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Diaspora: A significant link between India and Gulf

There are around 9 million Indian expatriates who act like bridge between India and the Gulf nations….reports Asian Lite News

Prime Minister Narendra Modi addressed members of the Indian community in Abu Dhabi during his two-day visit to the UAE on February 12-13, 2024, signalling clearly the importance that India gives to the diaspora who accounts for 3.5 million in the Gulf country.
 
Acting like a bridge between host countries and India, the diaspora has been a factor of strength and source whose impact can be seen across length and breadth of economy, trade and investment and foreign money reserves.
 
Indian Expatriates in the UAE
 
The Indian expatriate community is the largest ethnic community in the UAE constituting 30% of the country’s population. The Indian community members — from managers, doctors and technicians to engineers, IT experts and chartered accountants or business tycoons — have left an indelible mark on the Gulf nation’s social and economic life.
 
Their presence is felt in all major sectors like construction, healthcare, retail, financial services, manufacturing, transport, hospitality, and the entire service sector.


 
Of the total members of the Indian community in the UAE, approximately 20% live in Abu Dhabi and the rest in six northern Emirates including Dubai.
 
Indians’ connection with the UAE dates back several centuries; trade and commerce were the major reasons for such linkages. The 20th century brought an influx of Indian workers, especially after the discovery of oil in the 1960s.
 
Expansion of the oil industry and the growth of free trade in Dubai led to a surge in Indians’ arrival in the UAE in the 1970s and the 1980s. In the 1990s, a large number of Indians, particularly professionals, also headed for the UAE.
 
These professionals, around 15% of the total Indian community, are respected for their competence and sense of discipline.  Interestingly, some of them have become accomplished entrepreneurs.
 
Yussuff Ali MA of the famous Lulu Group, Ravi Pillai of RP Group and Micky Jagtiani of Landmark Group are some of key members of the Indian diaspora who are contributing to the growth of the economy in the UAE.


 
Indian Community in Qatar
 
There are over 800,000 Indian nationals residing in Qatar. They comprise the largest expatriate community in Qatar and are engaged in a wide spectrum of professions including medicine; engineering; education, finance; banking; business; and media apart from a large number of blue-collared workers.
 
They are highly regarded for their honesty, hard work, qualifications and contribution to the development and progress of Qatar.
 
The Indian Cultural Centre (ICC) is the apex body of the Indian expatriate community functioning under the patronage of the Embassy of India for the advancement of social and cultural activities of the Indian community in Qatar.
 
Indian Community in Saudi Arabia
 
The Indian community in Saudi Arabia numbers at more than 2.4 million and is a living bridge between the two countries. The Indian diaspora is widely respected in the Kingdom for their contributions in the development of Saudi Arabia.
 
The contributions made by the Indian community to the development of Saudi Arabia are well acknowledged. 
 
In February 2022, an Agreement on Skill Verification Program was signed between NSDC, Indian Ministry of Skill Development and Entrepreneurship and Takamol holding, Saudi Ministry of Human Resources and Social Development.
 
Since then, the Skill Verification Program has also been initiated between India and Saudi Arabia. India and Saudi Arabia have also signed Agreement for Domestic Sector Workers in the year 2014 and Agreement for General Category Workers in 2016.
 
Indian Community in Bahrain
 
The Indian community in Bahrain constitutes 30% of total population and is the largest expatriate community in the country.
 
The Indian community has created a substantial, visible imprint on the social milieu of Bahrain.  The presence of a large Indian community in Bahrain constitutes an important link between our two countries. 
 
The Kingdom of Bahrain has been exceptionally friendly to India and Indians. The presence of around 350,000 Indians on its soil speaks for the goodwill that Indians enjoy in Bahrain.
 
More than 65% of the total Indian expatriates in Bahrain work in the construction sector. There are a sizable number of doctors, engineers, chartered accountants, bankers, managers, and other professionals who play a vital role in Bahrain’s economic development.
 
There is hardly any established Bahraini business organization that does not have a senior or middle level Indian employee playing an important role in its operations.  The top Bahraini business houses, banks and finance companies have Indians in their senior or middle management cadres.
 
It is a known fact that the Indian expatriate workforce is preferred over expatriate communities from other nationalities due to their work ethics, integrity and apolitical approach. 
 
The Bahraini leadership publicly acknowledges their contributions to the development and growth of Bahrain and has been forthcoming in ensuring safety and welfare of the Indian community in the country.
 
Throughout the history of Bahrain, there are inevitable and numerous signs of Indian connection starting from Dilmun civilization in Bahrain to the Indus Valley civilization in India. 
 
