Prism, November 2013

Vol. 1, No. 3, , November 2013 A CII Bi-Monthly Journal on India – Gulf & MEWANA Bilateral Ties

OMAN & QATAR: New Partnerships, New Opportunities

BAHRAIN-INDIA EXHIBITION & CONFERENCE

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India’s economic and business ties with the Gulf and MEWANA region is a shining example of South-South

Cooperation. Down the decades, Indian companies and professionals have enjoyed a highly visible presence across the region, contributing to the physical infrastructure development, manufacturing growth and expansion of service industries of the Gulf and MEWANA economies.

Since the turn of the Millennium, businesses in the Gulf and MEWANA countries have also enhanced their footprint in India, especially in the physical infrastructure sector where India requires investments of over $1 trillion to bridge its infrastructure deficit. India’s bilateral trade with the region has also increased appreciably, with the UAE emerging as India’s top trading partner.

While in the past the economic ties between India and the Gulf and MEWANA countries were transactional in nature, today governments on both sides are taking key steps to strengthen the bilateral cooperation endeavours in the true of spirit of partnership. So, while Indian companies foray into the emerging sectors of the Gulf and MEWANA economies, they are also playing a key part in the local capacity building and skill development initiatives. Pertinent to note that most governments in the region have accorded the highest priority to

local employment generation and localisation of business.

The Gulf and MEWANA countries on their part are also viewing India as an attractive investment destination. Oil-rich Gulf countries are now looking to channel part of their sovereign funds to India whose investment attractiveness has grown against the backdrop of economic and monetary instability in the European economies.

In the effort to take the bilateral cooperation with the Gulf region to a new high, India is reaching out to the Gulf countries to bring about an early conclusion of talks for the proposed free trade agreement with the Gulf Cooperation Council (GCC), which is indeed India’s third largest trading partner. The council is a customs union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

It may be recalled that India and the GCC had signed a framework agreement on economic cooperation in August 2004. India has also signed Bilateral Investment Protection Agreements with Oman, Qatar, Kuwait, Yemen, Bahrain and Saudi Arabia. The FTA will act as a major catalyst for multi-pronged bilateral cooperation between India and the Gulf region. In time, India could pursue and firm up similar arrangements with the MEWANA economies too.

Kris GopalakrishnanPresident CII

PRESIDENT’S MESSAGE

Getting Future-Ready

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The first Bahrain-India Conference & Exhibition held in Manama in October this year saw the

participation of a high-level Indian delegation which is a testament to the deep business ties between India and Bahrain. Over the last 5-6 years, India’s bilateral trade with Bahrain has increased rapidly, from $666 million in 2006 to $1.26 billion in 2012-13. Non-oil bilateral trade has also grown at an equally rapid pace, illustrating the broadening of India-Bahrain economic engagements.

Today, Bahrain is home to some 2,143 companies with Indian ownership. Reports say another 19 branches of Indian companies are operating in the fields of aviation and management services, engineering, banking and telecommunications. The key elements of India-Bahrain economic cooperation came to the fore at the Bahrain-India Conference & Exhibition, where Dr. Hassan Fakhro, Industry and Commerce Minister and Bahrain Exhibition and Convention Authority Chairman, invited Indian manufacturers to take advantage of Bahrain's FTA with the US. He said in his inaugural address that Bahrain is an ideal location for Indian businesses to leverage on the excellent transport and communication links and Bahrain's position within the GCC, to tap the enormous regional and wider Middle East region markets. This edition of PRISM captures the highlights of the event.

We have also turned the spotlight on Oman and Qatar, two countries with whom India’s bilateral business engagements are growing exponentially. Current trends suggest that India could become the top exporting nation to Oman in the next five years, buoyed by the growing trade and economic ties between the two countries. Currently India is the third largest exporter of products

and services to Oman. It is likely to occupy the number one slot within the next five years.

It is not business alone that binds India and Oman. Bilateral tourist flows are picking up, and there are over 200 direct flights between Oman and India every week in each direction. People- to-people contacts are getting stronger, supported by the positive and constructive role of the Indian community in this Gulf country.

India-Oman strategic and defence cooperation has also come a long way. India received key support from Omani authorities for the operational turnaround (OTR) with regard to major anti-piracy operations in the Omani and Arabian seas.

Likewise, India’s economic and business ties with Qatar have also expanded at an appreciable pace. Bilateral trade between India and Qatar stood at over $16.3 billion in 2012-13, most of it by way of LNG imports from Qatar.

Moreover, with the Iran-Pakistan-India natural gas pipeline project running into rough weather, India has turned to Qatar to meet its growing natural gas requirements. Qatar holds the world's third-largest gas reserves after Russia and Iran.

India and Qatar are also looking to broaden their economic ties beyond trade in energy. Qatar is set to emerge as a strategic investor in India's infrastructure plans, while India is holding steady on its security guarantees to the Persian Gulf emirate.

This edition of PRISM also brings forth the role of India’s heavy engineering firms in the MEWANA region. I hope that you will derive great value from the articles presented in this edition.

K K M KuttyChairman, CII Gulf & MEWANA

Committee

FROM THE CHAIRMAN’S DESK

In The Spirit of Partnership

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For decades, Indian imports from the Gulf and MEWANA region centred on oil and gas supplies. But the

non-oil component of Indian imports from the region is increasing. A recent HSBC trade forecast indicates that India will remain a top five trading corridor for the UAE, Egypt and Saudi Arabia. This might well extend to all other Gulf and MEWANA countries too.

According to the HSBC forecast, by 2030 India will be the UAE's top export destination accounting for 14% of exports, and Saudi Arabia's second largest export destination accounting for 18.5% of exports. India is already Egypt's number one export destination and will maintain that position through to 2030, accounting for 15.4% of exports. These findings point to the diversification and expansion of India’s trade ties with the Gulf and MEWANA economies.

The trade forecast also predicts that by 2020, India will overtake the US to import the highest share of goods for infrastructure globally as it invests in building its domestic networks. India requires approximately $1 trillion worth of infrastructure investment by 2018.

The Gulf and MEWANA countries will also see a commensurate increase in imports from India. For instance, as

the UAE continues to diversify away from mineral manufactures and invests heavily in its infrastructure, growth in imports of goods for infrastructure and investment equipment from India will significantly outstrip growth in other imports during 2013-30. At the same time, the UAE also pledged $2 billion of investments in Indian infrastructure.

Trade and investment ties are not the only binding factors. India is partnering many Gulf and MEWANA countries in their capacity building initiatives. As a case in point, we at CII have put forth a proposal to train young Omani entrepreneurs for promoting small and medium enterprises (SMEs). The proposal aims at training graduates to become entrepreneurs. A group of Omani SME promoters may be selected to travel to India as part of the initiative.

In keeping with India’s deeper ties with the GCC countries, Bahrain will be the Partner County at the CII Partnership Summit which will be held in Bengaluru in January 2014. We look forward to accelerated business engagements between India and the Gulf and MEWANA economies.

