Skip to content Skip to Search
Skip navigation

ADIA gets nod for $5bn fund in India’s new business hub

By Pramod Kumar
Abu Dhabi Gujarat Gift City Gift City
Abu Dhabi Investment Authority will be the first sovereign wealth fund to begin investing in India via Gift City

The Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, will set up a $4 billion to $5 billion fund in India’s latest special economic zone.

The regulatory authority for financial services at Gujarat International Finance Tec-City (Gift City) has granted in-principle approval to ADIA to set up the fund, the Reuters news agency reported, citing informed sources.

The Abu Dhabi fund announced its intention to establish a presence in the hub last July.

The approval will make ADIA the first sovereign wealth fund to begin investing in India via Gift City.

The nod comes days before India’s prime minister, Narendra Modi, is due to visit Abu Dhabi to open the Baps Hindu Mandir, a traditional Hindu place of worship, address the World Government Summit in Dubai, and sign the first bilateral investment treaty with the UAE.

In September, Saudi Arabia’s Public Investment Fund (PIF) announced plans to set up an office in Gift City to invest $100 billion in the world’s fifth-largest economy.

Trade between the two countries reached $85 billion for the financial year ended March 2023, Indian government data shows.

The UAE is India’s third-largest source of foreign direct investment and its seventh-largest trade partner. It also hosts one of the largest Indian diaspora populations in the world, at 3.5 million.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]

Car, Transportation, Vehicle

Dubai Taxi to pay $43m dividend despite profit drop

Dubai Taxi Company, a subsidiary of the emirate’s transport regulator, has approved a dividend payout of AED159 million ($43 million) for the first half of 2024 despite a marginal 1 percent increase in net profit. Net earnings reached AED187.4 million in the first six months of the year, compared to AED186.3 million at the same […]