Indo-Saudi ties to go beyond oil

New Delhi: Business was high on Saudi king Abdullah's India agenda. On his fourth visit to the subcontinient, the king signed a number of deals with India, deals that indicate that bilateral relations have moved beyond oil and gas.

Indo-Saudi ties are all set to go beyond oil, Haj pilgrimage and Saudi remittances. King Abdullah's four day India visit, coming after half a century, saw a flurry of deals being signed.

Four accords, including one on double taxation, investment promotion and protection agreement betweeen the two countries were signed on Wednesday. Besides government accords, six agreements were also inked between Saudi and Indian companies.

State-run Engineers India Ltd signed MoU with Manar Energy Company for consultancy services in oil and gas sector while Gujarat State Petroleum Corporation tied up with Al Hokair to set up a joint venture for exploration.

SBI Capital Markets is also looking at setting up investment banks in the kingdom. Apollo will also set up three hospitals and twenty clinics in Saudi Arabia with an investment of $100 million, all of which is coming from its Saudi partner.

Chairman at Apollo Hospitals, Prathap C Reddy says, "Making a beautiful hospital requires a lot, starting from feasibility to architectural and personal planning, equipment, put the processes and make the hospital. This is one phase of project commissioning, for which we are paid for every hospital."

Saudi crude accounts for 24 per cent of India's total imports. No wonder, India was more than keen to get Saudi companies to invest in refining here. Saudi Aramco, the national company, has evinced interest in investing in Bhatinda, Bina, Kakinada refineries and has also offered to take on an Indian partner in its upcoming refinery.

If that's not enough, Saudi King Abdullah is willing to place his money where his mouth is. He has already offered to become India's largest energy partner, music to Petroleum Minister, Mani Shankar Aiyar's ears.

India is in the process of negotiating a free trade agreement, FTA, in goods with the Gulf Co-operation Council, of which Saudi Arabia is a prominent member. Abdullah's visit has shown that there has also been a shift in Riyadh's perception of India, from that of a poor country to that of a market that needs to be explored.