A delegation of Raheja Developers is likely to visit Saudi Arabia this month to finalize the joint venture agreement.
A source close to the development said the deal was likely to be signed during the visit
“If for some reason it is not signed this time, then it will be formalized when an Assocham (the Associated Chambers of Commerce and Industry of India) delegation visits Saudi Arabia next month,” the source was quoted as saying by the Press Trust of India
Previous reports have also stated that negotiations were taking place with the Abdulhadi A Al-Qahtani Sons Group.
Officials of the Raheja Developers were, however, not available for comment on Sunday.
Saudi Arabia’s Al-Qahtani Sons Group signed a deal earlier with Indian firm SledgeHammer Oil Tools to build manufacturing plants for oilfield and drilling equipment in Saudi Arabia.
Raheja Developers managing director Navin Raheja held talks with a high-level delegation led by Saudi-Indian Business Council chairman Abdulrahman Al-Rabeeah here recently.
Al Rabeeah said during the visit that more Saudi firms were turning to India for investments and joint ventures.
“Many companies are looking for joint ventures. Such deals are important for expanding business in India and in Saudi Arabia,” said Al-Rabeeah.
Saudi Basic Industries Corporation (Sabic), which is planning billions of dollars investments in India, is among top Saudi firms seeking joint ventures with Indian firms.
Sabic “has been in talks with Indian petrochemical players for a joint venture to tap the huge potential of the Indian market with cracker projects and downstream refineries,” Ahmed Alumar, vice-president, Asia Pacific and member of the board of directors of Sabic Asia-Pacific, said in remarks published in India’s Business Standard newspaper.
Al-Rabeeah confirmed during his February visit to India that many companies had started negotiations and were likely to sign joint ventures or memorandums of understanding soon.
“The business and investment data clearly indicate the need for private sector of both countries to engage more deeply,” said Al-Rabeeah.
“Saudi Arabia is confident of attracting Indian investment because it is the largest market in West Asia.”
Both countries are exploring opportunities for collaboration in the oil and petrochemical sector as India-Saudi Arabia bilateral trade increased to $21 billion in 2009-10 from $3.44 billion in 2005-06.
The value of India’s exports to Saudi Arabia rose to $3.90 billion in 2009-10 from $1.80 billion in 2005-06.
Major items of Indian exports to Saudi Arabia are petroleum products, Basmati rice, non-ferrous metals, machinery and instruments, dyes/intermediary and coal tar chemicals.
India, Saudi Arabia’s fourth largest trading partner, imports about 26 percent of its total crude oil requirement from the Kingdom.
Its imports from Saudi Arabia surged to $17.09 billion in 2009-10 from $1.63 billion in 2005-06. Main imports are petroleum products, organic chemicals, artificial resin, plastic and materials.
