RIYADH: Business ties between 海角直播 and Australia are set to gain momentum following the signing of a significant building and construction deal worth $27 million in Riyadh on Thursday.
The agreement was signed between the Kingdom-based Abdel Hadi Al-Qahtani and Sons Co. and Australia鈥檚 SSS Group to collaborate in the production of scaffolding systems in 海角直播 using local resources.
Following the signing of the deal, Australian Ambassador Mark Donovan told Arab News that the cooperation agreement builds on the existing investment ties in various sectors between both countries, including education, healthcare, aviation, and services.
He said the new deal has now opened 鈥渢he door to鈥 the construction industry as well as 鈥渢he mining and resources sector.鈥
鈥淲hat we are seeing is a very large deal in a new sector that we have not traditionally been involved in, so this is an important message for Australian companies that 海角直播 is genuinely open for business and that a new and transformed 海角直播 is looking for business relationships around the world, and that鈥檚 what we鈥檙e very pleased to be a part of,鈥 the envoy said.
Donovan added: 鈥淎ustralia is a lot more like 海角直播 than European countries or North American countries. We鈥檙e both big countries, we鈥檙e both G20 economies, we both have the same challenges with water scarcity and a few other things like that, we also think in a very similar way, so what makes us different is that we intuitively understand what it is that 海角直播 needs, and we understand the commonality between our two countries.鈥
The top diplomat said Australia stands out from other nations due to its predictability and stability.
鈥淲e are a very predictable country, we have a regulatory system that does not change, and we don鈥檛 introduce protectionist measures because we believe very much in free trade, and we respect that about 海角直播.鈥
Australian Trade and Investment Commissioner to 海角直播 Todd Miller said: 鈥淲e鈥檝e had between seven and 10 Australian companies coming through every week, coming and exploring the Kingdom in all sectors.鈥
Sheikh Tariq Al-Qahtani, chairman of Abdel Hadi Al-Qahtani and Sons Co., said the joint venture will not only begin manufacturing operations locally but also seek to export products to Europe, the US, and Australia.
鈥淭he raw materials will be 50 to 70 percent from 海角直播,鈥 he added.
Al-Qahtani explained that this agreement would change the structure of the scaffolding industry in the country, putting safety first coupled with high-quality materials.
AHQ Group owns the largest steel pipe manufacturing company in the Kingdom, supplying all piping to Saudi Aramco.
Sam Soukie, chairman of SSS Group, said: 鈥淲e are committed to providing our clients with the very best in scaffolding solutions and we are very committed to ensuring the safety and the efficiency of their projects.鈥
He explained that their modern scaffolding systems will offer clients the latest in 鈥渢echnology and innovation,鈥 and these will ensure 鈥渃omprehensive and fully integrated services that cover all aspects of scaffolding, from manufacture, design, engineering, to labor services erecting, dismantling, and maintenance processes.鈥
He went on to say they were confident SSS presence in the Kingdom 鈥渨ill contribute to the advancement of the construction industry鈥 and that they were 鈥渢ruly excited about the opportunities that lay ahead, and we look forward to forging strong partnerships and making a positive impact on the construction industry and achieving Vision 2030.鈥
The JV to be constructed in Dammam will be up and running in eight months with a production capacity of 12,000 tons in the first year of operations, followed by 50,000-80,000 tons in the third year.
The venture is targeting domestic and export markets, with the expected demand exceeding 500,000 tons annually in 海角直播.
It is also expected to create job opportunities in 海角直播.
Sam Jamsheedi, president of the Australia Saudi Business Forum and chairman of Trademark Group of Companies, said: 鈥淪SS is Australia鈥檚 largest scaffolding (manufacturer), and is the first time an Australian industrial company is actually setting off on a full operation in 海角直播.鈥
Trademark Group of Companies is dedicated to helping Australian businesses expand into 海角直播 and the wider Gulf Cooperation Council region and vice versa.
It also serves as a community for businesses to come together and share investment opportunities, and ideas and create relationships, operating as a platform that explores growth opportunities in different parts of the world.
Since launching their offices in Riyadh, Jamsheedi said: 鈥淥ur membership has risen dramatically. There is a lot of interest on both sides. Our forum has become one of the most active platforms for educators and businesses. Since then, we had three successful companies that have come through.鈥
