Political

Indo-Saudi Relations

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POLITICAL TIES

 Indo-Saudi relations are multifaceted and cordial. The 1950s and early 6Os saw the visits of King Saud (1955) and Prime Minister Jawaharlal Nehru (1956). Later, Prime Minister Indira Gandhi visited the Kingdom in 1982. Foreign Minister Saud Al Faisal visited India from 13-15 April 1981. In December 1994, the then Finance Minister, Dr. Manmohan Singh, visited Saudi Arabia for the meeting of the Indo-Saudi Joint Commission. The visit of Dr. Manmohan Singh was followed by the visit to India of Prince Khalid bin Sultan bin Abdulaziz, son of Prince Sultan bin Abdulaziz, the Second Deputy Prime Minister and Minister of Defence, in October 1996. Some other high level visits were those of the Saudi Petroleum Minister to India in December 1996, and the visit of the Saudi Haj Minister, in December 1996, as Special Envoy of King Fahd. From the Indian side, Lok Sabha Speaker visited in October 1996. The then MOS for External Affairs, Shri Salim Sherwani visited Saudi Arabia in November 1997.

2. Saudi Assistant Minister of Foreign Affairs, Dr. Nizar Obeid Madani, paid a visit to India from February 28 to March 1, 2000. Later, EAM Shri Jaswant Singh paid a visit to Saudi Arabia on 19-21 January 2001, during which he held talks with the top Saudi leadership. Deputy Chairperson, Rajya Sabha, Dr. (Mrs.) Najma Heptulla visited Saudi Arabia as ‘Special Envoy of the Prime Minister’ from Jan. 24-30, 2002. Bilateral relations were reviewed during her subsequent visit to the Kingdom from September 6-11, 2002 in her capacity as President of IPU Council.

3. A delegation of the Shoura Council comprising Dr. Sulaiman Al-Zaiedi and Abdulrahman Al-Mishaigih visited New Delhi [January 2003] to participate in the Golden Jubilee celebrations of the Parliament of India. The Shoura Council of KSA is a member of the Asian Parliamentary Union (APU).

4. Minister of State for External Affairs, Shri Vinod Khanna, visited Saudi Arabia on September 22-23, 2003. During the visit, he met with Haj Minister Iyad Madani and signed an agreement relating to arrangements for transportation and accommodation of Haj pilgrims. A MoU was also signed in his presence, relating to SMEs/SSI cooperation between National Small Industries Corporation (NSIC) and Jeddah Chamber of Commerce and Industry (JCCI).

5. The landmark ‘GCC-India Political Dialogue’ involving the External Affairs Minister of India with the GCC Chairman, the Secretary General and Ambassadors/representatives from GCC countries was successfully held, for the first time, on the sidelines of the UNGA on September 26, 2003. H.E. Mr Abdulrahman bin Hamad Al-Attiyah, Secretary General, Gulf Cooperation Council (GCC) visited India from February 15-18, 2004.

6. Minister of State for External Affairs, Shri E. Ahamed, visited Saudi Arabia on June 13-16, 2004. The Minister called on the Custodian of the Two Holy Mosques, King Fahd bin Abdul Aziz on June 13, 2004, and handed over a letter from the Prime Minister of India. During the visit, MOS met with Haj Minister Iyad Madani and signed an agreement relating to arrangements for transportation and accommodation of Haj pilgrims.

7. The Saudi Minister of Petroleum and Mineral Resources Ali Al Naimi visited India to attend First Round Table of Asian Ministers on Regional Cooperation in the Oil and Gas Economy held in New Delhi on January 6, 2005.

8. Petroleum & Natural Gas Minister, Shri Mani Shankar Aiyar visited Saudi Arabia during March 28-31, 2005 at the invitation of Engineer Ali bin Ibrahim Al-Naimi, Minister of Petroleum and Mineral Resources. During the visit, Shri Aiyar met with Crown Prince Abdullah, Foreign Minister Prince Saud Al-Faisal and Governor of Eastern Province. Bilateral, regional and international issues were discussed during the meetings. He also had detailed discussions with Al-Naimi, Minister of Petroleum regarding the bilateral cooperation in hydro-carbon sector. A MoU between IOC and Saudi Aramco was signed in the presence of two Ministers. The Minister also visited Shaybah oil fields and the headquarters of Saudi Aramco in Dhahran.

