Economic ties between Saudi Arabia and India tighten with mining deal
The Saudi state-owned mining company has signed export agreements with four Indian chemical companies.
MA’ADEN has signed an export agreement for phosphate products to Indian Potash Limited and Krishak Bharati Cooperative, as well as an export agreement for ammonia to Gujarat State Fertilizers & Chemicals Limited and Coromandel International Limited. The Saudi company has also pledged to work with Krishak Barati and Coromandel on product development, logistics and more. MA’ADEN said Thursday in a press release.
What is that? Phosphate comes from the related chemical phosphorus and is often used in fertilizers to help plants grow. Ammonia is a chemical that is also used as a fertilizer. Some entities, such as the Abu Dhabi National Oil Company, are also exploring ammonia as an energy source.
Why is this important: Saudi Arabia is working to boost its mining sector, in line with the Vision 2030 economic diversification initiative, which aims to reduce dependence on oil.
The kingdom has had some success in this effort. In 2021, Saudi Arabia was one of the top 20 countries in the world in mining production, according to the United States Geological Survey. Saudi mining revenue was $194m in 2021, up 27% from a year earlier, official says Saudi Press Agency.
India presents a good destination for Saudi exports of phosphate and ammonia. The South Asian country was the world’s largest importer of both phosphorus and ammonia in 2020, according to the US Observatory of Economic Complexity.
Saudi Arabia has sought to strengthen its ties with India in recent years and has become the country’s second largest oil supplier. Crown Prince Mohammed bin Salman visited India in 2019.
Know more: India has good economic relations with a few countries in the Middle East. In April, the United Arab Emirates signed a major trade agreement with India. Iranian Foreign Minister Hossein Amir-Abdollahian also visited India in June to improve relations.
And after: The Saudi Ministry of Industry and Mineral Resources is while searching $32 billion in investments for its mining and mining sector, according to the Saudi Press Agency.