India beckons Arab investors

India is fast emerging as a prime destination for Arab investors.

Two international conferences, Euromoney/DIFC annual conference and Leaders in Dubai conference on finance and investments, held in Dubai last week said it is time for Gulf Co-operation Council (GCC) investors to move in and take advantage of the huge opportunities in India.

It was also concluded that India, too, should open up its economy to absorb the Gulf investment boom.

While investment bankers, economists and financial decision-makers debated the potential merits of GCC investments in India at the two conferences, two leading UAE-based companies, Abu Dhabi National Energy Co (Taqa) and Emaar, announced close to Rs 60 million investments in India last week, the Khaleej Times reported.

Contrary to popular belief, India, rather than China, would become the economic powerhouse over the next 50 years, said demographic forecaster Harry S Dent. China's spending wave would peak by 2015 and continue to slow until 2055 when it would actually begin to contract, he added. In comparison, India and Saudi Arabia would continue to grow before peaking around 2065.

Speaking at the Euromoney/DIFC Conference, David Hodgkinson, Group Chief Operating Officer of HSBC, said that China and India would overtake the traditional target markets of Europe and the USA for Gulf investment within a decade if the current trends continue.