Answers to Questions asked by Hindustan Times, Indian Express/Financial Express and Asian Age for National Day issue, September 23, 2005.

 

 

Q # 1. With guns booming next door in Iraq, oil prices spiraling beyond the $ 70 mark, discontentment in the region and rise in extremism…it’s a situation that challenges the basic principle that Saudi Arabia had always epitomized and stood for: Stability. Would Your Excellency like to comment on the Kingdom’s response to this situation.

A: Before responding to your question, let me give you a glimpse of Saudi Arabia’s foreign policy:

The Kingdom’s foreign policy is based on geographical, historical, religious, economic, security and political principles and facts. It is shaped within major frameworks, among the most important of which are; good-neighbourly policy, non-interference in the internal affairs of other countries and towards strengthening relations with the region, as well as universally.

Saudi Arabia has always emphasised the need for Arab solidarity and coordination among the Arab with the aim to unify Arab’s stances and utilize all potentials and resources of Arab countries to serve Arab interests.

The Kingdom strongly believes international peace and has always advocated transparency and justice in the treatment of other countries, whether political, economical, social or any other field.

Given that background, Saudi Arabia deems the unrest in Iraq as most unfortunate for the Iraqi people and the stability and unity of the country. We will like Iraq to be unified, stable and prosperous.

Regarding the spiraling of oil prices, you cannot apportion any blame to Saudi Arabia. The Kingdom has witnessed significant development in both exploration and production of oil during the last decade. Due to massive exploration efforts undertaken by the government, Saudi oil reserves currently rose to over 261.9 billion barrels from about 170 billion barrels at the end of 1987. With the increase of proven oil reserves Saudi crude production has also gone up conspicuously. For January – July 2005, Saudi Arabia produced an average of around 10.9 million bbl of oil a day. The reason for this increase is to help bring stability to world oil market with the aim of bringing down the prices to a reasonable level.

It is a fact that the increaseing cost of crude is due to international speculation in which the producing countries have no role to play. We have done our best and will continue doing so to increase production to maintain stability in oil markets.

Q # 2. His Majesty, King Abdullah bin Al Saud had once remarked that “Look Eastward”.To what extent would you now look eastward towards India? Is the present government’s policy in this respect any different from the previous regime?

A: If we are looking East, Indian government led by Dr.Manmohan Singh also has done so recently by adopting a new strategy towards West Asia.

When the Custodian of Two Holy Mosques, talked about look eastwards, it was meant for every developing and growing economies in Asia, which includes Republic of India. Due to this policy, you must have noticed a boost in our bilateral relation, both at economic as well as political level. For businessmen of both countries, there is a great opportunity for economic expansion, which will be beneficial to the people of both countries.

Q # 3. There is some pleasant rumour going round that Saudi Arabia’s most important VIP has been invited by Indian government to attend a national function. Would Your Excellency like to confirm the news?

A. As you know we have had many VIPs from Saudi Arabia in the course of the last two years and we will see more in the months and years to come because our bilateral relations are fast growing. The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz is very keen to visit India and will surely visit India at a time convenient to both sides, which I hope, will be in the near future.

Q # 4. A large business delegation had visited India last year around this time. Is another one due soon?

A. I am happy you asked this question. As you mentioned, a major business delegation from Saudi Arabia led by the President, Council of Saudi Chamber of Commerce and Industries had visited the cities of Delhi and Mumbai from Oct. 12-16^th 2003 and had interacted with top Indian commercial houses, both manufacturing and trading, as well as information technology. The Saudi Chambers and their Indian counterparts had arrived at multiple agreements. Resulting, they are in constant touch with each other and they are preparing for it.

You will notice that the trade figures between Saudi Arabia and India, has registered a significant increase as compared to the previous years. The basket of goods and services offered by each other has also increased.

I am happy to inform the Indian business community that another high-level business delegation headed again by the President, Council of Saudi Chambers of Commerce & Industry will be in India between 21st – 25th November this year. They will be visiting Delhi, Mumbai and Hyderabad and possibly some other major Business centres in India. The Indian business community has been informed of that earlier this year.

Q # 5 Investment possibilities between India and Saudi Arabia have been greatly thwarted by the existing regime of double taxation between the two countries. The governments of both countries have, since the last few years, been seized with this issue. Is any definite outcome expected?

A: Government of the Kingdom of Saudi Arabia & the Republic of India are concerned with problems of business community of both countries. Negotiations between the two governments are going on . Agreement for the Encouragement & Reciprocal Protection of Investment (Promotion and Protection of Investment) and Double Taxation Avoidance Agreement. The last round on DTAA was held on 11-14^th Sep. 2005 in Riyadh. On Promotion and Protection of Investment the talks between the two Governments will be on 29-30^th Sep. 2005 at New Delhi.

Once these agreements are signed, the bilateral investment between the two countries will take a quantum leap forward.

I would also like to send a message across to the Indian business community to invest in Saudi Arabia in different sectors. I assure them that Saudi Arabia has the best investment climate and infrastructure in the world. The Kingdom provides export-free zones along with interest free loan up to 50% of the capital of new projects, fully owned by foreign investors. I will like to further assure that my office will extend all possible assistance to Indian business persons interested in seeking investment opportunities in the Kingdom.

