UAE is considering investing $50 billion in India – Bloomberg

The UAE is considering investing up to 50 billion dollars in India, its second largest trading partner, as part of a wider bet on the world’s fastest-growing major economies.

“Interim pledges could be announced early next year, and any new investments would follow Narendra Modi’s meetings with UAE President Sheikh Mohammed bin Zayed Al Nahyan in July,” people familiar with the matter, who asked not to be identified because the information is not public, told “Bloomberg.”

Both countries have sought to strengthen bilateral relations over the past decade, aiming to increase non-oil bilateral trade to 100 billion dollars.

Modi recently visited Abu Dhabi on his fifth visit to the UAE since becoming prime minister in 2014. In 1981, Indira Gandhi was the last Indian prime minister to visit the UAE before Modi.

“The deals being considered include stakes in major infrastructure projects and state-owned assets,” the sources told “Bloomberg.”

“It is likely to be announced before Modi seeks a third term in elections scheduled for next year,” they added.

“Some investments may be pumped through sovereign wealth funds, such as Abu Dhabi Investment Authority,” Mubadala” Investment Company, and Abu Dhabi Holding,”, the sources told “Bloomberg.”

“The pledges are unlikely to include clear timelines for a significant part of the investments; no final decisions have been made on the size or timing of the announcements,” according to the sources.

The entities supervised by Sheikh Tahnoon bin Zayed held talks at an early stage about investing billions of dollars in India as part of these efforts, according to “Bloomberg.”