Riyadh and New Delhi to Promote Roadmap for Economic, Investment Cooperationhttps://english.aawsat.com/business/5176388-riyadh-and-new-delhi-promote-roadmap-economic-investment-cooperation
Riyadh and New Delhi to Promote Roadmap for Economic, Investment Cooperation
Crown Prince Mohammed bin Salman received the Prime Minister of India Narendra Modi last April in Jeddah. (SPA)
India and Saudi Arabia are working diligently to establish a joint roadmap for fostering a dynamic partnership aiming at enhancing economic, investment, and trade cooperation between the two countries.
Ambassador of India to the Kingdom of Saudi Arabia, Dr. Suhel Ajaz Khan, said in an interview with Asharq Al Awsat on Monday that Saudi Arabia is one of India’s most trusted and valued strategic partners. He said the ties between the two countries are “rooted in a rich tapestry of civilizational, cultural, and commercial connections that date back centuries.
“In recent years, the relationship has grown exponentially, evolving into a robust Strategic Partnership that spans key sectors — politics, defense, security, trade, investment, energy, technology, health, education, and culture”.
He pointed to the “landmark State Visit of the Honorable Prime Minister to the Kingdom in April 2025 was a true reflection of this deepening bond. The Prime Minister of India and His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia had highly productive engagements in Jeddah, resulting in key outcomes — including the agreement on establishment of two India-Saudi joint venture refineries in India, and MoUs in Health, Postal cooperation, Space cooperation and Sports (anti-doping)”.
“The second leaders meeting of the India-Saudi Arabia Strategic Partnership Council (SPC) was also co-chaired by the two leaders during this visit. The Council reviewed the work of the various committees, subcommittees and working groups under the SPC, which encompass political, defense, security, trade, investment, energy, technology, agriculture, culture and people-to-people ties. The discussions were followed by signing of the minutes by the two leaders. To reflect the deepening of the strategic partnership over the past few years the Council decided to create two new ministerial committees under the SPC; one on Defense Cooperation and another on Tourism and Cultural Cooperation”.
The Ambassador went on to say that “India and Saudi Arabia are not only consolidating a dynamic partnership but also charting a bold vision for the future. Together, we are poised to play a pivotal role in shaping peace, progress, and prosperity at both regional and global levels”.
On the most important areas of economic, investment, and trade cooperation between the two countries, he said: “As the fastest-growing G-20 economies, India and Saudi Arabia are natural economic partners. Our partnership is vital not just for our own prosperity, but also for the resilience and stability of the global economy, particularly at a time of global uncertainty.
“Trade and investment form the economic backbone of our relationship,” he stated, “both countries have built strong institutional frameworks including a Ministerial Committee on Trade, Economy, Investment, and Technology, and a High-Level Task Force on Investment co-chaired by HRH the Saudi Energy Minister and India’s Principal Secretary to the Prime Minister. Our economic visions — Vision 2030 of Saudi Arabia and India’s Viksit Bharat 2047 — complement each other, creating vast synergies for growth”.
On the volume of trade exchange and its growth rate, the Indian Ambassador stated: “India-Saudi Arabia trade has witnessed impressive growth in recent years. In FY 2024–25, bilateral trade touched approximately USD 42 billion. India is now Saudi Arabia’s second-largest trading partner, while the Kingdom ranks fifth for India.
He went on to say: “Trade has diversified significantly. India exports engineering goods, rice, chemicals, vehicles, textiles, food products, and gems & jewelry to the Kingdom. On the other hand, we import crude oil, LPG, fertilizers, plastics, and chemicals from Saudi Arabia. There is a strong momentum to further expand trade — especially in promising sectors like pharmaceuticals, processed food, advanced manufacturing, gems and jewelry, and high-value engineering goods.
“A prospective Free Trade Agreement between India and the GCC would be a game-changer — unlocking even greater potential for trade and investment”.
