Uganda is seeking a bigger share of the Saudi Arabian market as the government intensifies efforts to reduce the country’s trade deficit through increased exports, value addition and foreign investment.
The push comes as Uganda moves to transform its relationship with Saudi Arabia from one dominated by imports into a more balanced economic partnership anchored on agricultural exports, manufacturing and technology.
During a meeting with Saudi Arabia’s Ambassador to Uganda, Mohammed Bin Khalil Faroudah, Trade, Industry and Cooperatives Minister Sanjay Tanna said Uganda has the capacity to supply more products to the Gulf market but requires stronger market linkages and investment partnerships.
“Uganda is ready for business. The opportunities are immense, and we need your collaboration and support,” Tanna said.
Uganda’s exports to Saudi Arabia currently stand at about US$9.11 million (approximately Shs33.7 billion), while imports are estimated at US$149.15 million (about Shs551.9 billion), creating a trade deficit of more than US$140 million (approximately Shs518 billion).
Tanna said expanding access to the Saudi market would be critical in reversing the imbalance, particularly by promoting exports of processed agricultural products rather than raw commodities.
“We need your support to find markets for our products. Uganda has enormous agricultural potential and is one of the most fertile countries in the region,” he said.
The minister identified agro-processing as a priority area for cooperation, highlighting export opportunities in sugar, coffee, dairy products, beef, fish, poultry, maize, beans, cocoa, honey and shea butter.
He particularly appealed to Saudi Arabia to open more opportunities for Ugandan sugar exports, noting that the country currently has a surplus production of nearly 300,000 tonnes annually, with potential to increase output to 500,000 tonnes if new markets are secured.
The government is also encouraging Saudi investors to establish processing facilities in Uganda, arguing that local value addition will increase export earnings, create jobs and improve competitiveness of Ugandan products on the international market.
Beyond agriculture, Tanna called for Saudi investment in mineral processing, manufacturing, tourism and digital infrastructure, saying Uganda wants partnerships that support industrialisation instead of continued export of unprocessed resources.
He revealed that discussions are underway with a Saudi company and an Indian partner over a proposed data centre project in Uganda, which would strengthen the country’s digital economy and attract technology investments.
Saudi Ambassador Faroudah welcomed Uganda’s efforts to deepen economic cooperation, saying the two countries must move from discussions to practical investments.
He called for faster operationalisation of the Saudi-Uganda Joint Technical Committee for Trade Development, established in 2025, as a platform to address trade barriers, improve market access and identify new investment opportunities.
“We need to fast-track the implementation of the Joint Technical Committee. Officials and technical groups from both countries should meet together to discuss how to move this forward,” Faroudah said.
Uganda’s strategy is to leverage Saudi Arabia’s purchasing power, investment capacity and growing demand for food products to expand exports while attracting capital into key sectors.
With increased investment in agro-processing, manufacturing and technology, the government believes the Saudi partnership could help close the trade gap, increase foreign exchange earnings and position Uganda as a competitive supplier in the Gulf market.
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