After big economies like France, Australia and the USA announced investment in Gujarat’s GIFT City, a Middle Eastern country, Saudi Arabia also participated in the race to make its investment in the leading economic and financial structure, GIFT City. Post-success of the latest G20 Summit that was held in India on September 9 and 10, 2023, the investment minister of Saudi Arabia, Khalid bin Abdulaziz Al-Falih, announced the launching of the sovereign wealth fund (SWF) office at Gujarat International Fintech City (GIFT City).
After the G20 summit, during the day-long stay of the Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud, on September 11, 2023, Monday, India and Saudi Arabia solidified their partnership by signing a total of 53 MoUs (Memoranda of Understanding) that gave the partnership of economic and cultural relations a considerable boost. Both countries' Prime Ministers promised to increase investment opportunities and cooperation in areas including energy and defense.
Source: PTI Photo
Partnership Council and Other Investment Collaborations
The Saudi minister received a ceremonial welcome at Rashtrapati Bhavan. Throughout the day, Prime Minister Narendra Modi and Crown Prince Mohammed Bin Salman jointly chaired the Strategic Partnership Council meeting, which is responsible for overseeing bilateral relations and was created in 2019. In total, 53 MoUs were signed, including an agreement for the "Startup 20 Bridge" between India and Saudi Arabia.
During the ongoing discussion with the Saudi minister, Indian Commerce and Industry Minister Piyush Goyal extended his invitation to establish Saudi Arabia’s public investment fund (PIF) too, at GIFT City. In response to this invitation, Saudi’s investment minister, Khalid Al-Falih, replied, "I will match your offer and commit today to open an office."
Source: Business Today
Energy and Trade Relations
The two nations have been consistently trading at a volume of around $30 billion per year. Saudi Arabia holds the position of India's fourth-largest trading partner, while India is the kingdom's second-largest trading partner. Additionally, Saudi Arabia is India's third-largest energy supplier, exporting crude oil worth $29 billion to India during the 2022-23 period.
Representing Saudi Arabia in the G20-Startup20 engagement group, Prince Fahad Bin Mansour Al-Saud stated that over 50 MoUs have been signed between India and Saudi Arabia. The relationship between the two nations has been strong and is expected to result in numerous investments in the coming years.
The Startup 20 Bridge Initiative
Both nations collaborated to create a startup bridge in Riyadh, connecting Indian startups with markets, partners, and funding opportunities.
Saudi prince, Prince Fahad Bin Mansour Al-Saud highlighted, "The investment bridge will help startups and bring in investment for both countries. The success of G20 shows how the relationship has evolved over the years."
Conclusion
The collaboration between Saudi Arabia and India is poised to boost economic growth, innovation, and sustainable investment practices. For those seeking investment opportunities, the availability of office spaces for sale within GIFT City presents an attractive proposition. GIFT City's world-class infrastructure, tax incentives, and regulatory framework make it an ideal destination for businesses looking to establish a strong presence in India's financial markets.
Saudi Arabia's decision to launch a sovereign wealth fund office at GIFT City signifies a win-win scenario for both nations. It highlights a shared commitment to economic growth, innovation, and ethical investment practices. For those interested in capitalizing on these opportunities, exploring available office spaces for sale in GIFT City is a prudent choice.
This partnership is set to reshape the international finance and investment landscape, paving the way for new avenues of growth and prosperity. Contact us and consult the best real estate consultants from RES Management and invest in the million-dollar dollar project GIFT City today. Prince Fahad emphasized the crucial need for collaboration between India and Saudi Arabia to achieve economic and technological prosperity. Both nations must support each other to reach their full potential. Saudi prince, Prince Fahad Bin Mansour Al-Saud highlighted, "The investment bridge will help startups and bring in investment for both countries. The success of G20 shows how the relationship has evolved over the years."
