 "Indian investments into GCC touching $3 bn: Report")
The Gulf Cooperation Council (GCC) investments into India also continued to rise from 0.7 per cent in 2011 to 2.95 per cent in 2016, the 'GCC-India Corridor - Investment Opportunities and Challenges' report said.
The GCC is a political and economic alliance of Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman. It was established in 1981.
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In contrast to the overall decline in total FDI into the GCC, investments from India grew at a compound annual growth rate (CAGR) of 15.9 per cent from USD 1.4 billion in 2011 to USD 2.9 billion in 2016, the report, published by Alpen Capital, an investment banking advisory firm, said.
During the period, India's share of the total investments into the GCC increased substantially from 4.7 per cent to 16.2 per cent, it added.
The report presents the state of economic relations between the GCC and India by analysing the trend in investment flows and the strategic government initiatives to strengthen ties.
It assesses the competitiveness of countries in ease of doing business and further identifies and discusses the potential sectors for cooperation and investment in both the regions.
"The GCC nations and India are strengthening historic ties across cultural, trade, economic, defence and political areas. Relations between the two regions are maturing beyond trade, as they realise the potential of strategic cooperation and growth," Rohit Walia, executive chairman, Alpen Capital (ME) Limited, said.
According to Walia, though bilateral trade continues to dominate the multi-billion dollar relationship, investment flows are rising rapidly, as the regions recognise that the GCC-India corridor presents immense opportunities for investors.
Walia said India, as a fast growing and emerging economy, is in the process of upgrading infrastructure, creating a digitally empowered society, increasing local manufacturing and enhancing energy production.
"Such initiatives from both regions will create increased investment opportunities and further strengthen the relations between GCC and India," he added.
"India's share of the total investments into the GCC increased from 4.7 per cent in 2011 to 16.2 per cent in 2016, while GCC investments into India also continued to rise from 0.7 per cent in 2011 to 2.95 in 2016," he said.
Sectors such as oil and gas, food processing, health care, education and infrastructure seem to be the top picks for investors looking towards the GCC as an investment destination, the executive chairman said.