The Oman Investment Authority (OIA) has strengthened its collaboration with India by introducing the third Omani-Indian Joint Fund in partnership with the State Bank of India. The agreement formalizing the establishment of the fund was signed during the State Visit of His Majesty Sultan Haitham bin Tarik to the Republic of India.
Abdulsalam Mohammed Al Murshidi, Chairman of OIA, highlighted that the third fund builds on the success of the initial two joint funds with India, which yielded favorable returns from successful investments across various sectors. These sectors include banking and financial services, medical care and pharmacology, chemical and industrial technologies, automobiles, information technology, commodities, defense, aerospace, mining, and the retail sector.
Al Murshidi emphasized OIA's focus on vital sectors to forge partnership and investment deals in the Indian market, leveraging the growth potential driven by strong consumer demand in India. He outlined the incentives, advantages, and capabilities that make India an attractive investment destination, projecting a growth rate of 6.3% for the Indian economy in the current and upcoming years.
The new fund, with a volume of $300 million (including a $50 million OIA investment), will be allocated to various sectors, primarily technology, health and pharmacy, banks and banking services, industries, and consumer services. Al Murshidi noted that the fund aims for long-term capital growth and aims to generate lucrative returns by investing in companies with high governance levels, sustainable competitive advantage, and a sound exit strategy after achieving favorable returns.
It is noteworthy that OIA established the first Omani-Indian Joint Investment Fund in 2011, valued at $100 million, in collaboration with the State Bank of India. In 2017, OIA initiated its second portfolio with a $230 million fund focusing on medium-sized companies in the Indian market. Additionally, OIA conducts direct investments in the Republic of India outside the framework of joint investment funds.