9. The Joint Commission for economic, trade, scientific, technical and cultural cooperation (JCM) established in 1981 between India and Saudi Arabia held its sixth session in Riyadh on April 12, 2005. The Indian side was led by Finance Minister Shri P. Chidambaram and the Saudi side was led by Minister of Economy & Planning & Acting Minister of Commerce & Industry, Mr. Khaled M. Al-Gosaibi. During the visit, the Finance Minister called on Crown Prince Abdullah, Defence Minister Prince Sultan and Foreign Minister Saud Al-Faisal. A MoU on the establishment of Joint Business Council between Council of Saudi Chambers of Commerce & Industry (CSCCI) and Federation of Indian Chambers of Commerce & Industry (FICCI) was signed. The Minister also called on Secretary General of Gulf Cooperation Council, HE Mr. Abdulrahman bin Hamad Al-Attiyah

10.   King Abdullah visited India for a four-day state visit from January 24 to 27, 2006. He was the Chief Guest of our Republic Day celebrations. He was accompanied by a large official and business delegation along with members of Royal family. The President hosted a banquet in honour of the King. India and Saudi Arabia signed four accords in the presence of Prime Minister Manmohan Singh and Saudi King Abdullah. They were (i) The MoU on combating crime, (ii) Agreement on avoidance of double taxation (iii) Bilateral investment protection agreement and (iv) agreement for cooperation in the field of youth and sports. The Prime Minister and King Abdullah opened a Saudi Business Exhibition. Company level MoUs were also signed at a special session of the India-Saudi Arabia joint business council under the aegis of FICCI. In a special convocation convened by Jamia Milia Islamia, the University conferred on an Honorary Doctorate Degree. At the conclusion of the visit, the Prime Minister and the King issued a Delhi Declaration.
 

ECONOMIC TIES

11. India is the 4th largest trading partner for Saudi Arabia. The value of two-way (non-oil) trade between the two countries during  2005 - 2006 was US $ 3.44 billion.

12. The trade figures for the last five years are as follows:

Indo-Saudi Trade (in million US $)

*Note: Import Figures do not include import of Petroleum Products and Crude Oil. (Source: Department of Commerce, GOI)

13. During the last few years, a number of trade and industry delegations have visited Saudi Arabia to explore opportunities for long-term partnerships and cooperation, including joint ventures. Some of the major delegations to visit the Kingdom  were, inter alia,
 

(i)      Confederation of Indian Industry (CII): April 13-20, 2001; December 22-30, 2002; October 5-9, 2002, March, 2003, April, 2004;  

(ii)      Federation of Indian Export Organizations: June 1-9, 2003, September 12-21, 2003;

(iii)     Wool and Woollens Export Promotion Council (WWEPC) delegation from 4-7 April,        2004; 

(iv)     Powerloom Development & Export Promotion Council (PDEXCIL): May 18-23, 2001; 

(v)      Gem & Jewellery Export Promotion Council of India (GJEPC):  September 3-5,    2001 June 2003, June, 2004, May, 2005 and March 2006; 

(vi)     Synthetic & Rayon Textiles Export Promotion Council (SRTEPC):   September 21-        27, 2001, October 11-17 2002; 

(vii)    Indian Department of Posts: January 6-8, 2002; 

(viii)    Indian Electrical and Electronics Manufacturers’ Association (IEEMA): May 10-17, 2002, January 17-23, 2003; 

(ix)     Department of Economic Affairs, Ministry of Finance, New Delhi: January 17-19,         2003; September 29-30 2005 to discuss BIPPA and for negotiations on DTAA from November 28- December 2, 2005; 

(x)      Electronics and Computer Software Export Promotion Council delegation (April 27-       May 1 2003);  

(xi)     EXIM Bank of India: December, 2003; 

(xii)     Ministry of Petroleum & Natural Gas delegation for 2nd Executive Board & ISG Meetings of International Energy Forum: May 11 & 12, 2003, August, 2004;

(xiii)    State Bank of India delegation: July 7-9, 2003, and in March 2006 following the approval by Saudi Arabia Monetary Agency (SAMA) in August 2005 to open its branch in Saudi Arabia;  

(xiv)    Agricultural and Processed Food Products Export Development Authority (APEDA): September, 2003; 

(xiv)    Engineering Export Promotion Council (EEPC) delegation (September 21-28, 2003); 

(xv)    Engineers India Limited (EIL): September, 2003, National Thermal Power Corporation (NPTC): May, 2004, WIPRO: September, 2003, INFOSYS:         May, 2004,    National Audit and Accounts: July, 2004, RITES: October,       2004; 

