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 prosecution sought 12-year prison sentences Wednesday for the founders of a now-defunct law firm at the center of the so-called “Panama Papers” tax evasion scandal. Jurgen Mossack and
The coalition, which also brings together Somalia, Benin, Sierra Leone and Antigua and Barbuda, said it would work to increase the number of countries taxing plane tickets, including business-class
The Luxembourg government submitted a draft law (Draft Law) to Parliament that modifies the existing minimum net wealth tax regime (NWT) to align it with a ruling of the Luxembourg Constitutional Court.The
Last month’s steep increase in Singapore’s carbon tax illustrates the commitment the country has made to bringing about a carbon-neutral future. Without government intervention and regulation,