With the Indian economy facing a slowdown, surplus funds in the Gulf Cooperation Council countries —with an estimated 4.5-million Indian expatriate population — are finally being tapped in a structured manner.

Getting the ball rolling is the India Oman Joint Investment Fund (IOJIF) with a seed capital of $100 million. An open-ended fund, IOIF will have the option to go up to $1.5 billion and will have an initial lock-in period of two years.

Setting the pace for bilateral cooperation between the two countries as Prime Minister Manmohan Singh arrived here today on a two-day visit, the MoU for the Fund was signed by State Bank of India and State General Reserve Fund, Sultanate of Oman.

The fund will focus on tourism, health, telecom and urban infrastructure. The IOJIF isn’t the first major joint initiative between the two countries — the $969-million Oman-India Fertilizer Company began production in 2005.

This is expected to trigger similar funds in the Gulf countries as there is already talk of a $5-billion Joint Infrastructure Fund to be raised between India and Qatar.

According to officials familiar with the development, the Qatar government is ready with the investment decision waiting for New Delhi to provide the list of projects.

The other issue on the agenda is to provide job security to workers of Indian origin in Oman along the lines of what is in force in the UAE.

The key areas being worked upon by the Indian side includes a minimum monthly salary of $250 and amenities such as cell phones and access to helpline for women workers.

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