India and Saudi Arabia which share cordial relationships have signed a Memorandum of Understanding on five aspects which are as below:
Memorandum of Understanding on investing in the National Investment and Infrastructure Fund was signed between the Government of the Republic of India and the Government of the Kingdom of Saudi Arabia, which ranked 15th in terms of country-wise foreign direct investment in India.
In what can be a major boost for the economy, Saudi Arabia will invest $100 billion in India -in areas like energy, refining, petrochemicals, infrastructure, agriculture, manufacturing, etc.
Riyadh has been investing in joint FDI ventures in paper manufacture, industrial products, cement, metallurgical industries, computer software among others. The investment is increasing every year.
As per a government statement, the MoU will be a step forward in engaging with the institutions of Saudi Arabia to attract a potential investment into the infrastructure sector in the country. It will lead to boosting infrastructure development in the country, the creation of more jobs, the growth of ancillary industries/sectors which will lead to growth in GDP and overall economic prosperity.
Also, the Framework Cooperation Program was agreed between Invest India of the Republic of India and Saudi Arabian General Investment Authority of the Kingdom of Saudi Arabia on Enhancing Bilateral Investment Relations. In fact, oil-rich country is India’s fourth largest trading partner and in the year 2017-18 bilateral trade reportedly reached $27.48 billion.
Memorandum of Understanding on Cooperation in the field of Tourism was inked between the Ministry of Tourism of the Republic of India and the Saudi Commission for Tourism and National Heritage of the Kingdom of Saudi Arabia.
Saudi Arabia is one of the potent tourist generating market for India in the Middle East. In fact, a number of Indian national travelling to Saudi is also significant. The MoU can help increase footfall of tourists in both nations.
Memorandum of Understanding between the Government of the Republic of India and the Government of Saudi Arabia for Cooperation in the Field of Housing
In the year 2015, Indian nationals traveling to Saudi Arabia accounted for 6.7% of the country’s total share. A number of Indians are already employed in Saudi Arabia. The memorandum seeks to provide a boost to the housing sector.
Information and broadcasting:
MoU for Cooperation on Broadcasting was signed between Prasar Bharati, New Delhi, India and Saudi Broadcasting Corporation (SBC), Saudi Arabia for Exchange of Audio Visual Programme.
This memorandum will boost the smooth exchange of Audio-visual information between the two nations, benefitting the nationals of both the countries and also bolstering the bilateral ties further.