He noted that “India’s private sector has embraced Saudi Arabia as a hub of opportunity. Indian businesses are actively exploring the Saudi market, especially in light of the transformational opportunities offered under Vision 2030. The number of licensed Indian companies in the Kingdom surged from 400 in 2019 to over 2,900 by 2023, with a large quantum of investments. Many Indian companies have shifted their regional headquarters to Saudi Arabia and a number of them are participating in Iktiva program of Aramco.
“Indian companies are contributing significantly to mega and giga projects under Vision 2030 — spanning civil infrastructure, energy, power transmission, oil & gas, renewable energy, and more. Our technology firms are also playing a central role in the digital transformation of Saudi Arabia. There is increasing interest from Indian businesses in healthcare, pharmaceuticals, hospitality, logistics, mining, minerals, MSMEs, and startups — all sectors vital to both economies' future.
“This is truly a two-way street. Saudi companies too have vast opportunities to invest in India’s transformation into a developed economy — especially in infrastructure, logistics, renewable energy, health, and utilities. Saudi Arabia has committed to investing $100 billion in India. The growing corporate synergy between our two countries will be a cornerstone of the bilateral partnership going forward”.
On the latest developments in the India–Saudi Arabia electricity interconnection project, Dr. Khan said that “Energy has long been a pillar of India–Saudi Arabia relations. As India powers ahead toward becoming a developed economy by 2047, our energy needs will grow — and Saudi Arabia remains a reliable and strategic partner in meeting them. But the future is green. India has set an ambitious target of 500 GW of renewable energy by 2030, and we’re actively collaborating with Saudi Arabia on clean and sustainable energy — including solar, wind, and hydrogen.
“One exciting area of cooperation is electrical grid interconnectivity. An MoU was signed in 2023 on Electrical Interconnections, Green Hydrogen, and Supply Chains, during MENA Climate Week. We’re jointly exploring the technical and commercial viability of connecting our power grids. This initiative also complements the India–Middle East–Europe Economic Corridor (IMEEC) launched in 2023, which envisions a more integrated, sustainable, and secure regional energy network. As we advance, energy connectivity will become a major lever of strategic alignment between our two nations”, he concluded.
Saudi Arabia, Türkiye Sign MoU on Cooperation in Electricity Projectshttps://english.aawsat.com/business/5339960-saudi-arabia-t%C3%BCrkiye-sign-mou-cooperation-electricity-projects
(From left to right) Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Turkish President Recep Tayyip Erdogan and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar at the signing ceremony on Tuesday. (SPA)
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Saudi Arabia, Türkiye Sign MoU on Cooperation in Electricity Projects
(From left to right) Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Turkish President Recep Tayyip Erdogan and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar at the signing ceremony on Tuesday. (SPA)
Saudi Arabia and Türkiye signed on Tuesday a Memorandum of Understanding on Cooperation in Electricity Projects.
It was signed by Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz Al Saud and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar on the sidelines of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31) in Antalya. Turkish President Recep Tayyip Erdogan oversaw the signing ceremony.
The MoU builds on the Agreement between the Saudi and Turkish governments on Cooperation in the Field of Renewable Energy, signed on February 3 and that entered into force on October 21.
The Agreement provides for the development of renewable energy projects with a total installed capacity of 5,000 MWe in two phases, to be implemented by ACWA Power, the investor company designated by the Kingdom of Saudi Arabia. The first phase envisages 2,000 MWe, while the second phase envisages an additional 3,000 MWe of renewable energy capacity.
Progress has been achieved in the implementation of the first-phase projects, while efforts towards the realization of the second-phase projects have reached an advanced stage.
The second phase envisages the development of wind power plants, supported by high-voltage direct current (HVDC) transmission infrastructure and battery energy storage systems.
These investments are expected to contribute to strengthening Türkiye’s renewable energy capacity, enhancing grid infrastructure and flexibility, and further deepening the strategic energy and investment partnership between Riyadh and Ankara.
From Saudi Arabia to the Nile Valley: Food Investment Begins at the ‘First Mile’https://english.aawsat.com/business/5339847-saudi-arabia-nile-valley-food-investment-begins-%E2%80%98first-mile%E2%80%99
From Saudi Arabia to the Nile Valley: Food Investment Begins at the ‘First Mile’
A view of an IFAD project in the Middle East.
