Saudi Arabia and Finland agree to form new trade body

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RIYADH: Saudi Arabia and Finland have agreed to form a new bilateral organization to boost the SR1.9 billion ($510 million) trading relationship between the two countries.

Representatives from the Federation of Saudi Chambers and the Finnish Chamber of Commerce signed a memorandum of understanding in Helsinki to establish a joint Saudi-Finnish Business Council.

The new body will focus on developing new areas of economic cooperation and promoting links between the Saudi and Finnish business sectors, according to the Saudi Press Agency.

The Federation also signed a memorandum of understanding with the governmental organization “Business Finland”, which will see a focus on financing and promoting trade and investment between the two countries — particularly in the sectors of technology, digitalization, energy, circular economy, mining, transport and logistics services, health care and water.

Alongside the agreements, a delegation of 27 representatives of Saudi companies held intensive discussions and meetings with the Finnish business sector to further develop partnerships and trading deals.

The announcement comes in the same week as Saudi Arabia and Finland signed an agreement to bolster air services between both countries in a bid to improve trade.

The Kingdom’s General Authority of Civil Aviation and Finland’s Ministry of Transport and Communications signed a memorandum of understanding to monitor air transport, Saudi Press Agency reported.

The MoU aims to further boost Saudi-Finnish economic partnerships, with the GACA, along with a total of 12 government agencies and 27 firms, already participating in cross-country business.

The agreement tackles air transport-related organizational clauses, the designation of national carriers, defining the regular number of flights between both countries, and the commercial representation of airlines.

The MoU also paves the way for regulatory framework cooperation and safe and secure air transport between the two sides.

Saudi aviation figures tend to exceed those of Finland, with the number of passengers carried by Saudi aviation in 2020 standing at 26.9 million, compared to 3.5 million for Finland, according to latest data from the World Bank.