DIFC offers financial expertise for Indo-UAE projects

The Dubai International Financial Centre (DIFC) initiated a major exercise with a seminar here today to engage the Indian government, banks and captains of industry in managing investments into India.

DIFC Governor Dr Omar Bin Sulaiman told the audience that India's appetite for various infrastructure projects, and the new emerging reality of Asia as the global economic powerhouse made "India a market no one can ignore." India and the UAE need to build on their historical ties in this regard.

Two senior Indian leaders, Commerce Minister Kamal Nath and Overseas Indian Affairs Vayalar Ravi, also observed that the potential for Indo-UAE, or even indo-Gulf economic cooperation was tremendous with mutual advantage to both the sides.

The event was appropriately titled: The India-UAE Partnership: Investments, Opportunities and Synergies. It was supported by the Federation of Indian Chambers of Commerce and Industry (FICCI), and two Indian public sector banks, the Punjab National Bank and Bank of Baroda.

Mr Kamal Nath pointed out that India was looking at inclusive economic growth for its large population and that there were mega-projects on the anvil or undergoing in roads, ports, metro, healthcare, manufacturing, industry and services.

"There is a challenge in the infrastructure deficit in India," and DIFC could play a significant role in funding these projects with the vast surplus funds available in the UAE and the Gulf, he said.

Dr Sualiman pointed that the six Arab Gulf Cooperation Council (GCC) states had USD 18.3 trillion worth of oil and gas at current rates, and if the oil prices shot up to USD 100/ barrel, then this value could rise to more than USD 37 trillion.

It makes sense to do business with India as its appetite for infrastructure is fast rising, while Indian businessmen could also set up Small and medium Enterprises (SMEs) in the gulf. DFIC could provide financial expertise either way.

Mr Kamal Nath said that India has been a credible investment destination and that in the coming years, the Asian engine will drive the global economy with India and China playing a significant role.

Both the Indian ministers also observed that demographics would play a significant role in boosting the global economy as demands shift from across the Atlantic to India. At the same time, Mr Ravi said that besides labour, Indian technicians, engineers and other educated people had made a difference in the developing economies of the Gulf region.

It may be noted that the two-way Indo-UAE trade already exceeds USD 44 billion a year, and this fact was pointed out by the UAE Ambassador to India, Mr Sultan Abdulla al Owais.

DIFC Authority Chief Executive Officer (CEO) Abdulla Al Awar said that closer economic interaction between the UAE and Indian institutions should be the order of the day. There were of opportunities to act upon.

It may be noted that the interaction was held in the just-released statement by the International Monetary Fund (IMF) in Washington yesterday which said that Asia is having better economic recovery out of the recent global recession than the rest of the world.

IMF also said that India's economy was expected to rise at 6.5 per cent in 2010 from the current 5.33 percent in 2009.