Chandrajit BanerjeeDirector-General CII

New ParadigmDIRECTOR GENERAL’S MESSAGE

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NEWS IN BRIEF

Dubai has won the bid to host Expo 2020, beating three other final contenders: Russia, Brazil and Turkey. This bid took place at the 154th

Bureau International des Exhibitions (BIE) General Assembly held in Paris recently. Representatives of the 168 BIE member nations voted on the bids to host the 2020 edition of one of the world’s oldest, largest and most significant international mega-events. Dubai’s bid was themed ‘Connecting Minds, Creating the Future’.

Between October 2020 and April 2021, more than 25 million visitors are expected to attend Expo 2020, 70% of which will be from outside the UAE. His Excellency Helal Saeed Almarri was quoted by a media publication as saying: “The legacy of holding such an event in Dubai is where the real value lies. A wide range of sectors will benefit, including construction, engineering and transportation, and of course

the hospitality, retail and aviation sectors will experience a significant positive impact, further strengthening their already robust positions.”

UAE's AFZA seeks investments from India

Aiming to attract Indian businesses, a delegation from the Ajman Free Zone Authority (AFZA) visited India recently to promote the benefits of investing in Ajman, UAE. AFZA offers 100% foreign ownership, repatriation of capital and profits, no corporate tax, no personal income tax and no import and export duties. Besides, the authority offers benefits like lowest lease prices and tariff, extremely low handling charges, easy access to workforce, single window clearances and cheap energy to businesses interested in setting up an offshore company. India is the largest trading partner of the UAE. At present, over 8,000 companies are registered and

operating in the Ajman Free Zone out of which 38% are of Indian ownership.

Seetharam new Indian ambassador to UAE

The Government of India has appointed Mr T P Seetharam, the Indian High Commissioner to Mauritius, as the Indian Ambassador to the UAE. Mr Seetharam has handled India’s bilateral relations with countries in Europe as Additional Secretary, West Europe and as Joint Secretary Central, Europe in New Delhi. He was the Director General of the India-Taipei Association and has also worked in the Indian Embassy in Beijing and the Indian Commission in Hong Kong.

Saudi's SABIC opens $100m tech centre in India

Petrochemicals giant Saudi Arabian Basic Industries Corporation (SABIC) has set up a $100m technology centre in India. Prince

Dubai to host Expo 2020

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NEWS IN BRIEF

Dubai has won the bid to host Expo 2020, beating three other final contenders: Russia, Brazil and Turkey. This bid took place at the 154th

Bureau International des Exhibitions (BIE) General Assembly held in Paris recently. Representatives of the 168 BIE member nations voted on the bids to host the 2020 edition of one of the world’s oldest, largest and most significant international mega-events. Dubai’s bid was themed ‘Connecting Minds, Creating the Future’.

Between October 2020 and April 2021, more than 25 million visitors are expected to attend Expo 2020, 70% of which will be from outside the UAE. His Excellency Helal Saeed Almarri was quoted by a media publication as saying: “The legacy of holding such an event in Dubai is where the real value lies. A wide range of sectors will benefit, including construction, engineering and transportation, and of course

the hospitality, retail and aviation sectors will experience a significant positive impact, further strengthening their already robust positions.”

UAE's AFZA seeks investments from India

Aiming to attract Indian businesses, a delegation from the Ajman Free Zone Authority (AFZA) visited India recently to promote the benefits of investing in Ajman, UAE. AFZA offers 100% foreign ownership, repatriation of capital and profits, no corporate tax, no personal income tax and no import and export duties. Besides, the authority offers benefits like lowest lease prices and tariff, extremely low handling charges, easy access to workforce, single window clearances and cheap energy to businesses interested in setting up an offshore company. India is the largest trading partner of the UAE. At present, over 8,000 companies are registered and

operating in the Ajman Free Zone out of which 38% are of Indian ownership.

Seetharam new Indian ambassador to UAE

The Government of India has appointed Mr T P Seetharam, the Indian High Commissioner to Mauritius, as the Indian Ambassador to the UAE. Mr Seetharam has handled India’s bilateral relations with countries in Europe as Additional Secretary, West Europe and as Joint Secretary Central, Europe in New Delhi. He was the Director General of the India-Taipei Association and has also worked in the Indian Embassy in Beijing and the Indian Commission in Hong Kong.

Saudi's SABIC opens $100m tech centre in India

Petrochemicals giant Saudi Arabian Basic Industries Corporation (SABIC) has set up a $100m technology centre in India. Prince

Dubai to host Expo 2020

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Saud bin Abdullah bin Thenayan Al-Saud, chairman of SABIC, officially opened the company's state-of-the-art facility in Bengaluru. The centre is one of 17 SABIC global R&D hubs of excellence and is home to more than 300 scientists from India, described by SABIC as "a critical mass of some of the best and brightest talent from this vibrant country". Mohamed Al-Mady, SABIC's vice chairman and CEO, told the media: "This major centre in Bengaluru is an integral part of our global R&D strategy. In this centre the scientists here are carrying out cutting-edge research

into new platforms for next-generation materials across industry sectors.”

India lifts anti-dumping duty on Oman’s polypropylene export

India has lifted an anti-dumping duty imposed on polypropylene imported from Omani suppliers, especially the Oman Polypropylene. India had clamped an anti-dumping duty of 6.5% on polypropylene originating from Oman or exported from the Sultanate (and from Saudi Arabia and Singapore) on November 19, 2010 to protect domestic manufacturers. The latest decision will make Omani polypropylene cheap in India, giving the much needed relief to the state-run Oman Polypropylene Company as South East Asian countries, including India, are major markets for the Sultanate's polypropylene producers.

NEWS IN BRIEF‘Nitaqat no big impact on India’

Government of India has maintained that the "nitaqat" implemented by Saudi Arabia to streamline their labour market and identify illegal workers has not had any major adverse impact on Indian workers owing to the extension of grace period twice. Indian Overseas Indian Affairs Minister, Mr Vayalar Ravi, told Lok Sabha: “The grace period has been extended twice — first up to July 3, 2013 and second up to November 3 this year. The policy has not had any significant adverse impact on Indian workers in

Saudi Arabia except on those who were working there without proper valid documents.”

Oman-India SPV to complete deployment soon

Oman-India Joint Investment Fund, a special purpose vehicle ( SPV) for promoting joint investment in projects in India, will complete deploying its first tranche of $100 million in the coming months, said Indian Ambassador to Oman, Mr J S Mukul. According to a news report, Mr Mukul said that the investment partnership between India and Oman is reflected through operation of hundreds of joint ventures and are valued at $7.5 billion. Out of this, the Indian contribution was $4.5 billion.

Doha Bank to start ops in IndiaQatar-based Doha Bank

has announced that it got the

Reserve Bank of India license to start operations in India. The Bank will open a branch in Mumbai in 2014-15 to offer diversified banking services, particularly in the wholesale space. The bank would leverage funds in the Gulf to offer them to Indian corporates, particularly small and medium enterprises. There is a large diaspora of Indian population in Qatar and besides various Indian companies are active in infrastructure projects in Qatar. The license will pave the way for the bank to support all expatriates with

the best in class solutions especially remittance solutions. According to a news report, Indian diaspora is likely to remit around $10 million in 2013 using Doha Bank facilities.

