Oman India Investment Fund

The Omani and Indian governments recently announced the upcoming launch of a US$100 million Joint Investment Fund. The fund will invest in core infrastructure and real estate sectors in both countries, and is meant to catalyze and encourage investment from the private sector.

Oman and India also have the option of inviting other entities to participate in the fund.

The investments are likely to be made in tourism, health, telecom and urban infrastructure projects. While the initial capital is set at US$100 million, it is
possible this can be expanded to up to US$1.5 billion.

The State General Reserve Fund of Oman has entered into a Memorandum of Understanding with State Bank of India in relation to the fund. A high-powered committee with representatives from both countries has been set up to ensure that the launch of the fund is on track and to ensure that investment proposals are not delayed in either country.

This is the first fund of its kind for both Oman and India, and reflects the strong ties between the two countries. Bilateral trade between Oman and India increased 24.2% to reach US$1.23 billion from US$990 million during January-August 2008 compared to the same period in 2007. In addition, progress on a Free Trade Agreement between India and Oman is expected this year.