“ADIA” plans to invest between 4 to 5 billion dollars in India’s “GIFT City”

Two sources told Reuters that the Abu Dhabi Investment Authority (ADIA) plans to create a fund valued between 4 and 5 billion dollars to invest in India.

This investment would be channeled through a financially neutral hub located in Gujarat, which is the home state of Prime Minister Narendra Modi.

The two sources, who requested anonymity as they were not authorized to speak to the media, stated, “The regulatory authority for financial services in Gujarat International Finance Tec-City (GIFT City) has granted Abu Dhabi Investment Authority preliminary approval to establish this fund.”

“The intention of ‘ADIA’ to establish its presence in GIFT City was first announced in July during a joint statement by India and the UAE. Previously, the details regarding the scale of the planned investment or regulatory approvals were not disclosed.”

With this approval, the Abu Dhabi Investment Authority will become the first sovereign wealth fund to commence investing in GIFT City.

According to government data, the volume of bilateral trade between India and the United Arab Emirates reached $85 billion in the fiscal year ending in March 2023.

The source stated without going into details, “By the middle of this year, the Abu Dhabi Investment Authority will be able to start investing through this fund.

The funds earmarked for India will be invested over a period of time.” (Reuters)