JEDDAH, 3 December 2006 — There is a huge potential for joint ventures between Saudi Arabia and India, said Ziad Bassam Al-Bassam, vice chairman of the Jeddah Chamber of Commerce and Industry (JCCI).

“Small and medium enterprises (SMEs) can play an important role in the economies of both countries,” he said while inaugurating a business interaction between a visiting delegation of Indian Small and Medium Scale Enterprises and Saudi businesspersons at JCCI yesterday.

Al-Bassam, who also chairs the chamber’s Small Business Support Center, said there was a new-found dynamism between Saudi Arabia and India especially after Custodian of the Two Holy Mosques King Abdullah’s visit to India early this year. “Such delegations are very important in taking the business relationship to the next level,” he said. For Indian SMEs, Al-Bassam sees special potential in pharmaceuticals, information technology and textiles. “The potential is limitless,” he told members of the delegation.

The Indian delegation of small and medium enterprises was led by the Andhra Pradesh Industrial & Technical Consultancy Organization Ltd. (APITCO). The interaction was arranged by the Consulate General of India, Jeddah.

The SME delegation, which is here to explore joint ventures, technology transfers and market expansions between Indian and Kingdom’s SME sector, has already visited Riyadh from Nov. 28-30.

Indian Consul General Dr. Ausaf Sayeed concurred with Al-Bassam saying there was tremendous scope for SMEs in Saudi Arabia. “India and Saudi Arabia’s development is on fast track cooperation after the visit of Custodian of the Two Holy Mosques King Abdullah’s visit to India... There are more exchange of business and ministerial delegations between the two countries.” He pointed out the recent visits to India by the Saudi minister of higher education and the health minister. “It indicates the high priority Saudi Arabia attaches to its relationship with India,” he said and promised all help to Saudi businesspersons in their quest to either set up businesses in India to help Saudis tie up with Indian entrepreneurs.

APITCO Managing Director S. Srinivasa Rao gave an excellent and comprehensive presentation on the areas in which his association can help, said: “The SME sector in Saudi Arabia is still underdeveloped and they are dependent on other countries for all the goods and services. Indian expertise in SMEs is much suitable to the country and the Indian SMEs can immediately explore the opportunities of helping the Saudi Arabian entrepreneurs in setting up of SMEs with their Indian expertise as a joint venture or technology supplier.”

“In the context of globalization, accessing better technologies, establishing joint production bases, expanding markets and forging multilevel marketing networks are the most important strategies to be adopted by SMEs,” said Rao.

He said with a view to facilitating long-term interest between Indian SMEs with Saudi Arabia, APITCO signed a MOU with the Riyadh-based Al-Hamdan Bureau for Management Consultations.

“SMEs are very important not only in India but all over the world because they play an important role in the growth of national economy,” he said.

Over 8,000 diverse range of products are produced in India and they make significant contribution to economic development across the nation. “SMEs are a key growth engine of India economy and provide decentralized employment,” Rao said.

Raj Pal, director, Ministry of Small Scale Industries, India, said the Indian government gives fiscal incentives to promote SMEs.

After visiting Dammam on Monday, the Indian SME delegation to go to Bahrain to explore more investment opportunities in SME sector.

Prominent among the Saudi businesspeople was Madawi Al-Hassoun who said she had been doing business with India for a long time. “I want to start my own factory,” she said on the sidelines of the interaction.

Consul (Commercial) Ashok Kumar said he was encouraged by the good response from the Saudi business community for tie-up with India. “The members of the delegation plan to visit Saudi Arabia again to firm up their relationship with the business people here,” he said. “Many of the delegates have been visiting the Kingdom for the first time and they are impressed by the feel-good factor that India is currently enjoying in Saudi Arabia.” He thanked the JCCI for playing a vital role in promoting India and its products. “But for their help, we would not have had the kind of response that we had today,” he added.

The delegation headed by APITCO’s Rao included Abdul Rehman, S.V. Rama Moorthy, Prashant Manne, Amir Alam Pasha, Komireddy Krishna Vijay Azad, C.V.B. Siddique and Brig. Hari Kumar.