Fin24

SA, Saudi Arabia create holding company

2012-06-11 14:14

Cape Town - South Africa and Saudi Arabia have created a joint holding company that could see at least R20bn being invested in business opportunities, Trade and Industry Minister Rob Davies said on Monday.

He said the Saudi Arabian SA Holding (Sasah) investment company would spend the initial capital on feasibility studies for investment in South African agriculture and Saudi Arabian mining and petrochemicals.

"Saudi Arabia has identified gold mining and other base materials. They've chosen not to exploit those previously... but are now moving towards expropriation and looking at South African technology and expertise," Davies said.

The middle eastern country was also looking at investing in South African agriculture for food security and stimulating local job creation.

As a first option, it could be a major shareholder in joint ventures, entitled to free 5% equity in projects initiated and promoted by it.

It would also act as a "government endorsed" facilitator for businesses looking to invest in large-scale projects in their counterpart countries.

Davies said he was hoping investment by Saudi Arabian companies in South Africa would run "into tens of billions of rands" in the next few years.

Saudi Arabia-SA Business Council chairperson Iqbal Surve said the Saudi Arabian crown prince Nayef bin Abdul Aziz had formally endorsed the holding company.

"We are ready to tango and waiting for South Africa to join the dance as well."

He said that if the company was successful, South Africa could benefit from investment through Saudi Arabia's sovereign wealth fund, "one of the wealthiest in the world".

Comments
  • john.masengo - 2012-06-11 17:07

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • john.masengo - 2012-06-11 17:07

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • john.masengo - 2012-06-11 17:07

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • john.masengo - 2012-06-11 17:09

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • john.masengo - 2012-06-11 17:11

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • john.masengo - 2012-06-11 17:14

    I can see the gleam in the anc eyes, "one million for me; one million for you, one million for me, ..."

  • craig.adams.1840 - 2012-06-12 08:09

    Government approved money laundering? The Saudi's see an opportunity coz they cant steal in their own country, but no problem if you steal from another country. " They've chosen not to exploit those previously"...but now the door is open to exploit on a massive scale.

  • Blixum - 2012-06-12 08:27

    The Arabs need a reliable supply of food. Therefore they will invest in companies and ventures in countries without a desert and where food can be grown and supplied from. Their current thinking is that SA is such a country. Will they still think so after all the agricultural land has been transferred to black farmers a la Zimbabwe?

  • Blixum - 2012-06-12 08:27

    The Arabs need a reliable supply of food. Therefore they will invest in companies and ventures in countries without a desert and where food can be grown and supplied from. Their current thinking is that SA is such a country. Will they still think so after all the agricultural land has been transferred to black farmers a la Zimbabwe?

  • Blixum - 2012-06-12 08:27

    The Arabs need a reliable supply of food. Therefore they will invest in companies and ventures in countries without a desert and where food can be grown and supplied from. Their current thinking is that SA is such a country. Will they still think so after all the agricultural land has been transferred to black farmers a la Zimbabwe?

  • Nasser - 2012-06-12 08:28

    It makes sense for oilf rich Gulf states to want to invest in SAfrica. @ John, Richard, John and Craig - SAfrica is rated as an advanced emerging economy and HSBC ranks South Africa amongs the CIVETS group of investor friendly emerging economies alongside Colombia, Indonesia, Vietnam, Egypt and Turkey. SAfrica's invitation to join the BRICS power bloc is no coincidence! So if you're in SAfrica right now - be grateful. You could have been in the US or EU where the economies are shrinking!

  • jecarstens - 2012-12-06 09:55

    It is amazing how the red carpet is rolled out for money coming from one of the worst human rights violators in the world. Suadi is an apartheid state made up of the elite ( Saudis) and the infidels( workers with no rights). Non Muslims are not even allowed to enter Mecca! Expats have to stay in compounds because Suadis could be contaminated with the truth. Freedom of religion is not allowed. Scam trials based on Sharia law see people being beheaded, arms and legs being amputated and people jailed for religious infringements. woman have close to no rights, they are not even allowed to drive car! Nice place to do business with. Well done Mr Davies, Ebraihim Ebraihim and the others waiting for the scraps to fall from the table.This will be one to watch.

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