Taiwan fund targets GCC

(AFP)  

Taiwan is preparing to set up an overseas investment fund combining government and private-sector money, which will initially target energy projects in the Gulf, a government official said Thursday.

The state-owned National Development Fund will set up the fund, which will be overseen by the Council for Economic Planning and Development, Taiwan’s state planning commission.

“We have seen in the past the massive business opportunities in the Middle East,” said Hsieh Fadah, vice-economics minister. “Looking at the potential business opportunities of the six Gulf states, we estimate they could be more than $6.6trn (Dh24.3trn). Pursuing this opportunity is essential,” said Hsieh. “Formation of this company is the first step.” He did not reveal the size of the fund, but the Economic Daily reported it was initially aiming to raise T$2 billion (Dh225m).

“It is hoped private industry can take the lead, with the National Development Fund contributing 40 per cent of the total capital, and we hope the remaining 60 per cent can be contributed by the private sector,” said Hsieh. “Specifically those in the fields of basic infrastructure projects or petrochemical areas.” Hsieh said if investment via this method was smooth, it will consider opportunities next in India.

The fund would target investments in Saudi, the UAE, Qatar and other Gulf countries, to invest in oil, natural gas and other energy projects, the newspaper said. The paper said the council was aiming to launch the fund in January.

“The basic details are correct,” said an official at the Council for Economic Planning and Development, speaking on condition of anonymity. (Reuters)