Saudi Arabia Plans to Export 100,000 Tons of Petrochemical Products to India Every Year

An agreement inked at the Asharqia Chamber heralds the commencement of annual exports exceeding 100,000 tons of agricultural and industrial sulfur to India and East Asian nations. This initiative comes as bilateral investments between the two nations continue to surge, reaching a substantial $24 billion.

The petrochemical trade volume is poised to soar, with projections indicating it could reach a remarkable $9.13 billion. Additionally, an allocation of $1.03 billion is earmarked for agricultural petrochemicals and fertilizers.

Within this robust partnership, Saudi Arabia and India hold lofty expectations for their investments and trade exchange, with the ambitious goal of reaching a staggering $100 billion within the next five years.

The signing ceremony for this significant agreement witnessed the presence of Abdulaziz Al-Shuaibi, the director of the Industry Ministry’s Eastern Province branch.

The international trade report from the General Authority of Statistics for the second quarter has spotlighted India as Saudi Arabia's third-largest trading partner, trailing only China and Japan. Exports to India during this period amounted to an impressive SR26.8 billion.

This thriving trade relationship encompasses a diverse array of commodities, including engineering goods, rice, petroleum products, chemicals, textiles, raw sugar, and ceramic tiles, which are being imported by Saudi Arabia from India. In return, Saudi Arabia exports a range of products such as crude oil, LPG, fertilizers, chemicals, and plastic to India.

The burgeoning trade ties have also catalyzed investments between the two nations. Notably, Saudi Arabia's Public Investment Fund holds a significant stake of 2.32 percent in Reliance Jio Platforms, valued at $1.5 billion, and a 2.04 percent stake in Reliance Retail Ventures Ltd., valued at $1.3 billion.

Moreover, Saudi Agricultural & Livestock Investment Co. has made a strategic move by acquiring a 33 percent stake in Daawat Foods Ltd. through its subsidiary, United Farmers Investment Co., with a transaction value of $17.23 million.

Conversely, Indian investments in Saudi Arabia have witnessed substantial growth in recent years, reaching approximately $2 billion. These investments are strategically spread across diverse sectors, including management and consultancy services, construction projects, telecommunications, information technology, financial services, and software development.

The Indian Embassy data has shed light on the presence of major corporate players from India within the Kingdom. Notable entities such as L&T, Tata & Sons, Wipro, Tata Consultancy Services, Shapoorji & Pallonji, Air India, Go Air, Indigo, and SpiceJet have established a robust and influential presence in Saudi Arabia.

Both Saudi Arabia and India share a common vision when it comes to their energy outlook. Saudi Arabia's Vision 2030 and India's energy policy both center on the exploration of alternative renewable and clean energy sources to power their next phase of growth.

The Kingdom is an active member of the International Solar Alliance and is contributing effectively to realizing its mission. Saudi companies, including Alfanar and Aljomaih, have also made strategic investments in India's wind and solar energy projects.

Furthermore, both nations are jointly exploring the potential of hydrogen gas as a future energy source. This collaborative approach to energy development reflects a shared commitment to sustainable and innovative solutions that can shape the future of energy production and consumption.