Pakistan, India eye investments from Saudi crown prince visit

RIYADH/NEW DELHI/ISLAMABAD: Saudi King Salman said yesterday the kingdom was committed to an independent Palestinian state with east Jerusalem as its capital ahead of a US-led conference on Middle East peace and security. The monarch was speaking during a meeting with visiting Palestinian president Mahmoud Abbas in Riyadh. King Salman said his country "permanently stands by Palestine and its people's right to an independent state with east Jerusalem as its capital", reported the official Saudi Press Agency.

The pledge comes as the United States is expected to offer hints of its proposals for peace between Israel and the Palestinians at a conference in Poland. Announcing the two-day conference last month, US Secretary of State Mike Pompeo said that foreign ministers from around the world would attend to take up the "destabilizing influence" of Iran in the Middle East.

But with most major European powers sending low-level representation, the United States and Poland have toned down the agenda, saying the gathering is not focused on Iran but rather looking more broadly at the Middle East. US President Donald Trump's son-in-law and adviser Jared Kushner, who has been putting the final touches on a "deal of the century" for the Middle East, will make a rare speaking appearance on Thursday.

Kushner, whose family is close to Israeli Prime Minister Benjamin Netanyahu, is not expected to unveil the proposal until after the April 9 election in Israel. Kushner will reportedly visit the Middle East at end of this month, during which he will make a stop in Saudi Arabia.

The Trump administration faces an difficult task in selling any deal to the Palestinian Authority, which remains livid over his landmark 2017 decision to recognize Jerusalem - claimed by both peoples - as Israel's capital. The Palestinian government - which has labeled the Warsaw conference an "American conspiracy" - has refused talks with the United States until it starts what it calls a more balanced policy.

Meanwhile, Saudi Arabia's Crown Prince Mohammed bin Salman is expected to announce investments in energy and infrastructure during a visit to India and Pakistan in coming days as part of his efforts to wean the Saudi economy off oil exports. He is also expected to visit China, Malaysia and Indonesia during the tour.

Prince Mohammed is expected to sign agreements, mostly linked to a refinery and the power sector, during the trip to Pakistan this weekend, Pakistani officials said. The memorandums of understanding will include renewable energy projects and investments in petrochemicals and mineral resources, Saudi state news agency SPA said. The prince is expected in New Delhi next week, along with leading Saudi businessmen, at the invitation of Prime Minister Narendra Modi, India's foreign ministry said yesterday.

Pakistani Prime Minister Imran Khan was among a handful of leaders who attended an investment conference in Saudi Arabia in October. India's Modi met the prince in November, when they were both in Argentina for a Group of 20 summit. Saudi Arabia is India's top supplier of crude oil but the two countries have expanded ties beyond energy, and their governments have agreed to build a strategic partnership, the foreign ministry said.

In a statement, it cited cooperation in areas including energy security, trade and investment, infrastructure, defense and security. India is expecting Prince Mohammed to announce an initial investment in its National Investment and Infrastructure Fund (NIIF), a quasi-sovereign wealth fund, to help accelerate the building of ports and highways, an Indian official said. Saudi state media said Saudi officials will discuss an investment in NIIF. Saudi Arabia has also flagged a desire to invest in India's farm sector, with products to be exported to Saudi, another official at the trade ministry said.

However, progress on a $44 billion refinery that Indian state-run oil companies agreed to build with Saudi Aramco on India's west coast has been held up by strong opposition from mango farmers who will lose their land. Since taking office in 2014, Modi has sought to use India's fast-growing economy to attract more investment from Saudi Arabia and other Islamic nations.

As a fellow Muslim country, Pakistan has long maintained strong ties with Saudi Arabia. In late October, Riyadh offered Pakistan a $6 billion loan to help keep its ailing economy afloat. Saudi Arabia has also announced plans for a $10 billion refinery and petrochemical complex at the coastal city of Gwadar, where China is building a port as part of its vast Belt and Road initiative.

"They're looking at the energy sector, at some of our privatization plans that they might bid for through our privatization process," Pakistani investment minister Haroon Sharif told Reuters. Sharif, who chairs Pakistan's Board of Investment, said there was also Saudi interest in Pakistan's mining sector. "Saudi Arabia has huge resources. Their investment fund is over $1 trillion, so we want just a fraction of that," said a second Pakistani minister, who did not wish to be named. Saudi state news said Saudi officials will discuss investments with China, South Korea and Indonesia, in sectors including healthcare and telecommunications, without giving further details. - Agencies