RIYADH, 15 August 2004 — To ensure better employer-employee relation, the Embassy of India has launched an awareness campaign about the Kingdom’s labor laws and its rules and regulations concerning foreign employees among prospective Indians seeking jobs in Saudi Arabia.
This was disclosed to Arab News by India’s Ambassador Kamaluddin Ahmed, who said the embassy has also brought out booklets in Hindi, Urdu, Malayalam and English for distribution among the Indian workers as part of its awareness campaign.
The ambassador also said that a draft memorandum of understanding (MoU) between India and Saudi Arabia on combating crime is expected to be signed in the near future. The two sides are also discussing an agreement on mutual legal assistance in criminal matters. He touched on a wide range of Indo-Saudi relations across economic and political fields as well as in areas such as the Middle East and the combating of international terrorism.
Referring to the issuance of “free visas”, Ahmed said the term “free visa” is a misnomer. “There is no visa called a “free visa.” Every job visa is issued in the name of a Saudi sponsor who is supposed to have a job to offer, and it is only natural that a needy expatriate accepts the job offered to him or her. The trading in visas is illegal; and involves unscrupulous elements who mislead people.”
He said this problem could be effectively curbed only if the issuing of visas solely to the genuine entities is enforced at the Saudi end. “In this regard I am happy to note that the minister of labor has launched a campaign for reforming this sector.”
Describing Saudi-Indian relations as excellent, the ambassador said “there is considerable symmetry in perceptions of the two countries on regional and international issues. India is seen as a force for stability and moderation, which countries recognize, as an essential prerequisite for prosperity. India’s unwavering commitment and steadfast support to the Arab cause is historical and well known.”
He said India’s bilateral ties with the Kingdom are being continuously expanded by regular economic interaction and exchanges, with energy and information technology constituting the most robust elements in this regard. A major credit for this strong relationship goes to the Indian community in Saudi Arabia which by their hard work and sincerity have enhanced India’s image in the Kingdom.”
Ahmed continued: “Both India and Saudi Arabia are committed to peace and security in the region. They also share the belief that the stability and security of the Indian subcontinent and that of the Gulf region are closely interlinked; therefore, their bilateral cooperation is the key to promoting peace and stability in the region. India has condemned the terrorist acts in Saudi Arabia which led to the loss of innocent lives and damage to property.
On commercial and economic cooperation, the ambassador said India is the fourth largest trading partner for Saudi Arabia. The value of the bilateral trade during the period April 2003-March 2004 stood at over $ 6.5 billion. India is the fourth largest market for Saudi exports and is the tenth largest source of the Kingdom’s imports.
Saudi Arabia is the major source of India’s imports and ranks as the 14th largest market for Saudi exports. “Every year India buys oil and oil products worth around $ 4 billion from the Kingdom. The figures of Indo-Saudi bilateral trade for the last two years have been growing at a healthy rate, with India’s exports to the Kingdom up by 13.72 percent in 2002 and 19.05 percent last year. The corresponding figures for Saudi Arabia are 8.40 percent and 46.06 percent respectively.”
He pointed out that in addition to the growth in traditional exports such as Basmati rice, tea, yearn, textiles, fabrics, garments, iron and steel, chemicals, machinery and instruments, the share of value-added products and services such as IT services, engineering goods and contracting services is also on the upswing. “As India emerges as a leader in knowledge-based industries, Indian exports are gradually shifting to advanced products and services, particularly in the area of software and IT products.
Ahmed pointed out that a landmark in Saudi-Indian economic relations was the visit of Minister of Commerce and Industry Dr. Hashim Yamani who led a high-level Saudi delegation to the first-ever GCC-India Industrial Conference held in Bombay in February this year. More than 200 GCC delegates, including ministers, industrialists, CEOs, businessmen and officials participated at the GCC-India Conference. “At the conclusion of the conference, GCC and India expressed their interest in signing a framework agreement for economic cooperation which will kick off free trade negotiations between the two sides.
He pointed out that a high level businessmen’s delegation led by Abdul Rahman Al-Jeraisy, chairman, Council of Saudi Chambers of Commerce and Industry, visited India in October last year. Another important visit by Prince Talal ibn Abdul Aziz, president of AG Fund to New Delhi in December 2003 to chair the annual prize giving festival of the Fund held in New Delhi for the first time.
In reply to a question on joint ventures in the wake of the Kingdom’s economic reforms program, the ambassador said that since the establishment of the Saudi Arabian General Investment Authority (SAGIA) in 2001, it has awarded 68 new licenses to Indian companies for establishing 29 joint ventures and 39 hundred percent Indian-owned companies in different sectors, such as management and consultancy services, construction, projects management, telecommunications, IT, pharmaceuticals, etc. These joint ventures, 100 percent foreign-owned companies, were expected to bring an investment of around $366 million in Saudi Arabia. Similarly, during the last decade, Saudi companies have invested $ 181 million in India. Overall, there are around 55 Indo-Saudi joint projects in India.
“In addition, several Indian companies are working in Saudi Arabia in the areas of IT, software development, designing, consultancy, financial services, etc. The last year saw entry of several new Indian companies in the Kingdom and expansion of operations by those already present here. Today, I am happy to note that almost all leading Indian IT companies, including top; three, Tata Consultancy Services, Wipro, and Infosys have established their presence in the Kingdom, he added.