Saudi Arabia and India announced in a joint statement today, Monday, that the Kingdom is committed to being a reliable partner and a source of crude oil supplies for the South Asian nation. The statement emphasized the importance of ensuring security of energy supplies in global markets and supporting the stability of oil markets. Indian Foreign Ministry official Osaf Said noted that the country will connect to a network of railways and ports linking the Middle East and South Asia, announced on the sidelines of the G20 summit earlier this week.
Said mentioned, "India and Saudi Arabia signed eight agreements today, one of which aims to expand their partnership in conventional energy to encompass renewable energy, petroleum, and strategic reserves." Additionally, he stated that the two countries agreed to form a joint task force for Saudi investments amounting to $100 billion, with half allocated for a delayed refinery project on the western coast of India. The parties discussed trade exchanges in local currencies as well.
Said pointed out that this would include the establishment of ports, improved railways, and roads, as well as networks for energy, gas, and fiber optics. The countries identified areas for cooperation, including defense manufacturing, space, semiconductors, and renewable energy. They agreed to create a joint Saudi-Indian working group to expedite efforts regarding a proposed refinery on the Indian western coast.
Earlier today, Saudi Investment Minister Khalid Al-Falih stated that the corridor would be equivalent to the Belt and Road Initiative, adding that it will provide "greater connectivity for energy and environmentally friendly materials, as well as manufactured and ready goods that will rebalance global trade." The multinational railway and ports agreement, which includes the United States, Saudi Arabia, India, the European Union, and the UAE, will link the Middle East to South Asia and is seen as a competitor to China's ambitious Belt and Road Initiative.