Egypt invites Indian pharma firmsEgypt has invited Indian pharma

companies to invest and manufacture final products in the country. The focal point would be to engage Indian firms to manufacture pharma final products and export to the whole Mena region. Further, to tap the growing MENA markets, Pharmaceuticals Export Promotion Council of India (Pharmexcil) will set up Indian Pavilion at Arab Health, a major international exhibition to be held in Dubai in January 2014. Reports say the world is increasingly looking at India for front-end manufacturing solutions, contract research and machinery, and technologies.

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Saud bin Abdullah bin Thenayan Al-Saud, chairman of SABIC, officially opened the company's state-of-the-art facility in Bengaluru. The centre is one of 17 SABIC global R&D hubs of excellence and is home to more than 300 scientists from India, described by SABIC as "a critical mass of some of the best and brightest talent from this vibrant country". Mohamed Al-Mady, SABIC's vice chairman and CEO, told the media: "This major centre in Bengaluru is an integral part of our global R&D strategy. In this centre the scientists here are carrying out cutting-edge research

into new platforms for next-generation materials across industry sectors.”

India lifts anti-dumping duty on Oman’s polypropylene export

India has lifted an anti-dumping duty imposed on polypropylene imported from Omani suppliers, especially the Oman Polypropylene. India had clamped an anti-dumping duty of 6.5% on polypropylene originating from Oman or exported from the Sultanate (and from Saudi Arabia and Singapore) on November 19, 2010 to protect domestic manufacturers. The latest decision will make Omani polypropylene cheap in India, giving the much needed relief to the state-run Oman Polypropylene Company as South East Asian countries, including India, are major markets for the Sultanate's polypropylene producers.

NEWS IN BRIEF‘Nitaqat no big impact on India’

Government of India has maintained that the "nitaqat" implemented by Saudi Arabia to streamline their labour market and identify illegal workers has not had any major adverse impact on Indian workers owing to the extension of grace period twice. Indian Overseas Indian Affairs Minister, Mr Vayalar Ravi, told Lok Sabha: “The grace period has been extended twice — first up to July 3, 2013 and second up to November 3 this year. The policy has not had any significant adverse impact on Indian workers in

Saudi Arabia except on those who were working there without proper valid documents.”

Oman-India SPV to complete deployment soon

Oman-India Joint Investment Fund, a special purpose vehicle ( SPV) for promoting joint investment in projects in India, will complete deploying its first tranche of $100 million in the coming months, said Indian Ambassador to Oman, Mr J S Mukul. According to a news report, Mr Mukul said that the investment partnership between India and Oman is reflected through operation of hundreds of joint ventures and are valued at $7.5 billion. Out of this, the Indian contribution was $4.5 billion.

Doha Bank to start ops in IndiaQatar-based Doha Bank

has announced that it got the

Reserve Bank of India license to start operations in India. The Bank will open a branch in Mumbai in 2014-15 to offer diversified banking services, particularly in the wholesale space. The bank would leverage funds in the Gulf to offer them to Indian corporates, particularly small and medium enterprises. There is a large diaspora of Indian population in Qatar and besides various Indian companies are active in infrastructure projects in Qatar. The license will pave the way for the bank to support all expatriates with

the best in class solutions especially remittance solutions. According to a news report, Indian diaspora is likely to remit around $10 million in 2013 using Doha Bank facilities.

Egypt invites Indian pharma firmsEgypt has invited Indian pharma

companies to invest and manufacture final products in the country. The focal point would be to engage Indian firms to manufacture pharma final products and export to the whole Mena region. Further, to tap the growing MENA markets, Pharmaceuticals Export Promotion Council of India (Pharmexcil) will set up Indian Pavilion at Arab Health, a major international exhibition to be held in Dubai in January 2014. Reports say the world is increasingly looking at India for front-end manufacturing solutions, contract research and machinery, and technologies.

A CII trade mission visited Salalah Free Zone in Oman in September this year to explore investment opportunities in one is

being seen as one of the most favoured investment destinations in the Gulf region. The mission expressed interest in leveraging the investment opportunities extant in the zone’s infrastructure development, including airport and port facilities.

Mr K K M Kutty, Chairman, CII Gulf & MEWANA Committee, and leader of the trade mission, was quoted by the Oman Observer as saying: “Salalah is emerging as a major investment hub. We are exploring investment opportunities in sectors like health, information technology, industrial training, cable making, centrifugal pump manufacturing, gaskets for automobile manufacturing, industrial, marine and oil field applications, manufacture of rubber moulding and products of natural rubber, nitrile,

neoprene, silicon, EPDM, viton, etc,”The mission also held meetings

with prospective trade partners and officials of the Oman Chamber of Commerce and Industries (OCCI) in Muscat. The mission also explored investment opportunities in Oman in areas like manufacturing of rubber sheets, suction and delivery hoses for water and oil, water pumps, camlock fittings, safety products, various products for shipping industry, graphite sheets and components, hydraulic seals, PTFE products, gland packings, copper, aluminium and fibre washer, non-asbestos and asbestos jointing, etc.

Mr Santosh Kumar Mishra, a healthcare consultant who was a member of the mission, was quoted by a daily as saying: “Oman stores great investment opportunity in health sector. I came to know about a medical city being developed in Salalah. As an expert in Hospital Information System I would love to explore investment

opportunity in that area.”The mission also offered to extend

cooperation to the zone in setting up training centres for Small and Medium Enterprises (SMEs). Discussions are now underway to hold training workshops under OCCI with the assistance of CII. A group of Omani SME promoters may be selected to travel to India as part of the scheme.

Mr Khalil Abdullah Al Khonji, chairman of the Oman Chamber of Commerce and Industry (OCCI) told the media that Indian goods would reach the Arab countries faster and more easily once Salalah and Duqm are linked by a railway line. Indian exporters could transport their goods to these ports and later transport the same through the railway line, which will connect other GCC states.

Mr J S Mukul, Indian Ambassador to Oman, was quoted saying the multi-sectoral CII delegation had paid due attention to various business sectors. The 14-member

PARTNERSHIP

Strengthening India-Oman Business TiesCII trade mission to Oman cements partnerships with Oman Chamber of Commerce and Industries, Salalah Free Zone and other business entities

Meeting with high level Science and Technology delegation from Sultanate of Oman, 21 October 2013, New Delhi

(L-R) Mr Faris Nasser Al Farsy, Director General, Public Authority for Investment Promotion and Export Development (PAIPED), H.E. Amb. Mohammed Awadh al Hassan, Ministry of Foreign Affairs, Sultanate of Oman, Mr Gurpal Singh, Principal Advisor, Gulf & Middle East, CII and Mr Anjan Das, Executive Director, CII.

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9India-Oman ties date back to the Roman and pre-Islamic times. Down the decades, more than 7 lakh Indians have taken up employment and business

activities in Oman, making them the largest expatriate community in the country. Against this backdrop, how would you assess the growth of India-Oman bilateral economic ties?

India and Oman enjoy strong bilateral political, diplomatic and economic relations cemented by shared history, centuries-old trade linkages, diverse business partnerships, cultural contiguity, and a common understanding on key international issues. Oman is a strategic partner to India in the Gulf region and plays a key role in deepening India-GCC bilateral ties.

