ADIA Begins India Operations with New Office in GIFT City, Gujarat
The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund of the UAE, has started its operations in India. This follows the opening of its office in GIFT City, Gujarat, after receiving necessary regulatory approvals. ADIA, established in 1976, is known for its global investment strategies aimed at long-term value creation for the Government of Abu Dhabi.
The 12th Meeting of the India-UAE High-Level Joint Task Force on Investments was held in Mumbai, co-chaired by India’s Commerce and Industries Minister Piyush Goyal and ADIA’s Managing Director Sheikh Hamed bin Zayed Al Nahyan. Discussions focused on enhancing ADIA’s investment activities in India.
GIFT City in Ahmedabad is emerging as a global financial and technology hub, supporting business expansion. During Prime Minister Narendra Modi’s visit to Abu Dhabi in July 2023, it was announced that ADIA would establish a presence in GIFT City. This was confirmed during the UAE President Sheikh Mohammed bin Zayed Al Nahyan’s visit to Ahmedabad in January 2024.
ADIA has set up an Alternative Investment Fund in GIFT City for its India-related investments. The presence of ADIA in GIFT City highlights the UAE’s strong interest in India’s economy and enhances GIFT City’s status as a top financial services center.
The UAE remains the largest Arab investor in India, with investments of around USD 3 billion in 2023-24. It was the sixth-largest source of Foreign Direct Investment (FDI) for 2023-24 and the seventh-largest since 2000. The new India-UAE Bilateral Investment Treaty, effective from August 31, 2024, is expected to boost investment flows between the two nations.
Doubts Revealed
ADIA -: ADIA stands for Abu Dhabi Investment Authority. It is a large investment organization from Abu Dhabi, which is a part of the United Arab Emirates (UAE). They invest money in different countries to earn profits.
GIFT City -: GIFT City stands for Gujarat International Finance Tec-City. It is a special area in Gujarat, India, designed to be a hub for financial and technology services. It aims to attract businesses and investments from around the world.
Regulatory approvals -: Regulatory approvals mean getting permission from the government or authorities to do certain activities. In this case, ADIA needed permission to start their operations in India.
India-UAE High-Level Joint Task Force on Investments -: This is a group formed by India and the UAE to discuss and improve investment relations between the two countries. They meet to find ways to increase investments and solve any issues related to it.
Piyush Goyal -: Piyush Goyal is an Indian politician and a member of the government. He has held various important positions, including Minister of Commerce and Industry, and works on improving India’s trade and investment.
Sheikh Hamed bin Zayed Al Nahyan -: Sheikh Hamed bin Zayed Al Nahyan is a member of the ruling family of Abu Dhabi in the UAE. He is involved in managing investments and plays a key role in economic discussions between the UAE and other countries.
Bilateral treaty -: A bilateral treaty is an agreement between two countries. It is made to improve cooperation in areas like trade, investment, and other mutual interests. In this context, it aims to increase investment flows between India and the UAE.