KSA offers India $ 625 bn investment opportunities

[Singh]

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......


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..............

Hawala transactions are a hallmark of Indo-Arab culture. Sitting anywhere in the world, get money in minutes.

 

[Shirman]

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.

I know abt the inter-Bohra financial system......i was more pointing out 2wards the people carrying out the Shariah based Islamic investment 2day n the bohra role behind bringing Islamic banking in India...........

 

[Yusuf]

I know abt the inter-Bohra financial system......i was more pointing out 2wards the people carrying out the Shariah based Islamic investment 2day n the bohra role behind bringing Islamic banking in India...........

Bohras prefer to stay aloof. Many reasons for that. I really doubt we can implement Islamic banking and that too in India. The term "bank" means business. Without revenues banks cannot run. Revenues come from lending on interest.

Being small in size as a community allows the Bohras to have this kind of a system which is usually a trust that provides interest free loans. The small and united nature of the community allows that. I don't think it could be scaled up. I may be wrong in my assumption though.

 

[panduranghari]

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 investment from 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.

The jihad factory will be cut down with progress. I agree.

Do the policy changes affect the sovereignty of the nation? CII FICCI NASSCOM do bring business but who is watching them? If we say the governmental agencies, is there enough man power to handle the information overload.? Bringing the common man into main stream decision making is the only way to prevent anti national elements to run riot. And who is watching the watchmen?

Indian Islam is a much softer than sufism was. Saudi royalty is changing the demography of Saudi itself. Who is willing to bet that they wont try this in India.

Sweden or was it Norway recently rejected Saudi funding as they have traced the changing ideology within the Muslims within their country wishing a change from the very liberal permissive European culture to a hardline Sharia compliant one.

The US government which is hand in hand with Al-Sauds to ensure cheap oil, rejected funding for islamic chairs in Ivy league colleges in the US.

We are not really in unfamiliar territory here.


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[Yusuf]

Hawala transactions are a hallmark of Indo-Arab culture. Sitting anywhere in the world, get money in minutes.

Dubai is the haven. hawala ends up saving a lot of costs for imports by means of duty saved. All from China.

 

[panduranghari]

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

http://youtu.be/kzlVODquxJ8

At other times, Salafism is deemed as the hybridation between Wahhabism and other movements which has taken place since the 1960s

From Wiki.


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[pankaj nema]

Indian Companies invest THROUGHOUT the world
ie where ever there are good oppurtunities

whether it is buying defunct companies in Europe or USA
or buying mines in Australia ; Indonesia Latin America etc

SO if Saudi Arabia expects TOTAL investment by Foreign Companies
to be 600 Billion dollars ; then only a small fraction will come from Indian Companies

 

[Yusuf]

Well, the Saudis have shown 625 billion worth of opportunity and it does not mean it will all be Indian investment. Many countries including th Chinese will invest if there is money to be made. The 625 billion figure seems to be the Saudi estimate on what it needs for certain sectors of its economy over the next few years.

 

[thakur_ritesh]

625b usd is a massive investment opportunity for the Indian companies in the KSA. Chinese companies have already walked away with significant opportunities, time the Indian companies made the inroads.

@Yusuf, @sob, @Singh ......... guys look at this more carefully, of your interest!!!!!

 

[nrj]

Why should Indian Companies invest in Saudi Arabia?

Well for starters, you don't face disgusting bureaucracy as you face in India. They are business minded people & things move fast. I accompanied my friend who started his venture operations in KSA couple of years back and I was impressed with their professionalism in business culture. And what else you want if favorable atmosphere is going to be promised from sky up high because of friendly Indo-KSA relations?

Now is the time to put your feet deeper in geographies across by investing, returns for which will be of multiple dimensions in future. Had this opportunity been offered to China, their companies would have already started operations. I am sure Indian financial lenders will be positive for such projects, afterall it is better than investing in Indian power or coal sector & then praying lord everyday for returns to at least fill the losses.

 

[Singh]

http://youtu.be/kzlVODquxJ8

At other times, Salafism is deemed as the hybridation between Wahhabism and other movements which has taken place since the 1960s

From Wiki.


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For general purposes including extremism : Salafism, Deobandi, Wahhabism are the same.


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The jihad factory will be cut down with progress. I agree.

Do the policy changes affect the sovereignty of the nation? CII FICCI NASSCOM do bring business but who is watching them? If we say the governmental agencies, is there enough man power to handle the information overload.? Bringing the common man into main stream decision making is the only way to prevent anti national elements to run riot. And who is watching the watchmen?

Indian Islam is a much softer than sufism was. Saudi royalty is changing the demography of Saudi itself. Who is willing to bet that they wont try this in India.