India-Oman bilateral partnership turned a new leaf in November 2008 when following our Prime Minister’s visit to Muscat, both countries agreed

to transform the bilateral ties into a strategic partnership. In December 2010, a Higher Committee on Economic Cooperation was formed, which later identified nine areas of bilateral cooperation: agriculture, healthcare, infrastructure, tourism,

chemicals & fertilizers, education, oil & gas, power and mining.

The annual Indo-Oman Strategic Consultative Group (IOSCG) meeting and institutional mechanisms like the Joint Commission Meeting (JCM) and Joint Business Council (JBC) – which was set up to oversee economic cooperation between India and Oman -- have all contributed to the strengthening of India-Oman economic relations and business partnerships.

India is Oman's largest destination for its non-oil exports and the fourth largest source of imports. What steps are being taken to accelerate the bilateral trade flows?

India-Oman bilateral trade which is around US$ 5 billion per annum has increased by as much as 129% in the five-year period between 2008-09 and 2012-13. During 2012, India emerged as the largest destination for Omani non-oil exports.

‘India-Oman Bilateral Partnership Has Turned A New Leaf’Indian Ambassador to Oman, Mr J S Mukul, shares his thoughts on India-Oman bilateral ties and business engagements

INTERVIEW

Mr J S Mukul,Indian Ambassador

to Oman

CII delegation, representing a wide spectrum of industries, aims to build on the past successes because "we still believe that despite these successes, we have only realised the tip of the iceberg and there is tremendous potential" to expand cooperation,” Mr Mukul said.

On economic cooperation between India and Oman, Mr Mukul stated, "Last year, the trade and investment between the two countries were very robust. For example, India for the first time in 2012 emerged as the top destination for Omani non-oil exports. Non-oil Omani exports to India grew by 46% during 2012. On the other side, the Indian exports to Oman almost doubled during the financial year 2012-2013."

India-Oman business ties have expanded considerably in recent years. Several Indian companies have been present in Oman for many years. They are engaged in infrastructure development, oil & gas related engineering works, IT and a number of other fields including education. Omani companies also have joint ventures in India.

Moreover, the Oman-India Joint Investment Fund, a special purpose vehicle ( SPV) which has been set up for promoting joint investment in projects in India, will complete deploying its first tranche

of $100 million soon.A leading daily quoted Mr

Mukul saying at the India Business Seminar that the investment partnership between India and Oman is reflected through operation of hundreds of joint ventures and are valued at $7.5 billion. Out of this, the Indian contribution was $4.5 billion. The investment fund was formed in 2011 by the State Bank of India (SBI) and the State General Reserve Fund of Oman (SGRF).

Among these joint ventures, the $1 billion Oman-India Fertiliser Company in Sur is the flag-bearer of India's investments abroad. Similarly, Oman has made significant investments in the $2.4 billion Bharat-Oman Refinery at Bina, Madhya Pradesh.

Energy trade is a key constituent of India’s trade ties with Oman. Recent reports indicate that Iran has agreed to deliver natural gas to India through a deepwater pipeline crossing the Sea of Oman. A top official of National Iranian Gas Exports Company (NIGEC) was quoted in a leading Gulf daily as saying: "Negotiations were held with three Indian companies for their purchase of gas from Iran, and general agreements have been reached.”

India-based South Asia Gas Enterprise (SAGE) has conducted

feasibility studies for the planned 1,400km pipeline, which is estimated to cost $4-5 billion. The pipeline is expected to transit 31 million cubic metres per day of gas to India when it comes on-stream. The envisaged pipeline will pump gas from Iran's gigantic South Pars gas field.

The Omani business interest in India is also reflected in a 15-16% compounded growth rate in the number of Indian visas issued by the Embassy in Muscat in recent years. In a bid to promote Oman's maritime heritage, Oman Tourism has conducted a sailing event in Mumbai where 40 travel trade partners not only got an opportunity to sail, but also got a better understanding of the destination.

Oman is also planning to promote itself as a niche wedding destination for Indians.”The Indian wedding industry is now worth more than $25 billion a year and it is growing at an estimated 20% year over year," an Indian representative of the Ministry of Tourism, Oman, told a daily.

A high level Science and Technology delegation from Oman visited India in October this year to establish new partnerships with Indian science and technology institutions.

The stage is set for deeper India-Oman business engagements and partnerships.

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9India-Oman ties date back to the Roman and pre-Islamic times. Down the decades, more than 7 lakh Indians have taken up employment and business

activities in Oman, making them the largest expatriate community in the country. Against this backdrop, how would you assess the growth of India-Oman bilateral economic ties?

India and Oman enjoy strong bilateral political, diplomatic and economic relations cemented by shared history, centuries-old trade linkages, diverse business partnerships, cultural contiguity, and a common understanding on key international issues. Oman is a strategic partner to India in the Gulf region and plays a key role in deepening India-GCC bilateral ties.

India-Oman bilateral partnership turned a new leaf in November 2008 when following our Prime Minister’s visit to Muscat, both countries agreed

to transform the bilateral ties into a strategic partnership. In December 2010, a Higher Committee on Economic Cooperation was formed, which later identified nine areas of bilateral cooperation: agriculture, healthcare, infrastructure, tourism,

chemicals & fertilizers, education, oil & gas, power and mining.

The annual Indo-Oman Strategic Consultative Group (IOSCG) meeting and institutional mechanisms like the Joint Commission Meeting (JCM) and Joint Business Council (JBC) – which was set up to oversee economic cooperation between India and Oman -- have all contributed to the strengthening of India-Oman economic relations and business partnerships.

India is Oman's largest destination for its non-oil exports and the fourth largest source of imports. What steps are being taken to accelerate the bilateral trade flows?

India-Oman bilateral trade which is around US$ 5 billion per annum has increased by as much as 129% in the five-year period between 2008-09 and 2012-13. During 2012, India emerged as the largest destination for Omani non-oil exports.

‘India-Oman Bilateral Partnership Has Turned A New Leaf’Indian Ambassador to Oman, Mr J S Mukul, shares his thoughts on India-Oman bilateral ties and business engagements

INTERVIEW

Mr J S Mukul,Indian Ambassador

to Oman

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INTERVIEWIndian exports to Oman doubled during 2012-13 as compared to the previous year 2011-12. India ranked as the fourth largest source of imports into Oman during 2012. Major items of Indian exports are textiles and garments, machinery and equipment, electrical and electronic items, chemicals, iron and steel products in addition to traditional items like tea, coffee, spices, rice and meat products and seafood. India is also one of the major destinations for non-oil exports from Oman, and

major Omani export commodities are urea, LNG (through spot purchase), polypropylene, lubricating oil, dates and chromite ore.

Though generally, the balance of trade has been in Oman’s favour due to export of fertilizers and spot purchase of oil & gas by India, but during 2012-13 it was in India’s favour.

With better maritime connectivity we can expect the bilateral trade flows to increase at a rapid pace. The direct cargo shipping service between Nhava Sheva port in India and Salalah port in Oman, illustrates the improved transport connectivity between the two countries.

