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- Abu Dhabi Investment Authority is one of the world’s largest sovereign wealth funds
- Indian government expects its Gujarat International Finance Tec-City operations to drive more UAE investment
NEW DELHI: The UAE’s largest sovereign wealth fund has started its operations in India, in a move expected to increase investment activity in the region.
Established in 1976, Abu Dhabi Investment Authority is one of the largest sovereign wealth funds in the world that invests funds on behalf of the government of Abu Dhabi.
The start of its operations at the GIFT City (Gujarat International Finance Tec-City) was announced at a meeting of the India-UAE High Level Joint Task Force on Investments in Mumbai on Monday, which was co-chaired by Indian Commerce Minister Piyush Goyal and Sheikh Hamed bin Zayed Al-Nahyan, managing director of ADIA.
“The office is expected to drive further intensification of ADIA’s investment activities in India,” the Ministry of Commerce and Industry said in a statement.
“ADIA’s presence in the GIFT City underlines the strong interest from UAE’s institutional investors in India’s growing and dynamic economy. It also buttresses GIFT City’s reputation as a world-class financial services center, operating under a robust regulatory and legal framework.”
A flagship project in Prime Minister Narendra Modi’s home state, the GIFT City has been promoted by the Indian government as a “robust gateway for global capital and financial services” for the Indian economy.
Companies operating in GIFT City enjoy a complete tax exemption on business profits for any 10 consecutive years within a 15-year period, and no taxes on the transfer of funds from overseas jurisdictions.
“India is one of the world’s fastest-growing economies and has been a key focus for ADIA’s investment activities for a number of years. We have built an extensive portfolio that spans asset classes, and we remain confident in India’s long-term growth prospects,” Sheikh Hamed said, as quoted by the Emirati state news agency WAM.
“Establishing ADIA’s subsidiary at GIFT City underlines our belief in the opportunities presented by India’s continued growth. GIFT City is creating a dynamic, world-class financial services ecosystem, operating under a strong regulator and a robust legal framework.”
The establishment of ADIA’s presence in the Gujarat hub was announced during Modi’s state visit to Abu Dhabi in July 2023.
The UAE is the largest Middle Eastern investor in India, with investments amounting to around $3 billion in the financial year 2023-24, according to Indian government data.