Sweden or was it Norway recently rejected Saudi funding as they have traced the changing ideology within the Muslims within their country wishing a change from the very liberal permissive European culture to a hardline Sharia compliant one.

The US government which is hand in hand with Al-Sauds to ensure cheap oil, rejected funding for islamic chairs in Ivy league colleges in the US.

We are not really in unfamiliar territory here.

Admittedly, a few scholars paint the picture as though the West is in Saudi pocket. But this investment will happen in a future where

1. Saudi's importance is greater because we have not found a replacement for Oil : In such a case by default we will have to acquiesce to Saudis

2. Saudi's importance is low because they have run out of oil, and/or the world has found a replacement for Oil : In such a case Saudis would want return on investment, and as do us.

And Saudi Royalty is at odds with its own people. Locals don't really like 'em.

 

[Yusuf]

625b usd is a massive investment opportunity for the Indian companies in the KSA. Chinese companies have already walked away with significant opportunities, time the Indian companies made the inroads.

@Yusuf, @sob, @Singh ......... guys look at this more carefully, of your interest!!!!!

Indian companies are there too. Investment in foreign shores require lots of capital. I would live to have some sort of a manufacturing facility in the Mid East as it has become the hub for goods destined for Africa, Central Asia etc. lots of Indian exports to the Mid East is for reexport to Africa. Having a manufacturing facility in Mid East will help no end. But I don't have the capital.

 

[thakur_ritesh]

Well for starters, you don't face disgusting bureaucracy as you face in India. They are business minded people & things move fast. I accompanied my friend who started his venture operations in KSA couple of years back and I was impressed with their professionalism in business culture. And what else you want if favorable atmosphere is going to be promised from sky up high because of friendly Indo-KSA relations?

Now is the time to put your feet deeper in geographies across by investing, returns for which will be of multiple dimensions in future. Had this opportunity been offered to China, their companies would have already started operations. I am sure Indian financial lenders will be positive for such projects, afterall it is better than investing in Indian power or coal sector & then praying lord everyday for returns to at least fill the losses.

Please share some more details on the whole business environment there, how easily the funds flow, how easy is it to raise funds etc.

 

[thakur_ritesh]

Indian companies are there too. Investment in foreign shores require lots of capital. I would live to have some sort of a manufacturing facility in the Mid East as it has become the hub for goods destined for Africa, Central Asia etc. lots of Indian exports to the Mid East is for reexport to Africa. Having a manufacturing facility in Mid East will help no end. But I don't have the capital.

Give me some sense on the land acquisition, labor rules, ease of business, capacity of the unit, kind of money required.

 

[Yusuf]

Give me some sense on the land acquisition, labor rules, ease of business, capacity of the unit, kind of money required.

Labor laws? Well labor is all south Asian. We have heard of how labor is treated there. Land acquisition should not be a problem when vast stretch of lands are deserts. Money? Well depends on the project.

 

[nrj]

Please share some more details on the whole business environment there, how easily the funds flow, how easy is it to raise funds etc.

There are no restrictions on the repatriation of capital and profits. Foreign companies can be allowed to assume 100% ownership of their project and property required. Your investment licence can be used for multiple activities. Corporate tax is low. Industrial loans are provided on soft terms for up to 50% value of project. Industrial development fund setup by Govt deals with all financing requirements. There are no taxes on outflow/inflow of capital, imported input, profits, etc. You do not have obligations of procurement from local companies or ever made to substitute imports. I will say interactions with Govt agencies as part of approval procedure etc are less tedious but when you are dealing with Arabian companies there, you have to take care of many things and be patient as their hierarchical structure is typical so decision making takes time.

 

[Yusuf]

@Singh Bohra system clean and transparent with no scope for Hawala. Savings checks are thorough normal banking channels. The trust money is in a current account in a bank so no interest is accrued on the money. When I get a loan, its in the form of a check. Trust is registered and has a PAN number with audits.

Every city has its own registered trust. A person from one city cannot get loan from another unless he has savings. Key word here is savings. It's the best feature of the system.

Majority of the accounts are in company names than personal. In Bangalore we have a couple of Trusts. One system is based on the savings in total that you have. If I have 1L saved, I get 3L as loan. The savings is monthly. So you save 10k a month or 1L or even 1k based on your capability. So over a period of years your savings grow and you become eligible for more and more loan.


The other one which I prefer is based on another system. Daily savings. 1k per day entitled you to a 10L loan. 5k = 50L and 10k = 1 crore.

Right now the trusts has good savings so its giving double loan from eligibility. The idea is to distribute the last rupee to those who need. This is the trust from where my big loan will come from that I told you about INTEREST FREE