Abu Dhabi Investment Authority begins operations from GIFT City

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the United Arab Emirates (UAE), has begun its India operations at the Gujarat International Finance Tec-City (GIFT City) in Ahmedabad, the investor said in a statement.

“India is one of the world’s fastest growing economies and has been a key focus for ADIA’s investment activities for a number of years. We have built an extensive portfolio that spans asset classes, and we remain confident in India’s long term growth prospects,” Hamed bin Zayed Al Nahyan, managing director at ADIA, said.

Ways to leverage its presence in India to further deepen ADIA’s investment profile in India were discussed during the 12th meeting of the India-UAE high-level joint task force on investments in Mumbai on Monday, 7 October, an Indian government statement said.

The meeting was co-chaired by trade minister Piyush Goyal and Hamed.

ADIA had announced that it would set up a base at GIFT City during Prime Minister Narendra Modi’s visit to Abu Dhabi in July last year.

This was reiterated in a joint statement issued during UAE President Mohammed bin Zayed Al Nahyan’s visit to Ahmedabad in January this year. Subsequently,

ADIA announced the setting up of an alternative investment fund in GIFT City to hold all its India-related investments.

“Establishing ADIA’s subsidiary at GIFT City underlines our belief in the opportunities presented by India’s continued growth. GIFT City is creating a dynamic, world-class financial services ecosystem, operating under a strong regulator and a robust legal framework,” Hamed said.

ADIA will undertake a phased transfer of certain existing Indian investments to its GIFT City subsidiary, which will also hold future Indian investments, the statement said.

ADIA invests across asset classes in India, including significant holdings in public and private equity, and infrastructure.

The GIFT City in Ahmedabad is emerging as a leading global financial and technology hub with a thriving financial ecosystem to support and expand businesses.

ADIA’s presence in the GIFT City underlines the strong interest from UAE’s institutional investors in India’s growing and dynamic economy, the sttaement said.

The UAE continues to be the largest Arab investor in India, with investments to the tune of $3 billion in FY24.

The UAE was the sixth largest source of foreign direct investment in FY24 and the seventh-largest overall since 2000.

Over 70% of all investments from the six Gulf Cooperation Council member-countries come from the UAE.

The new India-UAE Bilateral Investment Treaty, which entered into force on 31 August, will further strengthen two-way investment flows, the statement added.