A crop grown in a small African village may never reach the market where it commands its true value. Between the farmer producing food and the investor seeking opportunities in agricultural supply chains lies a divide shaped by gaps in financing, technology, infrastructure and knowledge.
The International Fund for Agricultural Development (IFAD) wants to close that divide by turning small-scale producers from aid recipients into economic partners. That ambition is driving early discussions on closer cooperation between IFAD and Saudi Arabia, potentially linking agricultural investment to smallholder farmers in Africa and strengthening the role of financing and expertise in food systems.
Naoufel Telahigue, IFAD's regional director for the Near East, North Africa, Europe and Central Asia, said the fund was seeking to deepen ties with Saudi Arabia and explore opportunities in agricultural investment and rural development, with a focus on connecting small-scale producers to markets.
Speaking to Asharq Al-Awsat on the sidelines of Cairo Water Week, Telahigue said discussions remained preliminary, centered on proposals and potential financing mechanisms.
An agreement has been signed with Saudi Arabia's Public Investment Fund (PIF), but no joint projects have been implemented, he said.
Bridging the gap between agreement and execution is where IFAD sees its role: providing technical expertise, strengthening value chains, organizing small-scale producers and connecting them to larger investments and markets.
The push comes as food security, water efficiency and agricultural innovation gain importance, aligning with Saudi Arabia's economic and development priorities.
Naoufel Telahigue, IFAD's regional director for the Near East, North Africa, Europe and Central Asia.
Saudi Arabia: Beyond financing, toward market access
For IFAD, potential cooperation with Saudi Arabia is about more than money. It offers a chance to exchange expertise and build investment models that support rural development.
Telahigue said partnerships with donor countries, including Saudi Arabia, could combine knowledge-sharing, stronger agricultural value chains and tools such as contract farming to connect producers directly with markets.
The approach could give investors more organized, reliable supply chains while helping farmers secure financing, technology and buyers. But the proposed Saudi partnership remains an ambition rather than an operational joint investment program.
Turning it into reality, Telahigue said, would require financing, technical expertise and local institutions capable of organizing production. The objective is to ensure investment benefits reach farmers at the start of the food supply chain, rather than remaining concentrated in processing and trade.
The first mile: Where the real economic challenge begins
IFAD calls the point where small-scale producers operate the "first mile" of food systems. Long before crops reach factories, ports or supermarket shelves, farmers must make decisions that determine whether production will generate a viable income. They need water, seeds, energy and financing. Just as importantly, they need to know what they can sell, who will buy it and at what price.
Telahigue said the sharpest gaps lie at this first mile, where access to financing, technology, infrastructure and markets remains limited.
Closing them is central to IFAD's mission. With 180 member states, the fund operates both as an international financial institution and a specialized United Nations agency. Its goal is not simply to help farmers produce more, but to enable them to build viable, lasting businesses.
If farmers do not benefit financially from farming, it will not be sustainable, Telahigue stressed.
Egypt: Putting water efficiency to the test
Along Egypt's Nile Valley, that approach is taking shape through investment in water management. In Beni Suef and Minya, the Climate-Resilient On-Farm Water Management in the Nile Valley project (CROWN) aims to support about 90,000 rural households and improve water management across 30,000 feddans of farmland.
IFAD is contributing $63 million to the project, while total investment stands at about 153 million euros, according to figures Telahigue cited during the interview.
The project seeks to curb inefficient water use, raise agricultural productivity and incomes, and help farmers adapt to climate change. Work includes rehabilitating irrigation canals and distribution channels, improving water measurement and allocation, and upgrading irrigation systems through technologies including solar power and drip irrigation.
But infrastructure is only part of the equation. The project also aims to strengthen water user associations that will take responsibility for managing and maintaining irrigation systems after funding ends.
Telahigue said inadequate measurement of water consumption remained a challenge in some areas.
Without knowing how much water is being used, improving efficiency becomes harder. That makes investment in reliable data and local governance as important as investment in irrigation networks.
