Investment task force meeting heralds new era for India-Saudi Arabia trade relationship

Indian Prime Minister Narendra Modi shakes hand with Saudi Crown Prince Mohammed bin Salman ahead of 2023 G20 Summit. (AFP/File)
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Updated 02 August 2024
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Investment task force meeting heralds new era for India-Saudi Arabia trade relationship

  • PIF has been invited to open an office in India in a bid to get investment flowing

RIYADH: Trade and economic relations between India and Saudi Arabia have taken another step forward after the countries’ inaugural High-Level Task Force on Investments was held earlier this week. 

The body was set up in 2023 when the Kingdom’s Crown Prince Mohammed bin Salman made an official visit to the Asian nation – a visit that came four years after he pledged investments worth $100 billion in India during a trip to New Delhi.

The first meeting of the task force was held virtually on July 28, and was co-chaired by Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman and PK Mishra, principal secretary to the Indian Prime Minister Narendra Modi. 

During the talk, India invited Saudi Arabia’s Public Investment Fund to establish an office in the Asian nation, as it seeks to attract funds from the Kingdom.

“Constructive discussions were held on various opportunities for bilateral investments in diverse areas in public and private sector, including refining and petrochemical plants, new and renewable energy, power, telecom, innovation, among others,” said India’s prime minister’s office in a statement after the High-Level Task Force meeting. 

The statement further stated that an empowered delegation led by the country’s Petroleum Secretary will visit Saudi Arabia for follow-up discussions on the mutually beneficial investment in the oil and gas sector. 

Both countries also agreed to regular consultations between their technical teams to take forward the discussions and reach an agreement on specific investments. 

India also invited the Saudi energy minister to visit New Delhi for the next round of High-Level Task Force meetings. 




Crown Prince Mohammed bin Salman, India’s President Ram Nath Kovind, center,and Indian leader Narendra Modi at a ceremonial reception in 2019. (AFP)

India and Saudi Arabia: A history of long-standing relationship

Even though India and Saudi Arabia have been sharing strong economic and trade relations since 1947, their bilateral ties took a new turn after the signing of the Delhi Declaration in 2006. 

It was followed by the Riyadh Declaration in 2010 when then-Indian prime minister Manmohan Singh visited Saudi Arabia, elevating the bilateral relationship to a strategic partnership between both nations. 

Later, the visit of Modi to Saudi Arabia in 2016 captured the spirit of enhanced cooperation in the political, economic, security and defense realms between Riyadh and New Delhi. 

When the crown prince visited India in 2023, on the sidelines of the G20 Leaders’ Summit and to co-chair the first Leaders’ Meeting of the India-Saudi Arabia Strategic Partnership Council, both countries signed eight agreements across several fields including energy, banking, and investment, as well as manufacturing, archival cooperation, anti-corruption and water desalination.

Apart from the growing economic and trade ties, India and Saudi Arabia also share a strong emotional and cultural relationship, with the Kingdom being the most sought-after destination for Indian talents and religious tourists. 

Data from the Indian embassy in Riyadh revealed that more than 2.65 million Indians are living in Saudi Arabia, who act as a “living bridge between the two countries.” 

The embassy also added that India-Saudi Arabia cultural cooperation has also been expanding in the novel areas of cinema and entertainment, sports activities such as cricket and football and tourism exchange in recent years. 

Latest trade statistics between Saudi Arabia and India

According to data from the Consulate General of India in Jeddah, Saudi Arabia is the Asian country’s fourth-largest trade partner, while India is the Kingdom’s second-largest trade partner. 

The Consulate General of India also acknowledges that Saudi Arabia is not just a trading partner, but a “major pillar for its energy security and an important economic partner for investments, joint ventures, and transfer of technology projects.”

Data from the General Authority for Statistics reveal that Saudi Arabia’s exports to India in 2023 stood at SR113.35 billion ($30.20 billion), while the Kingdom’s imports to the Asian nation amounted to SR43.57 billion. 

In 2023, Saudi Arabia was the third largest crude exporter to India, amounting to 39.5 million tonnes, accounting for 16.7 percent of the country’s total oil imports. 

Another report released by GASTAT in July noted that Saudi Arabia’s outgoing shipments to India were worth SR8.03 billion in May. 

In terms of non-oil exports, the Kingdom exported goods worth SR2.23 billion in May, with chemical and allied products leading the chart with shipments valued at SR1.27 billion. 

