Oman and India have announced that both sides have formalized the establishment of a joint investment fund, according to media reports.
Abdul Salam bin Muhammad al Murshidi, Chairman of Oman Investment Authority (OIA), highlighted the success of the two previous joint funds with India, yielding favorable returns from investments across various sectors.
The sectors include medical care and pharmacy, chemical and industrial technologies, automobiles, information technology, commodities, defense, aerospace, mining, and the retail sector.
OIA is strategically targeting key sectors for collaboration and investment in the Indian market, given the anticipated growth of the Indian economy to reach 6.3% in 2023-2024.
According to Indian Foreign Secretary Vinay Kwatra, the Oman-India Joint Investment Fund, a 50-50 joint venture between the State Bank of India and OIA, aims to enhance economic ties. Kwatra mentioned that this fund, valued at US$300 million, will channel investments into the fastest-growing sectors of the Indian economy.
The previous two tranches of the fund, valued at USD 100 million and USD 200 million, respectively, laid the foundation for a robust economic alliance.
Kwatra emphasized that these tranches solidified the belief and commitment between the two countries, fostering strong economic ties through direct capital investments in growing sectors.
The announcement of the third tranche signifies not only a substantial financial commitment but also reinforces the long-term vision of both nations to deepen economic and cultural ties, he added.
As of the end of the third quarter of 2023, the commercial exchange between Oman and India reached RO1.4 billion.
Omani exports to India, totaling 1,8 million USD, predominantly comprised oil, minerals, LNG, polyethylene, propylate, aluminum, and urea. Meanwhile, Omani imports from India amounted to USD 1,9 million, with major categories including rice, motor fuel, wheat, ignition control of vehicles, and iron ore.
In 2023, investments from India in Oman totaled USD 985.44 million by the end of June, with 1,744 Indian companies investing in Oman by the close of 2022.
These investments were distributed across various sectors, encompassing industry, construction, trade, transportation, communications, oil and gas, mining, quarrying, education, agriculture, fisheries, tourism, and health.
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