Taiwan is negotiating for a contract to develop an industrial zone in Saudi Arabia as part of a new push to tap business opportunities in the Middle East, a top economics official said yesterday.
"A plan for the project is slated to be completed by the end of February," Vice Minister of Economic Affairs Fadah Hsieh (謝發達) said, while giving a briefing about his recent fact-finding trip to Saudia Arabia.
The government will collaborate with Taiwanese companies to bid for the multimillion dollar project, he said.
Late last month, Hsieh led a delegation of representatives from 11 local companies to Saudi Arabia to attend the 20th Session of the Saudi-Taiwan Joint Committee for Economic and Technical Cooperation.
The delegation was comprised of representatives from the state-owned China Steel Corp (中鋼), CTCI Corp (中鼎工程), Taiwan Fertilizer Co (台灣肥料), CPC Corp, Taiwan (台灣中油), UPC Group (聯成集團), China Man-Made Fiber Corp (中國人纖), Chunghwa Telecom Co (中華電信), CECI Engineering Consultant Inc (台灣世曦工程顧問), Teco Electric and Machinery Co (東元電機), National Development Fund and Shin Kong Wu Ho-Su Memorial Hospital.
INTEREST
During the meeting, the oil-rich country -- which is seeking to diversify its economy -- showed great interest in Taiwan's photovoltaic, nano, information technology, medical and healthcare industries. Saudi Arabia also expressed a desire to strengthen technology exchanges and intensify existing vocational training programs between the two countries, Hsieh said.
While the delegation invited Saudi Arabia to invest in Taiwan, it also urged the wealthy Middle East country to increase imports of Taiwanese products to narrow the trade deficit.
After the session, Hsieh made an inspection tour of the King Abdullah Economic City, the first of six economic cities that Saudi Arabia plans to build.
The King Abdullah Economic City is located about 170km north of the commercial hub of Jeddah, which will be developed based on the division of industrial, residential, recreational and harbor zones, Hsieh said.
"Most of the development projects in the economic city have already been assigned to contractors. What Taiwan is eyeing is a deal to develop the economic city's industrial zone, but the scale of the project has not been confirmed," he said.
PETROCHEMICALS
Saudi Arabia plans to use the industrial zone to house firms engaging in middle and downstream petrochemical production, Hsieh said.
To tap into the Middle East market, the Taiwan International Development Corp -- a joint venture between the government-controlled National Development Fund and local businesses -- had originally planned to raise a NT$2 billion investment fund. However, it was now considering expanding the size of the fund, Hsieh said, adding that fundraising was nearing completion.
RSS