India can play a ‘key role’ in economic transformation of Saudi Arabia: Envoy

RIYADH: Saudi Arabia has invited India to play a ‘key role’ in its economic transformation as it embarks on an ambitious plan to diversify sources of its revenue and to cut dependence on oil exports following a long period of decline in crude prices.
The call made to India to engage more intensively with the Kingdom comes within the framework of the Saudi Vision 2030.
“Saudi Arabia is now looking to a post-oil age that will usher in an era of world-class technological research, start-up development, entrepreneurial vigor and vast investment opportunities,” Saudi Ambassador to India Saud Al-Sati said, while speaking at the ‘Vibrant Gujarat Global Summit’ in India. “We welcome India as a central participant in this exciting new phase of our country’s profound growth,” he added.
Referring to the Saudi participation at the four-day business summit, Al-Sati told Arab News Saturday that a strong 20-member Saudi delegation was participating in the conference that concluded Friday. A large number of Saudi companies and institutions including SABIC and Saudi Arabian General Investment Authority (SAGIA) attended the business summit in Gujarat, the home state of the Indian Prime Minister Narendra Modi.
In his speech at the Saudi Arabia country seminar at the summit, the envoy explained Saudi Arabia’s Vision 2030 plan to “transform the entire foundation of the Saudi economy.”
He elaborated about how strong ties with countries like India can contribute to Saudi Arabia’s economic development and also provide opportunities for allies and friends to share the “economic cake” as the countries march together for development.
“Through the Vision 2030 program, we are aiming to free the Saudi economy from dependence on oil by diversifying the Kingdom’s sources of income, attracting foreign investment and making Saudi Arabia a manufacturing hub,” he added.
“While Saudi Vision 2030 emphasizes future focus on the non-hydrocarbon sector, the oil sector of our economy will, of course, remain



vital for years to come, and we will continue to meet India’s energy needs,” Al-Sati said.
Referring to the visit of Indian Prime Minister Modi to Riyadh early last year, he said that the premier’s visit that led to the signing of several agreements elevated the bilateral ties to “a new era of strategic partnership, and enhanced cooperation in political, economic, and security affairs.” Noting that bilateral trade in 2015 was worth nearly $40 billion with India importing a fifth of its oil needs from Saudi Arabia, the ambassador highlighted some latest milestones in Indo-Saudi economic relations.
He said that Riyadh was keen that its bilateral trade and investment relations with India grows beyond oil and energy, notably in areas such as food, chemicals and textiles.
Saudi Arabia is India’s fourth largest trade partner and a major source for its energy security, accounting for some 20 percent of its crude oil needs.
Besides these positive indicators, it is import to mention here that the SAGIA has given operating licenses to 426 Indian companies so far.
On the sidelines of the business summit, Saudi and Indian companies signed several memoranda of understanding (MoUs) with commitment to invest millions of dollars in joint projects.
Saudi Arabia on Wednesday committed to invest in Gujarat by inking six MoUs in solar power, chemicals, and information technology sectors with the state-run Gujarat Narmada Valley Fertilizers Corporation (GNFC), according to a report published by ‘The Times of India’, a major English daily newspaper of India.
GNFC signed the tie-ups with Alfanar Energy for a 40 MW solar plant, with Connect Power for a solar PV module plant and an LED lighting plant, with Connel Chemical for a methylene diphenyl di-isocynate (MDI) plant, with Ecophos Belgium for a dicalcium phosphate plant, and with NEC India Pvt Ltd. and DNJ Corporation for IT-enabled services.
This was for the first time that a large delegation from the Kingdom participated in the business summit in India.