A high-level Saudi business delegation has urged Indian companies and investors to take advantage of the tremendous opportunities in the Kingdom of Saudi Arabia and put in their expertise and resources to develop strategic partnerships with Saudi companies. At the same time they said the Saudi businessmen were also keen to further increase their investments
in India.
The delegation headed by Abdulrahman Abdulaziz Arabiah, the co-chairman Saudi-Indian Business Council, visited the Hitec City and held an interactive session with several Indian businessmen and companies under the aegis of the Confederation of Indian Industry, according to a report published today by the Jeddah-based Saudi Gazette.
The 28-member delegation included Ghassan Ahmad Al-Sulaiman, the chairman of Jeddah's Chamber of Commerce and Industry.
The visit assumes a lot of significance as it comes ahead of the landmark visit of Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz to India in January.
"We want to put a new fuel, a new energy in our centuries-old relationship with this exploratory visit," said Abulrahman Arabiah.
"We will come back again and again to explore and develop new partnerships," he said.
"Saudi Arabia is the largest market in the Middle East and we offer a lot of investment opportunities. Come and utilize them," he said pointing out that Saudi Arabia was now a member of the World Trade Organization and anybody can now set up 100% ownership companies in the Kingdom.
Talking of the ambitious plans for the future, Abdulrahman Arabiah said that Saudi Arabia had chalked $624 billion investments in various sectors over the next five to 10 years. He pointed out that 82 Indian companies have already made investments of $467.2 million in the Kingdom.
The sectors in which Saudi Arabia was looking for investments and partnerships include desalination plants, water, power, health, education, infrastructure, information technology, civil aviation and railroads.
When asked about investments from Saudi Arabia in India, Abdulrahman Arabiah said that already a lot of investments have been made. "This is our mission. To encourage investments by Saudis in India and by Indians in Saudi Arabia," he said.
Ghassam Ahmad said that the immediate implication of the WTO membership of Saudi Arabia was that the private sector was much more mature now.
”Now the needs of the private sector are different. We are looking for quality companies in India that can form strategic alliances with Saudi companies to establish a base in Saudi Arabia for their operation throughout the Middle East”, he said
”The World Bank ranking of Saudi Arabia in terms of attractiveness for the foreign direct investment has jumped to 38 from 67 a year ago”, he said.
”Saudi Arabia is now experiencing a second boom after the first boom of 1970, which was based solely on the increase in the price of oil. Now the difference is that although in the present boom oil still plays an important factor, it is not the only factor. The reforms, the opening of new sectors, opening of market in Saudi Arabia are all playing an important role”, he said.
Ghassam who is in the investment banking said that he was in India to explore sectors of interests including housing, tourism, infrastructure and IT.
"What excites me are the areas where India has very strong competitive edge in. Of course IT is one area. My trip here is to explore what other areas or sectors India could potentially have a competitive edge," he said.
