Investment firm to scout for JVs in India

Kuwait Financial Centre "Markaz" was established in 1974, and has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region with $ 4.7 billion of assets under Management as at the end of December 2005.

Following is the excerpted version of an interview with Diraar Yusuf Alghanim, Chairman & Managing Director, Kuwait Financial Centre "Markaz".

What business opportunities between India and Kuwait are expected from the Amir's visit to India?

The Amir's visit to India is expected to open a new chapter in economic relations and increase trade volume, currently at around US$700mn (excluding oil), between the two countries. India will likely seek Kuwaiti participation in the development of its petroleum and petrochemical industries, and infrastructure sector.

India would be keen to contribute to the growth of knowledge and education sectors in Kuwait - more specifically science and technology, IT and bio-technology, which are areas where India has made a significant impact globally.

What is Markaz's business strategy and game plan vis-à-vis India and which areas does Markaz plan to invest?

Markaz is in the process of finalizing a long term investment strategy for India, with focus on capital appreciation. We intend to forge alliances / joint ventures with top tier players in areas of real estate and private equity.

Markaz and its prospective Indian partners could co-launch funds / products for Kuwaiti investors to enable them to participate in the India growth story.

What is Markaz's opinion of the existing business climate in India?

Today India is one of the most sought after investment destinations for global investors. Even from the GCC, in recent years, several large companies have made huge investments in various sectors in India.

All three major pillars of growth - domestic demand, investments and exports are still in the middle of a long term growth cycle. Markaz believes that, over the medium to long term, investments in high growth sectors in India can generate returns in excess of 16-18%pa.