Foreign Affairs Minister Tonio Borg is in Saudi Arabia where he will sign agreements on the avoidance of double taxation and on drug trafficking.
The bilateral talks with Prince Saud bin Faisal bin Abdul-Aziz Al Saud will take place in the capital city Riyadh.
Dr Borg and Prince Saud will sign a cooperation agreement on the fight against illicit trafficking in narcotic drugs and psychotropic substances and against organised crime. They will also sign a convention on the avoidance of double taxation between the two countries.
Saudi Arabia is the largest and most powerful member of the Gulf Cooperation Council. With a population of 26.5 million and an oil-based economy, it owns more than 20 per cent of the world’s proven petroleum reserves and ranks as the largest exporter of petroleum.
The petroleum sector accounts for around 80 per cent of its budget revenues, 45 per cent of GDP and 90 per cent of export earnings. Around 6.4 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors.
There are currently 10 companies registered with the MFSA that have Saudi Arabian shareholding. Trade between the two countries is on the increase in Malta’s favour by a very wide margin.
In 2008, Malta exported €15.3 million worth of goods to Saudi Arabia and imported €1.5 million worth.