Arab Investors Seek Investment Opportunities in India

December 25, 2007	(1 votes, average: 4 out of 5)  Loading ...
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Lucrative investment options in India are attracting a number of cash-rich private equity funds from the Arab world. If numbers are to be believed, around 15 Gulf Co-operation Council institutions, with a massive fund size of $10,464 million (about Rs 42,000 crore), are willing to invest a considerable part of fund into Indian equities and other private equity opportunities.

The post 9/11 change in the political scenario of America and Europe and the concerns of a likely slowdown in developed economies are encouraging for Gulf-based investors to turn their focus to developing economies like India and China.

Some of the prominent factors that are attracting Gulf investors in India are infrastructure and real estate and high returns on equity. India’s legal framework which protects foreign investors is one of the best in emerging countries,” said Gulf-based Global Investment House’s senior vice-president and international investment head Shailesh Dash.

Arab investors (from GCC countries) are interested in sectors like infrastructure, real estate, financial services, and logistics.

According to experts, Government’s thrust toward infrastructure development via public-private partnership is likely to bolster further investments in that space. Buoyancy in manufacturing and services sector activities coupled with booming stock markets provide an opportunity for foreign capital to flow in India.

“Gulf investment in India is on a rise and many more fund pools are waiting on the sidelines to take a plunge. The Qatari Government alone is planning to invest a considerable sum into India,” a senior official at Qatar International Islamic Bank told ET.

According to Global Investment House data, Abraaj Capital is planning to come out with three separate funds totaling around $2,700 million; Ithmaar Bank is launching a $500 million balanced fund, with a view to invest in infrastructure.

News Published Under:   Real Estate India |

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