NEW DELHI: With an eye on the $500 billion worth mega city projects up for grabs in Saudi Arabia, a delegation of representatives from the Indian infrastructure, housing and allied sectors are in Riyadh today. During the two-day visit, these representatives are set to interact with key decision makers in the Saudi government and industry.
The delegation is being led by additional secretary in the Ministry of External Affairs, Manoj Bharti. According to the Ministry of Commerce, the purpose of the visit is to “explore possible contracts and investment oppo- rtunities in the $500 billion futuristic mega city projects being developed in Saudi Arabia”. This is part of the Kingdom’s initiative to expand their economy through major structural changes like new roads, railroads, airports, sea ports, development of Qiddiya entertainment city, the Red Sea tourism project and smart city project Neom.
Saudi Arabia had announced these projects as part of its ‘Vision 2030’ plan, which is focused on turning the Kingdom from an oil-based economy to an industrial manufacturing-based productive economy.
Indian developers see great investment opportunities here. The Vision 2030 project is expected to open up new opportunities for Indian companies and professionals in sectors like railways, hospitality, tourism, airport, housing, IT and entertainment. Recently, the Saudi Arabian General Investment Authority had issued more than 400 licenses to Indian firms.
“There is also scope for Indian companies to partner in the high speed 450-km railway line linking Mecca and Medina and construction of an airport in Jeddah,” the ministry added in its statement.
Saudi Arabia is India’s fourth largest trading partner with bilateral trade exceeding $25 billion in 2016-17. As India’s largest supplier of crude oil, Saudi Arabia also accounts for about 20 per cent of the country’s total annual imports. According to the ministry of commerce and industry, Indian investments in Saudi Arabia currently stand at $1.5 billion and Saudi Arabia has invested $16 million in India. The 3.2 million strong Indian community is the largest expatriate group in Saudi Arabia.