Saudis have been doing business with the East, especially countries like India and Indonesia, since time immemorial — although hardly on the scale of today! The tremendous progress achieved by these countries in recent years has led to Saudis reinvestigating and reinforcing those age-old trade relations and availing themselves of the lucrative business opportunities in the East.
“We want to make use of every business opportunity in India,” says Dr. Abdullah Saihati, chairman of Saihati Group and a leading businessman in the Eastern Province. Saihati has already opened an office in the south Indian city of Kochi to explore investment opportunities in the region.
“We have been trading with India for so many years. We used to import rice, spices and other foodstuffs from India. Hundreds of years ago, our grandfathers knew only India,” Saihati told Arab News. He says India offers an ideal place for Saudis to do business, due to similarities of their nature and culture.
Saihati, who has visited India several times, was in Kerala two years ago as the chief guest of the Soorya Festival, a major annual cultural event in the state. “Kerala is a very beautiful place endowed with lots of natural resources. Its people are hard working, intelligent and cooperative. I was overwhelmed by their hospitality.”
Kerala, he says, is a safe place for investment in tourism, information technology and related industries and real estate given the influx of international tourists, the presence of highly skilled personnel and a large middle and upper class population.
The group has already set up two companies in Kochi to carry out investment projects in Kerala. The first, Saihati Tourist Resorts, deals in tourism-related projects. The second will carry out projects in the real estate and infrastructure development sector.
Recollecting his 16-year business relations with the State Bank of India while he was running an international money exchange company in Bahrain, Saihati says, “It was really a good start. It also provided the basis for my direction in investments.”
The unprecedented economic progress achieved by India and other Asian countries in recent years, he says, offers a lot of investment opportunities for Saudis as well as other nationalities.
Many Saudi businessmen, who have already established investment projects in the US, Europe and Africa are likely to turn to the East, especially to India, in the coming years as there are many opportunities in a booming economy.
Saihati said his group decided to invest in Kochi because it is strategically located. “I believe that Kochi has a tremendous future. It is a peaceful and nice city.”
Saihati and his executives have a broader vision for investments in India. They hope to concentrate first in developing their projects in Kochi first before expanding to other cities in the country. With this in mind, Saihati met Kerala’s Industry Minister Elamaram Kareem in Dammam a few months ago. “It was a fruitful meeting and the minister encouraged me to do business and establish projects in Kerala,” he said.
Asked how he views business prospects in India, Saihati said: “India has a great future. It’s open to the world. It has the necessary resources — human as well as material — and is a big market. With the current economic boom, the situation is ideal for businessmen to pitch their stake in India.”
Saihati Group wants to invest with a human face, with profit not the only consideration in establishing its name in India.
“We want do something good for the Indian people. Job creation and its social spin off are other criteria for investing in India. Money is not everything. We have to establish our name and reputation,” said Saihati, who is regarded not only as a businessman but also a philanthropist.
In Saudi Arabia, the Saihati Group, with 15 affiliated companies, is engaged in a variety of activities including oil and gas projects, engineering support, real estate and construction projects, transport, trade and technical consultation.
An engineering graduate of King Fahd University of Petroleum and Minerals in Dhahran, Saihati steers his business group to make optimum use of the new development projects across the country, especially the giant economic cities that are coming up in Rabigh, Hail, Madinah and Jizan, which are expected to draw SR300 billion ($80 billion) in investment.
“We cooperate with the government in carrying out various development projects. We make sure that the projects are completed on deadline, while maintaining high quality,” said Saihati, who holds a doctorate in management from an Irish university.
He highlighted the increasing role of the Eastern Province, being the world’s main energy supply center. “This region has an enormous scope. Many huge projects are coming up at Jubail I and Jubail II industrial cities in addition to new oil projects at Ras Tanura,” he explained.
He emphasized the group’s intent to strengthen its activities all over the Kingdom, making use of the expertise of international companies. “Right now we are doing projects in Riyadh, Yanbu, Jeddah, Ras Tanura, Rabigh and many other parts of the country,” he added.
Saihati says Eastern Province is more organized compared to other regions. “I see a great future for the Eastern Province. It is doing well in industry, trade and real estate, and has a lot of potential,” he adds.
He described Custodian of the Two Holy Mosques King Abdullah as visionary. “Our king has vision for the country, for Saudis and Arabs and Muslims in general. All these giant economic city projects are his ideas and are going to benefit future Saudis. These projects will change the entire face of Saudi Arabia,” he adds.