RIYADH, 15 September 2003 — Representatives of the Indian business community have said that the Saudi Arabian General Investment Authority (SAGIA) needs to publicize the salient features of the Kingdom’s economic reforms in order to boost investment between the two countries.
Addressing a press conference here Saturday night, Ganesh Kumar Gupta, chairman Federation of Indian Exporters Organization (FIEO), Western Region, said there was a lack of awareness of the Kingdom’s economic liberalization program. India ranks among the Kingdom’s top ten trading partners.
Despite the lack of awareness, he said, Indian exports increased by 15 percent last year to reach $1 billion. The two-way trade stood at $5.1 billion. SAGIA has licensed 58 Saudi-Indian projects valued at SR1.4 billion in the Kingdom. This is aside from 40 Indo-Saudi projects in India which amount to $3.75 million in Saudi investments.
Gupta is leading a 45-member trade delegation representing 32 companies. Of these 18 are from the textile sector, while the others represent leather, commodities and herbal products.
J.S Mukul, minister at the Indian Embassy, Sanjay Rana, second secretary, economic and commercial section, and Dr. Irshad Ahmed, information secretary, were also present.
The FIEO chief said: “We are not aware of various incentives. It was only after our arrival that we learned that the corporate tax had been reduced from 45 to 25 percent and that investors could own property in Saudi Arabia. Maybe SAGIA should organize a seminar in India to create a better awareness of what the Kingdom offers in terms of incentives.”
Earlier Indian Ambassador Kamaluddin Ahmed inaugurated an exhibition of Indian products. The delegation will be in Riyadh until Sept. 15, in Jeddah from Sept. 16-18 and in Dammam from Sept.20-21.