Indians are known to have come to Bahrain as early as 3000 BC when ships plied between Harappan settlements, Oman and Bahrain enroute to Mesopotamia in pursuit of trade. Ancient Bahraini traders are believed to have carried out flourishing trade of Bahraini pearls with spices from India.  
 
In recent times, Indian merchants established themselves in Bahrain towards the last quarter of the nineteenth century.  Others moved to Bahrain from Baghdad and Basra. 
 
These merchant families came from the province of Sindh and Kathiawad region of Gujarat.  By around 1925, nearly 2500 Indian families had settled in Bahrain.  Most of them were involved in small-time retailing.
 
The discovery of oil in 1932 led to immigrant manpower gravitating towards the oil industry and its’ off-shoot development activities.  With the subsequent expansions of the Bahraini economy Indians started immigrating to Bahrain to start business or take up jobs as managers, salesmen, assistants, workers. 
 
Many of Bahrain’s most prominent figures have close Indian connections.  When Bahrain was a British protectorate, Indian Rupee was a legal tender in the country (100 Phil is still called by native Bahrainis as One Rupee).


 
Indian Expatriates in Oman
 
The Indian diaspora is the second-largest diaspora in Oman after Bangladesh. Approximately 6.8 lakh Indian-origin community members live in Oman. The majority of them are blue collar workers (both unskilled and semi-skilled).
 
A small percentage comprises professionals like doctors, engineers, chartered accountants, teachers, managers, businessmen etc. At the end of November 2023, there were 527,108 Indian workers in Oman. 
 
Indian Expatriates in Kuwait
 
The Indian community is the largest expatriate community in Kuwait, numbering about 9.78 lakh (9,77,897 as per statistics released by Ministry of Interior of Kuwait on March 27, 2023).
 
Though a sizable number of Indian expatriates are working as blue-collar workers, there are also professionals like engineers, doctors, chartered accountants and IT experts who are respected for their professional ability, ethics and discipline.
 
The maximum numbers of Indians are from the following States in descending order – Kerala, Andhra Pradesh, Telangana, Tamil Nadu, Rajasthan, UP, Maharashtra, Gujarat. Most of the nurses are from Kerala whereas female domestic workers are from Andhra Pradesh and Telangana.
 
A large number of construction workers are from Rajasthan. The Bohra community (approximately 20000-25000) is largely from Maharashtra. There is a small community from Bengal, Bihar and Orissa. Among the north-eastern states, there is again a small community mainly from Assam. There are some members from Punjab and Haryana as well (mainly farm-workers).
 
Conclusion
 
For Indians, Gulf countries have been key destinations of their employment and business. In fact, discipline, dedication and professional skills are major reasons why Gulf employers have preferred Indian community members over others for employment. Today, they have become a source of development and growth of the Gulf countries. However, more than this, what makes New Delhi proud of their diaspora is their working as a significant bridge between Gulf countries and India. (India News Network)

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India’s Multifaceted Ties with Gulf

People-to-people contacts is one of the key elements of bilateral relations between India and the Gulf region, writes Dr Prasanta Kumar Pradhan

India and the Arabian Peninsula have shared a historical and civilizational connection for the last 5000 years. Traders, travelers, and scholars from both sides have visited each other for centuries. This has resulted in a deep exchange of language, culture and ideas between the two. People used to cross the Arabian Sea on boats using the traditional knowledge of seasonal winds. 
 
The spice trade between India and the Arabian Peninsula is well recorded in history. The Malabar Coast of Kerala and the Omani and Yemeni coasts were important ports of entry for the people. Such interactions of the past have continued in the modern times.
 
In the present context, much of the contact is dominated by the interaction between the respective governments. Today, India’s relationship with the Gulf countries is multifaceted with strong economic, political, defence and security cooperation. 


India considers the region as its “extended neighbourhood” with huge stakes in these countries. In the interaction dominated by the governments, people-to-people contacts from both sides have continued and it constitutes an important aspect of the India-Gulf relationship.
 
There is a nine million strong Indian community working and living in the Gulf region. The oil boom in the Gulf region in the 1970s brought a large number of Indian manpower to work in the growing petroleum industry. That number has continued to grow over the decades, and today, Indians constitute the largest expatriate community in the Gulf. The semi-skilled, skilled, and high-skilled manpower from India contribute significantly to the development and progress of the Gulf economies.
 
In recent decades, the number of highly qualified professionals from India in the Gulf has grown significantly. The contribution of the Indian diaspora to the economic development of the Gulf countries has been acknowledged by the Gulf rulers. 
 
