Thursday, January 26 2006 11:18 Hrs (IST) - World Time -

New Delhi: Opening a new chapter in their ties, India and Saudi yesterday (Jan 25,2006) cooperation to combat terrorism and forge closer energy and economic ties as they signed four accords, including one on fight against crime.

Terrorism and energy cooperation dominated the talks Prime Minister Manmohan Singh had with Saudi King Abdullah bin Abdul Aziz, who is the first Monarch of the oil-rich Gulf country to visit energy-hungry India in about 51 years.

During the talks, the Prime Minister told the King that India looked at Saudi Arabia as a very important partner in fighting global terrorism and in that context, the MoU on Combating Crime signed yesterday would further strengthen cooperation in this regard, External Affairs Ministry spokesman Navtej Sarna told reporters.

Abdullah said there was a need to work together to combat terrorism and that they have declared a war against the menace.

"This is a long-term struggle but this was one which will be carried on until this scourge is completely eliminated," Sarna quoted the King as saying.

The Saudi King said they were also against any support to terrorism whether it be of a financial or moral nature.

The Monarch underlined his and his country's sincere desire to move the special relationship forward for the benefit of both countries and shared Singh's view that the impact this has on many issues at the global level, the spokesman said.

Underlining the importance India attaches to the visit, Singh said there was tremendous potential of trade and economic possibilities.

The Prime Minister said the other agreements signed yesterday Avoidance of Double Taxation, Investment Promotion and Protection Agreement would lay the groundwork for a closer economic relationship.

Briefing the Saudi delegation on current economic status and the direction of India's economic reforms, Singh invited Saudi business community to take advantage particularly in gas, petroleum, infrastructure, and fertilizer industries, Sarna said.

Singh said India has one of the largest groups of pilgrims which go for Haj in Saudi Arabia and appreciated the decision to increase the quota for Indian pilgrims from 1,37,000 to 1,47,000.

The MoU on combating crime covering terrorism was signed by Home Minister Shivraj Patil and Saudi Foreign Minister Prince Saud al-Faizal bin Abdul Aziz al Saud.

Agreements on avoidance of double taxation and investment promotion were both signed by Defence Minister Pranab Mukherjee and Saudi Finance Minister Ibraheem Bin Abdul Aziz al Assaf.

The cooperation agreement in the field of youth and sports was inked by Minister of State for Youth Affairs and Sports Oscar Fernandes and Saudi Culture and Information Minister Iyad bin Ameen Madani.