The Polish economic mission in Riyadh is just starting. The visit to the capital of Saudi Arabia is one of the largest such initiatives organized by the Polish government in history. — Poland wants to be a partner of Saudi Arabia not only in purchasing oil, but in modernizing the entire economy — from energy and IT, through food, to the defense sector – emphasizes Minister Andrzej Domański, with whom we are talking on our way to the Middle East.
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Its goal is to move from the level of individual contracts to permanent, sector-specific roots of Polish companies on the Saudi market and, more broadly, in the entire region. Nearly 70 Polish private companies from the energy, construction, dual use/defense, IT, ICT, technology, FMCG, food, fintech and investment sectors take part in it.
Andrzej Domański on his way to Riyadh
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Ministry of Development and Technology / Ministry of Development and Technology
More than oil
Treating Saudi Arabia solely as a country based on petrodollars would be superficial. Today, it is the world's 19th economy, and at the same time a country with enormous investment opportunities and an ambitious Vision 2030 economic reconstruction program, which is based on the diversification of growth sources beyond oil. — This country is undergoing very rapid economic modernization, and I want Polish companies to actively participate in this change – said the Polish minister during a meeting with journalists.
Its mission is to be part of “opening doors, unblocking channels” and directly pointing out to foreign partners the barriers that hinder the operations of Polish companies. -Sometimes they are very demanding certificates, sometimes unfriendly licensing policyand sometimes just the fact that some people come more often. We want to help Polish companies overcome these limitations, admits Domański.
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The inexorable balance of trade. Will Poland improve it?
Polish economic relations with Saudi Arabia are developing dynamically, but the disproportion in the trade balance gives food for thought. The exchange exceeded $1 billion. already in 2016, and then – mainly due to oil imports – it grew rapidly: from USD 2.4 billion in 2020 to USD 9.3 billion. in 2024 Today, Saudi Arabia is the supplier of this raw material to Poland.
In 2023, the turnover was USD 7.3 billion, but Poland recorded a trade deficit of USD 5.8 billion. The government support is intended to help build the credibility of Polish business in the eyes of the Saudi administration and financial institutions. And in the long term, it could improve Polish export indicators.
Four pillars of a visit to Saudi Arabia
The Polish delegation comes to Saudi Arabia with four main sectors that are to form the basis for a lasting economic presence: energy in a broad sense, IT and cybersecurity, food and the defense industry.
— Not only state-owned companies, but primarily private businesses participate in the mission. These are not only large players, but also medium-sized companies that are at a stage of development that require support in entering new markets, emphasizes Domański.
In the energy sector, as the minister says, it is not about increasing oil purchases, but about the involvement of Polish companies in the development of infrastructure. — The market for the construction of transmission networks, power stations and broadly understood energy infrastructure is several times larger here than in Poland. This is an extremely attractive place for the development of Polish companies in the industry – he reports, citing conversations with companies already present on this market.
The second pillar is the IT sector, including cybersecurity. Domański reminds that Poland is an important player in this industry – it has both large concerns, such as Asseco and Comarch, as well as dynamic medium-sized companies with revenues of PLN 250-300 million per year. Despite this, the participation of Polish companies in Saudi Arabia's digital transformation, which is proceeding very quickly, remains – as he says – “very limited”. – We want medium-sized Polish companies to apply for really significant contracts here – emphasizes the minister.
The third area is broadly understood food. Although it is difficult to obtain contracts as scalable in the food sector as in the oil or IT segment, it is still an important sector for the Polish economy. The fourth pillar is defense, which is part of the World Defense Show taking place simultaneously in Riyadh. This is another opportunity to talk to global partners and build recognition of the Polish sector.
How to attract Saudi billions?
The capital dimension is also an important element of the visit: Poland wants to attract part of the powerful Saudi capital. One of the specific tools is to be a memorandum between BGK and KUKE and the Saudi Export and Import Bank EXIM, which is intended to facilitate the financing of transactions and investments thanks to mutually recognizable and accepted financial instruments. – We want to show Polish companies full equipment for entering the Saudi market: loans, equity instruments, guarantees and consulting – explains the minister.
Among the potential forms of capital involvement, he mentions both entry through funds – PFR and private investment funds – as well as greenfield investments, if there is such interest on the Saudi side. — Poland is a very attractive place for locating production, which can also be a gateway to the markets of Western Europe – says the head of the Ministry of Finance.
From Riyadh Grzegorz Kowalczyk, journalist of Business Insider Polska
