RIYADH, 22 August 2004 — The Gulf Cooperation Council will next week sign framework economic cooperation agreements with India and Pakistan.
The deals will pave the way for “launching negotiations to establish two free trade areas between the GCC and the two friendly countries,” GCC Secretary-General Abdulrahman Al-Attiyah said in a statement issued at the regional bloc’s headquarters here.
Attiyah will visit India and Pakistan between Aug. 24 and 27 to “participate in signing the two agreements,” the statement added.
A.C. Patankar, principal adviser of the Confederation of Indian Industry (CII), said a high-level Saudi-Indian CEO forum will be formed as part of the deal to facilitate joint ventures and exchange of business delegations and to promote cooperation in banking sector.
The Confederation of Indian Industry signed an agreement with the GCC last February aimed at boosting trade.
Patankar said Riyadh and New Delhi will exert efforts to facilitate introduction and opening of Indian banks besides facilitating cooperation in consultancy, professional education and training. “We also seek to facilitate development of Riyadh as an IT hub,” he said.
In the field of banking, Indian banks have evinced keen interest to boost cooperation. In fact, State Bank of India’s (SBI) application for grant of a branch license has been under consideration of the Saudi government since July 2003.
“All these commercial initiatives will be supported by the CII,” said Patankar adding that CII will be the coordinating organization, which has taken upon itself to follow up on the discussions and the decisions taken at the GCC-India Industrial Conference held in Bombay earlier this year.
He said that CII is a non-government, industry-led organization, playing a proactive role in India’s development process. Founded 108 years ago, it is India’s premier business association with a membership of over 50,000 companies.
The GCC is also hoping to conclude a long-stalled free trade agreement with the European Union.
