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Business of the Reagon
Saudi Arabia holds 25 percent of the world's oil reserves, supplies 10 percent of the oil consumed in the U.S., and produces one-third of OPEC output. With a population of 19 million, Saudi Arabia is the U.S.'s 15th largest trading partner. The U.S. supplies about 25 percent of Saudi civilian imports. Promising sectors for increased U.S. exports to Saudi Arabia are apparel, automotive parts and service equipment, food processing and packaging, oil and gas equipment and services, petrochemical production machinery, pollution control equipment, air conditioning and refrigeration equipment, safety and security equipment, telecommunications equipment, furniture, computers, cosmetics, rice, soybean meal and snack foods.
The U.S. is by far the largest investor in Saudi Arabia, primarily in the petroleum and petrochemical industries, but also in telecommunications, electronics and aviation. Some of the most promising sectors for investment and joint ventures include plastic and chemical products, fabricated metal products, food and beverages, textiles and apparel, drugs and medical products.
The U.S. Export-Import Bank (EXIM) is active in Saudi Arabia. Government-to-government debts remain minimal because the Saudi Arabian government has not undertaken significant foreign borrowings. Saudi Arabia is in the process of acceding to the World Trade Organization (WTO).
The U.S. commercial presence in Saudi Arabia of over 200 companies includes: Boeing, AT&T, Lucent Technologies, McDonnell-Douglas, GE, Fluor Daniel, Stone & Webster, Bechtel, Coopers & Lybrand, Morgan Stanley, Philip Morris, Citicorp, Parsons Corporation, Pennzoil, W.W. Grainger, Texaco, Chevron and Mobil.…
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