(xvi)    Federation of Indian Chambers of Commerce and Industry (FICCI): April 11-13, 2005; 

(xvii)        A 4-member delegation, headed by Shri Prakash Jajoria, Regional Director, India Tourism Office, Dubai: September 19, 2005 for presentation on Incredible India; 

(xviii)        A 2-memebr delegation on November 21, 2005 from PlastIndia foundation for   presentation at Riyadh chamber of Commerce & Industry on PlastIndia 2006 show;

14. Minister of State for Small Scale Industries, Smt Vasundhara Raje, accompanied by a composite delegation including Secretary (SSI) and businessmen from CII, visited Riyadh from Oct. 5-7, 2002. MOS inaugurated ‘LIBAAS—Indian Costumes through the Centuries’ Exhibition organized by Embassy in cooperation with National Museum, Riyadh. As a follow up to MOS (SSI)’s visit, a delegation of Saudi entrepreneurs from the Jeddah Chamber of Commerce & Industry visited India [19-25 December 2002].

15. A high level  economic and commercial delegation accompanied, the Custodian of the Two Holy Mosques, King Abdullah bin Abdul Aziz during his historic and Landmark visit to India in January 2006. The Secretary General of Riyadh Chamber of Commerce & Industry, Mr Hussein A. Al-Athel, attended the “Partnership Summit” organised by CII at Hyderabad from 6-8 January 2003. Later, Deputy Minister for Industrial Affairs, Saleh E Al-Husseini, was on a 5-day visit to India (25-29 April 2003) accompanied by a 13-member official delegation. Minister of Petroleum & Mineral Resources Mr. Ali bin Ibrahim Al-Naimi visited New Delhi from 4-6 January 2005 to participate in the Round Table Conference on Regional Cooperation, New Delhi.

16. A high level Saudi business delegation led by Mr. Abdul Rahman A. Al Jeraisy, Chairman, Council of Saudi Chambers of Commerce & Industry and Chairman - Jeraisy Group, visited India from 12-18 October, 2003. The delegation consisted of 28 leading Saudi businessmen representing various sectors of industry and trade. The other high level delegations from the Council visited India in November 2005 and January 2006.

17. The first GCC-India Industrial Conference comprising ministerial and business delegations from the GCC States and India, was held in Mumbai on February 17-18, 2004. The Conference was co-chaired from Indian side by H E Mr Arun Jaitley, Minister of Commerce and Industry and from the GCC side by H E Mr Abdullah bin Abdul Rahman Al-Taweel, Minister of Trade and Industry of Kuwait. It was attended among others by H E Mr Abdulrahman bin Hamad Al Attiyah, GCC Secretary General and H. E. Mr Hashim bin Abdullah Al Yamani, Minister of Commerce & Industry, Saudi Arabia. The Conference focused on trade, investment, industrial and technological cooperation. The 2nd GCC-India Industrial Conference was held in Muscat (Oman) in January 2006.

18. Giving a boost to their commercial and economic ties, India and the Gulf Cooperation Council signed on August 25, 2004 a Framework Agreement on Economic Cooperation. The Agreement was signed in New Delhi by Shri Kamal Nath, Hon’ble Minister for Commerce & Industry and His Excellency Mr Mohammed Al-Sabbah Al-Salem Al-Sabbah, the visiting Foreign Minister of Kuwait and Chair of the GCC in the presence of His Excellency Mr Abdulrahman bin Hamad Al-Attiyah, Secretary General of the Gulf Cooperation Council.

19. Soon after new investment laws came into force into Saudi Arabia in mid-2000, a number of Indian firms have taken advantage of the new Saudi laws providing for 100% foreign ownership of projects in the Kingdom. Since then, Indian companies have established 108 joint ventures in Saudi Arabia in different sectors such as management and consultancy services, construction projects, telecommunications, information technology, pharmaceuticals etc. There are also collaborations between Indian and Saudi companies in the areas of designing, consultancy, financial services and software development. In addition, there are around 49 Indo-Saudi joint ventures in India, in the fields of paper manufacture, chemicals, computer software, granite processing, industrial products and machinery, cement, metallurgical industries.

INDIAN COMMUNITY

20. In Saudi Arabia, a country of 23 million people, the Indian community is 1.4 million. This is 19-20% of the total expatriate community of seven million, the largest from any single foreign country.