Date:12/12/2005 URL: http://www.thehindubusinessline.com/2005/12/12/stories/2005121202110500.htm

Back India urged to open capital markets to Arab investors

Vimala Vasan

Dubai , Dec. 11

INDIA should open its capital markets and other investment avenues to individual Arab investors who are keen to invest in attractive ventures overseas, Sheikh Sultan bin Saud Al Qasimi, a leading UAE businessman and Chairman of Barjeel Geojit Finance Company, said at the ongoing India-Gulf Partnership Summit here, jointly organised by the IMC and Indian Business and Professional Council, Dubai.

Making a strong pitch for India as "Asia's best kept secret and a wonderful investment destination," Sheikh Saud said Arab investors should look at India rather than China or other emerging economies for investment opportunities.

"Unfortunately, India has not aggressively marketed its investment potential in the Gulf States. Efforts should be made to market investment opportunities through the Arab media, similar to promotion of Indian tourist attractions among Arab travellers that has generated a good response," he said.

Many Arabs have historical and emotional ties with India going back to early trading links and today they would like to investin India's booming economy, Sheikh Saud pointed out.

He urged the Indian Government to seriously consider opening the capital markets to individual foreign investors and provide them with cards similar to local investors to expand their investment portfolio.

Earlier, Mr A.K. Purwar, Chairman, SBI, said opportunities for economic co-operation between India and the Gulf were limitless. "India and the Gulf States should co-operate and compete. There is a need for greater market access on both sides and a sound legal framework is also needed," he said.

There is a suggestion that a strong trading bloc is developing, starting from eastern Europe and stretching till the Asian sub-continent, he said. On the Indian side, serious efforts have to be made to develop its infrastructure to the required standards, he added.

Cooperation in tourism: In another session, Mr Ashwini Kakkar, CEO and MD of Thomas Cook India Ltd, spoke of the strong potential for Indo-Gulf co-operation in the area of tourism. Cooperation between India and the UAE and adoption of some of the models and infrastructure facilities adopted to boost tourism in the UAE could help generate huge business for both sides, he said.

Dubai has become a favourite destination for Indian tourists and increased travel to the Gulf has thrown open a host of attractive investment opportunities in the two regions, he said.

Combined tour packages targeting European travellers covering India and the UAE could benefit the hospitality and airline sectors, he added.

Mr Pankaj Khimji, Director of Oman-based Khimji Ramdas, said Oman has a number of attractive tourist locations and beautiful natural landscapes that could be of great interest to Indian tourists.

Many mega residential, tourism and leisure projects are now underway in Oman, where freehold properties without strings attached are being sold to foreign investors, he said.

Mr Subash Ghai, Chairman, Mukta Arts Ltd, referred to the tremendous scope for co-operation between Bollywood and partners in the Gulf.

Indian films are extremely popular with the Arab audience and this can provide a base for strong partnerships in the area of film-making and film education, he said.