India, Saudi sign strategic partnership pact, focus on security cooperation

After Modi’s meeting with the Crown Prince — they have met five times earlier — the two countries signed several agreements in defence industries, security, air services, renewable energy, medicine products regulation and prevention of narcotics trafficking.

Earlier, addressing the Future Investment Initiative, popularly referred to as “Davos in the Desert”, Modi said that a body like the UN should not merely be an institution but an instrument for positive change. “Some powerful people used the UN as a tool and not as an institution. While some do not abide by the law, some are trapped under the burden of law. The world has to abide by law,” Modi said, without naming any country.

In their meeting, Modi thanked King Salman for ensuring regular export of crude oil to India despite the attacks on the facilities of Saudi oil giant Aramco. Salman congratulated Modi on his party’s election victory in May, MEA’s secretary (economic relations) T S Tirumurti said.

Saudi Arabia supplies 18 per cent of India’s crude oil requirements and 30 per cent of its liquefied petroleum gas needs. A memorandum of understanding (MoU) between Indian Strategic Petroleum Reserves Ltd and Saudi Aramco is expected to be finalised during the visit, Indian envoy to Saudi Arabia Ausaf Sayeed said.

Opinion: MBS’s reform-driven Saudi offers India room to strengthen bilateral ties

Officials said a trilateral partnership has also been formed between Saudi Aramco, the Abu Dhabi National Oil Co and a consortium of Indian oil majors to set up the world’s largest greenfield refinery in Raigarh. The proposed 1.2-million-barrel-per-day (bpd) refinery is likely to be commissioned by 2025, and is expected to help India raise its refining capacity by 77 per cent to 8.8 million bpd by 2030.

Apart from defence, the two sides are keen to enhance maritime security cooperation and are considering joint naval exercises in 2020. On the financial aside, officials said, an agreement to launch the RuPay payment gateway in the kingdom will help the Indian diaspora, tourists and Hajj and Umrah pilgrims.

Officials said the integration of India’s e-Migrate portal with the Saudi e-Thawtheeq system has been completed, and is expected to facilitate the smooth movement of the workforce.

Before the visit, Modi described India and Saudi Arabia as “Asian powers” in an interview to the Arab News newspaper. “I believe that Asian powers like India and Saudi Arabia share similar security concerns in their neighbourhood. In that respect, I am happy that our cooperation, particularly in the field of counterterrorism, security and strategic issues, is progressing very well. My national security adviser just visited Riyadh for a very productive visit,” Modi said, referring to NSA Ajit Doval’s visit in early October.

Modi also met two senior Saudi ministers: Minister of Environment, Water and Agriculture, Abdulrahman bin Abdulmohsen Al-Fadley and Minister of Labour and Social Development Ahmad bin Sulaiman Alrajhi.