Monmohan Singh seeks infra investments from Qatar

DOHA: After Oman, Prime Minister Manmohan Singh has sought surplus funds from gas-rich Qatar for investments in the infrastructure sector to shore up economic growth, which has slowed because of the global financial crisis.

Singh, on the second leg of his maiden visit to energy-rich Gulf nations, met Prime Minister Sheikh Hamad bin Jassim bin Jabor al Thani yesterday evening and Qatar's Emir Sheikh Hamad bin Khalifa al Thani today.

"One of the areas of future cooperation discussed was how a mechanism can be constituted so that investments from Qatar can be made in different sectors in India," Secretary (East) N Ravi in the Ministry of External Affairs said.

Singh had in Muscat yesterday asked the Omanese leadership to invest surplus funds in the India's key infrastructure sectors.

Asia's third-largest economy is looking at boosting spending to prevent the economy from going under.

"I would call upon captains of Oman's industry and financial companies to invest surplus liquidity in key infrastructure sectors in India. We are determined to create a hospitable climate for investment, particularly foreign investment, from friendly countries like Oman," Singh had said addressing Oman's business leaders here.

India and Oman had yesterday evening signed an agreement to set up the India-Oman Joint Investment Fund with initial seed money of USD 100 million, which would eventually go up to USD 1 billion, for investments in infrastructure, tourism, health, telecom, utilities, urban infrastructure and other sectors.

"Our infrastructure financing needs are estimated to be USD 500 billion in the next five years," Singh had said.
Ravi said Qatar has huge cash reserves and New Delhi wanted to leverage them for infrastructure development, which needs billions of dollars of investment over the next five years.

"The visit symbolises the start of a new phase of our relationship," he said.

The scope for Indian banks and financial institutions setting up office in the Qatar Financial Centre to get a foothold in the Gulf region was also discussed.

"Various mechanisms that exist for enhancing sectoral engagement were also covered," he said.

The balance of India's trade with Qatar is heavily tilted in favour of the Gulf country. Qatar exports goods worth USD 2 billion a year to India, 80 per cent of which is hydrocarbons.