This refers to P. K. Abdul Ghafour’s report, “KSA offers India $ 625 bn investment opportunities.” (March 8)
It is interesting to note that Saudi Arabia has offered investment worth over $ 625 billion from Indian business industry in several key sectors. It will certainly benefit both nations in the long run.
When compared with other emerging economies, the key advantage of such investments lies in the fact that the business relationship between the two countries is very old and with the presence of a huge number of Indians in Saudi Arabia for over four decades, the Saudi businessmen and investors have good understanding of the general psyche, sincerity and honesty of people from different regions in India.
There are lots of sectors in India too which require heavy investments immediately, especially, in the energy and infrastructure areas, to cater to the requirements of the burgeoning population as well as to maintain the pace of development. Investments in these sectors with well-established partners will certainly guarantee decent returns.
With the opening up of Foreign Direct Investment (FDI) in many sectors including retail and telecom, which were hitherto not allowed provides an opportunity to Saudi groups such as Panda, Savola, Othaim, Danube, Jarrir, Saudi Telecom etc. to bring in their experiences to Indian markets and reap rich rewards. The companies in the oil refining and petrochemical industry also stand to gain enormously by setting up their plants in India on their own or with renowned partners in those fields.
Indian businesses and industries have a lot to offer to Saudi investors in setting up and expanding their manufacturing base in different sectors in the Kingdom, such as heavy machinery, automobile, power and transmission equipment, pharmaceutical formulations, industrial tools, consumer electronics etc.
The Kingdom could also avail the expertise of Indian companies in the IT sector and invite them to set up technology parks and development centers here. Besides strengthening the IT infrastructure, it will also resolve the unemployment of Saudi youth, especially, women. — Safi H. Jannaty, Dammam
Saudi-India business ties
