SAUDI ARABIA has embarked on an unprecedented drive to open up to $1,400 billion (£795 billion) of its industries to foreign investment as it strives to scale back dependence on oil exports.

The Kingdom, which is committed to lowering investment barriers as it enters the World Trade Organisation, has launched a $624 billion investment programme and has accelerated an $800 billion privatisation plan.

Riyadh is already waging a charm offensive on Western businesses and is to encourage investment from 400 British companies in a roadshow this month. The Saudi Ambassador to the UK and a Saudi government minister are taking part in the campaign to persuade British companies to join in the programme.

The planned spending spree, which is mapped out for the desert state between now and 2020, has the backing of Abdullah bin Abdul Aziz, the King of Saudi Arabia, who acceded to the throne last August.

The privatisation programme, one of the world’s biggest, gives overseas companies the chance to invest in petrochemical, water and power projects through public-private partnership deals. The opportunities include new power plants, roads, railways, desalination plants, petrochemical plants, gas and oil procurement, telecommunications equipment, mining and capital markets investment.

Some of the $624 billion will be met by the Saudi state and Saudi companies, but the Kingdom is hoping to attract a large slice of foreign investment.

The Saudi delegation, which will also include Princess Lolowah Al-Faisal, will outline the opportunities to the British companies at investor roadshows in Manchester and Edinburgh.

The move comes after similar investor roadshows in the United States last year.

Saudi officials said that ministers were keen to attract British and American companies back to the country after relations became strained between the West and the Middle East in the aftermath of the September 11 terrorist attacks.

Far Eastern companies have taken their place in recent months, but Saudi Arabia is thought keen to ensure that Western countries, particularly the US and Britain, do not miss out.

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