The Indian diaspora in the Gulf is known to be hardworking and law-abiding, and they have adapted themselves to the political and social environment in the Gulf. The presence of the Indian diaspora has left an enduring impression in the minds of the local population about India.
 
The Indian diaspora forms a natural link between India and the Gulf. It works as a bridge connecting the government and people on both sides. Commending the contribution of the Indian diaspora in the Gulf, Prime Minister Narendra Modi applauded them by stating that they are ‘brand ambassadors’ of India’s culture and heritage.  
 
A number of Indian traders and businessmen have been successful in establishing their businesses in the Gulf. This has helped not only in achieving commercial benefits but also in accelerating interaction at the societal level as well.


 
Most of the Indians working in the Gulf send money to their families back home. India is the largest recipient of remittances in the world. In 2023, India received around US$ 125 billion as remittances. About half of these remittances come from the Gulf region. 
 
Cultural interactions between India and the Gulf region have continued since the past. Language, art, culture, education and cinema are some of the most prominent means of cultural interaction between the two peoples. 
 
In modern times, cultural exchange programmes are facilitated by governments by signing cultural exchange agreements to enhance knowledge of each other’s culture on both sides. The governments promote cooperation between institutions, museums, artists, theatre organisations, exchange of officials, scholars and researchers from both sides.
 
Today, cinema remains a powerful medium of cultural interaction between both sides, especially among the young generation. While the Indian cinema industry has grown substantially, it is growing slowly in the Gulf with liberal policies adopted by the Gulf rulers. Indian movies, serials and actors are famous in the Gulf region as they have grown in popularity among the Arab youth.


 
While the Covid-19 pandemic was a difficult time for the Indian diaspora, they received support from the government and civil society organizations in the Gulf. The Indian government appealed to the Gulf rulers to look after the well-being of the Indian community during the difficult times of the pandemic.
 
Celebrating the Pravasi Bharatiya Divas has been a platform for the Indian diaspora to come together every year and discuss the issues concerning them. This helps the Indian diaspora from all over the globe in networking and sharing their experiences among themselves. The Government of India has been engaging with the diaspora communities from different parts of the world through this format.
 
People-to-people contact is one of the key elements of bilateral relations between India and the Gulf region. This is an effective ‘soft power’ in the times of real politics and interest-driven policies of the nation-states.
 
In modern times, the increased use of communication technology and ease of movement of people from both sides has further facilitated people-to-people interaction. 
 
This could be used as a tool by the governments to further strengthen their relations. The challenges in this way must be addressed jointly by the respective governments, involvement of Indian diaspora communities and civil society organisations from the Gulf region.  That is a huge scope in further enhancing people-to-people contact between India and the Gulf region in future.
 
(The author is a Research Fellow at the Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi; views expressed are his own.)

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Gulf’s $2T Green Construction to Spur Jobs, Cut Emissions

The report suggests that the region has the potential to become a global leader in the use of innovative and sustainability-focused construction technologies as it invests up to $2 trillion in new ‘built environments’ by 2035….reports Asian Lite News

With the upcoming COP 28 set to be hosted in the United Arab Emirates, and as the region intensifies its focus on its net-zero targets, sustainability-focused construction technologies are poised to play a crucial role. According to the latest research by Strategy Middle East, part of the PwC network, and the planning, design, management and consultancy (Dar), sustainability-focused construction technologies could help the MENA region’s $2 trillion construction surge reduce lifecycle emissions by 50-60%.

The report suggests that the region has the potential to become a global leader in the use of innovative and sustainability-focused construction technologies as it invests up to $2 trillion in new ‘built environments’ by 2035. Citing mega-projects such as the NEOM futuristic city in Saudi Arabia and Qatar’s planned Lusail entertainment city, the report also suggests sustainable technologies could take the region halfway to achieving its net-zero emissions goals.

The ‘built environment’ refers to human-made surroundings that provide the setting for human activity, including buildings, neighborhoods, and cities, alongside their supporting infrastructure systems such as water supply and energy networks. Processes involved in developing new built environments include urban planning, real estate, construction, and operating assets – all of which could utilize innovative and sustainability-focused methods and technologies.

The report also estimates that the scale of the region-wide construction boom could deliver a substantial economic impact, representing just over 10% of GDP for the region annually, as well as creating 4.3 million jobs per year, if the recommendations outlined in the report are implemented.

