Singapore Firms Urged to Tap Middle East

http://www.arabnews.com/?page=6§ion=0&article=86565&d=14&m=9&y=2006&pix=business.jpg&category=Business

Tang Li, Arab News

SINGAPORE, 14 September 2006 — Singapore’s Senior Minister Goh Chok Tong called on Singapore’s firms to tap on the potential growth in the Middle East. In an interview with Singapore’s media, the senior minister told Singapore’s business community that, “Business opportunities in the Middle East abound,” and estimated that the opportunities available to Singapore’s business community in the Middle East were worth an estimated S$4 billion ($2.54 billion)

Goh admitted that Singapore had been a late comer to the opportunities available in the Middle East but argued that Singapore had made up for lost ground. Goh, who visited Saudi Arabia in February 2005, noted that Singapore’s companies had been active in the Middle East for the past two-years, taking on projects to build infrastructure, develop housing and provide consultancy services.

Another growth area in which Singapore companies have been trying to explore in the Middle East is in financial services. According to Goh, Singapore, which is currently trying to develop itself as a center for private banking can increase its opportunities for growth by tapping into the lucrative financial markets of the Middle East. One of the examples that Goh provided was that of the Development Bank of Singapore (DBS,) which recently set up a branch in Dubai. While describing the potential for growth in the Middle East, Goh described his feelings toward the development, “disappointed that the growth was not bigger than I had expected. Growth has been about 30 percent, and this is growth in assets under management by Singapore entities, which includes foreign banks in Singapore. The base is quite low so I thought the growth should be higher than 30 percent.”

Goh’s enthusiasm for the Middle East has not gone unnoticed. Saudi Arabia, the largest market in the GCC region has been busy trying to help Goh realize his aspirations for Singapore in the markets of the Middle East.

Saudi Arabia and Singapore have been busy building up a good working relationship and in 2006, Saudi-Singapore ties reached an all time high. In March, Singapore’s minister mentor, Lee Kuan Yew visited the Kingdom where he met with Custodian of the Two Holy Mosque King Abdullah and Crown Prince Sultan. A month later, Crown Prince Sultan became the most senior member of the royal family to visit Singapore.

Saudi Arabia’s ambassador to Singapore, Dr. Mohamed Amin Kurdi describes the visits as creating: “Regular face-to-face discussions between the highest level Saudi and the Singaporean leadership contributed a great deal to better mutual understanding, a closer examination of cooperation opportunities, and renewed commitment to deepening the relationship.”