The India-GCC framework agreement on trade will also help accelerate India-Oman bilateral commercial exchanges, besides the proposed India-GCC FTA.

Indian and Omani firms have entered into joint ventures in sectors like fertilisers, pharmaceuticals, energy and engineering. Are there any other areas where bilateral investment flows are likely to increase?

There are over 1,527 joint ventures

between India and Oman, of which the US$969 million Oman-India Fertilizer Company (OMIFCO) in Sur, Oman and the US$2.4 billion Bharat-Oman Refineries Limited (BORL) in Bina, Madhya Pradesh are the flag-bearers.

Indian companies are active in various sectors in Oman like oil & gas, mining, manufacturing, IT & telecom, power & water, construction, real estate & consultancy, healthcare, warehousing & logistics, railway sector and steel etc. Indian companies in construction sector of Oman have faired very well

during 2013 winning mega contracts totaling to over US$1 billion. Omani companies are also present in diverse areas in India like oil & gas, manufacturing, IT & telecom, hospitality, healthcare and financial services etc.

As per the June 2013 report of the National Centre for Statistics and Information of Oman, the Sultanate’s overseas investments rose by 36.5% to OR 5.48 billion by the end of 2011 over the figures of 2010. During the year 2011, India with share of 7.2%, was the second most important destination for Omani direct investments abroad.

According to a report, Oman was the second biggest GCC investor in India and Oman’s cumulative FDI in India had grown from US$24 million in 2005 to US$340 million as of January, 2012. FDI into Oman during 2012 was at OR 6.48 billion compared to OR 5.9 billion in 2011, or an increase of 9.6%.

As the Omani economy diversifies, we can expect a greater number of Indian companies to establish their footprint in the Omani business arena through joint ventures. Likewise, many Omani firms are likely to leverage the

investment opportunities in India, in areas like physical infrastructure.

India has evinced keen interest in importing natural gas from Oman. A 1,100 foot undersea gas pipeline connecting Oman and India is being planned. What are the challenges and opportunities in implementing this project?

The construction of a 1,100-km-long underwater gas pipeline from Oman for transporting natural gas has been on the table for quite some

time. Called the South Asia Gas Enterprise (SAGE), the proposed sub-sea pipeline will meet the additional gas requirement of India, besides easing gas transportation issues of producing countries. More recently, IOC had signed a `principles of co-operation (POC)’ with South Asia Gas Enterprise (SAGE) which has also undertaken a fresh survey for the sub-sea pipeline route.

For many people in the Gulf countries, India is increasingly the preferred destination for medical treatment. Are people of Oman considering India as a reliable and affordable place to receive medical treatment?

For Omanis seeking treatment abroad, India has emerged as the top medical tourism destination. Most of the patients visit India for rehabilitation and physiotherapy, and to be treated for cancer, cardiac disease, orthopaedic problems, etc. India is indeed a major destination for reliable and affordable value-for-money medical treatment.

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INTERVIEWIndian exports to Oman doubled during 2012-13 as compared to the previous year 2011-12. India ranked as the fourth largest source of imports into Oman during 2012. Major items of Indian exports are textiles and garments, machinery and equipment, electrical and electronic items, chemicals, iron and steel products in addition to traditional items like tea, coffee, spices, rice and meat products and seafood. India is also one of the major destinations for non-oil exports from Oman, and

major Omani export commodities are urea, LNG (through spot purchase), polypropylene, lubricating oil, dates and chromite ore.

Though generally, the balance of trade has been in Oman’s favour due to export of fertilizers and spot purchase of oil & gas by India, but during 2012-13 it was in India’s favour.

With better maritime connectivity we can expect the bilateral trade flows to increase at a rapid pace. The direct cargo shipping service between Nhava Sheva port in India and Salalah port in Oman, illustrates the improved transport connectivity between the two countries.

The India-GCC framework agreement on trade will also help accelerate India-Oman bilateral commercial exchanges, besides the proposed India-GCC FTA.

Indian and Omani firms have entered into joint ventures in sectors like fertilisers, pharmaceuticals, energy and engineering. Are there any other areas where bilateral investment flows are likely to increase?

There are over 1,527 joint ventures

between India and Oman, of which the US$969 million Oman-India Fertilizer Company (OMIFCO) in Sur, Oman and the US$2.4 billion Bharat-Oman Refineries Limited (BORL) in Bina, Madhya Pradesh are the flag-bearers.

Indian companies are active in various sectors in Oman like oil & gas, mining, manufacturing, IT & telecom, power & water, construction, real estate & consultancy, healthcare, warehousing & logistics, railway sector and steel etc. Indian companies in construction sector of Oman have faired very well

during 2013 winning mega contracts totaling to over US$1 billion. Omani companies are also present in diverse areas in India like oil & gas, manufacturing, IT & telecom, hospitality, healthcare and financial services etc.

As per the June 2013 report of the National Centre for Statistics and Information of Oman, the Sultanate’s overseas investments rose by 36.5% to OR 5.48 billion by the end of 2011 over the figures of 2010. During the year 2011, India with share of 7.2%, was the second most important destination for Omani direct investments abroad.

According to a report, Oman was the second biggest GCC investor in India and Oman’s cumulative FDI in India had grown from US$24 million in 2005 to US$340 million as of January, 2012. FDI into Oman during 2012 was at OR 6.48 billion compared to OR 5.9 billion in 2011, or an increase of 9.6%.

As the Omani economy diversifies, we can expect a greater number of Indian companies to establish their footprint in the Omani business arena through joint ventures. Likewise, many Omani firms are likely to leverage the

investment opportunities in India, in areas like physical infrastructure.

India has evinced keen interest in importing natural gas from Oman. A 1,100 foot undersea gas pipeline connecting Oman and India is being planned. What are the challenges and opportunities in implementing this project?

The construction of a 1,100-km-long underwater gas pipeline from Oman for transporting natural gas has been on the table for quite some

time. Called the South Asia Gas Enterprise (SAGE), the proposed sub-sea pipeline will meet the additional gas requirement of India, besides easing gas transportation issues of producing countries. More recently, IOC had signed a `principles of co-operation (POC)’ with South Asia Gas Enterprise (SAGE) which has also undertaken a fresh survey for the sub-sea pipeline route.

For many people in the Gulf countries, India is increasingly the preferred destination for medical treatment. Are people of Oman considering India as a reliable and affordable place to receive medical treatment?

For Omanis seeking treatment abroad, India has emerged as the top medical tourism destination. Most of the patients visit India for rehabilitation and physiotherapy, and to be treated for cancer, cardiac disease, orthopaedic problems, etc. India is indeed a major destination for reliable and affordable value-for-money medical treatment.

Even as bilateral trade between Qatar and India increased from $1.2 billion in 2005 to $16 billion in 2013, Indian exports to Qatar

have fallen several notches below Qatari exports to India. A high-level 14-member CII business delegation comprising CEOs and other senior representatives of various companies visited Qatar in September to explore the Qatari market for stepping up Indian exports to the Sultanate.

The delegation included representatives of sectors such as infrastructure, energy, heavy engineering, manufacturing, engineering, communications and information technology, financial services, international trading, pharmaceutical and healthcare.

