Oman India Investment Fund, a joint initiative of the Omanese and Indian governments, plans to launch the $100-million fund soon. The fund proposes to invest in core infrastructure and real estate sectors in both the countries. Both countries have equal contribution to the fund.
The investments are likely to be made in tourism, health, telecom and urban infrastructure projects, according to media reports.
Quoting Maqbool Ali Sultan, Oman’s Minister of Commerce and Industry, a report in the IANS, states that the fund will be launched soon. The fund has kept open the option of inviting other entities as well to participate in the fund, and the corpus can be extended up to $1.5 billion in the next few years.
In 2008, the State Bank of India, the largest public sector lender in India, has entered into a memorandum of understanding (MoU) with State General Reserve Fund of Oman in relation to the fund. The Oman India Investment Fund is the first of its kind to be set up by India in partnership with another country.
The bilateral trade between Oman and India is reportedly in the region of $2.5 billion and is growing significantly. The bulk of Oman’s exports to India are oil, gas and fertilisers, and the product basket is getting stronger now with Indian companies importing other products like limestone, chrome and copper.