Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the United Arab Emirates (UAE), is setting up a $4-5 billion fund to invest in India through a tax-neutral finance hub in Prime Minister Narendra Modi’s home state of Gujarat, according to two sources with direct knowledge of the matter.
The regulatory authority for financial services at Gujarat International Finance Tec-City, or GIFT City, has granted in-principle approval to ADIA to set up the fund, sources said, declining to be identified as they are not authorised to speak to media.
ADIA’s intention to establish a presence in the hub was first announced last July in a joint statement by India and UAE. The amount of investment planned and the approval from the regulatory authority has not been previously reported.
A spokesperson for ADIA declined comment. An email to the International Financial Services Authority (IFSCA), which regulates financial services in the hub, was not answered.
With the approval, ADIA will become the first sovereign wealth fund to begin investing in India via GIFT City. The greenlight comes days before Modi is set to visit Abu Dhabi to inaugurate a large temple.
Since becoming prime minister a decade ago, Modi has visited UAE six times, strengthening ties with India’s third-largest trading partner.
Trade between India and the UAE totalled $85 billion for the financial year ending March 2023, according to Indian government data.
The Arab nation is host to one of the largest Indian diaspora populations in the world at 3.5 million, which constitute almost 35% of UAE’s total population.
“By the middle of this year, ADIA could start investing through this fund. The allocated funds would be invested in India over a period of time,” said the first of the two sources, without elaborating.
Funds which set up at GIFT City can invest in Indian and foreign equities and debt securities, among other assets.
Mr. Modi’s government has in recent months tried to boost activity at the GIFT City, including by allowing firms which are unlisted in India to list shares directly at exchanges there.
The number of family offices in the world has tripled since 2019, setting off a new race among private equity firms, hedge funds and venture capital firms to attract their investments. According to
In a recent development that has caught the attention of Wall Street and Main Street alike, the Senate has taken significant steps on a controversial tax bill. This legislation, if passed, could dramatically
Ahead of a vote in the European Parliament on new debt rules for EU countries, the Greens co-president Philippe Lamberts warned against the “end of the European Union as we know it” in a worst-case
In a move towards fiscal transparency, Kenyan banks disclose foreign account holders’ information to the KRA under the Common Reporting Standards (CRS). The initiative aims to curb illicit wealth