JEDDAH, 15 March 2005 — Saudi-Indian Business Network (SIBN), a new body of Saudi businessmen and Indian executives and professionals, was opened by Jeddah Chamber of Commerce & Industry’s Acting Chairman Dr. Ghassan Ahmed A. Al-Sulaiman at a ceremony held at Jeddah Inter.Continental on Sunday night. The event was marked by the inauguration of SIBN’s website by Abdul Khaliq Saeed, chairman of A.K. Saeed Group of Companies and founder president of SIBN.
Dr. Al-Sulaiman, who released an SIBN souvenir, recalled the age-old trade ties of the two countries and described India as an emerging super power. “In the last few years, India has taken steps toward becoming an economic superpower,” he said, adding that this is the most opportune time for local businessmen to cash in on the vast scope that India has for expanding its trade and investment. “We’ve been trading with India since the 19th century and Indian traders have been coming to the Kingdom over the centuries and residing in Makkah, Madinah, Jeddah and Qasim. So there is all the more reason for further expanding the bilateral economic relations,” he said and hoped that the new organization would bring the two business communities closer and bear fruit quickly.
Saeed said the two countries had started trading nearly 2,000 years ago and India had since been growing strong economically. “Today, India has the fastest growing economy,” he said and recalled former US President Bill Clinton’s remark during his visit to India that a “Third World country can not only succeed but can lead.” He identified many areas in which the two countries could collaborate and cooperate to their mutual advantage.
Among those present were Ahmad M. Al-Zoghaibi, director of protocol department, Ministry of Foreign Affairs, Makkah region, Chinese Consul General Chang Yi, Pakistan Consul General Masood Akhtar, Sri Lanka Consul General A.M.J. Sadiq, Bangladesh Consul General Ashraf Uddin and Malaysian Consul General Zulfikli ibn Yaacob. Hasan A. Chougule, president of the Indian Business and Professional Network, Qatar, in his keynote address gave an overview of the Qatari organization that had brought the Qatar and Indian businessmen closer.
Ambassador M.O.H. Farook said the revolution in communications and globalization had resulted in strategic partnerships, especially one between India and the Gulf. “We’re now talking in terms of setting up an India-GCC free trade area. We’re discussing cooperation with many of our GCC partnership in high-tech areas like space and scientific cooperation, biotechnology, IT, pharmaceuticals and consultancy. We’re also exploring serious and mutually rewarding cooperation in the field of higher education and tourism,” he said. There was a time when India was looking only for inward foreign investments. Now India is also encouraging its own majors to go out and make investments abroad.
“We are expecting foreign direct investments (FDI) in India to touch $7.5 billion to $8 billion in the current financial year, up from $4.6 billion received last year. The maximum investments are coming in sectors like automobiles, telecommunications, electrical equipment and consumer durables. There are a large number of sectors in which 100 percent foreign equity is allowed with full repatriation of profits. There are special benefits in making investments in special economic zones.”
According to him, the next few decades belong to Asian countries like China, India and the ASEAN (Association of Southeast Asian Nations). The Saudi business community should not lag behind in exploring the opportunities that our region offers,” the ambassador said.
Consul General Dr. Ausaf Sayeed described the formation of the SIBN as a “dream come true” for him. After being instrumental in launching similar bodies in the Eastern Province and Qatar, he nurtured the idea of launching the SIBN as a professional organization on a larger canvas, which could bring together entrepreneurs, senior business executives and professionals from the Kingdom and India. The consulate and the embassy would assist the SIBN in creating strong databases of corporates, companies and investors in different sectors.
The GCC has invested around $720 million, which is 1.22 percent of total FDI approvals of $67.15 billion received in India. For Saudi Arabia, the figure is $228.8 million for the period 1991-2004, he said and urged the Saudi businessmen and entrepreneurs to make use of the opportunity that India offers.
Ashok Kumar, consul (commercial), who conducted the proceedings, said in his opening remarks that the Indian economy was growing at 7 percent per annum. Its foreign exchange reserves had soared beyond $130 billion.
The SIBN, whose patron is the Indian ambassador and vice patron the consul general, has Hassan Ghias as vice president, C.J. Shahjahan as general secretary, Dr. Asar Khan as PRO, Yousuf A. Alireza as joint secretary and Devender Kumar Choudhary as treasurer. Its executive members include Ziad B. Al-Bassam, Hashim Abdullah Hashim, Chander Nain, Rasheed Yar khan, Mehboob Peshimam, Shoheb Kazi and Dr. Saud Saleh Islam.
