The Export Import Bank of India (Exim Bank) has entered into a memorandum of cooperation with the Gulf Investment Cooperation for facilitating exchange of information and joint identification of avenues to improve two way trade and investment between Gulf Cooperation Council (GCC) and India.
The MoC envisages regular exchange of information on trade, business and investment opportunities to facilitate increased cooperation between two countries, locating suitable joint venture/ trade partners in order to promote the realization of business opportunities, co-financing and co-investment of projects.
SR Rao, executive director, Exim Bank said ?the MoC will help the bank to increase its lending in the region through term financing or in some cases even taking up some equity stake in the project?. Under this arrangement, Exim Bank and GIC have made an equity participation in Jyoti Structures Limited. The bank has been supporting business activities, project execution of Indian companies in the region.
Muhammed Al-Melhem, head, diversified projects division, GIC, said ?we would like to attract investment in sectors like refining, fertilizers, auto components and other promising sectors?. GCC countries have increasingly started diversifying their economies from oil-based economy. The total non-oil trade between India and GCC region was to the tune of $22.5 in 2006-07, while oil imports from the region amounted to $24.8 during 2006-07.
GIC was set up by the six member nations of GCC with the objectives to support economic growth, regional cooperation, and development of private enterprise in the GCC region. As on June 30, 2007 the total assets of GIC stood at $8.3 billion.
