Saudi Arabia: The Geo-Strategic Importance and Delhi Declaration

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Saudi Arabia: The Geo-Strategic Importance

  • Saudi Arabia՚s geo-strategic significance, however, lies in its strategic location and the political and economic power that it leverages as the largest repository of global oil reserves and the largest supplier of global oil supplies.
  • Saudi Arabia, therefore, finds itself in a pivotal role in the world of Arab politics and so also in the security calculus of the Middle East
  • Look east policy indicates Saudi Arabia՚s move away from its Islamic- centric Asian relationships.

Delhi Declaration

a comprehensive road map for the bilateral relations

The Delhi Declaration incorporates the intention of India and Saudi Arabia and their commitment to cooperate in the following fields:

  • Terrorism
  • Energy Security- ‘evergreen’ long term contracts, JV՚s, Gas based fertilizer plants
  • Political Cooperation
  • Technology, Trade and Investment: In the fields of investment, a pronounced complementarity exists between Saudi Arabia and India. Saudi Arabia is flush with billions of dollars in cash reserves from oil revenues. India needs more than $ 150 billion in terms of investment to improve the infrastructure of airports, transportation, and communications only. It also needs large investments in the power sector. The Indian Prime Minister has invited Saudi Arabia for investments in these sectors
  • Education and Health: Setting up institutes of higher learning in Saudi Arabia; Setting up health services and advanced medical facilities in Saudi Arabia.

Cultural Exchanges

  • MOU on Combating Crime, Bilateral Investment Protection Agreement and the Double Taxation Avoidance Agreement.
  • This new move would help dispel the mutual misperceptions of each other that so far dominated the scene as a result of limited engagement

“Riyadh Declaration”

  • outlines a “new era of strategic partnership” between the two countries in security, defense, political and economic areas.
  • The two leaders stressed on continuing to work towards strengthening their strategic partnership by meeting the two countries ′ vast requirements relating to infrastructure, energy and development, by augmenting the flow of their investments into each other ′ s countries, and enhancing the bilateral trade in accordance with the potential and size of their economies
  • The two leaders further emphasized the importance of strengthening the strategic energy partnership based on complementarity and interdependence, as outlined in the Delhi Declaration
  • The two leaders reiterated their mutual desire to develop as knowledge-based economies based on advances in the areas of information technology, space science and other frontier technologies.
  • The two leaders discussed the situation in Afghanistan and called for the preservation of Afghanistan՚s sovereignty and independence.
  • Several agreements were signed during the visit including the Extradition Treaty, Agreement on Transfer of Sentenced
  • Persons and agreements for cooperation in Science & Technology and cultural


  • The two sides agreed to enhance cooperation in exchange of information relating to terrorist activities, money laundering, narcotics, arms and human trafficking, and develop joint strategies to combat these threats
  • The Prime Minister said the strategic partnership with Saudi Arabia would also cover issues relating to security, cooperation in dealing with terrorism and arrangements for information and intelligence sharing.


  • trade: $ 25b-huge deficit
  • India fifth biggest investor in Saudi Arabia

Potential Cooperation

strategic energy partnership including long term supply of uninterrupted supply of crude oil by Saudi Arabia to India to meet its growing energy needs the ammonia-urea and phosphatic sector


  • The 2 million-strong Indian community in Saudi Arabia is the largest expatriate
  • community in the Kingdom
  • The Haj pilgrimage is another important component of bilateral relations with more
  • than 1,70, 000 Indians performing Haj every year, second largest contingent performing Haj.

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