“The GCC region’s planned scale of investments uniquely positions it to pioneer a range of sustainable technologies and processes. Overall, the built environment is responsible for a high emissions footprint of around 37 percent of energy use, 39 percent of CO2 emissions, and 40 percent of material use globally, said Dr. Yahya Anouti, Partner with Strategy Middle East and the leader of the sustainability platform at PwC Middle East. “Our estimates show that a reduction in these emissions for urban development could take the region more than halfway to realizing its net-zero emissions goals,” he added.

The good news for planners and developers is that some of the technologies and innovations needed to rethink the built environment already exist and can be implemented in the near term, such as solar photovoltaics, greener construction material and artificial intelligence (AI) enabled systems in buildings. However, the report indicates that other innovations are nascent and require additional investment and time to develop, test, and integrate.

“If GCC stakeholders – including policymakers, innovators, and developers – embrace a truly innovative and sustainable approach to urban development, they face a golden opportunity to set a new global standard. From urban planning to architecture, civil engineering, mechanical systems, and construction materials, sustainable development can unlock deliver widespread better quality of life, incremental economic growth, and develop local skills and jobs,” said Balsam Nehme, Head of Sustainability, Dar Al-Handasah.

The Strategy and Dar report points out that the sheer scope of the changes necessary to fully capture the $2 trillion opportunity has significant implications for stakeholders in the built environment. Regulators would need to play a role in stimulating demand for the technologies, including through the inclusion in green building codes. Developers would need to embrace sustainable construction techniques and may want to set specific goals, such as emission reduction targets. Sovereign wealth funds and other financiers are essential to jump-start and drive the transition, potentially by setting net-zero aspirations for the developments they are financing. Collaboration is required among all stakeholders, and their success depends on sharing lessons learned from pilots and trials to drive the adoption of sustainable practices and innovations.

“Our research examines over 50 innovations that can shift the paradigm towards sustainable built environments, substantially reducing emissions from both embodied and operational carbon. These innovations encompass a variety of passive measures, including the design of buildings, as well as active measures, such as more efficient electrical and mechanical systems,” said Sarah Al Feghali, the moonshots and innovation lead of the Ideation Center at Strategy. “Additionally, several measures can be implemented to support policymakers in their planning decisions, while aiding developers in addressing the opportunities associated with the region’s-built environment aspirations,” she added.

The report from Strategy and Dar provides 17 high-potential and actionable applications across multiple areas to reduce emissions. These include areas such as mobility, managed landscapes, development density, mechanical systems, and construction processes.

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Indian Tech Innovator Expands to Gulf Ahead of GITEX

Mr. Nandakumar V (Director – Marketing & Communications at LuLu Group International) unveiled the Webandcrafts’ new logo….reports Asian Lite News

Webandcrafts, a leading tech innovation company headquartered in Thrissur, India, is proud to announce its expansion into the Gulf region, solidifying its status as a global IT brand.

The company made this significant move during a special event held at Atlantis, The Palm, Dubai, where they unveiled their new corporate identity. The event was attendedby prominent figures in the industry, including Mr. Nandakumar V (Director – Marketing & Communications at LuLu Group International) who unveiled the company’s new logo, and Mr. Anish Mohamed (Group CIO, Lulu Group International), who introduced the new website.

Webandcrafts, now rebranded as WAC, boasts a rich heritage rooted in Kerala, India, and over 11 years of experience in the IT sector. With a team comprising more than 350 skilled professionals, WAC is committed to expanding its workforce and expertise into the Middle East region. The company has been successfully serving more than 200 renowned clients in the UAE, including Lulu, Al-Futtaim, Joy Alukkas, and the Landmark Group, among others. With a proven track record across more than 15 diverse industries, WAC excels in fields such as artificial intelligence, machine learning, User Experience, e-commerce, mobility, web applications, and digital marketing.

The event, attended by approximately 150 participants, featured distinguished speakers and industry leaders, including Girish Babu K G (Founder & CEO of Infopark; Former CEO of Technopark and Cyberpark), Antony Jos (Managing Director – Joyalukkas Exchange), Muhammed Madani (Founder & Managing Director – ABC Group), Zainudeen PB (Co-Founder & Group Executive Director – Hotpack Group and Chairman of IPA), Lalu Alex (Cine Artist), and Mr. Aboobacker Mohammed Ali, Founder & CEO of Pride Group.

The event provided an exclusive glimpse into WAC’s past achievements and highlighted its ambitious plans for the future.

Ms. Abin Jose Tom, Founder and Managing Director, Webandcrafts shared his excitement, stating, “The UAE continues to be a preferred destination for us, given the substantial client base we have established in the Gulf region. The trust we have built among businesses here has inspired us to envision a bright future in the UAE. The extraordinary support we receive from Dubai serves as a strong foundation for our global expansion plans.”

