Diplomatist Magazine Diplomatist August 2018 | Page 15

Saudi investments in
India are also growing.
Between April 2000
and March 2016, the
Kingdom invested
around $72.02 million
in India. In 2013, Saudi
Arabia’s petrochemical
giant SABIC invested
$100 million.
huge scope for investments. So, too, does
India’s transportation infrastructure sector.
The Indian government’s liberalisation
of foreign direct investment (FDI) norms
in the sectors of defence, entertainment,
automobiles, and ITC, coupled with progress
in the implementation of the Good and
Service Tax (GST) has made India’s business
environment far more conducive to foreign
investment.
Similarly, Saudi Arabia’s launch of
‘Vision 2030’, which is aimed at economic
diversifi cation, has laid the basis for wide-
ranging reforms in the country’s non-oil
sectors, thus paving the way for inward
investment. According to one estimate, the
Saudi economy offers more than $650 billion
in investment opportunities. As the reforms
related to Vision 2030 are implemented,
Indian investors are likely to be attracted
to several sectors, including infrastructure,
hydrocarbons, desalination, renewable
energy, education, research and development,
health, and pharmaceuticals.
With the two countries having already
signed the Bilateral Promotion and Protection
of Investment (BIPA) and Agreements
on Avoidance of Double Taxation and
Prevention of Tax Evasion (DTAA), the
groundwork has been laid for capitalising on
the bright prospects for enhanced reciprocal
investment.
In recent years, some of the following
contracts have been secured by Indian
companies in Saudi Arabia:
Extraordinary and Plenipotentiary Diplomatist • Vol 6 •