Saudi Arabia also exported plastic and rubber products to India totaling SR448 million in the same month, while outgoing shipments of base metals accounted for SR347.8 million. 

On the import side, shipments worth SR3.54 billion from India reached Saudi Arabia in May. 

Mechanical equipment and electrical appliances were the most imported goods from India to the Kingdom in May totaling SR886.1 million. 

In the same month, India exported chemical and allied products worth SR470.4 million, followed by plant products and base metals at SR580.3 million and SR342.2 million, respectively. 

Developments in the tourism sector

Apart from trade relations, India and Saudi Arabia also share strong ties in the tourism sector. 

Over 1.5 million Indian tourists visited the Kingdom in 2023, representing a rise of 50 percent compared to the previous year, according to the Saudi Tourism Authority.

In a bid to elevate the number of Indian tourists visiting the Kingdom, the STA organized networking events in Mumbai, Ahmedabad, Bengaluru, and Delhi and interacted with travel trade associations in February. 

The STA, as a part of its broader tourism strategy, aims to bring in 7.5 million Indian visitors over the next seven years. 

Data from the Indian Ministry of External Affairs reveals that more than 170,000 Indian pilgrims performed Hajj in 2024, marking a significant increase from 139,000 and 57,000 in 2023 and 2022, respectively. 

The air connectivity between Saudi Arabia and India has also increased by 31 percent between 2019 and 2023. Flights now connect 12 major hubs in India with Saudi cities including Riyadh, Jeddah, and Dammam. 

The growth of Saudi Arabia as a global tourist destination is fueled by the Kingdom’s giga-projects such as NEOM, along with developments in areas surrounding Alula, Diriyah and the Red Sea.

India is also emerging as a favorite destination for tourists from Saudi Arabia. 

A report released by travel app Wego in July revealed that Saudi Arabia emerged as the top five sources of travelers from the Middle East region to India. 

The analysis noted that routes from Riyadh to New Delhi and Riyadh to Lucknow were the most popular among Middle East travelers during the first half of this year. 

“The findings suggest a dynamic travel landscape where India remains a key destination for both leisure and business travelers from across the globe, driven by various factors such as tourism, business ventures, and familial connections,” said Bernard Corraya, general manager of Wego India office. 


Saudi Exchange unveils new instrument to trade global shares locally 

Updated 07 July 2025
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Saudi Exchange unveils new instrument to trade global shares locally 

RIYADH: Saudi Arabia has introduced a new financial instrument that gives investors in the Kingdom direct access to shares of foreign companies listed on global markets. 

The Saudi Exchange on July 7 launched its first Saudi Depositary Receipts, allowing international equities to be traded locally in Saudi riyals. 

The move marks the debut of depositary receipts in the Kingdom’s financial market and is seen as a strategic leap toward reinforcing Riyadh’s position as a global financial center, in line with the Financial Sector Development Program and broader Vision 2030 ambitions. 

In a release, Tadawul stated: “SDRs are highly liquid and flexible, enabling issuers to transfer securities between the Saudi financial market and foreign markets by converting the SDRs into shares in the foreign market, thus enabling the company’s shares to be traded on two different financial markets.” 

It described the launch as “a pivotal step toward consolidating the Kingdom’s position as a global financial center.” 

This development is not merely a technical upgrade; it reflects a broader strategic effort to modernize and globalize Saudi Arabia’s capital markets. 

Since the launch of Tadawul Group’s post-initial public offering transformation, the Kingdom has introduced a series of reforms aimed at enhancing market sophistication and accessibility.  

These include inclusion in global emerging market indices such as MSCI, FTSE, and S&P Dow Jones; the rollout of derivatives trading; the simplification of Qualified Foreign Investor frameworks; and the acceleration of sector-diverse IPO pipelines. 

The introduction of SDRs builds on this momentum by bridging local and international investment landscapes — effectively bringing Wall Street- or London-listed equities to Riyadh’s trading screens. 

What are SDRs and why do they matter? 

A depositary receipt is a financial instrument that represents shares in a foreign company but is traded on a local exchange in the domestic currency. 

In the case of SDRs, this means investors in the Kingdom can gain exposure to foreign firms — such as global technology giants, industrial leaders, or energy companies — without needing to open a brokerage account abroad. 

