Oman & India Oil Joint Venture

Recently in New Delhi, Oman and Indian officials signed on an agreement to commence the Oman-Indian Joint Investment Fund. The agreement was signed by the State Bank of India chairman, Om Prakash Butt and State General Reserve Fund chairman, Mubarak Al Kharousi. The original creation was created in 2008 during a visit of Prime Minister Manmohan Singh to Muscat.

This new investment fund is going to be funded evenly at $100 million but has the potential to grow over the upcoming years. There have no been no restrictions issued to how the money will be invested but tourism, health, telecommunications and urban infrastructure projects are getting the most light.

Although the direction of investment is basically opened across all fields, the projects will all be done in India until further notice. Moreover, Om Prakash Butt Chairman of the State Bank Of India anticipates this fund to boost the Indian economy tremendously.

Minister Pranab Mukherjee has been quoted saying that the agreement would open a new chapter in the multi-dimensional relations between the two countries. This also marks as the first joint agreement with another country that India ventures into. The initial capital is going to be $100 million but has the potential to grow up to $1.5 billion years to come.

The management is also designed to be split evenly among India and Sultante.

With recent success in various economic sectors, the State General Reserve Fund has gained a lot of experience at a world-wide level. With this current signing, the State General Reserve Fund is expected to enhance the fields of there foreign investments. The recent success of  Warith bin Mubarak al Kharusi and the State General Reserve Fund will be a nice fit with the equally successful State Bank of India. The State Bank of India overcame global forecast with constant growth in various sectors.

Currently there is over 100 Indian companies present in Oman while there is only 30 companies present in India. The first goal for Oman after the signing of this agreement is to invest in small to medium Indian corporations with the intentions of entering into the fields of technology, energy and research development.

This is a great accomplishment for both countries and is highly probable that great success will come of it. The initial signing is at $100 million but the fund size can be increased to healthy $1.5 billion.

Chris Termeer