WAC has been an annual exhibitor at GITEX since its inception and warmly invites all attendees to visit their booth during GITEX 2023 to experience their innovative solutions and expertise firsthand.

Webandcrafts, now rebranded as WAC, is a leading tech innovation company with a legacy of over 11 years in the IT industry. Headquartered in Thrissur, India, WAC has a proven track record in artificial intelligence, machine learning, User Experience, e-commerce, mobility, web applications, and digital marketing. With a strong team of more than 350 professionals, the company is committed to expanding its operations and expertise in the MENA region.

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Pakistan Aims To Tap Gulf

Addressing the audience as the chief guest, Faisal Niaz Tirmzi, UAE’s Ambassador to Pakistan, highlighted that the UAE, the world’s second-largest host country, is now witnessing a growing influx of Pakistani professionals to various states, with over 1.6 million Pakistani nationals residing there…reports Asian Lite News

The flow of remittances from the Pakistani community in Dubai could increase manifolds through banking channels with the support of financial institutions, the dedicated government scheme, and community developers.

Innovative service, incentives, and community building could encourage Pakistani workers in the UAE and Gulf region to utilize banking channels to support their country’s economy in challenging times.

These were the views of speakers at the daylong conference “Remitlink23: Resilient Remittances” organized by Dellsons Associate in collaboration with the Embassy of Pakistan in UAE and Foreign Exchange and Remittance Group (FERG). The event was sponsored by Dubai Islamic Bank, JazzCash, and Instant Cash.

Speaking as the chief guest, Faisal Niaz Tirmzi, Ambassador to Pakistan for UAE, said the UAE is the second largest host country in the world with over 1.6 million Pakistani nationals, and the number of Pakistani professionals coming to different states of this country is on the rise in recent months.

Pakistani professionals and workers in different states of the United Arab Emirates are resourceful, hardworking, and patriotic, having a deep sense of responsibility to serve their homeland through their valuable contribution, including sending remittances through banking channels, he said and added. The government recently took various initiatives to enhance flow of remittances which are expected to increase the use of banking channels among overseas Pakistanis.

Salman Hasan Khan, Head of Priority Banking & PRI Dubai Islamic Bank Pakistan, said the financial institutions played a crucial role in connecting overseas Pakistanis with their relatives in their homeland, but these institutions are working continuously to facilitate the Pakistani diaspora in different states of the UAE.

He pointed out that Pakistanis in different countries prefer Islamic banking mode over the interest-based system, hence, there is a need to promote Sharia-based financial options with innovative technological solutions.

Ibrahim Amin, Chairman Dellsons Associates, said this conference aims to bridge the gap between stakeholders, including Government functionaries, regulators, and service providers such as banks, exchange companies, and fintechs.

He said the remittances from the GCC region have a vital role in shoring up the macroeconomic indicators of the country, including the current account and the stability of the Rupee against foreign currency, hence, overseas Pakistanis and their contributions should be appreciated through facilitation and incentives.

The conference also hosted a panel discussion that explained to the audience the importance of utilizing banking channels for sending remittances to their country and its positive outcomes on their relatives regarding stability in local currency and containing inflation.

Experts from the banking and financial sectors of Pakistan and the UAE also spoke at the conference including Tufail Ahmed Khan, CEO Dellsons Associates, UAE, Osama Al Rahma, Advisor to the board, FERG UAE, Usman bin Raees COO, Instant Cash; Suleman Hasan, Chief Compliance and Risk Officer, 1LINK, Zameer Punjabi, Vice Presidents- Payments and Remittances Mashreq Bank, Omer Farooq, Head of Operations, Cash Express, Shabnam Faqeer, Independent Director, DIB Pakistan and Nominee Director, IFC, World Bank Group and others.

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 India opens most sectors for 100% Gulf investment

Indian Prime Minister Narendra Modi holds talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan and Abu Dhabi-based Lulu Group’s chairman M.A. Yusuffali during Indian leader’s visit to Abu Dhabi in July.

The government of India has announced most sectors are now open for 100% Gulf investment via “automatic route” – means entities outside India can invest in the country without prior approval….reports Asian Lite News

Most investible sectors of the Indian economy are now open for 100 percent equity participation under the automatic route for businessmen and enterprises in the Gulf and the rest of the Arab world.

This was stated by Dr. Rajkumar Ranjan Singh, Minister of State for External Affairs, in the Lok Sabha, the lower House of India’s Parliament. “Automatic route” is when entities outside India can invest in the country without prior approval of the government.

