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Wed 14 Jul 2010 08:23 AM

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Oman sets up $100m investment fund with India

Sultanate's economic minister set to ink agreement with State Bank of India.

Oman sets up $100m investment fund with India
INDIA LINK: The New Omani-Indian Company will be based in Mumbai. (Getty Images)

Oman is set to sign an agreement to set up a $100m joint investment fund with the State Bank of India.

Ahmed bin Abdulnabi Macki, national economy minister and deputy chairman of the Financial Affairs and Energy Resources Council, will ink the deal during a three-day visit to India which concludes on Thursday.

The fund will be between the State General Reserve Fund and the State Bank of India with the paid-up capital equally between the two sides. The New Omani-Indian Company will be based in Mumbai, Oman News Agency reported on Wednesday.

The fund will be used to finance projects in tourism, infrastructure, health, telecommunication and urban infrastructure in either country.

The Sultanate is keen to diversify its oil and gas industry-based economy to a modern industrialised economy.

Trade between the countries touched $2bn last year and is expected to rise to $2.5bn in 2010.

More than 100 Indian companies operate in the Sultanate, while over 30 Omani companies are present in India.

During the visit, Macki will also hold talks with senior officials in the Indian government in a bid to build on relations in a number of economic and investment fields.