GCC Wealth Funds Target Indian Investments

Sovereign wealth funds from GCC countries are increasingly exploring investment opportunities in key Indian sectors, according to industry leaders and diplomats who spoke at the India-MENA Business Dialogue organised by the Federation of Indian Chambers of Commerce & Industry (FICCI).

Areas such as infrastructure, hydrocarbons, renewable energy, food processing, technology, healthcare, hospitality, and tourism have been identified as high-potential sectors for fruitful joint ventures and partnerships.

Aseem R Mahajan, Joint Secretary – GCC, Ministry of External Affairs, India, highlighted the evolving relationship between India and the GCC, which has been instrumental in driving economic growth and development on both sides. He noted that the GCC has been crucial to India’s energy security and economic landscape, while India has provided vital commodities, skilled human resources, and a reliable market for GCC exports.

Adeeb Ahamed, Chair of the FICCI Middle East Council and Managing Director of Lulu Financial Holdings, informed that GCC remains India’s largest trading partner, underscoring the deep economic ties that bind the two regions.

In the realm of technology and innovation, GCC is emerging as a significant hub, with the UAE and Saudi Arabia leading the charge.

H E Sunjay Sudhir, Ambassador of India to the UAE, stressed that the future holds immense potential for deeper cooperation in areas such as artificial intelligence, healthcare, and space technology.

Saudi Arabia’s Vision 2030 was another focal point of discussion, with H E Suhel Ajaz Khan, Indian Ambassador to Saudi Arabia, highlighting the Kingdom’s economic transformation and diversification efforts. He pointed out that as Saudi Arabia opens up its economy, opportunities are emerging in sectors such as construction, mining, technology, renewable energy, automobiles, tourism, and manufacturing. Saudi also aims to establish itself as a hub for logistics and connectivity, leveraging its strategic geography and infrastructure.

Additionally, H E Amit Narang, Indian Ambassador to Oman, mentioned the Oman Investment Authority’s partnership with the State Bank of India, which dates back to 2010. He noted that the third tranche of the joint fund between the two entities, worth US$300 million, is still available for investment. He encouraged FICCI members to consider this funding source for investment proposals in India.

The dialogue showcased the strengthening of India-GCC ties and the significant opportunities that lie ahead for cross-border investment and collaboration.