“India continues to open up its sectors to global investors from Arab countries and addresses their concerns on regulatory barriers,” Dr. Singh said in answer to Member of Parliament (MP) Rajendra Dhedya Gavit.

The MP asked the Minister “whether the government has intensified efforts to invite business leaders from Arab countries for investing in India, and if so, the core areas wherein the government expects investments from these countries.”

Dr. Singh replied that “there are several government-to-government and business-to-government mechanisms for the Middle East region such as a High-Level Task Force on Investment with UAE, a Strategic Partnership Council with Saudi Arabia and India-Israel CEO Forum. India has extensive ties with Middle East countries in a wide range of sectors including in the fields of trade and investments.”

Additionally, “regular high-level business engagements with the region are held by various Chambers of Commerce and Export Promotion Councils. An India-Arab Partnership Conference on ‘New Horizons in Investment, Trade and Services’ was organised on 11th and 12th July 2023 in New Delhi.”

The MP asked the Minister about the response of Gulf and Arab business leaders to opportunities and the ease of doing business in India.

Dr. Singh said “several Sovereign Wealth Funds from the Middle East have invested in sectors such as food, energy, financial services, health, education, information technology, renewable energy and infrastructure in India.”

Indian residents in Gulf

The resident population of Indians in the Arab world has touched nine million, the Minister of State for External Affairs, V Muraleedharan, earlier said.

Simultaneously, India’s trade with Arab countries has crossed $240 billion.

Muraleedharan said India-Arab relations “have withstood the test of time. Even during the recent pandemic and global geopolitical conflicts, trade between India and the Arab world continued to grow. The region caters to about 60 percent of India’s crude oil imports and more than 50 percent of fertilisers and related products, making our partnership robust and indispensable.”

He said that over generations, India’s large expatriate community in the Arab world has contributed to the prosperity of countries of their residence, their adopted homes.

“A new thrust to our economic engagement is now being provided through entrepreneurship, science and technological collaboration, environmental protection and a greater focus on food and energy security,” the Minister added.

Indian spices in Gulf region

The UAE ranked fourth in the world among the top 12 markets for Indian spices in the fiscal year 2022-23, according to the Spices Board of India.

Spice traders, regulatory authorities, import associations and trade officials from the Gulf will be invited for the 14th World Spice Congress to be held in Mumbai from 15th to 17th September, D Sathiyan, Secretary of the Spices Board, told New Delhi-based foreign correspondents as part of the preparations for the Congress.

Saudi Arabia also figures in the top 12 markets for Indian spices, according to official figures.

World Spice Congress 2023 is being organised on the sidelines of the Group of Twenty (G20) Summit to be held in New Delhi in September, Sathiyan said. “It will provide a platform for the stakeholders to discuss the latest trends in the spice business after the COVID-19 pandemic, emerging challenges and the way forward.”

India produces 75 spices out of the 109 varieties listed by the International Organisation for Standardisation (ISO). In the calendar months of April-May this year, export of Indian spices rose by 40 percent in volume compared to the corresponding months last year, the Spices Board said.

Indian spices are extensively used in Arab cuisine and in South Asian food widely available in the Gulf. They are also used in beverages like tea and coffee in the Gulf.

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Gulf lifeline for ailing Turkey

Erdogan’s Gulf tour secures foreign investment pledges, crucial for Turkey’s depleted reserves ahead of large debt repayments in November…reports Asian Lite News

Turkish President Recep Tayyip Erdogan, after clinching another five-year term in the recent elections, last week embarked on an effort to save Turkey’s faltering economy by making a tour of Saudi Arabia, Qatar and the UAE, seeking investments and financial support from the oil-rich Gulf states.

The importance of a Gulf lifeline for Turkey’s ailing economy is shown by the fact that recently Qatar and the United Arab Emirates provided Turkey with a USD 20 billion currency swap, while Saudi Arabia last March deposited USD 5 billion into the Central Bank of Turkey. Furthermore, last month UAE and Turkey signed a trade deal amounting to about USD 40 billion over the next five years.

As the Turkish economy is facing runaway inflation close to 40 per cent, the Turkish Lira has lost more than 29 per cent of its value this year and foreign exchange reserves are depleted, Erdogan was reluctantly forced to accept economic reality and abandon, at least temporarily, his controversial economic policies.

He brought back to the post of Finance Minister former investment banker Mehmet Simsek, who had served in the same post from 2009 to 2015, and appointed Hafize Gaye Erkan, former CEO of First Republic Bank, as Governor of the Central Bank, trying to convince international investors that he will no longer insist on applying his unorthodox economic policies.