Unlike traditional cross-border investing, SDRs enable seamless trading, clearing, and settlement through Tadawul, all denominated in Saudi riyals. 

This makes it easier for local investors to access global markets. They can buy international shares through a familiar domestic platform and trade using local brokers. It also helps them diversify their portfolios without dealing with foreign accounts. Most importantly, they remain under the protection of Saudi Arabia’s legal and regulatory framework. 


Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

Updated 07 July 2025
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Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced 0.26 percent, or 29.73 points, to close at 11,345.46 on Monday. 

The total trading volume reached SR5.5 billion ($1.4 billion), with 132 companies experiencing growth and 116 declining. 

The MSCI Tadawul 30 Index edged up 0.21 percent to 1,454.38, while the parallel market Nomu posted a stronger performance, gaining 0.75 percent to finish at 27,462.84. 

Among the top performers, Tourism Enterprise Co. surged 9.64 percent to SR0.91. 

Ayyan Investment Co. rose 4.28 percent to SR14.38, while Sumou Real Estate Co. gained 4.18 percent to close at SR42.82. 

Buruj Cooperative Insurance Co. advanced 4.11 percent to SR18.99, and Tamkeen Human Resources Co. climbed 3.71 percent to end at SR55.90. 

On the losing side, Miahona Co. recorded the steepest decline, falling 3.35 percent to SR25.98.  

Umm Al-Qura Cement Co. dropped 3.21 percent to SR16.59. Saudi Kayan Petrochemical Co. slipped 2.31 percent to SR5.07. 

Almarai Co. decreased 2.05 percent to SR50.15, and Halwani Bros. Co. fell 2.04 percent to SR45.20. 

On the announcement front, Riyad Bank stated that it had commenced the offer of its US dollar-denominated Tier 2 trust certificates under its international trust certificate issuance program. 

The issuance will be conducted through a special-purpose vehicle and is targeted at eligible investors in the Kingdom and internationally. 

The certificates will have a minimum subscription of $200,000, with increments of $1,000 in excess thereof, and a par value of $200,000. They will have a maturity of 10 years, callable after five years. 

The amount and terms of the offer will be determined subject to market conditions. 

Riyad Bank has mandated DBS Bank, HSBC, and J.P. Morgan Securities, as well as Merrill Lynch, Mizuho, Riyad Capital, SMBC, and Standard Chartered as joint lead managers. 

The certificates will be listed on the London Stock Exchange’s International Securities Market. Riyad Bank shares closed at SR28.90, down 0.48 percent. 

Alinma Bank announced its intention to issue US dollar-denominated certificates under its own trust certificate issuance program, as per a board resolution dated May 13, which delegated authority to its chief executive officer. 

The offer is also expected to be conducted through a special-purpose vehicle and directed at eligible investors in Saudi Arabia and abroad. 

The issuance will be subject to regulatory approvals and compliance with applicable laws and regulations. 

Alinma Bank has appointed Abu Dhabi Islamic Bank, Alinma Capital, and Dubai Islamic Bank, as well as Emirates NBD, Goldman Sachs, J.P. Morgan, and Standard Chartered as joint lead managers. 

The amount and terms of the offer will be determined by market conditions. Alinma Bank shares ended the session at SR27.20, falling 0.87 percent. 


Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

Updated 07 July 2025
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Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

  • Biofuel Co. to supply B100 biodiesel as a direct alternative to fossil diesel
  • It will help reduce the project’s carbon footprint

JEDDAH: Saudi Arabia’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions. 

The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported. 

The agreement supports Saudi Arabia’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects. 

In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase. 

“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said. 

Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030. 

Biofuel Co. is Saudi Arabia’s first and only producer of standard-compliant biofuel. Biofuel Co.

Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals. 

Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.” 
 
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.” 

Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones. 

The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year. 

The project aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century. 


UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

Updated 07 July 2025
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UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

JEDDAH: Trade and investment relations between the UAE and Cuba are expected to deepen following the inaugural session of the Joint Economic Committee, which convened in Dubai to boost cooperation across multiple sectors, including biotechnology, renewable energy, and tourism.

Organized under the framework of the trade, economic, and technical cooperation agreement signed earlier by both nations, the session marked a significant step forward in advancing bilateral economic engagement.

