Himalayan News Service

Riyadh, April 13:

India and Saudi Arabia have negotiated three agreements covering bilateral investment protection, double tax avoidance and security that are to be signed later this year, according to senior Saudi officials here.

The negotiations were concluded at a meeting of the India-Saudi Joint Commission — held after a span of eight years — co-chaired by India’s finance minister P Chidambaram and Saudi minister of economy and planning Khalid al-Qusaibi.

“The two sides had fruitful talks. The meeting underscored the need for closer trade and investment relations. We have also agreed to sign three agreements later this year,” Saudi ambassador to India Saleh Mohammad Al-Ghamdi said.

The agreements relate to protection of investments made by the businesses of the two sides in each other’s country, avoidance of double taxation on investments and mutual cooperation on security matters, including terrorism.

According to the ambassador, Chidambaram also met with the Saudi Crown Prince Abdullah bin Abdul Aziz and attended a dinner hosted by the Indian community here during his three-day long visit to the kingdom since Monday.

Saudi Arabia is home to over 1.5 million Indian expatriates.

“The crown prince also hosted a reception for the finance minister at his residence. This is not unprecedented, but it is a good gesture,” Al-Ghamdi said, indicating the warming ties between India and Saudi Arabia.

During the meeting with the economy and planning minister, Chidambaram was told that India is the fourth largest importer from Saudi Arabia and the ninth largest exporter.

The Saudi minister also invited Indian businessmen — who were accompanying the finance minister for the joint commission meeting — to invest in the kingdom and take advantage of incentives offered to foreign investors.

Chidambaram told the Saudi leadership that Indian external affairs minister K Natwar Singh would be visiting Riyadh next month to discuss a host of bilateral issues. Mani Shankar Aiyar, petroleum minister had visited Saudi Arabia last month.

Indian finance minister said India was keen to push exports of its pharmaceuticals, marine and farm products, as also increase air transport links between the two countries. “There is considerable scope to work together in the area of agriculture. It is possible that we may cover areas such as animal health, agricultural education, research and water and soil management,” he said.

The finance minister’s programme in Saudi Arabia included an interactive session with the Jeddah Chamber of Commerce and Industry (JCCI) and the Saudi-Indian Business Network.

The business delegation accompanying him included Saroj Kumar Poddar, senior vice-president of the Federation of Indian Chambers of Commerce and Industry, and top executives of companies.