Cambodia and Saudi Arabia stengthen trade relationship
Cambodia and Saudi Arabia stengthen trade relationship
Cambodia and Saudi Arabia have reaffirmed their commitment to enhancing bilateral trade, investment and energy collaboration. This move is particularly significant as Cambodia seeks to attract investment from the country, a major oil-exporting nation.
Prime Minister Hun Manet and Prince Mohammed bin Salman, crown prince and prime minister of Saudi Arabia, pledged their commitment on the sidelines of the inaugural ASEAN-Gulf Cooperation Council (GCC) Summit in the Saudi capital of Riyadh on October 20.
According to a press release from the Ministry of Foreign Affairs and International Cooperation, Manet outlined the potential avenues for strengthening bilateral ties, focusing on key areas such as trade, investment and energy.
“[Manet] expressed satisfaction over the progress of bilateral relations between Cambodia and Saudi Arabia, through the decision to establish an embassy of Saudi Arabia in Phnom Penh. [He] also suggested the exploration of drafting potential agreements, notably the Agreement on Visa Exemption for Diplomatic and Official Passport Holders,” it said.
The statement added that both leaders emphasised their joint commitment to further strengthen and broaden ties between their countries.
Saudi foreign minister Prince Faisal bin Farhan al-Saud discussed bolstering bilateral cooperation in tourism, technology, energy, education, culture and agriculture with former prime minister Hun Sen during his official visit to Cambodia earlier this year.
The focus was on sectors with significant potential for cooperation. In response, Hun Sen expressed openness to deeper collaboration in tourism, agriculture and trade.
Kin Phea, director of the International Relation Institute at the Royal Academy of Cambodia (RAC), had told The Post previously that the relationship between the two countries wasn’t deeply rooted yet.
“There’s a pressing need for both countries to enhance their collaboration. A closer relationship with Saudi Arabia would diversify Cambodia’s diplomatic ties,” he added.
While the annual bilateral trade between the two nations leans in favour of Saudi Arabia, it has been steadily increasing. Data from Trading Economics, an internet-based statistics website, shows that trade between the two countries grew by over 20% between 2019 and 2020, nearing $20 million.
The latest metrics on the site indicate that Cambodia’s exports to Saudi Arabia amounted to $3.1 million in 2022, with imports at $15.92 million.
The main exports were cereals, accounting for $2.05 million, about two-thirds of Cambodia’s exports to Saudi Arabia, while imports largely consisted of plastics, valued at $14.24 million, accounting for nearly nine-tenths of the imports from Saudi Arabia, according to the website.