The committee meeting was co-chaired by Abdullah Ahmed Al-Saleh, undersecretary of the UAE Ministry of Economy, and Carlos Luis Jorge Mendez, Cuba’s first deputy minister of foreign trade and foreign investment. According to the UAE’s official news agency WAM, discussions centered on enhancing collaboration in agriculture, food security, infrastructure, transportation, logistics, cultural industries, healthcare, and pharmaceuticals.

Non-oil trade between the two countries has been steadily rising. It reached over $39.1 million in 2024—up more than 2 percent from the previous year and 46.4 percent compared to 2022, WAM reported. The agency added that trade during the first quarter of 2025 rose by 5.6 percent compared to the same period in 2024, and by over 25 percent from the fourth quarter of that year. More than 825 Cuban brands are currently operating in the UAE market.

According to WAM,  Al-Saleh said that bilateral ties continue to advance steadily, particularly in the economic and commercial spheres, adding: “This reflects the visionary leadership of both nations in fostering growth and prosperity and in serving their shared interests.”

He continued: “The first session of the Joint Economic Committee between the two countries marks a key milestone in enhancing economic and investment relations in the coming period. It expands areas of cooperation in priority sectors, strengthens engagement between the Emirati and Cuban business communities, and explores promising market opportunities — contributing to the national goals of the ‘We the UAE 2031’ vision.”

Attended by the ambassadors of both countries, the session concluded with an agreement to establish a joint framework that will oversee implementation of the committee’s outcomes, ensuring the continuity of economic cooperation and shared growth.

According to WAM, both sides also agreed to coordinate business forums and economic events, exchange trade delegations, and facilitate increased trade and investment flows between Emirati and Cuban companies. The agency added that the two parties proposed organizing joint meetings, seminars, and workshops involving investors, promotion agencies, and financial institutions to attract investment in high-priority sectors.

“They stressed the importance of advancing economic cooperation through new partnerships in entrepreneurship and the startup ecosystem, with the aim of accelerating SME (small and medium-sized enterprise) growth, expanding investments, supporting exports to international markets, and increasing their contribution to the national GDPs (gross domestic products) of both countries,” WAM added.

Food security and agriculture were also top priorities, with both sides expressing interest in boosting trade in food commodities and agricultural products. They also committed to working together on sustainable farming, food processing, and agricultural technology.

Tourism was highlighted as another strategic sector for collaboration. Both nations agreed to co-host exhibitions, events, and conferences to showcase their tourist and heritage destinations. They also discussed sharing expertise and data on tourism resources, statistics, and digital innovations.

The committee’s formation follows recent government restructuring in the UAE. Just over two weeks ago, Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, announced the creation of a Ministry of Foreign Trade, led by Thani Al-Zeyoudi. The Ministry of Economy was also renamed the Ministry of Economy and Tourism, now headed by Abdullah bin Touq Al-Marri.


GCC, Japan advance free trade talks as officials meet in Tokyo

Updated 07 July 2025
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GCC, Japan advance free trade talks as officials meet in Tokyo

RIYADH: Negotiations over a free trade agreement between the Gulf Cooperation Council and Japan advanced further this week as officials from both sides convened in Tokyo to review progress and explore ways to accelerate discussions.   

The meeting, held between GCC Secretary-General Jasem Al-Budaiwi and Japan’s Vice Minister of Economy, Trade and Industry Kato Akiyoshi, focused on the strategic potential of the proposed accord and recent developments in the negotiation process, the Saudi Press Agency reported.  

The second round of negotiations for the agreement had concluded in Tokyo in early June, covering a wide range of issues including goods, technical barriers, terms of services, financial and telecommunications services, and intellectual property.   

A government delegation led by the General Authority for Foreign Trade took part in those discussions, reviewing proposals aimed at strengthening trade relations, identifying areas for cooperation, and fostering new partnerships.  

At this week’s meeting, both sides reiterated that a free trade agreement would represent a pivotal step toward expanding trade flows, enhancing economic links, and establishing a framework for long-term cooperation.  

“Al-Budaiwi reviewed a number of economic indicators and statistics for the GCC countries, noting that the GCC countries’ distinguished economic performance, and the sustainable growth and development they are witnessing in various sectors, have contributed to strengthening their position regionally and internationally,” SPA’s report stated.  

The officials stated that the accord could open broader avenues for exchange and contribute to a sustainable economic partnership serving shared interests.