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Sout h Africa hoped to gain foreign investment from the souring ties between Saudi Arabia and the United States, Deputy Trade and Industry Minister Lindiwe Hendricks said on Monday.

Saudi businesses with investments in the US were looking for alternatives, she said in Pretoria on her return from Saudi Arabia to attend the Jeddah Economic Forum.

President Thabo Mbeki's wife Zanele also attended the event.

"Our being there was very timely as they are beginning to look elsewhere. We are hoping there will be major benefits from our interaction with Saudi Arabia."
The Jeddah-based Bin Laden Group already owned three diamond mines in South Africa, Hendricks said.

The group is owned by the family of Osama Bin Laden, who has been named by the US as the prime suspect in terrorist attacks in New York and Washington in September 11, 2001.

The wealthy Bin Laden family has since distanced itself from Osama, condemning all violent and terrorist acts.

Hendricks said several Saudi business people had invested heavily in the US, and vice versa.

"But after September 11, the relations have not been cordial as they used to be and Saudi people are looking elsewhere to invest."
They were not only on the lookout for another destination for their money, but also for a country they could consider for medical treatment and holidays.

Hendricks said she and Mbeki sought to change the mindset of their hosts about South Africa, emphasising this was a country with an advanced infra-structure and an abundance of natural resources.

A long-term objective was to change the trade balance between the two countries, which was heavily in favour of Saudi Arabia.

South Africa imports, mostly oil, from that country stood at $40-billion last year, while exports amounted to only around $1,5-billion.

"That is highly imbalanced and we want to correct that," Hendricks said - Sapa.

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