Morocco, Saudi Arabia to set up free trade area
Morocco-Saudi Arabia, Economics, 11/22/1999

Morocco and Saudi Arabia, which are projecting to set up a free trade area, have stressed the need to reach the adequate formula to materialize the project as soon as possible.

The project was discussed at the Moroccan-Saudi joint commission which held its 6th session in Riyadh Saturday and Sunday. The two sides convened to reach the adequate formula to set up the free trade area as soon as possible, said a joint statement that was released at the end of the session.

The two sides also decided to set up a follow-up committee to supervise and assess the implementation of the decisions made by the joint commission's 6th session and to hold periodic meetings at the level of the foreign ministers to further political consultations.

The joint commission, held under the chairmanship of the Moroccan and Saudi foreign ministers, Mohamed Benaissa and Prince Saud Al-Faisal, called for increasing the volume of trade exchange and urged the Moroccan-Saudi businessmen's council to make proposals likely to upgrade economic relations between the two countries.

In 1997, trade exchange between the two states was worth $616 million, with Morocco's imports from Saudi Arabia -- mainly crude oil-- forming 88% of the amount.

Morocco's exports to Saudi Arabia --phosphates, citrus fruits, textile products and handicraft items-- totaled $72 million.

Saudi Arabia is Morocco's third-largest supplier and 12th client.

The two sides underlined the need to back the Moroccan-Saudi investment company in view of its role in consolidating cooperation and convened to associate the private sector in the company's capital.

The Saudi-Moroccan investment company, set up in 1992, operates in several vital sectors including electric industries, transport, construction and building, agri-business, transport and financial institutions.

A Moroccan delegation led by Minister of Economy and Finance Fathallah Oualalou had visited Saudi Arabia last February and had then stressed the need to update Moroccan-Saudi cooperation accords, some of which are 30 years old, and to adapt them to the new economic reality and explore new prospects to diversify their trade exchange that remain "weak" compared to the two countries' huge potentials.

The joint commission also called for the promotion of cooperation in the fields of culture and information as sectors that promote rapprochement between peoples.

The 7th session of the joint commission will be held in Rabat during the second half of 2000.

Previous Stories:
  Saudi-Moroccan Joint Commission Meets in Riyadh   (11/20/1999)
  Moroccan-Saudi accords must be updated, Moroccan minister says   (2/19/1999)
  Saudi Arabia and Morocco determined to enhance economic relations   (2/18/1999)

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