Speaking on the issue to Qatar Tribune, Mr K K M Kutty, Chairman, CII Gulf & MEWANA Committee, said that while Indian exports to Qatar posted only marginal increase during 2005-13, there was a massive jump in exports from Qatar to India. “The trade gap is a matter of concern for us. We are here to bridge this gap. There are so many things that can be exported to Qatar from India. The CII team is here to explore those

opportunities and form joint ventures with Qatari companies,” he said.

Mr Kutty observed that small and medium business is one area where Qatar can learn a lot from India. “We are ready to help Qatar to set up SMEs by providing them with essential technologies and training,” he said.

Qatar Chamber of Commerce Board Member, Mr Mohamed Ahmed al Obaidy, has said that India is considered as one of the biggest economic partners with Qatar, whether on the level of trade volume or on the labour force working in Qatar. “Thus, we are always looking forward to enhance partnership between us to reach as higher rates of cooperation as possible,” he told a daily.

“CII works closely with Indian government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialised services and strategic global linkages,” said Mr Gurpal Singh, Principal Advisor - Gulf, Middle East & North Africa, CII, while commenting on the delegation visit.

CII and QCCI signed an MoU to strengthen business cooperation between the two countries. The MoU

affirmed the joint endeavour of the two chambers to accelerate knowledge sharing as well hold regular seminars and conferences to bring businesses on both sides on a common platform.

PARTNERSHIP

India-Qatar Business Ties: Gaining MomentumCII trade mission to Qatar signals a new phase of India-Qatar business partnerships

(L-R) Mr P S Sasi Kumar, Deputy Chief of Mission at the Indian Embassy in Doha, Mr Mohd. Ahmed al Obaidy, QCCI Board Member, and Mr K K M Kutty, Chairman, CII Gulf & MEWANA Committee

Mr Gurpal Singh, Principal Advisor- Gulf, Middle East and North Africa of Confederation of Indian Industry (CII) with Mr Mohammed Bin Ahmed Al Obaidli, Member of the Board of Directors, Qatar Chamber of Commerce & Industry (QCCI).

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Growing TimesRelations between Qatar and India are set for a big leap, says Mr Sanjiv Arora, Indian Ambassador to Qatar

Relations between Qatar and India are set for “a big leap”, Indian ambassador to Qatar, Mr Sanjiv Arora has said. “I am extremely happy at the way

things are progressing as both the countries stand to gain substantially from the enhanced levels of bilateral co-operation,” he explained.

Business forums from India and business houses from Qatar have exchanged numerous visits in the 13 months since September 2012. “While business delegations spearheaded by Confederation of Indian Industry (CII), Association of Chambers of Business and Industry (ASSOCHAM), Federation of Indian Chamber of Commerce

and Industry (FICCI) and CAPAXIL (a forum of chemical manufacturers) have undertaken visits to Qatar,

entrepreneurs from Qatar have made similar visits to India during the period,” said Mr Arora.

The visits have not only contributed to stronger commercial links between the two countries but have also helped in spreading better awareness about the business environs in India among Qatari entrepreneurs. The ambassador said India expected good participation of Qatari officials in the Annual Partnership Summit to be held in January 2014.

The envoy said he was happy that Qatar National Bank (QNB) had already begun operations in India’s commercial capital Mumbai where Qatar Investment Authority

By Ramesh Mathew

Mr Sanjiv Arora, Indian Ambassador to Qatar

VIEWPOINT

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VIEWPOINT(QIA) had also set up an office

to explore investment opportunities. “A number of Qatari entrepreneurs have evinced interest in recent months to invest in real estate, hospitality, leisure and similar ventures in India,” he said, adding that Indian banks and other financial institutions were keen to do business with Qatar.

At least four Indian banks are already managing money exchanges in Qatar. Another good development, said the ambassador, was the participation of a number of representatives of Qatari business houses at the Overseas Employers Meeting organized by the Ministry of Overseas Indian Affairs in Dubai.

Arora recalled that in less than a month after India’s Finance Minister, Mr P Chidambaram visited Qatar and met

senior officials in different departments there had been “significant changes” in links in banking, finance, business and investments. “There has been a higher level of flows of Qatar investments to the Indian market and it is very much evident in the recent decisions on Qatar investments in India’s sovereign and pension funds.”

The ambassador expressed happiness at the two-day meeting of the Indo-Qatar Joint Commission on Human Resources, which concluded in New Delhi. “It was attended by many senior officials of the Ministry of Labour and Social Welfare. It also had the participation of members of the Supreme Committee for Organizing FIFA World Cup 2022.” It

is understood that the Qatari officials are interested in using the expertise of Indian officials and institutions for the successful conduct of the 2022 World Cup.

The meeting in New Delhi was held under the aegis of the Ministry of Overseas Indian Affairs, Government of India. He noted the Qatar Foundation acquiring 5% stake in India’s Bharti telecom and Hassad Foods taking 51% share in a prominent foodstuff company in India. The Bharti deal was worth $1.29bn, pointed out Arora.

The ambassador mentioned the meetings that he had with almost all ministers of the new Qatari cabinet since the new leadership assumed the office on June 25 and also the meeting that he had with the Chairman

of the Ooredoo, representatives of the Qatar Chamber and Qatar Business Women Association. “The talk that I gave on QF Radio, highlighting the opportunities in India’s tourism sector seems to have been well received by the country’s residents and I also had an opportunity to interact with a number of local youngsters,” said the ambassador, while thanking the Arab media for the coverage given to the radio talk. “There has been a remarkable increase in the number of business and tourist visas issued to Qatari nationals in recent months,” he said.

Defence ties with QatarIndia is looking forward to enhancing

co-operation in the areas of defence with Qatar in the coming years, said

Mr Arora. The envoy said three Indian naval ships were on friendship visit to Qatar this year and India

is happy at the outcome of the third meeting of the joint committee on defence co-operation held in Doha in September.

He said apart from an anti-marine pollution carrier Samudra Prahari which visited Doha in February, two other ships of the Western Fleet of the Indian Navy - INS Tabar and INS Aditya - were also on visit of Qatar in September.

The envoy said a number of officers from different countries’ armed forces, including those from the GCC states, participate in the training programmes at the India’s defence institutes. Arora

said the Indian Navy and the Emiri Navy have evinced interest in enhancing mutual co-operation and India has extended an invitation to the Emiri Navy to participate in the fourth Admiral’s Cup Sailing Regatta to be held in Alappuzha in Kerala this year. “The regatta event is well known among the navies all over world and there has been remarkably good levels of participation every year,” said the ambassador.

Arora said the India is also exploring the possibility of more co-operation in training between the members of the Diplomatic Institute of Qatar and Foreign Service Institute of India’s Ministry of Foreign Affairs.

(Courtesy: Gulf Times, Doha)

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The first Bahrain-India Conference and Exhibition was inaugurated by Industry and Commerce Minister and Bahrain

Exhibition and Convention Authority Chairman, Dr Hassan Fakhro at the Bahrain International Exhibition and Convention Centre, on October 23, 2013.

