Issued by: Department of Foreign Affairs
MEDIA STATEMENT ON THE VISIT OF THE DEPUTY MINISTER OF FOREIGN AFFAIRS, MR AZIZ PAHAD AND DELEGATION TO THE GULF REGION 24 JUNE TO 1 JULY 1998
The Deputy Minister of Foreign Affairs, Mr Aziz Pahad, will lead a delegation of senior officials and business executives from the construction, banking, development and investment, oil and engineering sectors, to the United Arab Emirates, Qatar and Kuwait in the Arabian Gulf from 24 June to 1 July 1998.
The Deputy Minister and his delegation will focus on the promotion of economic ties and the development of new markets in the Arabian Gulf region, which has grown into a significant economic partner for South Africa in recent years. Three of South Africa's major suppliers of crude oil are located in this region and in 1997, one third of South Africa's crude oil requirements were imported from countries on the Arabian peninsula.
The region is also an increasingly important market for South African exports with total exports last year amounting to R1.5 billion. Investments from the region, mainly from Kuwait and Saudi Arabia, have amounted to almost R 500 million during the past two years.
South African business has benefitted greatly from South Africa's good political relations with the region, which has seen twenty companies establishing offices over the past few years in the United Arab Emirates - a gateway to the rest of the region.
South African gold exports to the region have soared. Until last year, South African gold sales were routed mainly via the banks and exchanges in Europe. In 1997 however, Standard Bank opened a representative office in Dubai, the United Arab Emirates, with a particular focus on gold sales into what has become the world's largest gold re-distribution centre in Dubai.
In 1997 Standard Bank imported 45 tons into Dubai. The value of these transactions for South Africa totalled R2.7 billion last year.
The burgeoning economic ties with the region has been underscored by the recent appointment of a representative of the Department of Trade and Industry to the staff of the South African Embassy in Abu Dhabi.
South African companies are also becoming increasingly involved in joint ventures and beneficiation partnerships in the region. Murray and Roberts is particularly active in the region and is currently participating in a major hotel development in Dubai as well as in the enlargement of the Dubai International Airport.
The State of Qatar which is also a focus of South African interest has extensive reserves of natural gas, with the North Field considered to be the largest single gas field in the world. The Government of Qatar has assigned a high priority to the development of this resource and the state oil company, Qatar General Petroleum Corporation (QGPC), has drawn up a Strategic Development Master Plan for the utilisation of these reserves. As part of a diversification and globilisation initiative, SASOL has been involved with the Qataris in a feasibility study for the application of its synthetic fuels technology to convert remote natural gas reserves into high quality liquid fuels. Discussions and contacts in this regard have been held with QGPC since 1995 with the view to establishing a joint project based on applications of SASOL'S technology and Qatar's extensive gas reserves.
The scope of this project is to produce 20 000 bpd of distillate and the total project is expected to cost in the region of US$ 500 to 600 million and would create additional opportunities for cooperation between South Africa and Qatar.
Deputy Minister Pahad will also use the visit to the Gulf to discuss the forthcoming Non-Aligned Movement Summit to be held in Durban, in August/September this year.
ISSUED BY THE DEPARTMENT OF FOREIGN AFFAIRS PRETORIA 23 JUNE 1998