The research paper titled GCC as an investment destination - Opportunities for Indian companies explores the favourable characteristics of the GCC and the opportunities it presents to Indian investors.

The GCC offers distinctive advantages for overseas investors. GCC’s investor friendly economic environment, geographical proximity and inherent advantages in energy-intensive manufacturing hold tremendous potential for attracting further investments from Indian industries and strengthened its position as a manufacturing and re-export hub. The reforms and initiatives undertaken by the GCC governments in diversifying their economies by promoting growth of non-oil sectors have also created several investment opportunities in the region.

Investment prospects in GCC

While the oil industry is undeniably a pillar for the GCC economies, the region’s priority is to achieve sustained economic growth through development of non-oil sectors. This can be achieved by increasing private sector participation, strengthening local technological capabilities, developing a skilled workforce, improving the competitiveness of exports in global markets and by attracting substantial overseas investments. GCC offers strategic advantages, such as availability of cheap energy and feedstock supply, low tax environment, well-developed infrastructure, growing population and increasing income levels, conducive for the development of various industries in the region. All these advantages if properly showcased could attract substantial investment flows from Indian corporates, who are looking to expand their global footprint and scouting for distinctive cost advantages to remain globally competitive.

Sector opportunities

Continued government spending to boost competitiveness, self-reliance and developing local skilled work force would offer potential investment opportunities in sectors such as Petrochemicals, fertilisers, plastics, pharmaceutical, sugar refining, Aluminium & Steel. In addition government support and infrastructure is expected to grow in sectors such as Information & Communication technology (ICT) and Agriculture, Food processing, Education, Financial Services and EPC.

For more details please click here to access the GCC investment Destination Report online.