India, Oman to sign pact on Jt Investment Fund

With an aim of providing greater fillip to bilateral trade, India and Oman will sign an agreement on setting up of a Joint Investment Fund during the three-day visit of Omanese Minister of National Economy Ahmed Abdulnabi Macki here beginning tomorrow.

With an aim of providing greater fillip to bilateral trade, India and Oman will sign an agreement on setting up of a Joint Investment Fund during the three-day visit of Omanese Minister of National Economy Ahmed Abdulnabi Macki here beginning tomorrow.

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The two sides had reached the understanding for setting up the Fund during the visit of Prime Minister Manmohan Singh to Oman in November 2008.

The fund will have a seed capital of $ 100 million which will go up to $ 1.5 billion and it will be operated by the State Bank of India and the State General Reserve Fund of Oman, official sources said.

Creation of the fund is aimed at providing greater fillip to bilateral trade and investment relations between India and Oman, they said.

The joint investment fund will help both countries to guarantee investment capital for identified projects.

The Sultanate of Oman is keen for diversifying its oil and gas industry-based economy to a modern industrialised economy and for the purpose the country needs investment in manufacturing, tourism as well as warehousing and other supporting industries.

On the other hand, India is keen to develop its infrastructure such as ports, highways, power, refineries, refrigeration as well as related industry to support its high growth path.

"The establishment of such fund, apart from increasing bilateral commercial engagements, will enhance people to people contact between the two countries, India and Oman," an official said.