The European Chamber of Commerce in Saudi Arabia (ECCKSA) said economic relations between the European Union and Saudi Arabia are entering a new phase of expansion, driven by new partnerships, more European companies entering the Kingdom's market, and deeper investment commitments, as the chamber seeks to broaden the base of European companies operating in Saudi Arabia and increase bilateral trade and investment. "There is real momentum to build on, and it points clearly toward more European investment landing in the Kingdom," said Kristijonas Gedvilas, CEO of the European Chamber of Commerce in Saudi Arabia, noting that the coming years are expected to bring a significant step forward in economic relations between the two sides. In an interview with Asharq Al-Awsat, he said the upcoming 10th EU-GCC Business Forum, if confirmed to take place in Riyadh, would mark a key milestone in strengthening the economic partnership and converting high-level political dialogue into tangible trade and investment opportunities for European companies. Deepening Institutional Dialogue Gedvilas noted that EU Ambassador to Saudi Arabia Christophe Farnaud said earlier this year that European investment in the Kingdom is expected to see notable growth over the next five years, particularly in clean energy, metals, critical raw materials, advanced industries, and the digital economy. He said those expectations are based on continued progress toward the goals of Saudi Vision 2030, alongside the growing maturity of the chamber's sectoral committees, deeper institutional dialogue with Saudi and European authorities, and the transition of strategic initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) move from early implementation toward larger scale. He added that these developments are expected to bring more European companies into the Saudi market, increase invested capital, and strengthen partnerships with Saudi institutions and businesses. ECCKSA's role, he said, is to ensure its members, from established multinationals to newer entrants, are positioned not just to benefit from this growth, but to help drive it. With the foundations of its first two years now firmly in place, he added, ECCKSA has already become a meaningful actor in the bilateral relationship and is expected to play an even greater role as EU-Saudi economic ties continue to deepen. New Partnerships Gedvilas said ECCKSA has, over the past two years, become a genuine bridge between the Saudi government and the European private sector, giving Saudi authorities a more structured and effective channel to engage European companies on policies affecting trade, investment, and market development. He explained that this institutional framework has been built through sectoral committees and working groups covering transport and logistics, energy, healthcare, as well as legal and taxation matters, enabling regular and direct dialogue between European businesses and Saudi and European authorities. He said this mechanism has helped translate policy engagement into concrete business outcomes, including new partnerships, new market entrants, and deeper investment commitments. He added that the chamber's Annual General Meeting, held in May 2026, marked a significant step toward organizational maturity, with its Board of Directors strengthened by additional leading European companies, reflecting the growing breadth of European business interests represented in the Kingdom. As its membership continues to expand, the chamber is also scaling up its operations to deliver greater value to members and provide access to a broader and more diverse community of European companies. Gedvilas said the inauguration of ECCKSA's new headquarters in Riyadh last June, attended by European Union and Saudi government officials, representatives of EU member state embassies, partners, and chamber members, marked another milestone reflecting its long-term commitment to supporting European businesses and strengthening dialogue between governments and the private sector. He added that member companies now employ more than 25,000 people across Saudi Arabia, while more than 2,500 European companies operate in the Kingdom, with chamber members accounting for a growing share of that total. The chamber has already begun bringing this broader business community together under one umbrella, he said, with the strategic objective of expanding the base of European companies to boost bilateral trade and investment while maintaining close ties with both the Saudi government and the private sector. Trade and Investment On economic relations, Gedvilas said trade in goods and services between the European Union and Saudi Arabia reached €88.8 billion in 2025, while EU exports to the Kingdom increased 2.6 percent to €38 billion compared with 2024. Looking at longer-term trends, he said EU exports to Saudi Arabia have grown at an average annual rate of 11 percent since 2021, while imports have increased by 7.8 percent, reflecting the continued deepening of trade ties despite volatility in the global economy. He added that investment tells an even stronger story than trade, with the European Union accounting for 29 percent of Saudi Arabia's total foreign direct investment stock, making it the Kingdom's largest source of foreign capital. More than a quarter of the multinational companies that have established regional headquarters in Saudi Arabia are European, out of more than 700 global firms. He said choosing the Kingdom as a regional headquarters reflects a long-term commitment that goes beyond traditional commercial investment and underscores Saudi Arabia's growing role as a strategic destination for European capital. Strategic Partnership Gedvilas said European companies working collectively through ECCKSA help address the regulatory and institutional issues affecting their operations, improving market efficiency, strengthening relationships with Saudi institutions and businesses, and encouraging greater flows of European investment. He said the chamber works to align the needs of European companies with the priorities of Saudi and European institutions so that political cooperation translates into tangible economic outcomes. He explained that the chamber's success rests on two main factors. The first is access, as both Saudi and European governments have shown a strong willingness to work with a structured and credible organization representing the European private sector. The second is its convening power. When European institutions seek direct input from companies operating in Saudi Arabia, the chamber organizes that dialogue with its members to ensure on-the-ground business realities are reflected in EU policymaking. Likewise, it provides Saudi authorities with a unified platform for engaging European industry rather than dealing with companies individually. Gedvilas noted that ECCKSA is part of the EBO Worldwide Network (EBOWN), which represents European business interests across more than 60 markets outside the European Union, helping strengthen Saudi Arabia's position within regional and global economic cooperation. He added that this role makes the Kingdom not only a bilateral partner of the European Union but also a key connection point within a broader international business network. He pointed to the India-Middle East-Europe Economic Corridor (IMEC), part of the EU's Global Gateway strategy, as an example of that vision. The initiative aims to develop new electricity and subsea telecommunications cables, data infrastructure, and green hydrogen pipelines, reinforcing the Gulf's position as a hub linking Europe with Asia and Africa while cementing Saudi Arabia's role as a central node in that network, with gains in trade, logistics, and foreign direct investment. He noted that the European Parliament adopted a resolution on EU-Saudi relations in December 2025 recognizing the role of EU-GCC cooperation in advancing this type of infrastructure. He added that the chamber's work with its members in Riyadh contributes to shaping this strategic project. Gedvilas reaffirmed the chamber's support for the upcoming 10th EU-GCC Business Forum and expressed hope that it will be held in Riyadh following the previous edition in Kuwait. If confirmed, he said, the forum would mark a pivotal milestone in strengthening the economic partnership between the two sides and turning high-level political dialogue into tangible trade and investment opportunities.