Q # 6 Ever since your arrival, Your Excellency has simply charmed your way through India: business circles, academicians, intellectuals, social leaders, media, virtually all. Your Excellency has also been most active: in addition to discharge of official duties, Your Excellency has been speaking at universities, contributing to social causes, facilitating the travel of individual business-persons, etc. With Your Excellency’s varied and checkered experience working as a Saudi Arabian diplomat in Asia, don’t you think you should pen it down in a book for the benefit of students of international relations and sociology?

A: Thank you for the compliment. It is indeed true that I take great pleasure in discovering the social character of the society in the country where I am posted. It gives me great pleasure in mixing with people from different walks of life, and particularly the youth who would take charge from our generation in the coming years. I have particularly enjoyed my stay in India, my visits to various institutions and universities where I had been invited. My aim is to bring our two people closer and to create an environment of trust and cooperation.

Your idea of my writing a book has really set me thinking (laughs) and who knows a few years you may find a book written by me in your wonderful bookshops in Khan Market and Connaught Place.

 

 

 Interview  with – “Saudi Arabia – India in Focus” Magazine.

 

 

Question 1.: Excellency, Saudi Arabia has realised its tourism potential with the Saudi Foreign Ministry declaring that it will issue tourist visas to both Muslims as well as non-Muslims after Dul Hijjah 1426. What is your Embassy doing to promote your country as a tourist destination among Indians?

Answer: Tourism, as an industry in the Kingdom, is new and thus at a primary stage of development. The Supreme Commission for Tourism is busy in developing tourist sites, the requisite infrastructure and facilities to support it, in a well-coordinated manner. As and when these projects are fully developed and the Kingdom is in a position to provide facilities that match international standards, then only ‘tourist visas’ would be issued without any religious considerations. Presently, a limited number of tourists are allowed in the Kingdom under ‘Umrah-Plus’ and ‘Discovering Saudi Arabian’ schemes launched by the Supreme Commission for Tourism. The number of these visas being presently issued takes into consideration the existing infrastructure and facilities in the Kingdom’s tourist spots.

Question 2.: The volume of Saudi Arabia’s non-oil exports continues to grow by leaps and bounds. How is the Saudi Mission in New Delhi promoting the Kingdom’s non-oil exports in India?

Answer: You are right. There is an unprecedented boom in the Kingdoms non-oil exports. According to a preliminary analysis of the date for 2004, Saudi Arabian non oil export has recorded a quantum jump of 39% over the previous year. This increase in the off take of Saudi products has been shared by many countries. Among the top eight countries US, Japan, UK, South Korea, France, Italy, India & Australia have maintained their shares. This makes India 7^th in Saudi non-oil exports. I must add here that India ranks 9^th in terms of total Kingdom’s imports.

I have endevoured to streamline the different processes in our embassy. Nowadays, Indian businessman, whether he is an individual or a part of a business delegation, is provided with maximum facilities. I am open to suggestions from the Indian business community to further improve these facilities. After all, maintaining a strong, bilateral economic relationship is one of our priorities.

Question 3.: Saudi Arabia has a rich and ancient cultural heritage. However it is not very well known in India. What is being done to popularise Saudi culture among Indians?

Answer: The Kingdom is extremely rich in heritage and culture. It has been the cradle of Arabic civilization, with the Arab peninsula (now largely the Kingdom of Saudi Arabia) epitomizing Arab values, culture, language and civilization. It is also the birthplace of Islam and where the two most holy mosques are located.

Saudi Arabia has innumerable historical sites, both from the pre and post Islamic period. We are in the process to popularize these among our friends especially Indians with whom we proudly share a cultural and traditional affinity. I am sure that in a few years’ time, the Kingdom would be one of the most popular destinations for Indians.

Question 4.: During the recent visit of India’s Petroleum and Natural Gas Minister Mr. Mani Shankar Aiyar to Saudi Arabia an invitation was extended to Saudi Aramco to invest in the Bina and Mangalore refineries. How has Saudi Aramco responded to this invitation?

Answer: Saudi Aramco is the foremost and largest oil company in the world and it pursues the Kingdom’s national policy to secure energy for the Kingdom and the world. Saudi Aramco activities are based on its understanding and projections of the global economy vis-à-vis the demand for energy in the future and for this purpose, it has partnered and aligned with like minded companies in different parts of the world. Saudi Aramco is presently tackling this issue of partnership with the Indian oil companies in a purely business manner.

Question 5.: When can we expect a State visit from Custodian of the Two Holy Mosques King Abdullah bin Abdulziz to New Delhi. Likewise, President of India, Dr.A. P. J. Abdul Kalam is popular for his visits overseas. Has an invitation being extended to him to visit Riyadh.

Answer: The visits of Heads of the States entail completion of large number of diplomatic and non-diplomatic formalities and both the Saudi Arabian and the Indian government are working to make this wish come true soon.

Question 6.: India today is attracting huge foreign institutional investors given a positive outlook of Indian growth. However, major Saudi companies and investors are missing from this process. Why?

Answer: The business to business relations between Saudi Arabia and India has grown at a phenomenally fast pace. Today, major Indian and Saudi Arabian companies have directly established relations; business delegations included senior businesspersons from the two sides have been visiting both the countries. The number of joint ventures are rising. Let me inform that there are more than 45 joint ventures between Saudi & Indian co.’s in the Kingdom and about 55 Saudi Co.’s have direct investment in India.

Saudi Arabian companies like SABIC and Amiantit, to name a few, have made extremely large investments in India in key areas. There are many more Saudi Arabian companies who are interested in investing in a big way.

The Saudi Embassy is playing the role of a facilitator to both sides through providing the interested parties with the necessary datas and information.