PM asks Oman to invest in Indian infrastructure sector

Ammar Zaidi

Muscat, Nov 9 (PTI) Grappling with economic slowdown as a
result of global financial crisis, Prime Minister Manmohan
Singh on Sunday asked energy-rich Gulf countries to invest
their surplus funds in the nation's key infrastructure
sectors.

Asia's third largest economy is looking at boosting
spending to prevent the economy from going under.

"I would call upon captains of Oman's industry and
financial companies to invest surplus liquidity into key
infrastructure sectors in India. We are determined to create a
hospitable climate for investment, particularly foreign
investment from friendly countries like Oman," Singh said
addressing Omanese business community here.

The global financial crisis is likely to slow the pace of
economic growth in India to 7.5 percent in the year ending
March 31, 2009 and it may record a rate of between 7 and 7.5
percent next fiscal. The growth rate comes on back of 9
percent acceleration in 2007-08 fiscal.

"Against the background of the current international
economic and financial situation, I suggest there is an even
greater need for us to join hands to shape counter-cyclical
growth strategies by focusing on real economy," he said.

"India and Oman are well placed to convert this challenge
into an opportunity. We count on you to be the architects of
this magnificent change," he added.

The two nations yesterday evening signed an agreement to
set up India-Oman Joint Investment Fund with an initial seed
money of USD 100 million, that would eventually go up to USD 1
billion, for investments in infrastructure, tourism, health,
telecom, utilities, urban infrastructure and other sectors.

"Our infrastructure financing needs are estimated to be
USD 500 billion in the next five years," he said.

Singh promised all steps to facilitate greater trade and
investment between India and Oman. "India sees Oman as a
natural partner in progress that benefits not only our two
countries but also the Gulf region as a whole."

"There is vast potential for cooperation in the energy,
fertilisers, IT, tourism and education sectors. You should
also actively work with your Indian counterparts to explore
possibilities of joint ventures in third countries," Singh
told the business leaders.

Singh, on his maiden visit to the energy-rich Gulf
region, is targeting USD 2 billion non-oil trade with Oman
soon, up from USD 1.4 billion this year. "I see enormous
potential for a substantial strengthening of our trade and
economic ties based on growing complementarities of our two
countries."

The meeting was attended by Oman Oil Co C.E.O. Ahmed
Salim Al Wahaibi, M.B.Holding Co Chairman Mohammed Ali Al
Barwani, W.J.Towell Group Chairman Hussain Jawad Sultan, Oman
Arab Bank C.E.O. Abdul Kader Ahmed Askalan, Lima L.C.C.
Director Khaula Hamoud Al Harthy.

It was also attended by Bank Muscat Chairman Abdul Malik
Bin Abdullah Al Khalili, Oman Mobile Managing Director Amer Al
Rowas, Oman Shipping Co Managing Director Adel Abdullah Al
Raisi and Zubair Corp Director Ziyad Bin Mohammed Al Zubair
among others. PTI ANZ
SAK
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