Erdogan’s tour of the three Gulf States had been prepared by Mehmet Simsek, who last month had meetings in Saudi Arabia, the UAE and Qatar and held preliminary discussions for the promotion of economic partnerships between these states and Turkey.

Speaking to reporters before leaving Istanbul, Erdogan said: “We hope to improve our relations and cooperation in many fields. We will focus on joint investment and commercial initiatives we can carry out together with these countries.”

The Turkish President, accompanied by about 200 businessmen and several Ministers, started his three-day tour on Monday, visiting first Saudi Arabia and having meetings with King Salman and Crown Prince Mohammed bin Salman.

In Jeddah some 400 business leaders and officials took part in the “Saudi-Turkish Business Forum” and discussed investment opportunities, particularly in the sectors of manufacturing, construction, tourism, mining, food agriculture and defence.

The two sides signed nine agreements covering energy, construction, digital technology, media, education, health and real estate. The value of these agreements has not been disclosed.

Saudi Defense Minister Prince Khalid bin Salman said that Saudi Arabia has agreed to purchase Turkish Baykar drones, but did not disclose the amount involved in the deal.

It should be noted that last month, Saudi giant company Aramco, a leading producer of energy and chemicals, held a meeting with some 80 Turkish contractors and discussed with them the prospects of many projects to be executed in Saudi Arabia for an estimated amount of USD 50 billion.

Currently, there are 1,140 Saudi companies operating in Turkey, and 395 Turkish companies investing in the Kingdom.

The next stop of President Erdogan was in Qatar on Tuesday, where he was greeted by Emir Shiekh Tamin Bin Hamad Al Thani and had talks at the Lusail Palace.

During the meeting, Erdogan gave the Emir as a gift Turkey’s first manufactured electric car called Togg.

The two leaders attended the signing of a joint statement between Qatar and Turkey on the occasion of the 50th anniversary of the establishment of diplomatic relations between the two countries.

In the last stop of Erdogan’s tour on Wednesday, UAE President Sheikh Mohammed bin Zayed Al Nahyan met with Erdogan at the presidential palace in Abu Dhabi.

According to the official WAM news agency, the two leaders attended the signing of agreements and memorandums of understanding “estimated to be worth USD 50.7 billion.

The Abu Dhabi Developmental Holding sovereign wealth fund (ADQ) alone signed a memorandum of understanding to finance up to USD 8.5 billion of Turkey earthquake relief bonds and to provide $3 billion in credit facilities to support Turkish exports.

President Erdogan’s tour of the three rich Gulf countries can be considered a successful one, as he secured pledges of sizeable direct foreign investment and desperately need foreign exchange to boost the Central Banks’ depleted foreign exchange reserves, before November when Turkey is facing a number of large debt repayments. (ANI)

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Number of migrants entering Yemen via Gulf exceeded 77,000

The IOM said that the only safe route for stranded migrants to return home is through the Voluntary Humanitarian Return (VHR) program…reports Asian Lite News

The International Organization for Migration (IOM) said the number of migrants entering Yemen through the Gulf of Aden has exceeded 77,000 so far this year, up from the yearly figure of 73,000 in 2022.

The migrants, mostly from Ethiopia and other countries in the Horn of Africa, endured horrific abuses, violence, and human trafficking along the perilous migration route into Yemen, commonly known as the “Eastern Route”, reports Xinhua news agency

Many of the migrants fell victim to traffickers who take control of their journey once they reach Yemen. Migrants faced widespread violence, exploitation, and other forms of abuses in the country, the IOM said.

Insecurity, ongoing arrest campaigns, and forced transfers have left about 43,000 migrants stranded across the country without any viable means of assistance, it added.

“Despite the heightened numbers of migrants entering Yemen and the severity of abuses they endure, people on the move continue to be largely invisible,” said Matt Huber, the acting chief of mission for IOM Yemen.

The IOM said that the only safe route for stranded migrants to return home is through the Voluntary Humanitarian Return (VHR) program.

This year, the IOM has already facilitated the return of 5,631 migrants, and 5,572 of them are Ethiopians.

However, the growing demand has outpaced the available resources.

The IOM received requests for assistance from thousands of migrants seeking to return home in June alone.

The Organization has to temporarily suspend the registration of new requests due to a lack of funding.

Huber urgently appealed for increased funds to help migrants, warning that the VHR program and other forms of lifesaving assistance may soon have to stop if additional funds cannot be guaranteed.

Despite years of civil war, Yemen continues to serve as a transit country for tens of thousands of migrants traveling from the Horn of Africa to Saudi Arabia.

