UAE’s top sovereign wealth fund launches operations in India

UAE’s Largest Sovereign Wealth Fund ADIA Begins Operations in India’s GIFT City

New Delhi: The biggest sovereign wealth fund in the United Arab Emirates has begun operating in India, which is anticipated to increase investment activity in the area.

One of the biggest sovereign wealth funds in the world, the Abu Dhabi Investment Authority was founded in 1976 and manages investments on behalf of the Abu Dhabi government.

The company announced at the India-UAE High Level Joint Working Group on Investments conference on Monday in Mumbai that it has begun operations at Gift City, also known as Gujarat International Finance Tech-City. The meeting was chaired by Sheikh Hamad bin Saeed Al-Nahyan, Managing Director of ADIA, and Indian Commerce Minister Piyush Goyal.

“This office is expected to further intensify ADIA’s investment activities in India,” the Ministry of Commerce and Industry said in a statement.

“ADIA’s presence in GIFT City underscores the strong interest of UAE institutional investors in India’s growing and dynamic economy. It strengthens GIFT City’s standing as a premier financial services center run under a strict legal and regulatory structure.

The Indian government has hailed GIFT City, a major project in the home state of Prime Minister Narendra Modi, as a “robust gateway to global capital and financial services” for the country’s economy.

Companies operating in GIFT City enjoy complete tax exemption on business profits for 10 consecutive years within a 15-year period, and no tax on remittance of funds from foreign jurisdictions.

“India is one of the world’s fastest growing economies and has been a key focus for ADIA’s investment activities for many years. We have built a comprehensive portfolio spanning asset classes and we are confident in India’s long-term growth prospects,” quoted Emirati state news agency WAM.

“The establishment of ADIA’s subsidiary in Gift City underscores our confidence in the opportunities offered by India’s continued growth. A strong legal and regulatory base is enabling GIFT City to build a thriving international financial services ecosystem. An announcement on ADIA’s establishment at the Gujarat plant was made in July 2023, during Modi’s official visit to Abu Dhabi.

The UAE is India’s biggest Middle East investor, with over $3 billion in investments made in the fiscal year 2023–2024, according to data from the Indian government.