Across the Atlantic, the European economy looks dim with the debt crisis hitting the strongest link in the euro zone, Germany.
Europe may need more than a decade to overcome its debt crisis, making it a less attractive place to do business; so the only option left is to head east.
The Asian emerging economies have more common grounds with the US economy when compared to the developed economies in Europe.
They are heading fast to the peak of their industrial revelation, which is still being fueled by traditional energy sources such as oil and coil. Thus, the US president finds stable growth of the Asian Pacific economies with the common grounds an opportunity to save America.
The US economy is still struggling, and showing very little positive signs of recovery, even with the unemployment rate dropping to 9 percent two weeks ago.
In 2006, Custodian of the Two Holy Mosques King Abdullah launched an Asian economic policy long before the beginning of the global economic crisis. In his Eastern trip he visited China, Malaysia, Pakistan and India.
The main outcome of this trip was a significant increase in the trade volume between the Kingdom and these countries, especially oil.
Currently, these countries are the most important importers of Saudi crude. But Saudi Arabia’s efforts to develop economic relations with Asia were halted as the global economic crisis unfolded in 2008.
It is true that the private sector kept the momentum in enforcing our relationship with Asia, particularly China, importing consumer goods, rather than dealing with the high cost of European goods, but the private sector standing alone is unable to develop the relationship beyond the limits of bilateral trade.
Today, we have an opportunity to strengthen our economy and expand the Saudi influence within the global economy; by linking the Saudi economy to the Indian economy, which is in dire need of investments to be able to rise and turn into a new “China.”
Strengthening the Indian growth and expanding its industrial base will be very beneficial to Saudi Arabia.
This will ensure stabilization of oil prices and increasing future demand.
China is trying hard to diversify its energy sources, in addition to its heavy investment in the technology of non-conventional oil.
This may pose a threat on Chinese demand for Saudi crude.
Therefore, creating an extraordinary economic relationship between the Saudi and Indian economies is a golden opportunity that will enable both countries to develop their industrial bases in line with their aspirations and needs.
Saudi Arabia will benefit in importing necessary consumer products that are less expensive than those made in China.
It will create more jobs for Saudis through specializations in manufacturing industries meeting the Indian industrial demands.
Besides, there is the possibility of expanding investment in agriculture to ensure food security for Saudi Arabia.
The American turn to Asia is a sign for us to return to the Asian economic policy with a higher momentum.
