JEDDAH: Saudi Economic and Development Company (SEDCO) is considering new sectors and projects for expanding its operations in India, its CEO Ahmed S. Banaja said here on Sunday night. "India is the third largest Asian economy and the second fastest growing country in the world behind China and holds immense potential for overseas investment," its CEO Ahmed A. Banaja said on the sidelines of a farewell reception the company hosted for Indian Consul General Dr. Ausaf Sayeed.
He said India, with its foreign exchange reserves crossing $300 billion as of March 2008, had all the advantages for attracting foreign direct investment. India's exports have exceeded $140 billion from $20 billion in the early 1990s. It working population is nearly 500 million and in the years to come the country is slated to have the youngest working population in the world which will put it in a huge advantageous position vis-à-vis other nations, he said, adding that Dr. Sayeed has been instrumental in SEDCO's pioneering investments in India. He described India as one of the appropriate destinations for Shariah compliant investments. "We would like to extend our appreciation to Dr. Sayeed for his remarkable efforts and contributions toward bridging the Saudi and Indian economies through Saudi Indian Business Network (SIBN) and other organizations that he established," he said.
"It was Dr. Sayeed who organized our meetings with India's Prime Minister Manmohan Singh in Delhi and Finance Minister P. Chidambaram during his visit to the Kingdom, and these meetings paved the way for our investments there," Banaja said and presented a memento to him.
Khalid A. Gama, vice president, SEDCO Financial Investments, said in his presentation that its two joint venture projects were in progress with local partners, which will result in the development of a world class IT park in Bangalore and a modern residential housing community in Hyderabad. These projects will lead to creating about 10,000 jobs for IT professionals and 400 housing units that will cater for 2,000 people.
SEDCO has also invested in the development of an integrated middle-income township development project on a two million square meter site near New Delhi. It consists of residential and commercial facilities, he added.
Gama said that India had large and developed financial and capital markets with an improving regulatory framework. The country has a growing middle class population in the range of 400 million and has become a major value-added outsourcing destination, as well as a reservoir for intellectual capital. Also, Indian private equity is poised for growth. "However, Indian private equity is significantly under-penetrated with substantial room for growth," Gama added.
SEDCO with its three business groups Real Estate Investment Group, Financial Investment Group and Direct Investment Group has a long-term vision that embraces growth through adherence to Islamic values and principles, he added.
The consul general said that India's growth had been tremendous, especially over the past 15 years. The visit of Custodian of the Two Holy Mosques King Abdullah to New Delhi a couple of years ago, and organizations like SIBN and Saudi India Friendship Society have brought the two countries closer than before, he said. He identified infrastructure, real estate, IT, education and tourism as among the potentially promising sectors for overseas investment.
By K.S. Ramkumar
© Arab News 2008
