Agencies
Abu Dhabi
Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, is accelerating its India investment plans after starting operations from the special economic zone in Prime Minister Narendra Modi’s Gujarat home state.
“India is one of the world’s fastest growing economies and has been a key focus for our investment activities for a number of years,” ADIA managing director Sheikh Hamed bin Zayed Al Nahyan was quoted as saying by state-run WAM news agency.
The sovereign fund will undertake a phased transfer of certain existing Indian investments to its Gift City subsidiary, which will hold future Indian investments, he added.
The office in Gift City is expected to “drive further intensification of ADIA’s investment activities”, the Indian Press Information Bureau said in a statement.
Gift City is a special economic zone located in Gandhinagar, offering various tax benefits and
The plan to set up the ADIA office in India was announced during Modi’s visit to Abu Dhabi in July 2023.
Last month, local media reported that India’s National Investment & Infrastructure Fund, which is backed by Abu Dhabi, is aiming to raise $4 billion.
ADIA has invested extensively in India, buying stakes in companies across multiple sectors including energy, real estate, telecoms, retail and food manufacturing.
At a national level, the UAE is the seventh-largest investor in India, with an estimated investment of $18billion.
The two countries signed comprehensive economic partnership agreement in 2022.
In May Indian media reports said that UAE lender Mashreq was exploring setting up an office in Gift City.
Saudi Arabia’s Public Investment Fund (PIF) also intends to set up an office there as part of its plan to invest $100 billion in India.
