Economic Daily reported that Taiwan is preparing to set up an overseas investment fund combining government and private sector money that will initially target energy projects in the Gulf region of the Middle East.

As per report, Taiwan’s National Development Fund will set up the fund, which will be overseen by Taiwan's state planning commission the Council for Economic Planning and Development. National Development Fund would contribute TWD 800 million to start up the fund, while it was looking to raise another TWD 1.2 billion from private investors, with engineering firm CTCI Corporation, Teco Electric and China Steel among those showing interest.

The fund would initially target investments in Saudi Arabia, United Arab Emirates, Qatar and other Gulf countries, with an aim of investing in oil, natural gas and other energy projects.

Mr Hsieh Fadah vice economics minister of Taiwan said that "We have seen in the past the massive business opportunities in the Middle East. Looking at the potential business opportunities of the 6 Gulf states, we estimate they could be over USD 6.6 trillion. Pursuing this opportunity is essential. Formation of this company is the first step. It is hoped that private industry can take the lead, with the National Development Fund contributing 40% of the capital and we hope the remaining 60% can be contributed by the private sector." He added that if investment via this method was smooth, it would also consider opportunities next in India.