KSA offers India $ 625 bn investment opportunities

Discussion in 'Economy & Infrastructure' started by Yusuf, Mar 8, 2013.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    Saudi Arabia is offering investment opportunities worth $ 625 billion to Indian businessmen in vital sectors such as infrastructure, petrochemicals, electricity, IT, tourism, natural gas production, agriculture and education.
    “We had successful meetings with Indian business leaders and executives in New Delhi, Hyderabad and Lucknow,” said Abdul Rahman Al-Rabiah, chairman of Saudi-India Joint Business Council (JBC) who is currently leading a high-level Saudi trade delegation to India.
    “It was excellent,” Al-Rabiah told Arab News when asked about the result of the March 5-8 business visit organized by the Federation of India Chambers of Commerce and Industry (FICCI). The Saudi delegation will return to the Kingdom today (Friday).
    “The governments of the two countries have done their job of facilitating two-way business engagements. Our relations with India go back hundreds of years. Yet, the results in terms of business exchanges are not to the level we would like to see,” Al-Rabiah told a JBC meeting in New Delhi.
    Al-Rabiah, who was leading a delegation representing sectors such as fertilizers, pharmaceuticals, housing, power, petrochemicals & refinery, steel, metals, mining and mechanical equipment, urged Indian companies to take advantage of investment and growth opportunities in the Kingdom.
    Saudi Arabia is “the youngest nation in the world (67 percent Saudis are below the age of 27) which would need schools, hospitals, industries to meet their growing aspirations.” There is a lot of room for Indian companies with their high technology and experience to participate in the Kingdom’s development, he said, adding that the present $ 400 million Indian investment was insignificant compared with the potential.
    Saudi Ambassador to India Saud M. Al-Sati said the two countries should engage in more business and trade by cashing in on the opportunities. He said that between 2000 and 2012, investments by Saudi companies in India were a mere $ 40 billion. This, he added, should rise significantly as Saudi and Indian companies engage with each other and build long-term business partnerships.
    Rakesh Bakshi, senior executive committee member, FICCI & chairman & managing director of RRB Energy Ltd., said renewable energy offered tremendous scope for Indian and Saudi companies to work together as “India has the institutional framework and the technology to develop and promote renewables. We do not believe in re-inventing the wheel. Our companies have the know-how and experience to modify the wheel and suit it to your requirements in the most inhospitable of climatic conditions.”
    Andhra Pradesh Chief Minister N. Kiran Kumar Reddy also met the Saudi delegation and said his government was looking for larger investments from Saudi Arabia and was keen on mutual cooperation in industrial development. “We’ll extend all incentives and facilities to Saudi industrialists.”
    After a power-point presentation by Saudi delegation, the chief minister said his state is the perfect platform for investment with its long coastline, skilled manpower and various incentives being offered by the government. The Saudi delegation invited the chief minister along with industrialists from Andhra Pradesh to visit Saudi Arabia.
    Abdul Qader Memon Sait, a member of the managing committee of Saudi Indian Business Network, commended the growing economic relations between the two countries. Speaking to Arab News, he spoke about the plan to woo more than $ 100 billion investment from Saudi Arabia and other Gulf countries by India.
    “There are billions of riyals of deposits by Saudi individuals remaining idle in Saudi banks, which can be invested in Indian mutual funds and equity market,” Sait said, adding that Saudis would receive profits up to 20 percent for such investments.

    KSA offers India $ 625 bn investment opportunities | ArabNews
     
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  3. nrupatunga

    nrupatunga Senior Member Senior Member

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    I have not gone through the entire post. But based on the heading, these are my initial thoughts.

    - Why are saudis doing this in india?? No one invests such amounts in one country, even saudis overflowing with petrodollars.
    - Whats the terms and conditions??
    - If it's a plain business investment, whereby saudis belive in india story, wouldn't these investment bring a better returns if put in china??
     
  4. Yusuf

    Yusuf GUARDIAN Administrator

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    The figure is over ambitious to say the least but yes India and KSA have been doing a lot on the business and investment front. India has invited KSA to invest in India especially in the infrastructure sector. KSA needs Indian services and funny enough manufacturing investment. There is a lot happening on the relations with KSA front. We didn't get Abu Jundal just like that.
     
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  5. nrupatunga

    nrupatunga Senior Member Senior Member

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    From the 1st post
    Is 40 billion $ investment by one single country in another country within a decade 'mere" ?? Also guru's any idea where exactly was this invested?? Any flagship infra projects done with saudi funding?? Am not sure if any projects like bengaluru metro or any other city metro came up with saudi funding?
     
  6. Yusuf

    Yusuf GUARDIAN Administrator

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    Indian infra spending in the next 5 years is an ambitious $1 trillion. So yes there definitely is an opportunity for many to pick up a pie. That is but just one example. There is a lot of scope.
     
  7. nrupatunga

    nrupatunga Senior Member Senior Member

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    @Yusuf: 625 Billion $ is HUGEEEE. No one invests so much in just one country, even crazy saudis.
    The biggest investment by one country to another till date is the Marshall plan. (actually, it was invested in group of countries). Even that( not even tenth) nowhere near the amount quoted here. It would be very difficult to assume that everything is fine in this case.
     
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  8. Apollyon

    Apollyon Führer Senior Member

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    Why should Indian companies invest in Saudi Arabia ? :dude:
    There are ample opportunities in India itself.:pft:

    PS: I think the title (and the content in the article) suggests that "$645 Billion investment opportunities" are in KSA not in India.
     
