India and Saudi Arabia Secure $3.5 Billion Deal with 53 MoUs through Startup Bridge

13 Sep, 2023

India and Saudi Arabia Secure $3.5 Billion Deal with 53 MoUs through Startup Bridge

The Chairman of the Saudi Arabian startup group for Group 20, Prince Fahad Bin Mansour, has expressed optimism about a substantial increase in trade between India and Saudi Arabia. This positive outlook follows the agreement reached by both countries to establish investment facilitation centers, often referred to as the "startup bridge," with the aim of engaging startups and youth in economic activities.

As part of the startup bridge initiative, several key entities, including India's Ministry for Commerce and Industry, Invest India, and FICCI, will collaborate to establish an Investment & Trade Promotion office in Riyadh. Simultaneously, Saudi Arabia will reciprocate by inaugurating an investment facilitation office in India. This comprehensive approach also includes the provision of physical and digital spaces to facilitate the operations of the startup bridge in Riyadh.

In a remarkable development, India and Saudi Arabia have inked 53 Memorandums of Understanding (MoUs) valued at an impressive $3.5 billion over the past 24 hours. This substantial commitment underscores the seriousness of both nations in fostering economic cooperation.

Prince Fahad Bin Mansour expressed his hope that Indian companies will consider expanding and relocating to Saudi Arabia, and vice versa. He emphasized that the initiative's potential value is so vast that it cannot be accurately quantified at this stage.

Highlighting the significance of small and medium-sized enterprises (SMEs), which constitute 80 percent of businesses in many countries, Prince Fahad Bin Mansour asserted that the mutual trade relationship and the prospects for startups and entrepreneurs will receive a significant boost from the historic India-Middle East-Europe corridor. He described this corridor as a "modern bridge between continents," symbolizing the potential for enhanced global connectivity.

India's Commerce and Industry Minister, Piyush Goyal, extended an invitation to Saudi Arabian sovereign wealth funds to invest in Gujarat's GIFT city. He disclosed plans to establish the investment facilitation centers within the next six months, with full support from the Indian government. These centers will include the participation of venture capitalists to provide funding and guidance to aspiring entrepreneurs.

On the Saudi Arabian side, Minister of Investment Khalid A. Al Falih likened the India-Middle East-Europe corridor to a contemporary equivalent of the historic Silk Road and Spice Route, signifying its importance in today's global trade landscape. He emphasized that this corridor has the potential to rebalance global trade by facilitating energy connectivity, green materials production, and the processing of finished goods. However, he refrained from specifying a timeline for its completion.

Khalid A. Al Falih also mentioned Saudi Aramco's ambitious plan to convert 4 million barrels of oil into advanced green materials on a global scale. Furthermore, he highlighted Saudi Arabia's keen interest in diversifying investments in India, extending beyond the traditional sectors of oil, gas, and petrochemicals. The opportunities for investment span various sectors, including green energy, technology, manufacturing, telecommunications, defense, food, culture, and entertainment. This multifaceted approach demonstrates Saudi Arabia's commitment to deepening its economic ties with India and exploring new avenues for collaboration.