Tuesday, June 27 2006 15:23 Hrs (IST) - World Time -

Dubai: Reliance Communications will invest US$ 60 million in Saudi Arabia to connect the Kingdom and other Gulf states with 53 countries around the globe on its fibre optic network and provide value-added services to its users.

The investment to set up submarine fibre optic cable landing stations in Alkhobar and Jeddah for facilitating access to international bandwidth was made through the FlAG Telecom, part of the Anil Dhirubhai Ambani Group, under its Falcon project.

The Reliance Communications and its Saudi partner hailed the investment which comes in the wake of the landmark visit of Saudi King Abdullah to India in January.

More investments are expected to follow as both sides explore the possibility of diversifying their relations through strategic alliance.

The deal was unveiled in the presence of Ambani, Punit Garg, president of FlAG Telecom, a Reliance subsidiary, and Mohammed Hasan Omar, president and CEO of Integrated Telecom Co. Ltd. (ITC) at its headquarters in Jeddah.

"The Falcon project will connect the Gulf countries, including the Kingdom to India from the east, Egypt from the west as also with the rest of the world," Garg said.

The entire project would be completed before October thisyear. The two landing stations would be constructed one in Alkhobar, already operational and the other in Jeddah, which will be completed next month.