Foreign Minister Tonio Borg this afternoon travelled to Saudi Arabia's capital Riyadh for bilateral talks with his counterpart Prince Saud bin Faisal bin Abdul-Aziz Al Saud.

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, Saudi Arabia owns more than 20 per cent of the world's proven petroleum reserves and ranks as the largest exporter of petroleum. It plays a leading role in OPEC.

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.

About 40 per cent of GDP comes from the private sector.

Around 6.4 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors.

High oil prices through mid-2008 have boosted growth, government revenues, and Saudi ownership of foreign assets, while enabling Riyadh to pay domestic debt.

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.

Imports are largely made up of plastics and articles thereof (66 per cent), and products of the milling industry (29 per cent).

Exports also have a limited base although values are much higher. The major product categories are printed books (45 per cent), preparations of cereals (24 per cent), and miscellaneous edible preparations (24 per cent). In 2008, Malta exported €15.3 million worth of goods to Saudi Arabia and imported €1.5 million.