Muscat [Oman]: Oman Investment Authority (OIA) Chairman Abdulsalam Mohammed Al Murshidi has said the establishment of the third Oman-India Joint Investment Fund builds on the success of the first two joint funds, Oman News Agency reported.
He said the ventures brought about good returns from successful investments in different domains, most notably banking and financial services, medical care and pharmacology, chemical and industrial technologies, automobiles, information technology, commodities, defence, aerospace, mining and the retail sector.
The third tranche of the Oman-India Joint Investment Fund was announced on Saturday, marking a major milestone in trade and capital cooperation between the two nations.
Foreign Secretary Vinay Kwatra, in a special MEA briefing on Saturday, highlighted the importance of this achievement during the State Visit of the Sultan of Oman, Haitham bin Tarik, to India.
"An important achievement in terms of India-Oman trade and capital cooperation was the announcement of the third tranche of the Oman-India Joint Investment Fund," he said.
The Foreign Secretary also said that the Oman-India Joint Investment Fund, a 50-50 joint venture between the State Bank of India and the Oman Investment Authority, aims to bolster economic ties by directing investments into the fastest-growing sectors of the Indian economy.
"This fund would be worth 300 million dollars, approximately 2500 crores, purely as a point of elaboration. The fund was established as a 50-50 joint venture between the State Bank of India and the Oman Investment Authority, which essentially channelled investments into the fastest-growing sectors of the Indian economy," Kwatra added.
As per the Oman News Agency, the OIA targets various vital sectors to strike partnership and investment deals in the Indian market, said Al Murshidi, noting that such portfolios benefit from the growth of the Indian economy due to strong consumer demand of the population there.
According to Al Murshidi, the Indian economy is expected to see a growth rate of 6.3 per cent in the current year (2023) and next year (2024).
The new fund boasts a volume of USD 300 million (with USD 50 million as OIA investment), said Al Murshidi, who explained that the sum would be invested in a variety of sectors, most notably technology, health and pharmacy, banks and banking services, industries and consumer services.
The third investment fund expects an increase in capital in the long term and generates lucrative returns through investment in companies that command high levels of governance, sustainable competitive advantage and a sound exit strategy after achieving good returns, said Al Murshidi, as per Oman News Agency.
The OIA established the first Omani-Indian Joint Investment Fund in 2011, with a value of USD 100 million, in partnership with the State Bank of India. In 2017, the OIA established its second portfolio with a USD 230 million fund that focused on medium-sized companies in the Indian market.
The OIA also runs direct investments in India beyond the scheme of joint investment funds.
—ANI