Saudi Arabia's Foreign Minister Prince Faisal bin Farhan Al Saud arrived in Tallinn on Tuesday evening and met on Wednesday with Foreign Minister Margus Tsahkna (Eesti 200), Prime Minister Kaja Kallas (Reform), and Taavi Einaste, co-chair of the Estonia-Saudi Arabia Chamber of Commerce.

"Saudi Arabia, along with the entire Persian Gulf region, is one of the focus areas of Estonia's business diplomacy and is projected to be one of the world's fastest-growing economic regions in the coming decades," Tsahkna said in a press release. "We actively support the entry and operation of Estonian companies in these markets," he added, expressing hope for finding new cooperation opportunities, as Estonian companies have significant interest in this growing market. "I am also looking forward to the World Expo 2030 in Riyadh," noted the foreign minister.

According to the ministry's explanations, Saudi Arabia is implementing a new, Western-oriented economic model with the goal of becoming one of the world's largest economies by 2030. This has increased Estonian companies' interest in the Saudi Arabian market.

Ministry spokesperson Kerstin Meresma also noted that the state's support for entrepreneurs is crucial, especially now when there is a need to aid the recovery of Estonia's economy while demand in our main export markets has decreased.

"Saudi Arabia has the resources to develop new digital e-governance solutions, which provides an opportunity for Estonian companies to export our experiences and knowledge. This directly reinforces Estonia's image as a progressive country," Meresma stated.

According to her data, Estonian IT and technology companies, such as Nortal, Cybernetica, GScan, Ridango and Auve Tech, are the most active in Saudi Arabia, including participation in the megaproject Neom. Neom is a 26,500 square kilometer development area on the eastern edge of Saudi Arabia, on the northern coast of the Red Sea, planned to include an industrial zone, a global economic hub, a tourism area and a linear city that uses only renewable energy.

Since Saudi Arabia has begun establishing its gene bank, Estonia is interested in selling ready-made services in this field and engaging in scientific cooperation.

There is also cooperation potential for Estonia's food industry and food safety companies. Meresma highlighted that Balsnack's potato chips have found a permanent place on the shelves of major Saudi Arabian retail chains.

"Through dialogue, we can also discuss other topics important to Estonia," remarked the ministry's representative.

Meresma emphasized that economic cooperation is also strengthening more broadly between the European Union and Saudi Arabia. For instance, in 2023, the EU-Saudi Arabia Investment Forum took place, and this year, the European Chamber of Commerce began operations there, supporting Europe-related companies, information exchange, and coordination.

Estonia-Saudi Arabia trade worth €72 million

Last year, Estonia exported goods worth €29.3 million to Saudi Arabia, with the main export items being plant products (46.2 percent). Additionally, machinery and mechanical appliances (28.4 percent) and wood and wood products (9.51 percent) were also exported.

In 2023, Estonia imported goods worth €25 million from Saudi Arabia, with the primary import item being plastics and plastic products (74.2 percent).

The volume of service exports to Saudi Arabia has been around €10 million in the last two years, while imports have remained below €3 million.

According to data presented by the Ministry of Foreign Affairs, Estonia's trade with Saudi Arabia accounted for 0.1 percent of Estonia's total trade last year, ranking 46th among Estonia's trading partners.

As of March 31, 2024, the volume of direct investments from Saudi Arabia to Estonia stands at €2 million, spread across nine sectors. Estonia has made investments in Saudi Arabia in the information and communication sector.

Wars and human rights discussed

According to the Ministry of Foreign Affairs, the meeting between Tsahkna and the Saudi foreign minister also discussed Russia's aggression in Ukraine, the situation in the Middle East and bilateral relations, with Estonia raising the issue of human rights.

Tsahkna provided an overview of Estonia's contributions to assisting Ukraine and introduced various cooperation opportunities. He also explained to his Saudi counterpart that the response to Russia's aggression in Ukraine will determine the future and security of not only Estonia but the entire Europe.

Following the meeting, the Saudi foreign minister affirmed his country's strong support for finding a path to lasting peace in Ukraine.

Speaking about the security situation in the Middle East, Tsahkna emphasized that finding a swift and lasting solution to the crisis there is in everyone's interest, and Estonia, along with other European Union countries, has consistently supported a two-state solution. "Therefore, we supported the resolution to strengthen Palestine's status at the UN General Assembly in May," noted the Estonian foreign minister.

This was also acknowledged in the Saudi foreign minister's press statement, where he said that this is an important milestone that keeps hope alive for achieving a viable two-state solution.

Commenting on the humanitarian situation in Gaza, Tsahkna described it as inhumane and critical, and he acknowledged Saudi Arabia's contributions to alleviating the humanitarian crisis there.

Asked if Estonia raised the issue of human rights in Saudi Arabia during the meeting, the ministry's spokesperson replied, "Estonia raised the issue of human rights in Saudi Arabia during the meeting and will continue to address this topic in the EU human rights dialogue meetings and other relevant formats. The dialogue focuses mainly on labor rights, women's and vulnerable groups' rights, the principles of the rule of law, fundamental and religious freedoms and the application of the death penalty, which the EU strongly and unequivocally opposes."

Regarding why journalists were not allowed to ask questions following the press statements by the Saudi and Estonian foreign ministers, the ministry's spokesperson explained, "In high-level bilateral meetings, the media engagement formats are discussed and agreed upon by the hosts and guests to find the most suitable format for all parties, considering the delegations' preferences and the schedule. Post-meeting brief press statements are a common form of media interaction, previously used by delegations visiting Estonia, such as those from the Netherlands, North Macedonia and others."

"Estonian media can direct additional questions to the Saudi delegation through diplomatic channels or with the assistance of the Estonian Ministry of Foreign Affairs, but the decision on media interaction rests with the delegation itself," added Meresma.

During the meeting between the two foreign ministers, a memorandum was signed, establishing a framework for regular consultations at the official level between the ministries.

"This is a standard form of communication between countries," said the ministry's spokesperson.

In early June, ERR reported that the Ministry of Foreign Affairs is seeking government approval for a general cooperation agreement between Estonia and Saudi Arabia, citing the promotion of economic cooperation and the fostering of mutual trust as reasons. "The agreement aims to strengthen relations between the Republic of Estonia and the Kingdom of Saudi Arabia by developing and supporting cooperation in the fields of economy, trade, investment, education, science, tourism and youth work," stated the explanatory memorandum. Foreign Minister Tsahkna mentioned that he does not see a conflict in developing relations with an undemocratic Arab country.

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