Saudi Arabia – Alberta Relations

PROFILE the Cooperation Council for the Arab States of information about technology, oil and gas, and Capital: Riyadh (royal capital), Jeddah the Gulf (GCC). engineering. (administrative capital) . Saudi Arabia became a member of the World . There are several hundred Alberta companies Population: 31.39 million (2016 est.) Trade Organization (WTO) in December 2005. actively exporting to Saudi Arabia. Language: Arabic . Saudi Arabia has an oil-based economy with . Albertans comprise a large portion of the Government: Monarchy strong government controls over major estimated 8,000 Canadians working in Saudi Head of State and Government: King and economic activities. It possesses about 16 per Arabia, particularly in the health, education, Prime Minister Salman bin Abdulaziz Al Saud cent of the world's proven petroleum reserves, and oil and gas sectors. (since August 1, 2005) ranks as the largest exporter of petroleum, and Crown Prince: Muhammad bin Nayef bin Saud plays a leading role in OPEC. The petroleum TRADE AND INVESTMENT Currency: $1 CDN = 2.83 Riyal (SAR) (2016) sector accounts for roughly 87 per cent of . Between 2011 and 2015, Alberta’s exports to budget revenues, 42 per cent of GDP, and 90 GDP: US $828.21 billion (2015 est.) Saudi Arabia have averaged CAD $131.63 per cent of export earnings. GDP Purchasing Power Parity (PPP): US million per year, including cereals, machinery, $1.73 trillion (2016 est.) . Saudi Arabia is currently Canada’s second iron and steel products, precision instruments, GDP Per Capita: US $54,100 (2016 est.) largest export market in the region. Trade and and electrical machinery. GDP growth rate: 1.2 per cent (2016 est.) economic interests continue to be at the . During the same time period, Alberta’s imports forefront of Canada’s bilateral relations with Inflation: 4.4 per cent (2016 est.) from Saudi Arabia averaged approximately Saudi Arabia; however, Canada is seeking to CAD $34.38 million per year, including plastic diversify its relations with the Saudi Kingdom. Key Industry Sectors: Crude oil production, and organic chemicals. This figure does not petroleum refining, basic petrochemicals, RELATIONSHIP OVERVIEW include goods sold in Alberta that arrived via ammonia, industrial gases, sodium hydroxide distribution hubs in other provinces. (caustic soda), cement, fertilizer, plastics, metals, . Saudi Arabia-Alberta relations were commercial ship repair, commercial aircraft repair established in the mid-1970s when Premier ENERGY and construction. Lougheed visited Riyadh and established . Saudi Arabia plays a leading role in OPEC, as Sources: close ties to former Saudi Energy Minister it has 16per cent of the world’s proved oil IMF, Bank of Canada, Economist Intelligence Sheikh Yamani. Unit reserves and is the largest exporter of total . In 1999, the Saudi-Canada Business Council petroleum liquids in the world. was formed in order to promote business SAUDI ARABIA OVERVIEW . Saudi Arabia is one of the world’s largest oil partnerships and two-way trade Alberta and producers (10 million barrels per day (bbl/d), Saudi Arabia share common interests in . Saudi Arabia’s population is among the compared to Alberta’s 3.1 million bbl/d (2016)). youngest and fastest growing in the Middle several sectors including oil production and East. development, and global energy trends. . Saudi Arabia’s proven natural gas reserves are estimated at 291 trillion cubic feet (Tcf) . Numerous Alberta firms have participated in . Since 2003, Saudi Arabia has been part of a (2014), ranking 5th in the world (compared to missions to Saudi Arabia to exchange customs union amongst member countries of Alberta’s 32.4 Tcf (2014)).

January 2017 | Input provided by Alberta Ministries of: Economic Development and Trade, Agriculture and Forestry, Energy, Culture and Tourism, and Labour

. Although natural gas production remains . Saudi Arabia is one the priority countries for EMERGING OPPORTUNITIES limited, Saudi Arabia is initiating an expansion the MITACS Research Internship. of its natural gas program for electricity . Alberta’s International Strategy has identified production. COMMUNITY opportunities in Saudi Arabia in energy and environmental products and services, . Saudi Arabia announced its “Saudi Vision . Between 2011 and 2015, 82 citizens of Saudi construction, agricultural niche markets, 2030” in 2016, a package of economic and Arabia became Permanent Residents of nanotechnology and education. social policies designed to free the kingdom Canada, with Alberta as their intended from dependence on oil exports and raise non- destination. Approximately 85per cent were . Electrical Power Equipment: prospects exist oil revenue. economic immigrants, including principal for Alberta companies interested in selling applicants, spouses, and dependents. These components and parts to local power utilities. . Within the next few years, Saudi Arabia will economic immigrants were most commonly also complete a 1.2 million bbl/d expansion of occupied as physicians, dentists and . Oil and gas equipment and services: its oil refining capacity and further develop its veterinarians. opportunities exist for products and services petrochemical sector to shift away from crude such as tubular goods, valves compressors, exports. . Between 2011 and 2015, 29 citizens of Saudi pumps, chemicals, turbines, drilling rigs and Arabia had Temporary Foreign Worker parts, generators, computers and software, EDUCATION Program (TFWP) work permits come into telecommunication equipment, instrumentation effect for Alberta. These workers were most and industrial process controls, firefighting and . The University of Calgary signed commonly occupied as physicians, dentists safety equipment, spare parts, supplies and Memorandums of Understanding (MOUs) with and veterinarians. equipment for refineries, storage monitoring Saudi Arabia’s King Fahad University of systems, reactors, heaters, air exchangers, Petroleum and Minerals, King Faisal . Between 2011 and 2015, 1,024 citizens of power distribution, systems, boilers, gas-oil University, King Saud University and the Saudi Arabia had international study permits desulfurizers and isomerization units. Ministry of Higher Education. come into effect for Alberta. DIPLOMATIC REPRESENTATION . The University of Calgary has signed a AGRICULTURE Memorandum of Understanding (MOU) with . Saudi Arabia’s Ambassador in Ottawa is Saudi Arabia’s Aramco Services Company. . In 2015, Alberta Agri-Food exports to Saudi Naif Bin Bandar Al Sudairy. Arabia totaled $46 million. Top products . The University of Alberta signed MOUs with included wheat (CAD $44 million) and . Canada’s Ambassador to the Kingdom of Saudi Arabia’s King Saud University, King processed potatoes (CAD $1.6 million). Saudi Arabia, is Mr. Dennis Horak Fahad University of Petroleum and Minerals, Saudi Arabian Cultural Mission and the . Saudi Arabia will be phasing out forage and Ministry of Higher Education. cereal crop production, due to water scarcity. Increased demand for imported livestock feed . Advanced Education’s Apprenticeship and will provide opportunities for Alberta’s forage Industry Training (AIT) division, the Northern and cereal crop industries. and Southern Alberta Institutes of Technology (NAIT and SAIT) presented the Alberta model . Saudi is a potentially significant market for for vocational training to the Saudi General exports of beef from Alberta, however, market Organization for Technical Education and access issues continue to prevent trade in Vocational Training (GOVTET). beef.

. SAIT-Arabia is a joint-venture with Al- Hejailan . As Saudi Arabia looks to secure its long term Consultants to provide training services in food requirements, Alberta, with its abundant Saudi Arabia in petroleum sector, starting in land and resources, is well positioned to assist 2008 in these areas.

For more information, contact: Alberta Economic Development and Trade Phone: 780-427-6543 Fax: 780-427-0699 albertacanada.com economic.alberta.ca