SAUDI ARABIA A GOOD OPTION FOR M'SIAN BUSINESS

DUBAI, March 17 (Bernama) -- Malaysian companies have been urged to grab
various business and investment opportunities in Saudi Arabia, the largest
market in the Middle East, and in areas such as housing, education, halal
industry, furniture, tourism, healthcare and franchising.

The Malaysian trade commissioner in Jeddah, Amran Yem said despite the
current economic downturn, Saudi Arabia was forging ahead with development
efforts, having announced a budget of tens of billions of dollars for 2009.

"Many countries in the Gulf region are reportedly postponing projects and
activities but this is generally not the case for oil-rich Saudi Arabia," he
told reporters ahead of the Malaysia Services Exhibition (MSE) 2009
at the Dubai Airport Expo which opens here Tuesday.

According to Amran, Saudi Arabia held Malaysia in high esteem for its
know-how, competency and good work ethics shown, and this should be leveraged
upon by Malaysian firms.

Elaborating on the opportunities in Saudi Arabia, he said Saudi businessmen
had invited Malaysian partners to set up a furniture factory in Jeddah to cater
to the growing number of hotels and offices as well as residences.

"They are willing to provide the land and build the factory, with the
Malaysian side bringing in the machinery," he said, describing this initiative
as an opportunity not to be missed by Malaysian businessmen.

Another area worth exploring is housing, as according to Amran, between 60
to 70 percent of Saudis did not own their own homes.

"They stay with their families and this contributes to Saudi Arabia
having one of the highest household densities in the world," he said, adding
that reports suggested that the country would need up to three million homes
within the next few years.

The trade commissioner said the Saudis were also focusing on the tourism
sector, with several related projects coming up in places like Jeddah and Taif.

"In this regard, they welcome ideas and investments from Malaysia as well as
expertise in hospitality and tourism management," said Amran.

He said there was huge potential in the halal industry in Saudi Arabia
where Malaysia could not only export more products to the Kingdom but
also collaborate with relevant authorities there to further improve
certification procedures and processes.

In education, he said Malaysian education providers could eye opportunities
in fields such as vocational training, accounting, finance and hotel
management.

Further avenues for business were present in Saudi Arabia's health sector
where demand had outstripped supply, according to Amran.

The trade commissioner said total trade between Malaysia and Saudi Arabia
hit US$3.3 billion in 2008, with petroleum being Saudi Arabia's major export.

Malaysia's exports to the Kingdom stood at US$1.1 billion last year, with
iron and non-alloy steel topping the list.

Meanwhile, the three-day MSE 2009 is being organised by the Malaysia
External Trade Development Corporation (Matrade) which has brought in over 200
Malaysian service providers representing 13 business clusters. Among them are
construction,franchising, ICT, oil and gas, engineering and financial services.

-- BERNAMA