President Thabo Mbeki to leave for Saudi Arabia on Tuesday 13 March 2007

Pretoria - South African President Thabo Mbeki will on Tuesday 13 March 2007 depart for Riyadh, Saudi Arabia where he is scheduled to pay a two-day working visit scheduled from Tuesday - Wednesday 13-14 March 2007.

President Mbeki and his delegation including Ministers Dr. Nkosazana Dlamini Zuma, Mosiuoa Lekota, Mandisi Mpahlwa, and Buyelwa Sonjica, as well as senior government officials, will pay this visit to Saudi Arabia within the context of South Africa's commitment to strengthening and consolidating relations with countries of the Gulf with a view to increasing the flow of investment from and economic interaction with the region to ensure a faster and shared economic growth in SA.

Also accompanying the President will be a high-level business delegation representing 34 companies in the mining, construction and property development, telecommunications and IT, financial services and medical equipment and hospital services sectors. In addition, representatives of Coega and Trade and Investment KwaZulu-Natal form part of the delegation.

Issues on the agenda of discussions between President Thabo Mbeki and His Royal Highness King Abdullah bin Abdul Aziz Al-Saud are expected to include, among others:

• The status of bilateral political and economic relations between both countries:
• The support of the government of Saudi Arabia in the promotion of ASGISA, NEPAD and the African Agenda;
• Peace-keeping Missions in Africa;
• Exchange of views on the Middle East, given King Abdullah's mediation initiative between Hamas and Fatah; and
• An assessment of the situation in Iraq and Iran.

While in Saudi Arabia, President Mbeki and his delegation are expected to hold discussions with:

• Prince Salman bin Abdulaziz Al-Saud, Governor of Riyadh
• Mr Abdulrahman bin Hamad Al-Attiyeh, Secretary-General of the Gulf Co-operation Council
• Dr Saleh bin Humaid, Chairman of the Consultative Council
• Prince Waleed bin Talal bin Abdul Aziz Al-Saud, Chairman of Kingdom Holdings
• Businessmen to be hosted by Council of Saudi Chambers of Commerce and Industry and the Saudi Arabian General Investment Authority (SAGIA)

Economic Bilateral Relations

Saudi Arabia is the major supplier of crude oil to South Africa. Over the first eleven months of 2006, 34.2% of South Africa's crude oil was imported from the Kingdom. It is also a major investor in South Africa, the biggest recent investment being that of Oger Telecoms (a subsidiary of Saudi Oger), which now owns 60% of shares in 3CTelecommunications, the holding company of Cell C. Several South African companies are involved in major projects in Saudi Arabia (particularly in the mining sector), while the Kingdom is the third largest market (after Israel and the UAE) for South Africa's products in the Middle East.

South Africa's main exports to Saudi Arabia over the first eleven months of 2006 were citrus fruit and iron and steel products, while imports consisted mostly of crude oil, petrochemical products and chemicals. According to figures published by the Department of Trade and Industry, the details are the following:

South African companies such as Group 5, Bateman, Foschini, Nando's, Mugg & Bean, Galito and Old Mutual have invested in Saudi Arabia, whereas Saudi businesses such as Saudi Oger (which has invested in Cell C), Amintit, Flowtide, Bin Ladin, Sheikh Zahid, Shabatl, Dallah, Albaraka Bank and Al-Yateen Trading have invested in South Africa.

South African Expatriate Community

It is estimated that there are between 5,000 and 10,000 South African expatriates in the Kingdom, most of whom are employed in the health sector, along with business people and other professionals. Some 20,000 South Africans visit Saudi Arabia every year for hajj or umrah. While South Africa's quota for the hajj is only 2,000, the Government of Saudi Arabia allowed this figure to be increased to 7,500 for the 2005 and 2006 hajj periods.

Tourism

As a result of the increase in flights from the Gulf region to South Africa, as well as enhanced marketing efforts, there has been a steady increase in the number of Saudi visitors to South Africa. While South African carriers do not fly to the Kingdom, Saudia operates two flights a week between Jeddah and Johannesburg. These are augmented during the hajj season. South African Airways has a code-share agreement with Saudi Arabian Airlines.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

12 March 2007