The Saudi Arabian General Investment Authority (SAGIA) has signed four investment agreements worth more than $28 million and 11 memorandums of understanding (MOUs) at the Saudi-India Forum, held in New Delhi.
The announcements cover a range of partnerships across strategic growth sectors, including energy and water, technology, arts and entertainment, healthcare, trade and investment. This reflects the strength and diversification of the Saudi economy, as well as the opportunities being unlocked for private sector businesses by widespread economic and social reforms as part of Vision 2030.
The MOUs that were signed include agreements that will boost the collaboration in strategic growth sectors between several government entities including the Ministry of Communications and Information Technology, the General Entertainment Authority, the National Industrial Clusters Development Program (NICDP) and SAGIA with leading Indian firms including TATA Consultancy, Wipro, Glenmark and ION Exchange. Licenses were granted to AWJ Energy, SecurEyes, Carnival Cinemas and Red Sea Arabia Company for Trading to establish operations in Saudi Arabia.
The Saudi-India Forum is part of the first official state visit of His Royal Highness the Crown Prince Mohammad Bin Salman to India. Organized in partnership between SAGIA and the Saudi Center for Strategic Partnerships (SCISP) with the Confederation of Indian Industry (CII), the event brought together more than 400 high-ranking government officials and business leaders from both countries to foster future collaborations, building on the deep-rooted bilateral ties between Saudi Arabia and India.
Among the speakers at the day-long event were H.E. Khalid Al-Falih, Minister of Energy, Industry & Mineral Resources (Saudi Arabia), H.E. Dr. Majid Al Qasabi, Minister of Commerce & Investment (Saudi Arabia), Yousef Al-Benyan, SABIC CEO, Eng. Uwaidh Al Harethi, CEO of the National Industrial Development and Logistics Program, Rajiv Kumar, NITI Vice Chairman, and Amin Al-Nasser, Saudi Aramco CEO, Panda Madhusudana Siva Prasad, Reliance Industries CEO, and Sanjiv Singh, Indian Oil Corporation Chairman.
His Excellency, Ibrahim Al-Omar, Governor, SAGIA, commented: 'Saudi Arabia is open for business and we are delighted to announce the licenses and MOUs signed at the Saudi-India Forum today. Since the launch of Vision 2030, we have been working across the government to enhance regulations and streamline processes for investors, and as a result we are attracting an increasing number of Indian businesses to explore mutually beneficial growth opportunities.
H.E. Ibrahim Al-Omar continued, 'The number of SAGIA licenses issued to Indian businesses grew by 181% in 2018 and the agreements signed today are indicative of the interest among Indian businesses to take advantage of these opportunities. We look forward to continuing to build even stronger ties in the months and years to come.'
His Excellency, Dr. Faisal Al-Sugair, President, SCISP said “Today the relationship with India is a strategic partnership that spans a number of important dimensions including sustainability, growth, and prosperity for both nations. The MoUs signed today are a continuation of the long-term and growing partnership that is helping to contribute to the realization of both Saudi Vision 2030 and New India @75.”
Infrastructure, industrial development and logistics were also important topics of discussion during the event, as Saudi Arabia activates investment opportunities worth $453 billion as part of its National Industrial Development and Logistics Program (NIDLP). The program presents diverse opportunities for Indian investors to increase their footprint in Saudi Arabia, including financial and non-financial incentives and enablers to ensure synergy and sustainable development across four key sectors; Mining, Industry, Logistics, and Energy.
Speaking at the forum, Eng. Uwaidh Al Harethi, CEO of NIDLP, commented, 'The National Industrial Development and Logistics Program is primed to usher in a new era of investment opportunities in the Kingdom. NIDLP is the biggest of the 13 Vision Realization Programs under Saudi Vision 2030, aimed at diversifying the Saudi economy and transforming the Kingdom into a pioneering industrial powerhouse and global logistics hub. We look forward to strengthening existing partnerships and establishing new agreements with our associates in India and further afield in the years to come'.
Since the launch of Vision 2030, the Saudi Arabian government has delivered 45% of over 500 planned regulatory reforms, including the introduction of 100% foreign ownership rights, enhancing legal infrastructure and offering greater protection for shareholders. As a result, Saudi Arabia is climbing international competitiveness and ease-of-doing-business rankings and investors are increasingly towards to the Kingdom, with FDI inflows increasing by 127% in 2018.
Signings at the Saudi-India Forum
Licenses granted
– AWJ Energy
– Red Sea Arabia Company for Trading
– SecurEyes
– Carnival Cinemas
Memorandums of understanding (MOUs) signed:
– SAGIA with ION Exchange Arabia
– National Industrial Clusters Development Program (NICDP) with Glenmark Company
– Ministry of Communication and Information Technology (MCIT) with TATA Consultancy
– Ministry of Communication and Information Technology (MCIT) with Wipro Ltd
– General Entertainment Authority with BTOS Production
– General Entertainment Authority and The Totem Spot FZE
– SAGIA and Soft Bank Investment Advisers (UK) Limited (SBIA)
– Ma’aden with Indian Potash Limited
– Ma’aden with Krishak Bharati Cooperative Ltd (KRIBHCO)
– AlJihaz Saudi Company with Baharat Group
– Awj Holding with ION Exchange Arabia
