British Offset, which aims to bring foreign investment into Saudi Arabia, is currently involved in discussions with a number of parties active in the petrochemicals, healthcare products and pharmaceutical fields, its Riyadh-based manager Steve Kelly says. “We’re talking with US companies who could be interested in investing in joint ventures with Saudis in the petrochemicals sector and with UK companies for investments in the healthcare and pharmaceutical fields,” said Kelly.

“We’re committed to attracting inward investment into Saudi Arabia and we’re sure the Saudis are appreciative of our efforts,” he added.

British Offset, which began operations in the 1980s, had a target of facilitating investments of up to $1 billion into the kingdom. “I can say we’ve surpassed the figure,” Kelly remarked.

Year 2010 was a very busy year for British Offset with three of its projects coming to fruition. Two of them are Jubail-based and one involves a joint venture between Swiss company Durfeco and Saudi firm Tarqa. Production commenced in the summer of 2010 and deliveries have been made to the local oil and gas sector. The other project relates to a joint venture between US company Huntsman and Saudi Group Olayan. Their plant produces ethylamines.

The Olayan Group is also involved in the third venture, a partnership with US firm Baxter for manufacturing sterile solutions in Dammam.

“The companies British Offset contacts are high-tech so that there might be a transfer of technology into Saudi Arabia through the foreign partners,” commented Kelly.

Major successes
Over the years British Offset has registered major successes including a partnership between Tate & Lyle and Savola (now fully owned by Savola) in the production of sugar. The initiative has now blossomed into one of the world’s largest sugar enterprises. Among other projects that British Offset has facilitated are those related to Glaxo SmithKline, National Petrochemical Industrialisation Company (Tasnee) and Synthomer Middle East.

This is the third year that London-headquartered British Offset has been exhibiting at Gulf Industry Fair.

“We find the exhibition very useful and we get a lot of interest. We find it to be a very useful platform to talk about our offset programme and promote our operations in Saudi Arabia,” said Kelly who has been serving at British Offset’s Riyadh office for the last nine years.

Kelly said he had just been discussing with officials of the Algosaibi Group about the prospects of setting up a venture in Saudi Arabia. “There has been a slight lowering of interest because of the economic recession but Saudi Arabia was less affected by the downturn, which makes it a most attractive placed to do business,” he commented.

Kelly will next talk about investments into Saudi Arabia at five centres in England in March at events held as part of Partner ME 2011, whose theme is “Your Gateway to the Dynamic Middle East Market.”

Useful links
British Offset has many years’ experience of setting up joint ventures in Saudi Arabia and its links with key decision-makers in the Saudi Government can bring early resolution of problems standing in the way of joint venture agreements. In particular, its close working relationship with Sagia (Saudi Arabian General Investment Authority), the government agency responsible for granting licences and approvals in the kingdom, can significantly simplify and speed up the bureaucratic process, British Offset says.