Saudi Arabia and Spain do not share large international forums beyond the G20 and the United Nations, and to make matters worse, the Arab country has just aligned itself with Russia and China in the Brics group. However, “relations are good” and “there is no problem in foreign policy,” according to government sources. The interests between both countries have more to do with business than politics.
Among the Spanish companies consulted, there is interest in maintaining the climate to develop projects in Saudi Arabia. For this reason, they are carefully observing a possible change in relations between both countries caused by Saudi Telecom's secret plan to acquire 9.9% of Telefónica for 2.1 billion euros. The companies recognize how easy it has been for them to do business so far with a country that is swimming in abundance and some believe that it is most likely that the Spanish Government will allow the entry of Saudi capital with conditions.
Aside from a possible veto by the Executive, Telefónica's statutes already limit the exercise of voting power by any shareholder to 10%.
They also include an article, article 33, that allows Saudi Telecom to enter the council, despite being a competitor. This article prevents a rival company from participating in the management body, unless it has “established a strategic alliance.” This is the case of Saudi Telecom, which reached an agreement of this type with Telefónica in February.
Government sources explain that neither the first vice president, Nadia Calviño, nor the Foreign Minister, José Manuel Albares, maintained contact with the Saudi delegation at the G20 summit this weekend in India. The Saudi Telecom file has been taken over by Defense and Economy, without touching diplomatic channels for the moment.
The interests of both countries converge in business, especially through Navantia, Indra, Iberdrola, Técnicas Reunidas (TR) or those of the AVE consortium to Mecca, including Renfe, Adif and Talgo.
An investment manager who worked at a global firm in London in 2012 remembers that that year the Saudi sovereign fund, PIF, owner of 62% of Saudi Telecom, was a large buyer of Spanish debt. At the time, PIF's mandate was very conservative and fixed income oriented. Now the Saudi Vision 2030 aspires to the diversification of a country addicted to oil.
Navantia sources explain that talks with Saudi Arabia to achieve a new contract for five ships in the country continue. This order may exceed that of 1.8 billion to build five corvettes in Cádiz, of which three have already been delivered. It remains to be seen if a change in relations between both countries can affect the contract.
Renfe, Adif, Talgo and the rest of the companies in the Ave a La Meca consortium, awarded in 2011, have been operating since 2021 an infrastructure of which they will be concessionaires for 12 years. The investment exceeds 7.1 billion euros and, according to consortium sources, the operation is carried out without disagreements between the parties.
One of the major contractors of the oil giant Saudi Aramco is Técnicas Reunidas, which has totaled contracts in the country for more than 12.3 billion dollars since 2012. Saudi Aramco is “one of the most relevant clients” of the company, according to the company. . Iberdrola will build a large self-consumption plant in the country.
What remains to be seen now are the intentions at Telefónica of Saudi Telecom, which still has not notified the operation to the Government.
