Saudi sweet deals that are set to stimulate Kenya’s economy
Trade Cabinet Secretary Moses Kuria’s visit to the oil rich Kingdom of Saudi Arabia has produced a variety of bilateral deals on areas of mutual interest, with the gulf country showing readiness to facilitate Kenya’s economic growth.
CS Kuria’s engagement with the host Commerce Minister, Dr Majid Al Qassabi, could just have expanded the market for Kenya’s horticultural exports after Saudi Arabia set itself to build its continental export operations in Kenya, while simultaneously putting up warehouses for Kenyan exports in various Saudi cities.
“Saudi Arabia expressed desire to locate its African Export Operations in Kenya while partnering with Kenya to set up the Kenya International Agency Office in Riyadh and Export Warehouses for Kenyan products in Riyadh, Jeddah and Dammam,” said Mr Kuria.
In meetings with the Saudi Minister for Investments, Khalid Alfalih and Sheikh Yasser Al Rhomaizan, the Governor of the Saudi Public Investment Fund (PIF), the two governments agreed on setting up a joint fund through the Kenya Development Corporation (KDC) and the Saudi Public Investment Fund (PIF) to de-risk investment by the private sector.
“We agreed to initiate a framework of partnership between PIF and the Kenya Development Corporation (KDC) for co-investments in renewable energy, special economic zones, digital economy, water, financial services, infrastructure, logistics and other sectors,” he added.
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Kenya’s beef sector is also in for a tasty after the Saudi government agreed on the expansion of Isiolo International Airport as well as abattoirs and frozen meat warehouses across the area to process meat exports to Saudi Arabia and the rest of the Middle East market.
The country will also enlist the Saudis expertise in water desalination technology to meet sanitation needs for its growing population through water purchase agreements following Mr Kuria’s meeting with Saline Water Conversion Corporation officials.
Saudi Arabia is the world leader in desalination and meets 60 percent of her water needs by treating seawater since the vast desert countries lacks rivers.
“Held a meeting with Saline Water Conversion Corporation and agreed on a framework for cooperation on Private Public Partnership targeting desalination of water based on Water Purchase Agreements (WPA),” said the CS tweeted.
Oil-rich Saudi Arabia’s economy grew by 8.8 percent in the three months to September 2022 compared to the same period in 2021, mainly due to a sharp increase in oil-related trade.