Mumbai: The Abu Dhabi Investment Authority (ADIA), recognized as the largest sovereign wealth fund in the United Arab Emirates and among the top entities globally, has initiated its operations in India following the acquisition of the requisite regulatory clearances and the establishment of its office within the Gujarat International Finance Tec-City (GIFT City), Gujarat.
Founded in 1976, ADIA is a globally-diversified investment institution known for its prudent allocation of funds on behalf of the Government of Abu Dhabi, with a strategy aimed at long-term value creation.
The inauguration of the office is anticipated to significantly enhance ADIA's investment activities in India.
Discussions on how to further deepen ADIA's investment profile in India were held during the 12th Meeting of the India-UAE High-Level Joint Task Force on Investments in Mumbai on Monday.
This meeting was jointly chaired by Piyush Goyal, the Commerce and Industries Minister, and Sheikh Hamed bin Zayed Al Nahyan, the Managing Director of ADIA.
Since its inception, the Gujarat International Finance Tec-City (GIFT City) in Ahmedabad has emerged as a premier global financial and technology hub, offering a vibrant ecosystem that supports and expands businesses.
During Prime Minister Narendra Modi's visit to Abu Dhabi in July 2023, it was announced that ADIA would establish a presence within GIFT City.
This announcement was reaffirmed in the Joint Statement issued following the visit of the President of the UAE, Sheikh Mohammed bin Zayed Al Nahyan, to Ahmedabad in January 2024.
In response, ADIA announced the establishment of an Alternative Investment Fund within GIFT City to manage its India-related investments.
"ADIA's presence within GIFT City underscores the strong interest of UAE's institutional investors in India's burgeoning and dynamic economy. It also reinforces GIFT City's standing as a premier financial services center, operating within a robust regulatory and legal framework," stated the Ministry of Commerce and Industry, India.
The United Arab Emirates remains the largest Arab investor in India, with investments reaching approximately USD 3 billion for the fiscal year 2023-24. The UAE was ranked as the sixth-largest source of Foreign Direct Investment (FDI) for the fiscal year 2023-24 and the seventh-largest overall since the year 2000.
Furthermore, over 70 percent of all global capability center (GCC) investments originate from the UAE. The entry into force of the India-UAE Bilateral Investment Treaty on August 31, 2024, is expected to further solidify the two-way investment relationship.