Yemen has been embroiled in a devastating civil war since 2014, with the Houthis fighting against the internationally-recognised government.

The Saudi Arabia-led coalition intervened in the conflict in support of the Yemeni government in 2015.

ALSO READ-UAE President pledges support for Yemen’s peace

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Pakistan now turning to ‘Gulf friends’ to unlock IMF loan

All eyes are now on the UAE, Qatar, and the Kingdom of Saudi Arabia (KSA) to save Pakistan’s struggling economy….reports Asian Lite News

Pakistan is now turning to the Gulf states that had promised to cover the country’s fiscal deficit as the International Monetary Fund (IMF) requires confirmation from them before the lender grants approval for its USD 6.5 billion bailout program, reported Geo News.

According to a report published in The News as cited by Geo News, the IMF’s condition that Pakistan bridges the gap of USD 6 billion is merely an effort to maintain its reputation. Pakistan might slide into default if the plan doesn’t materialise.

All eyes are now on the UAE, Qatar, and the Kingdom of Saudi Arabia (KSA) to save Pakistan’s struggling economy.

UAE President Mohamed Bin Zayed Al Nahyan with Pakistan Prime Minister Shehbaz Sharif

Pakistan has no choice but to wait and pray for confirmation from its Gulf allies, according to an official who spoke to the publication on the condition of anonymity.

According to the Geo News report, the global lender was compelled to make this demand during negotiations partly because Executive Board members from these nations had already committed to giving Islamabad financial support in various forms prior to the acceptance of the seventh and eighth reviews. These included further investments and deposits.

Nonetheless, despite the fact that the current fiscal year has been going on for a while, they have yet to fulfil their promises.

According to sources cited by The News, as mentioned in Geo News, on Thursday, “in such a situation, the IMF has thrown the ball in Pakistan’s court to secure 100 per cent commitment from bilateral partners before advancing towards the signature of Staff Level Agreement (SLA)”.

The IMF has warned Islamabad that failing to secure Pakistan’s commitment from its bilateral partners after the staff-level agreement is finalised could push the nation into a default situation and jeopardise its credibility.

According to the report, the Fund is trying to determine why Pakistan’s bilateral partners are unwilling to keep their previous promises. The sources cited in the report say that Islamabad can only benefit from the support of Saudi Arabia, the UAE, and Qatar in this situation if it wants to reach a staff-level accord.

By keeping its promises to refinance its commercial debts and roll over its SAFE deposits, only China had stepped forward to save Islamabad.

Pakistan has asked for the USD 2 billion in SAFE deposits that would mature next week to be carried over.

Ishaq Dar, the finance minister, revealed on Thursday that all paperwork needed to issue a USD 500 million commercial loan from the Industrial and Commercial Bank of China (ICBC) had been completed.

Ishaq Dar tweeted, “Out of Chinese ICBC’s approved rollover facility of USD 1.3 billion (which was earlier repaid by Pakistan in recent months), documentation for second disbursement of USD 500 million has been completed by the Finance Ministry for release of funds to the State Bank of Pakistan.”

Commercial loans of USD 700 million and USD 500 million, respectively, had previously been refinanced by Chinese commercial banks such as China Development Bank (CDB) and ICBC. Now, a further USD 500 million instalment will be refinanced either on Friday (today) or the next week. There will be a total of USD 1.7 billion in refinanced commercial loans after receiving USD 500 million from the ICBC soon.

A few months ago, Pakistan repaid a total of USD 2 billion in commercial loans, and China promised that its commercial banks would refinance the debts.

The sources, mentioned in the report, stated that it is now anticipated that the last payment on the USD 300 million commercial loan from the ICBC will be refinanced in the upcoming weeks, Geo News reported. (ANI)

ALSO READ: Pakistan irked over IMF demands to abandon long-range nuclear missiles

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UAE, Gulf banks raise interest rates

 UAE Central Bank hikes base rate after US move

This decision was taken following the US Federal Reserve Board’s decision to increase the Interest on Reserve Balances (IORB) by 25 basis points…reports Asian Lite News

The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points – from 4.4% to 4.65%, effective from 2 February 2023.

This decision was taken following the US Federal Reserve Board’s decision to increase the Interest on Reserve Balances (IORB) by 25 basis points.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates.

 The central banks of Saudi Arabia and Bahrain increased their interest rates after the US Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday.

The Saudi Central Bank, known as Sama, and the Central Bank of Bahrain upped their interest rates by 25 basis points in statements.

ALSO READ: Dubai records 5.5% growth in energy demand