New Delhi: Saudi Arabia is considering the establishment of an office for its sovereign wealth fund (SWF) in India, signaling a deepening economic partnership between the two nations. This move is intended to facilitate investments in India, with a particular focus on the vibrant start-up ecosystem in the country.
Saudi Arabia’s Investment Minister, Khalid A. Al Falih made this announcement during a recent visit to India. He revealed that a delegation would soon be dispatched to India to explore this promising opportunity. The delegation will assess various investment hubs in India, including Gift City, Mumbai, and New Delhi.
During the India-Saudi Arabia Investment Forum, Al Falih expressed his commitment to enhancing economic ties between the two countries. “I will match your offer and commit today that we will open an office in India for investment facilitation. We are talking about bi-directional (facilitation),” he stated.
One of the significant aspects of this partnership is Saudi Arabia’s interest in Indian start-ups. Al Falih disclosed his intention to invest in Indian start-ups, especially those catering to the Saudi market, through venture capital funds. He expressed optimism about the potential for a joint agreement between Saudi Arabia’s national venture capital fund and its Indian counterpart to channel funding and support to start-ups seeking to leverage both markets.
Saudi investments in India have been steadily growing, amounting to $3.22 billion from April 2000 to June 2023. These investments have been primarily made by the government-owned Public Investment Fund (PIF) in Indian companies that have progressed beyond the start-up phase.
In response to Saudi Arabia’s interest, India’s Commerce and Industry Minister, Piyush Goyal, extended an invitation to set up an office in Riyadh. This office would be facilitated by FICCI (Federation of Indian Chambers of Commerce & Industry) and Invest India in collaboration with officials from the commerce and industry ministry.
“We have invited PIF, other SWFs, and investors to come and set up an office in GIFT City. Khalid Bhai and I both are committed to it. We have agreed that within the next 6 months, we will make both these in action actually on the ground,” noted Minister Goyal.
GIFT City, located in Gujarat, is a specialized multi-purpose economic zone designed to promote financial services. The collaborative efforts of both countries are poised to enhance economic cooperation and foster innovation, benefiting their respective economies and start-up ecosystems.