  9. roma

    roma NRI in Europe Senior Member

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    good move by people and goi to be worthy of such an important opportunity

    very well done Ladies and gentlemen of India
     
  10. roma

    roma NRI in Europe Senior Member

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    it is a sign of their confidence in india ....... partly probably influenced by their disappointment with their prior experiences with the "west" and china ( not to mention with pak as well )
     
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  11. Blackwater

    Blackwater Veteran Member Veteran Member

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    Even Arabs of KSA understood that enough of blackmailing in the name of Islam
     
  12. Tolaha

    Tolaha Senior Member Senior Member

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    Any investment would be on a case-to-case basis. There wont be a "terms & conditions" clause coming up! Saudis have invested in ventures all around the world. As you said, they are overflowing with petro dollars. But what when the oil dries up? Dubai has opted to face this scenario by trying to be an economic hub of Asia. Saudi has been investing in ventures world wide, in order to get steady returns in the future.


    In the scheme of things, and also in terms of India being starved of FDI, 40 billion may not be a huge amount. India needs much more.

    IIRC, India has invested in a huge fertilizer venture, but not sure if it was in Oman or in Saudi. India in turn would want Saudis to invest in the infrastructure projects. Large infra projects have a long lock-in period for the investment, after which the investor can start expecting returns. Banks/Financial institutions, even the big ones, find it tough to invest in big ticket items due to this. It is in these scenarios that having a cash rich sovereign country as a backer helps. A Delhi Mumbai Infrastructure Corridor like project would have strained our financial institutions if not for the Japanese backing up. Having Saudi as one of the backer for our big ticket infra projects is a great opportunity for India. Saudis will get a place to park their investments, which they would hope gets them handsome returns, but sometime in the future. India, gets one of the world's largest pile of cash, backing its critical infrastructure projects.
     
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  13. natarajan

    natarajan Senior Member Senior Member

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    we are invited to invest in ksa ,possibility of black money and diversion to terror is possible
     
  14. SajeevJino

    SajeevJino Long walk Elite Member

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    one side they funding for Jihadists ..here around a Half a Trillion dollars of Investments ....crazy oil well owners
     
  15. Yusuf

    Yusuf GUARDIAN Administrator

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    No. Private investment is what is being sought. To set up manufacturing and services .
     
  16. nrupatunga

    nrupatunga Senior Member Senior Member

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    Leave alone actual investing, 625 B$ even on paper is HUGEEEEEE. No country ever invests such huge amounts in other country. Somehow thinking saudis have been duped into investing such a huge amount by selling them India story is to much to ask. Why not invest in west, which is also facing huge economical problems. After all they are keeping the al-saud family in power.

    One more thing so called "mere" investment of 40 B$ here in the past decade, has also seen an explosion of wahabbisation in subcontinent. I do not remember any big ticket projects sponsered by saudis i past decade.
    @Apollyon: Even i thought they are asking us to invest in saudi. But seriously do we have such huge amounts for free. Also even if we have money (private+public) why should india spend it in saudi.
     
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  17. panduranghari

    panduranghari Senior Member Senior Member

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    @nrupatunga read the original post.
    The only 2 doubts I have are:
    1 FICCI how incorruptible are they?
    2 where will the money go? If it goes in AP as stated, its not a good sign. The Hyderabadi bomb blasts could be wahabi v salafi. If wahabi influence is increasing as per the reports on various blogs, then £625 billion could lead to a mammoth trouble the likes of which we cannot imagine.

    The problems of investing in Saudi are well known. The biggest being no safety for foreigners especially if you are not white.


    Sent from my iPhone 5 using Tapatalk
     
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  18. nrupatunga

    nrupatunga Senior Member Senior Member

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    @panduranghari: Salafism and wahabbism are often viewed as synonymous. hence it's can not be salafiism v/s wahabbism.
     
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  19. Shirman

    Shirman Regular Member

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    somehow i like DFI more as in which other forums u see this thread along with "India headed for economic doom, prominent US thinktank"....go along side-by-side......:lol::confused:


    On the other hand i feel all this Gulf based money trading n money laundering needs to be checked at the microscopic level.....what n were will be the actual investment n who actually be the receivers....
    @Yusuf I was of the opinion that Islamic banking should be legalized......People frm ur community "bohra" were always targeted that the reason why people frm ur community r advising it b'cause Bohras currently have a monopoly on Islamic investment n banking in India...........
    also i feel that the amount of Hawala transactions between Gulf countries n India will further be reduced if India legalizes Islamic banking..............
     
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  20. Singh

    Singh Phat Cat Administrator

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    1. FICCI like CII all at the end of day are loyal to the ruling party.

    2. Saudis like other GCC are divesting from oil to other business.
    Abu Dhabi royal family for example already has a rumoured 1 trillion$ Sovereign Wealth Fund.

    I have no qualms getting/giving investment from/to Saudis, or even Pakistanis, if it helps my business and country grow, if they want a share on those return they are more than welcome too.
    Actually if Saudis invest a good portion of this mammoth 625billion$ they will be invested in India's progress and will likely prevail upon Pakistanis to maybe cut down on the Jihad Factory.
     
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  21. Yusuf

    Yusuf GUARDIAN Administrator

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    Bohras don have any "banking" channel. We have a well developed system of loans without interest. The beauty of the system is that it encourages savings. Te more you save, the more loan you can get. All interest free!

    My entire business is on such loans. I wouldn't be what I am today if it was not for these interest free loans.
     
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