Ethiopia-Saudi Arabia Relation
o Islam may have been
born in the Kingdom of Saudi Arabia but Ethiopia was the first country to allow its
adherents to practice it. Because they
were persecuted in their own country, the followers of the Prophet Mohammed
were ordered by him to seek refuge in Ethiopia. King Al-Najashi of the then Abyssinia treated the Muslims with
kindness and dignity and gave protection. This is indeed considered as the
source of excellent relations that exist between peoples and governments of
Ethiopia and Saudi Arabia.
o Ethiopians estimated
around 800,000 are living in the Kingdom; particularly Ethiopian Muslims go to
Saudi Arabia for Religious purposes. Others also go to the KSA seeking job
opportunities there. The people to people relations have still continued in a
good way and this paved the way for trade relations between the two countries.
o Ethiopia and Saudi Arabia established diplomatic relations
in 1948. Ethiopia opened its Consulate in Jeddah in 1948 and later Ethiopia has
opened the Embassy in Riyadh in 1978, New Capital of Saudi Arabia.
Simultaneously Ethiopia has opened its Consulate in Jeddah. Immediately, the
Kingdom of Saudi Arabia also opened its embassy in Addis Ababa in 1948. The diplomatic ties
between the two countries are intended to ensure mutual benefit for both. As a
result, high-level government officials of both countries conduct exchange
official visits frequently.
o Ethiopia and Saudi Arabia
have also established a Joint Ministerial
Commission in 2001 with the objective of further enhancing the relations between
the two sides. The two countries have signed various agreements in various
socio-economic areas to further strengthen the existing cooperation. These
agreements are being effectively implemented.
o The Government of
Ethiopia encourages the Saudi business community to invest in Ethiopia in the
sectors such as Leather and
Leather Products;;; Textiles and
Garments; Horticulture; Agriculture; Construction;
Manufacturing;
Pharmaceuticals;
Tourism;
Agro-Processing;
construction of tourist centers and lodges; and Industrial
Parks.
o Saudi Arabian Direct Investment in Ethiopia is also growing from time to
time. There
have been 118 Saudi investments operational in Ethiopia since 1992. Areas of the
investment largely include manufacturing, agriculture, construction, real state, and related fields, etc. The total investment amount reached around 663 million
USD.
o Saudi Arabia is among the major countries of Ethiopia’s exports
destinations. Items of exports to Saudi include coffee, meat, cereals, oilseeds, banana, etc. Ethiopia imports from Saudi Arabia Mineral fuels, oils,
distillation products, plastics, paper etc.
o From 2012 to 2018
trade data between Ethiopia and Saudi Arabia shows that the volume of trade
between the two countries is 6,561,640,071.55 USD. Ethiopia’s export during the
same period was 1,136,771,680.68 while it’s import far larger amounting to
5,243,479,527.33. This shows negative trade balance for Ethiopia.
o The Kingdom is also financing various Socio-Economic development projects
through its Development Fund.
