Indian Real Estate Companies like Tata, Hiranandani Group, Alcons and many other organizations are keenly vying for a lucrative pie in the Saudi Arabian $500 billion infrastructure projects. As the Kingdom plans to make a smooth transition from an oil-based economy to an industrial- manufacturing based economy, the prospects appear bright for 30 Indian Real Estate organizations.
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Representatives of top infrastructure companies and allied sectors including Hiranandani group, TATA projects, Alcons, L&A, Waare, VA Tech Wabag, MMS Enterprise Ltd., Shalimar Corp. Ltd, and ACME group are headed to Saudi Arabia to delve into promising contracts and investment opportunities in the $500 billion futuristic mega city project, ‘NEOM’ and also, the Red Sea Tourism project.
The Minister of External Affairs (Economic Diplomacy Division), the Indian Embassy in Saudi Arabia and Industry body, Trade Promotion Council of India (TPCI) plan to invite development with an open embrace, where talks will be held in the 2-day visit on 27th November. Key decision makers of the Saudi government and the business community are said to hold talks with Industry honchos from India.
The Kingdom’s burgeoning economy is to set sail with the aid of these major infrastructure projects. Megaprojects such as NEOM and a plethora of structural changes are in progress to welcome new roads, railways, airports, sea ports and plans are also afoot, to enhance the Qiddiya entertainment city. ‘Vision 2030’ announced by young Saudi Crown Prince, Mohammad Bin Salman, has a promising potential to expand the country’s economy.
The Investment opportunities for Indian firms from Infrastructure and Housing and allied sectors look promising. Professionals in varied sectors such as Railways, Hospitality, Tourism, IT, and Entertainment Industry can also expect favourable ties.
According to the reports, the Saudi Arabian General Investment Authority had recently issued more than 400 licences to Indian firms. It appears Indians firms could soon be participating in 450 km railway line linking Mecca and Medina and may also find opportunities in building a new airport in Jeddah.
So far, Saudi Arabia is said to have invested $ 16 mn in India, this makes Indian investments amounting to 1.5 bn in the Kingdom, magnanimous in comparison.
Saudi is the 4th largest Trade partner for India, with bilateral trade exceeding $25 bn in 2016-17. It accounts for 20% of the country’s total annual imports, as India’s largest supplier of crude oil. In times like there where oil wars are rising, this is a rather crucial partnership.
About $10 bn worth of annual remittances are sent back home from Saudi, making Indians the largest expatriate group of 3.2 million. India-Saudi bilateral engagement is pivotal to mutual development in the coming age.