UAE Wealth Fund Begins Operations in India’s New Finance Hub

UAE’s Abu Dhabi Investment Authority Launches Operations in India’s Gift City

BENGALURU: Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund of the United Arab Emirates (UAE), has started operations in India as a tax-neutral financial hub, the government said on Monday.

Gujarat International Finance Tec-City or Gift City is a financial services hub that the Government of India promotes as a “gateway to global capital and financial services”.

Set up in Prime Minister Narendra Modi’s home state of Gujarat, the zone offers a 10-year tax holiday for companies setting up there, tax-free remittances from foreign jurisdictions and proximity to Indian markets.

ADIA first announced its intention to be at the center in July 2023 .Reuters stated in February that a financial hub would be used to manage a $4–$5 billion fund for investments in the nation.

With an approximate $3 billion investment in FY 2023–2024, the UAE is the largest Arab investor in India.