UAE’s ADIA Plans $4-5 Billion Investment in India via GIFT City

Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is setting up a large investment fund in total $4-5 billion through India’s Gujarat International Finance Tech-City (GIFT City)Located in the home state of Prime Minister Narendra Modi.

In-principle approval and regulatory authority

  • The regulatory authority that oversees financial services in GIFT City has given in-principle approval to ADIA to set up the fund.
  • This development is the first example of a sovereign wealth fund launching an investment in India through GIFT City.

Announcement and pre-reporting

  • While ADIA’s intention to establish a presence in the hub was initially announced in a joint statement by India and the UAE last July, the specific investment amount and regulatory approvals were not previously disclosed.

Upcoming investments and deadlines

  • ADIA may start investing through the fund by the middle of this year.
  • The allocated funds will be gradually deployed in Indian markets over an extended period.

Importance and economic context of partnership

  • Prime Minister Modi’s upcoming visit to Abu Dhabi underlines the strengthening relations between India and the UAE.
  • Bilateral trade between India and UAE reached $85 billion in the financial year ending March 2023.
  • The large number of Indian expatriates in the UAE, constituting approximately 35% of the total population, contributes to the strong ties between the two countries.

UAE's ADIA plans $40.1 billion investment in India through GIFT City_40.1

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