European Chamber of Commerce opens its chapter in Saudi Arabia

A full-fledged chapter of the European Chamber of Commerce was inaugurated in Riyadh, marking a significant milestone in economic collaboration between the European Union and Saudi Arabia. The establishment of the European Chamber of Commerce (ECCKSA) marks a significant step in strengthening economic ties between the EU and the Kingdom, in line with the strategic partnership between the EU and the GCC announced in May 2022. 

The high-profile inaugural ceremony was attended by several distinguished guests, including Ibrahim Al-Mubarak, Assistant Minister of Investment, Luigi Di Maio, EU Special Representative for the Gulf, and Christophe Farnaud, Ambassador of the European Union to Saudi Arabia, Oman & Bahrain. Lorcan Tyrrell, ECCKSA’s chairman, Kristijonas Gedvilas, chief executive officer, several ambassadors of the EU countries, and top-notch executives of European companies were also present.

The ECCKSA will serve as a platform to facilitate business cooperation, promote trade and investment, and support the alignment of regulatory frameworks, fostering a conducive environment beneficial for both the EU and Saudi businesses. The European Commission played a pivotal role in supporting the establishment of the Chamber, recognizing its potential to deepen economic relations and enhance trade facilitation between the two partners.

In his keynote speech, Assistant Minister Al-Mubarak said, "The establishment of the ECCKSA will  boost trade, investment, and cross-border cooperation, supporting the Kingdom’s economic diversification efforts.” He added that the initiative aligns with the Kingdom’s national transformation plan and Saudi Vision 2030, focusing on creating new opportunities in non-oil sectors.

Al-Mubarak pointed out that “the foreign direct investment from Europe has doubled to about SR218.5 billion over the past five years.” He said that more than 300 European companies had been licensed to move their regional headquarters to Riyadh with a target for attracting 480 such companies by 20230. 

In his speech, Luigi Di Maio, EU Special Representative for the Gulf, said: “The establishment of the ECCKSA marks an important new chapter in the strategic partnership between the European Union and Saudi Arabia. I am convinced that this initiative will be key in bringing our economies closer. The ECCKSA will certainly become a point of reference for European companies doing business in the Kingdom and Saudi companies looking for partners and markets in the EU.”

Maio further said that the ECCKSA will facilitate joint ventures and boost trade and investments in both directions. “There is so much untapped potential and space to grow in our economic cooperation, and I am confident that the next months and years will bring about more substantive and sustainable progress,” added Maio. The Chamber, he said, will be a catalyst for fostering stronger ties between our business communities and supporting Saudi Arabia's economic diversification journey under Vision 2030.”

Speaking on his part, Ambassador Farnaud said that “the opening of the ECCKSA is a major development at this crucial time when the Kingdom is undergoing spectacular transformations.” This chamber, the first in the Gulf region, has been set up precisely to facilitate business and business-to-business contacts between the two sides, said the ambassador, while referring to the progressively growing relations in the commercial sector.

He pointed out that the European Union collectivity is the second largest trading partner of Saudi Arabia. “In terms of foreign direct investment, we come first,” said Farnaud. He noted that the investment between Saudi Arabia and Europe has  increased by 60 percent. The ECCKSA will further boost trade and investment, said  Kristijonas Gedvilas, ECCKSA’s chief executive officer, in his presentation during the inaugural ceremony.

“Today marks a cornerstone for economic collaboration between Europe and Saudi Arabia. At ECCKSA, we are dedicated to strengthening economic ties and building a vibrant business ecosystem that supports our shared vision,” said Gedvilas. “Our immediate focus will be on expanding our membership, engaging businesses actively, and providing them with invaluable resources and opportunities that foster growth and innovation across both regions”, he added.

He also called on companies to come on board as ECCKSA members as early as possible. He announced a special inaugural offer, saying that the ECCKSA will give the companies applying for regular memberships 18-month membership for the price of 12 months. A key highlight of the event was the panel discussion titled "ECCKSA: Shaping the Future of EU-KSA Business Collaboration," where experts debated strategies for deepening economic ties and commercial collaboration and explored new partnership opportunities. 

The panel included Leon Delvaux, acting director at the Directorate-General for Trade of European Commission,  Lama Alghrair, director of Investor Intelligence at the Saudi Ministry of Investment, Thomas Juergensen, Minister Counselor at the EU Delegation, and Lorcan Tyrrell, ECCKSA’s chairman. Douglas Aitkenhead, team leader of the EU-GCC Dialogue on Economic Diversification Project, was the moderator. Aitkenhead also delivered the closing remarks.

The inaugural event also saw the formal handover of ECCKSA’s license by the Ministry of Investment in Saudi Arabia. Apart from the functions that the ECCKSA will perform, the Chamber will open new market opportunities within the 27 countries of Europe and act as a facilitator within a global network of European Chambers, whose number exceeds 51 worldwide. The ECCKSA offers two main types of memberships: Regular and Associate membership.