Dr Fakhro in his inaugural address praised the high level participation of the Indian delegation in the event. He said Bahrain's non-oil trade with India

Showcasing IndiaThe first Bahrain-India Conference and Exhibition held in Manama drew high-level participation from Indian companies

IMPACT

VISIT OF PRIME MINISTER OF KUWAIT

Mr T N R Rao, Senior Member, CII Gulf Council; Mr Anand Sharma, Minister of Commerce & Industry, Government of India and His Highness the Prime Minister of The State of Kuwait Sheikh Jaber Mubarak Al-Hamad Al-Sabah at the Industry Meeting held at New Delhi on 8 November 2013.

VISIT OF A BUSINESSWOMEN’S DELEGATION FROM ABU DHABI

Members of Abu Dhabi Businesswomen Delegation with Smt. Sheila Dixit, Hon’ble Chief Minister of Delhi.

H.E. Eng. Fatima Obaid Al Jaber, Chairperson of the Abu Dhabi Businesswomen Council at CII Interactive Session.

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IMPACTgrew by more than 135%

between 2006 and 2011, reaching $882 million in 2011. The overall trade volume that includes both oil and non-oil trade in 2011 amounted to $2.5 billion, up over 280% against the $666m in 2006.

Bahrain is also home to 2,143 companies with Indian ownership. Another 19 branches of Indian companies are operating in the fields of aviation and management

Highlights of the Conference & Exhibition

Extensive Media CoverageThe event received extensive media coverage, as illustrated below:

services, engineering, banking and telecommunications besides the 116 commercial agencies.

“The government is doing everything possible to improve the economic environment in Bahrain and in particular to remove any unnecessary delays in the administrative systems. We are proud of what we have achieved thus far; but the future is still to be written, and our economic and labour reforms,

underpinned by democratic processes, strengthened by international and regional agreements and associations, will ensure that this will be a bright and prosperous future. India is an indelible part of our past, and will continue to play a role in our future,“ Dr Fakhro said.

Dr Fakhro invited Indian manufacturers to take advantage of Bahrain's Free Trade Agreement (FTA) with the US.

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The heavy engineering sector can be classified into two broad segments – capital goods (which is further classified as electrical

machinery and non-electrical machinery), and equipment segments. Electrical machinery includes the following: power generation, transmission and distribution equipments such as generators and motors, transformers and switchgears.

Non-electrical machinery includes machines used in various other sectors such as textile machinery, cement machinery, sugar machinery, rubber machinery etc. Equipment segment is comprised of equipment such as material handling equipment (earth moving machinery, excavators, cranes, etc), oil field equipment like onshore and offshore drilling equipment, etc. The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement, petrochemicals, oil & gas, refineries, fertilisers, mining, railways, automobiles, textiles, etc.

A s e g m e n t w i s e r e v i e w i s p r e s en t ed a s f o l l ow s : Capital Goods: The capital goods sector, which is the barometer in investment in the economy, contributes 12% to the manufacturing activity, representing a multi-disciplinary field

with numerous end-use application areas. It has a strong production base capable of manufacturing a diverse range of machinery and equipment to serve a cross-section of user industry segments ranging from defence, oil and gas refinery, nuclear, chemical and petro chemicals, to consumer durables, fertilizers, automobiles, textiles etc.

The contribution of the capital goods sector to growth of Index of Industrial Production (IIP) has been negative for the past two years. Declining trends in investment, fall in the growth of credit off-take and low level of investment in R&D have contributed to reduced growth rate of capital goods sector from the high of 48.5% in 2007-08 to contraction of 4% and 6.3% in 2011-12 and 2012-13, respectively. During April-June 2013, the only capital goods segment that has shown recovery in domestic production is the electrical machinery and apparatus segment showing robust growth of 11.9% during April-June 2013.

Hence, the potential of the capital goods industry in India is still largely untapped due to demand side as well as supply side constraints.

Electrical Machinery: Electrical Machinery has 3 categories of

equipment: (a) Generation-Boilers, Turbines and Generators, (b) Transmission-Transformers, and (c) Distribution-Switch Gears and Control Gears. The overall market which was around $25 billion in 2012 is expected to reach $100 billion by 2022.

India is the 5th largest power producer in the world with 90,000 MW of power produced as of May 2013. Planned capacity addition of around 100,000 MW by 2022 would provide significant opportunities in the sector. Even then it is expected that total power demand would reach around 350,000 MW by 2022.

The investments in R&D by the electrical goods industry are amongst the largest in the corporate sector in India. Large electrical equipment used in steel plants, petrochemical in captive power plants are manufactured in the country. The domestic heavy electrical equipment manufacturers are making use of the developments of the global market with respect to product designs and upgrading of manufacturing and testing facilities. They are making a mark in transformer and generator, electrical wire and cable exports. The sector has also witnessed the entry of a large number of players through the JV route, even though 100% FDI is permitted. More

INFRASTRUCTURE

Building BlocksIndian heavy engineering firms deepening footprints in MEWANA region

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INFRASTRUCTUREthan $3 billion of FDI has flown in

over the last decade in this sector.

A Few Prominent Indian PlayersBHEL can deliver up to 20,000

MW of power generating equipment per annum, which makes up around 10% of total installed capacity of India (255GW). Hence, BHEL alone can contribute to 10% growth of power generation in India. However it has installed power equipment of only around 10,000 MW capacities in the financial year 2012-2013. • The government’s 5-year plans

for increasing power production are ambitious and they have allocated a significant share to NTPC, which in turn gets its work done by BHEL.

• Aging power plants would also provide more scope for services and spares. Government of India has decided to provide more autonomy to profit making PSEs, BHEL being among them.

• Increasing power demands of African and CIS countries provides opportunity for BHEL, especially when BHEL already has presence in many countries of these regions. L&T is a technology, engineering,

construction and manufacturing company. It has a structure built on several business units as pillars. They are: (a) Hydrocarbon (b) Heavy Engineering (c) Construction (d)Power (e) Electrical & Automation (f) Machinery & Industrial Products (g) Information Technology (h) Financial Services (g) Shipbuilding (h) Railway Projects. It had a total revenue of $28.3 billion in 2012-13. It caters to all segments of heavy engineering products and caters to the core industry segment and the defense sector in India.

Non Electrical Machinerya) Industrial Machinery : The industrial machinery sector is comprised of all kinds of machinery used by Indian industries like printing machinery, pulp and paper machinery, cutting machines, packaging machines, laser machines, cleaning machines, boring machines, pharma, textile, cement, rubber etc.

The textile and garment makers of India are eyeing 15-20% growth in exports this year as the Government is planning to implement some new measures to boost exports and all

the segments of the textiles value chain are doing well at present both in the domestic and global markets. The outlook for cement industry continues to remain challenging with both demand and prices continuing to remain under pressure. Domestic production grew by a modest 3.9% during H1 FY'14 primarily due to weak demand from end-user industries. Overall the outlook for Industrial Machinery is mixed with weakness in Sugar and Earth Moving Machinery also. Increasing global competition and market demands require industrial machinery companies to continuously innovate and optimize their products. To capture and leverage fresh value-creating ideas is the need of the hour.

b) Material Handling Equipment: The size of material handling industry in India is Rs 15,000 crore growing by 15-20% a year. It has been observed that changes in material handling process can help companies save a minimum 10% of their materials that go waste or get lost during transit. Cost-efficiency and bottom lines can improve if the organizations provide due importance to material handling.

