Free Trade Agreement Between India And Saudi Arabia

India and Saudi Arabia are developing countries and need bilateral investment in infrastructure and development. After India`s liberalization policy in 1991, there has been gradual growth between countries and slightly faster growth in the new millennium. Saudi Arabia ranks 15th in transnational direct investment in India and ranks second in Arab countries, followed by the United Arab Emirates. In 2004/05 to 2007/2008, Saudi has a value of $21.5 million in direct investment. Saudi Arabia is also one of the leading investment countries in 1,2000 in India, with an investment of $422 million ($5.9 million) from August 1991 to December 1999 and $691 million ($9.7 million) from January 2000 to August 2008. Investments are observed in various sectors such as paper production, chemicals, computer software, granite processing, industrial products and machinery, cement, metallurgy, etc. Indian companies have also expressed interest in the Saudi market under new Saudi laws and have created joint venture projects or 100% subsidiaries in the kingdom. According to a survey conducted by the Saudi Investment Agency, India carried out 56 DL projects in Saudi Arabia in 2005, worth 304 million SARs. These licenses are intended for projects in various fields such as management and consulting services, construction projects, telecommunications, information technology, pharmacy, etc. In addition, several Indian companies have established cooperations with Saudi companies and work in the kingdom in the fields of design, consulting, financial services and software development. [25] Saudi Arabia is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).

As a member of the GCC, Saudi Arabia participates in a series of free trade agreements (FTAs) and free trade agreements managed by the economic bloc. The GCC has signed a free trade agreement with Singapore and the European Free Trade Association. Saudi Arabia is also a member of the Arab Wholesale Zone (GAFTA). Saudi Arabia`s trading partners include the United States, China, Japan, South Korea and Germany. Saudi Crown Prince Muhammad bin Salman visited India during his trip to many Asian countries in February 2019. [36] The Crown Prince met with the Indian Prime Minister and a number of senior officials in India.