Sweden wants to strengthen trade ties with Saudi Arabia

A trade council tasked with improving business exchanges between Sweden and Saudi Arabia is due to launch in October, with the aim of restoring relations following the nations’ diplomatic spat earlier this year.

Explaining the role of the new trade council, Maria Rankka - CEO of the Stockholm Chamber of Commerce – told Swedish Radio News it will help deepen relations between Swedish and Saudi industries.

The idea, said Rankka, is that a major summit will be held every year, and Sweden and Saudi Arabia will take turns hosting it.

Relations between the two countries soured earlier this year when Sweden's minister for foreign affairs, Margot Wallström, criticised Saudi Arabia over its human-rights record.

And the crisis in relations between Stockholm and Riyadh was cemented when Sweden ended an arms agreement with Saudi Arabia, despite warnings from business leaders about the potential impact on exports to the Gulf state.

In 2014, those exports were worth around SEK 11 billion (USD 1.3 billion).

Wallström’s comments prompted the withdrawal of Saudi Arabia's ambassador to Sweden - and a halt on Saudi visas for Swedish businessmen.

At the time, the Confederation of Swedish Enterprise was inundated with phone calls and emails from concerned members, who feared business contracts would be torn up and who worried about a long-term halt to trade and investment.

There were also concerns that the frosty trade relations would spread to other countries, including in the Arab world.

But now, several Swedish companies are sending representatives to Saudi Arabia again and several of those planning to travel over there in September, have already received their visas, according to Business Sweden - the Swedish Trade and Invest Council.

Rankka hopes that business exchanges will increase with the help of the new trade council, which will operate as a point of contact between the Swedish and Saudi chambers of commerce.

Rankka said that there is great interest in Saudi Arabia for everything to do with health and hospital care and she said that will be a priority  area for the new trade council.

But what is more significant, she added, is to establish and develop good relations.

“Saudi Arabia is one the most important trade nations, outside of the EU and the US," said Rankka, insisting that and even if relations were temporarily severed during the diplomatic crisis in January, her impression is that relations have been restored.