Material wastage is high in coal and iron ore due to contamination, pilferage or spillage during transit. The sector would enjoy enormous benefit by embracing modern technology and making use of special conveyer systems .As consumption goes up, there would be more demand of minerals, energy and water. So emphasis should also be given on energy-efficient systems that can consume less water while handling of material. The need of the hour is to optimize the entire processes and the right kind of material handling equipment.

India , MENA and Heavy EngineeringIndia will remain a top five trading

corridor for the UAE, Egypt and Saudi Arabia, according to HSBC's latest Trade Forecast report. By 2030, the country will be the UAE's top export destination accounting for 14% of exports, and Saudi Arabia's second largest export destination accounting for 18.5% of exports. India is already Egypt's number one export destination and will maintain that position through to 2030, accounting for 15.4% of exports.

India and UAEMany Indian companies have

contributed to the growth of a number of sectors in the region, like power generation and transmission, highways, telecommunication, water and other infrastructure development. The presence of warehouses of the different Indian companies in UAE has also resulted in an increase in the trade not only with UAE but also with India’s trade with other Gulf countries. UAE’s investment in India were concentrated mainly in five sectors: Power(18%); Services(10%); Computer hardware & software(8%); Construction (8%); and Tourism & Hotels(6%).

India and Egypt

Indian companies have invested in Egypt in manufacturing BOPET & BOPP films, Polyester Resin Bottles/Containers, Power Transmission Towers, Water Treatment, Two/Four Wheelers, Irrigation Equipment, Anti-Pollution, Anri-Collision Equipment etc. GAIL, ONGC and GSPC also have a presence in the country.

India and Saudi Arabia Exports to Saudi Arabia: Main Indian exports include Mineral Fuels, mineral oils and products thereof; cereals; nuclear reactors, boilers; electrical machinery and equipment; Iron and steel; organic chemicals; meat and edible meat offal; articles of Iron or steel; articles of apparel and clothing accessories; etc.

Top items of Imports by India: India’s major imports from Saudi Arabia are Mineral Fuels, mineral oils and its products; organic chemicals; plastic and its articles; inorganic chemicals; fertilizers; aluminium and its articles; iron and steel; copper and its articles; miscellaneous chemical products; etc.

ConclusionAs visible it is Heavy Engineering

which is binding India and MENA together. This sector has a strong support to put its expertise in the service of the MENA economy and the local people. The facility has emerged as a key platform contributing to the progress, prosperity & technology development of MENA. It is very important to focus on the growth of this sector so that projections are realized and do not remain on paper only.

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BUSINESS INFORMATION

For further details please contact Mr Gurpal Singh, Confederation of Indian Industry (CII), 249-F, Sector 18, Udyog Vihar, Phase IV, Gurgaon 122015, (Haryana, India); tel: +91(124) 4014060-67; Fax: +91(124)4014080; email: [email protected]

Copyright 2013 by Confederation of Indian Industry (CII), All rights reserved.

DISCLAIMER: No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections.

Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA), Tel: +91-11-24629994-7,Fax: +91-11-24626149; Email: [email protected]; Web: www.cii.in

MOROCCO• A Moroccan company is looking for tying up with an Indian counterpart to explore, extract and possibly process

minerals such as iron ore, copper, lead, barite, etc. Morocco offers several incentives in the mining sector, including attractive rate of corporate taxation. Interested Indian companies may please send their interest to [email protected]

IRAQ The state company for Iraqi Fairs & Commercial Services has announced the Specialised International Exhibition

for Defence, Security and Aviation which will be held during March 1-4, 2014.This is a major opportunity for reputed and specilised Indian companies to participate in this event and strengthen the trade ties with Iraq. For any further information on this event, please contact [email protected]; Ph: 009647806666661.

The Ministry of Trade / General Contracts Department has announced Tender No (MOT / Sunflower Oil / 8 / 2013) for purchasing the quantity of 10,000 MT +/- 5% Sunflower oil from all sources except Chinese as per specifications laid down by the state company. The actual quantity will be specified by the buyer. Indian companies are invited to participate in the tender. Details can be obtained from the legal department located in Baghdad Al-Mansour near Baghdad International Fair Building against non refundable amount of $429. The last date for receiving the offers is 10am, December 2, 2013 and others are valid to reply by December 6, 2013. For any further information kindly contact www.irqitic.com and www.mot-gov.iq

The Ministry of Trade / General Contracts Department has announced Tender No (MOT / Sugar / 6 / 2013) for purchasing the quantity of 50,000 MT +/- 5% Sugar from all sources except Thai as per specifications laid down by the state company. The actual quantity will be specified by the buyer. Indian companies are invited to participate in the tender. Details can be obtained from the legal department located in Baghdad Al-Mansour near Baghdad International Fair Building against non refundable amount of $429. The last date for receiving the offers is 10am, December 1, 2013 and others are valid to reply by December 6, 2013. For any further information kindly contact www.irqitic.com and www.mot-gov.iq

Iraqi Ministry of Industry and Minerals / Public Relation has announced tender no. 13/T/FUR-1/2013 for operating and supervising and consultancy for Soda and Chlorine Project / Investment Budgets / A/C 04.02.02.01.01.31. Indian companies are invited to participate in these tenders.

Ministry of Electricity (MOE) / Minister Office Public Relation invites exclusively international manufacturing companies to participate in the following tender: Reference No. 1163 for supplying Mobil Jet Oil for Al-Kahlaa Power Station. For further information, contact www.elecgeepmi.com or email: [email protected]

Ministry of Oil / Midlands Refineries Co. ‘ Daura Refinery invites bids for the following: Reference No. 1335/2013 for supplying spare part for Pump (12 items). The last date for receiving the offers is December 16. Reference No. 1331/2013 for supplying valve and fitting (14 items). The last date for receiving the offers is December 16. Reference No. 1262/2013 for supplying valve and fitting (69 items). The last date for receiving the offers is December 16. Reference No. 1219/2013 for supplying valve and fitting (19 items). The last date for receiving the offers is December 16. Reference No. 1612/2013 for supplying metals (49 items). The last date for receiving the offers is December 16.For more details, contact www.oil.gov.iq; Email: [email protected]

EGYPT The Egyptian Government has invited a tender to develop the economic zone located at the north-west of Swes

Gulf and the last date for bidding is December 31, 2013. For more details, check www.mdc.egypt.org Egyptian National Railways Purchase and Store Dept to supply tyres 692 MM inside diameter as rolled for

wagon. The technical envelop will be opened on December 11, 2013 in Cairo. Fax: +202-25761337.

LIBYA The Almazaya Group in Tripoli seeks to connect with an environmental contractor for oil tank cleaning

projects. For more details, contact Mohammed Taher Angar, G.M. Almazaya Group - Tripoli, Libya; Ph: +218-91-634-0123

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3UPDATE UPDATE