Saudi Commerce Minister upbeat on Indian investment in Saudi Arabia
In a yet another demonstration of the confidence reposed by Indian industry on the safety and profitability of investing in Saudi Arabia, Tata Motors is exploring the possibility of building their third largest manufacturing plant for Land Rover vehicles in Eastern Province of the kingdom.
This was announced in New Delhi
Tawfig Al Rabiah, Saudi Minister for Commerce and Industry, while
addressing the India-Saudi Arabia Business
Forum, organized by FICCI
and the Council of Saudi Chambers on Thursday.
Dr. Al Rabiah
informed that recently another Indian company, L&T has been
awarded to be part of the Riyadh Metro project. Tata Steel
order in last year to supply high-quality rails for a new high speed
rail line linking the two holy cities of Makkah and Al Madinah. Tata
Consultancy Services (TCS
) announced the launch of its "all
female services center" in Riyadh in collaboration with General
Electric, and Saudi Aramco.
Indicating the intensity of
two-way investments, the Saudi Minister said, on its part, SABIC,
Saudi Basic Industries Corporation, one of the world's leading
manufacturers of chemicals, fertilizers, plastics and metals, has
recently set up its technical center in Bangalore
with an investment
of over USD 100 million.
"We are aware that a series of
steps are being undertaken to attract Saudi investment into India.
However, the issue of taxation of capital gains continues to be major
impediment in promoting Saudi investment in India, and I call on the
Indian authorities to explore relaxation of this issue. I would like
also to emphasize on the importance of the activation of the Saudi
Indian Joint Fund," Dr Al Rabiah said.
investment between the two countries is growing steadily. Since
mid-2000, a number of Indian firms have taken advantage of the
attractive new Saudi laws and established joint venture projects or
wholly-owned subsidiaries in the Kingdom.
Accordingly, some 426 licenses were issued to Indian companies for
joint ventures or 100% owned entities, bringing total investments
worth USD 1.6 billion into Saudi Arabia. These licenses are for
projects in diverse sectors such as management and consultancy
services, construction projects, telecommunications, Information
Technology, pharmaceuticals, etc. Moreover, several Indian companies
have established collaborations with Saudi companies and are working
in the Kingdom in diverse sectors like engineering, consultancy,
financial services and software development.
Al-Jasser, Saudi Minister of Economy & Planning, in his address,
invited Indian investment in Saudi Arabia' mining sector which has
remained relatively undeveloped. There are immense prospects for
investments in phosphate and bauxite mining.
He said the Saudi Arabian Government was committed to developing
world class rail-road network and logistics for transportation of
materials to seaports and factories and this should be of attraction
to Indian investors.
Sidharth Birla, President of FICCI,
pointed out that India today has a new National Manufacturing Policy
which aims to increase share of manufacturing in our GDP from 16 per
cent to 25 per cent by 2022. "There is a blue-print for
expansion of manufacturing with emphasis on exports. Saudi Arabia, we
feel, can be an effective partner for this vision and India can be a
very attractive location for Saudi Arabia to export from."
the occasion, four MoUs were signed, namely, between Sheikh Abdul
Aziz Al-Qahtani, Chairman Al-Qahtani Group and Pradeep Mohanty, CMD,
SledgeHammer Oil Tools (P) Ltd India for a Joint Venture agreement in
Saudi Arabia to establish a Local Manufacturing Facility for Oil
Drilling Products; Ali Abdulla Kanoo, Regional Director, Saudi
Arabia, Yusuf Bin Ahmed Kanoo Co. Ltd and Mr Vaishnav Puri, Managing
Director, Seaworld Shiping & Logistics Private Limited for a
Joint Venture agreement to establish a Joint Logistic & Shipping
Network; Abdullah Ali Balsharaf, Vice Chairman, Omar Ali Balsharaf
Est and Anil K. Mittal, Chairman & Managing Director, KRBL
Limited for Joint Venture agreement to supply 165000 tonnes of
Basmati Rice and Dr. Abdulrahman Al Rabiah, President, Al Rabiah &
Partners and Mr Soumadeep Ghosh, Director, NOVATECH for a Joint
Venture agreement for EPC business and supply of industrial
equipments to Al Rabiah & Partners.