IFAD wants to close that divide by turning small-scale producers from aid recipients into economic partners.
When projects end, what survives?
Another Egyptian initiative offers a test of whether agricultural development can outlast its funding. The Sustainable Agriculture Investments and Livelihoods Project (SAIL), nearing completion after more than a decade, has reached more than 40,000 rural households. It has strengthened 65 water user associations and provided more than 1,000 grants to women launching businesses.
The project has also supported farmer organizations, expanded access to rural financing and helped small-scale producers improve production and diversify their incomes.
But Telahigue said the true measure of success would come after the project ends. What matters is whether communities retain the institutions, skills and capacity to sustain what has been built.
A grant may help a rural woman start a business. Its lasting impact depends on whether that business survives and grows. Similarly, new irrigation infrastructure brings lasting economic value only if water user associations can operate and maintain it without permanent external support.
Egypt's deserts: More than 2,100 livelihood opportunities for women
In Egypt's desert communities, the challenge is not only producing more food but also protecting households against unpredictable conditions.
Through the Promoting Resilience in Desert Environments project (PRIDE), IFAD supports rainwater harvesting and land rehabilitation, with potential to expand innovative solutions such as small-scale desalination. The project has provided women with more than 2,100 livelihood support packages covering activities including livestock production and handicrafts.
The aim is to reduce dependence on a single source of income, so that a poor farming season or declining rainfall does not wipe out a household's livelihood.
Telahigue said countries facing similar climate pressures could benefit from exchanging such experiences.
He said IFAD was working with the Egyptian government to strengthen South-South cooperation, with a grant expected to support knowledge-sharing and the exchange of practical experience.
Sudan: Solar power keeps farms running through war
In Sudan, agricultural resilience faces an even harsher test.
Beyond drought and rising production costs, farmers must contend with war, displacement and economic disruption. Yet communities supported by the Sustainable Natural Resources and Livelihoods Program have continued farming despite the conflict.
Solar-powered irrigation has allowed farmers to cultivate their land as fuel prices climbed and diesel became harder to obtain.
In some project areas, local communities reported taking in internally displaced families seeking places where farming and basic economic activity remained possible.
Investments made before the war in renewable energy, natural resource management and local institutions have helped sustain livelihoods during the conflict.
For Telahigue, the lesson is clear: Resilience must be built before a crisis hits, not only after production collapses.
Yemen: Reclaiming land from destructive floods
In Yemen, seasonal floods have repeatedly stripped farmland of its topsoil, damaged agricultural land and undermined families' ability to produce food.
Through IFAD's Crisis Response Initiative, local communities have invested in soil and water conservation measures, including stone barriers to protect waterways and structures to rehabilitate watersheds. The work has reduced soil erosion, protected farmland and, in some locations, restored land previously lost to flooding.
For farmers, the impact goes beyond repairing environmental damage. It means recovering land that can once again produce food and income. The experience shows why agricultural investment in conflict-affected areas must also protect the natural resources on which local economies depend.
Telahigue said partnerships with donor countries could combine knowledge-sharing, stronger agricultural value chains and tools such as contract farming to connect producers directly with markets.
Sudan: Small savings open the door to credit
Access to formal banking can appear out of reach for smallholder farmers, especially in communities affected by conflict. Yet, closing that gap can begin with something as simple as collective savings.
In Sudan's Blue Nile state, the Livestock Marketing and Resilience Program supported women's savings and credit groups, including Al-Wifaq.
Members pooled their savings, borrowed within the group and then used those savings as collateral to secure financing from microfinance institutions. The arrangement helped women invest in livestock production and small businesses.
Syria: Building finance from the ground up
In Syria, the Integrated Livestock Development Project has expanded community-based financing mechanisms to reach more than 39,500 direct beneficiaries, 54% of them women. The mechanisms provided savings and microcredit services to rural households, particularly those headed by women.
The experiences in Sudan and Syria point to a shared lesson: Bridging the rural financing gap does not always begin with large banks. Sometimes it starts with trust, collective savings and the ability of communities to finance economic activity from within.
