The Abu Dhabi Investment Authority (ADIA) has recently opened its office in the Gujarat International Finance Tec-City (GIFT City) in India after obtaining necessary regulatory approvals. ADIA, established in 1976, is one of the UAE’s largest sovereign wealth funds and is focused on long-term value creation through diversified investments. The opening of the office is set to intensify ADIA’s investment activities in India, further leveraging its presence in the country.
During the 12th Meeting of the India-UAE High-Level Joint Task Force on Investments in Mumbai, discussions were held on how to deepen ADIA’s investment profile in India. The meeting was co-chaired by Piyush Goyal, Commerce and Industries Minister, and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority. GIFT City in Ahmedabad has been rapidly emerging as a leading global financial and technology hub, providing a robust ecosystem to support and expand businesses.
The establishment of ADIA’s presence in GIFT City was announced during the visit of Prime Minister Narendra Modi to Abu Dhabi in July 2023 and was reiterated in the Joint Statement issued during the visit of the President of the UAE, Sheikh Mohammed bin Zayed Al Nahyan, to Ahmedabad in January 2024. ADIA has also announced the setting up of an Alternative Investment Fund in GIFT City to hold all its India-related investments. This move highlights UAE’s institutional investors’ strong interest in India’s growing economy and reinforces GIFT City’s reputation as a premier financial services center.
The UAE has been the largest Arab investor in India, with investments totaling around USD 3 billion in 2023-24. It ranked as the sixth-largest source of FDI in 2023-24 and seventh-largest overall since 2000. Over 70% of all global capability center (GCC) investments come from the UAE, showcasing the country’s significant presence in India’s investment landscape. The new India-UAE Bilateral Investment Treaty, which came into force in August 2024, is expected to further enhance two-way investment flows between the two countries.
The opening of ADIA’s office in GIFT City underscores the growing ties between the UAE and India, particularly in the realm of investments. The UAE’s strong interest in India’s vibrant and dynamic economy is reflected in the increased investments and establishment of a strategic presence in GIFT City. With a focus on long-term value creation and diversification of investments, ADIA’s entry into India is poised to contribute to the country’s economic growth and further cement the bilateral relationship between the two nations.
