More than 100 Hungarian companies attended the Hungarian–Saudi Business Forum held in Budapest between May 6 and 8. The event provided professional support to companies interested in the region. At the forum, President of the Council of Saudi Chambers of Commerce H E Hassan Al-Huwaizi emphasized the importance of long-term collaboration between the two countries based on knowledge and technology transfer. He also called for a broader economic engagement that goes beyond food and machinery, suggesting new areas for cooperation such as tourism, energy, smart technologies, fintech, and water management.
Saudi Vision 2030
The event is connected to Saudi Arabia’s ‘Vision 2030’ plan, which aims to enhance foreign investment in the Saudi economy and is one of the most extensive investment programmes in the Kingdom’s history. The plan was announced by Crown Prince Mohammed bin Salman in 2016 and aims ‘to build a vibrant society and a thriving economy by fostering a supportive environment for growth, creating job opportunities for citizens, nurturing talent, attracting investment and unlocking the Kingdom’s vast potential.’
Saudi Arabia’s main aim with the plan is to reduce its reliance on oil and reshape its traditional economic thinking. To become more flexible and reach regional and international markets, the Vision 2030 included governmental reforms and legislative updates. Among the goals of the Kingdom’s plan are reducing unemployment, increasing gross domestic product, localizing military and technological industries, and making the country a prime destination for tourists and global enterprises. These can be achieved by security and balanced policies. Thus, the Middle Eastern state has made significant efforts to strengthen its internal security by combating extremist rhetoric and dismantling terrorist groups.
Mutual Political Trust between Hungary and Saudi Arabia
Hungary established diplomatic relations with Saudi Arabia in 1995, and since 1996, a resident ambassador has represented Hungary’s interests in the country. Saudi Arabia is one of Hungary’s most essential partners in the Middle East region. This year marks the 30th anniversary of establishing diplomatic relations and 15 years since the Hungarian government’s so-called Eastern and Southern Opening policies were launched.
Ministry of Foreign Affairs and Trade Péter Szijjártó earlier said that Hungary and Saudi Arabia share common perspectives on key issues such as the importance of securing borders, addressing the root causes of migration, combating human trafficking, and opposing religious extremism and radicalism. He also noted that both nations will maintain their mutual support within international organizations on matters related to illegal migration.
‘The two countries share similar views on prioritizing national interests, pursuing pragmatic politics, upholding national identity, and the role of family and religion’
Saudi Arabia recognizes and respects Hungary despite the differing religious and cultural backgrounds. The two countries share similar views on prioritizing national interests, pursuing pragmatic politics, upholding national identity, and the role of family and religion.
Flourishing Trade Relations
Political and diplomatic relations between the two countries are continuously developing. Cooperation between Hungary and Saudi Arabia started to strengthen in 2012 with the establishment of the first Saudi–Hungarian Joint Economic Committee. In 2023 the Kingdom was Hungary’s 53rd largest trading partner, and trade between Budapest and Riyadh reached 480 million dollars that year. Hungary’s foreign trade with the Kingdom has increased yearly over the past five years.
In 2024 Deputy Minister and State Secretary of the Ministry of Defence of Hungary Tamás Vargha visited Saudi Arabia with the aim of signing an agreement related to cybersecurity and defence digitalization between the two countries. The Hungarian official at that time expressed his optimism regarding the enhancement of trade relations, stating that ‘we are a smaller country, but we would like to be part of your success and your solution.’
The Hungarian–Saudi Business Council, re-established in January, helps companies exploit opportunities in Saudi Arabia’s market, which is a good example of the deepening economic relations between the two states. The ICT sector also plays an essential role in the Vision 2030. The most significant portion of the GDP is no longer made up by oil or the related chemical industry but by the service sector in the Kingdom. Saudi Arabia’s ICT sector is a 172-billion-dollar market, attracting the world’s largest and most innovative companies seeking to enter. Hungary is also active in this area, having established the Hungarian–Saudi Arabian Digitalization Cluster with the aim of representing the Hungarian economic interest in the Middle Eastern country.
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