A $2 billion portfolio — and a far bigger financing challenge
IFAD's active portfolio across Telahigue’s region stands at about $2 billion, split roughly equally between the fund's own resources and co-financing.
Each dollar mobilized through donor contributions helps attract about six dollars in investment, he said. Yet the scale of demand, particularly for water infrastructure, still far exceeds available funding.
Asked how IFAD would spend an additional $1 billion, Telahigue said the largest share would likely go to infrastructure, with some directed toward credit lines to help producers expand their businesses and create jobs.
The precise priorities, however, would depend on individual governments' needs, whether water security, employment, productivity or food security.
Telahigue also stressed the role of public investment in attracting private capital. Investors are unlikely to enter areas without roads or reliable water supplies.
More crops, fewer resources: Can agriculture deliver both?
As climate pressures mount, increasing agricultural output is no longer enough to define success.
"If I increase production while depleting freshwater resources, what will I leave for the next generation?" Telahigue asked.
He called for agricultural systems capable of producing more with fewer resources, using efficient irrigation, drought- and salt-tolerant crops, and closer integration between crop and livestock production.
Artificial intelligence and early warning systems could also help predict crop risks and improve resource management, he said.
But technology cannot solve the problem alone. If small-scale producers cannot secure financing or reach markets, gains in productivity may not translate into sustainable livelihoods. That makes investment in knowledge, training and local organization just as important.
IFAD calls the point where small-scale producers operate the "first mile" of food systems.
The final test: What remains after the money runs out?
As IFAD advances its 14th replenishment cycle, its priorities include stronger resilience to shocks, more jobs for young people and women, better market access, innovation and greater private-sector involvement.
From early discussions with Saudi Arabia to water management in Egypt, women's financing initiatives in Sudan and Syria, and farmland restoration in Yemen, the same question runs through IFAD's work. What happens after the investment is made?
Success is not simply a matter of delivering funding to rural communities. It depends on whether farmers can continue financing their businesses, local institutions can manage their resources, producers can reach markets and families can withstand the next crisis without losing their incomes.
Business as usual is no longer an option, Telahigue said.
In a region facing mounting pressures from water scarcity, food insecurity, energy challenges and conflict, the defining economic question is no longer how much food can be produced today. It is whether the communities that produce it can survive — and continue producing — tomorrow.
Saudi Arabia, US Sign MoU on Strengthening Trade, Investment Cooperationhttps://english.aawsat.com/business/5339781-saudi-arabia-us-sign-mou-strengthening-trade-investment-cooperation
The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)
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Saudi Arabia, US Sign MoU on Strengthening Trade, Investment Cooperation
The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)
The Federation of Saudi Chambers of Commerce and the US Chamber of Commerce signed on Tuesday a memorandum of understanding aimed at strengthening trade and investment cooperation and expanding opportunities for collaboration between the business sectors between their countries.
The signing took place on the sidelines of the B20 Summit in Washington, DC.
The agreement was signed during a session on Saudi-US innovation and economic cooperation, organized by the US Chamber of Commerce, with the participation of Deputy Chief of Mission at the Saudi Embassy in the United States Nawaf Alissa, Secretary-General of the Federation of Saudi Chambers of Commerce Sultan Al-Musallam, and several US Chamber of Commerce officials and representatives of companies and the business sector.
Alissa highlighted the depth of economic relations between Saudi Arabia and the US.
The partnership has continued to evolve, expanding from traditional sectors into new fields, including artificial intelligence, digital technologies, advanced manufacturing, and infrastructure, amid the economic transformation underway in the Kingdom under Saudi Vision 2030, he remarked.
He noted that the total value of investment activities by the Public Investment Fund in the United States has reached approximately $170 billion since 2017, stressing the importance of sustaining the investment partnership between the two countries and strengthening cooperation in future economic sectors.
The event coincides with the B20 Summit, being held in Washington from November 9 to 11, with the participation of business leaders and international economic institutions to discuss priorities related to economic growth, trade, investment, and innovation.
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