exports to Saudi Arabia were estimated at $149.35 million in 2022, while the kingdom's exports to the country amounted to $1.41 million in 2021, according to the UN's Comtrade database.

Latvian exports to the Kingdom

Latvia's exports to the Kingdom include grain at a value of $131.6 million. Mineral fuels, oils and distillate products worth $5.6 million; electrical and electronic equipment worth $2.8 million; and pharmaceutical products worth $1.2 million.

10 priority sectors

The forum's recent agreement identified 10 priority sectors for cooperation, which include agriculture, logistics, education, and tourism—areas seeing rapid expansion in Saudi Arabia thanks to the kingdom's Vision 2030 agenda to diversify revenue away from hydrocarbons.

Saudi Arabia and Latvia are now exploring opportunities for cooperation in high-value sectors, such as information and communication technology, digital solutions, smart technologies, smart cities, pharmaceuticals and medical tourism.

This is not the first time that business delegations from Latvia have visited the Kingdom.