UAE’s ADIA Launches Operations in India, Boosting Bilateral Trade Partnership
The ADIA, Abu Dhabi Investment Authority, which is one of the largest sovereign wealth funds globally, has opened its office in the Gujarat International Finance Tec-City (GIFT-City). This economically loaded step made during a top-level bilateral summit in Mumbai heralds the enhanced scale of investment cooperation between India and the UAE.
Enhanced Investment Framework Between India-UAE
ADIA’s subsidiary in Gujarat International Finance Tec-City can be rated as the major turning point in India-UAE economic cooperation. Being settled under a strong legal system, Gujarat International Finance Tec-City presents liberal policies for foreign investors, such as exemption from all income tax on business income for any ten consecutive years within fifteen years, to act as a gateway for overseas investors in the Indian economy.
This action comes after the signing of the India-UAE Comprehensive Economic Partnership Agreement whose effects have been to boost bilateral trade significantly. Crucially, the UAE has come out as the biggest investor in India in the 2023-24 financial year investing $3 billion which shows the growing economic cooperation between India and the UAE.
Strategic Collaboration in Bilateral Trade Partnership
ADIA has been planning its operations in Gujarat International Finance Tec-City since the prime minister of India Narendra Modi visited the capital city of Abu Dhabi in the United Arab Emirates in July of the year 2023. During the recent high-level meeting that was co-chaired by the Indian Commerce Minister Piyush Goyal and the ADIA Managing Director Sheikh Hamed bin Zayed Al-Nahyan showed more commitment to deepen the bilateral investment partnership.
The representatives of both parties also shared their confidence in India’s growth story and the prospects of Gujarat International Finance Tec-City. He pointed to the long-standing investment in India by ADIA which has invested in various forms of sectors insisting that his company has a long portfolio in India and is optimistic about the growth story of India.
Regulatory Framework and Benefits of Abu Dhabi Investment Authority
Gujarat International Finance Tec-City has a very rigid legal environment that seeks to regulate the city to attract global players. The companies located in this financial center benefit in many ways such as tax advantages and efficient modes of transfer of funds from overseas locations that have made the environment more suitable for financial institutions in the global market.
The investment by ADIA in Gujarat International Finance Tec-City is likely to spur a higher level of investment activities in India. The Indian government sees such a development as an indication of the keen interest exhibited by UAE institutional investors in the expanding Indian economy and a confirmation of the Gujarat International Finance Tec-City as a global financial services hub.
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Future Prospects in Bilateral Trade Partnership
The setting up of ADIA’s office in Gujarat International Finance Tec-City is a new milestone in the bilateral India-UAE relations. Given that the UAE is the largest Middle Eastern investor in India this step is believed to enhance investment ties between the two states and develop their cooperation.
Both countries have stated that they are willing to seek fresh opportunities for cooperation and investment. The strong legal firm supporting Gujarat International Finance Tec-City and the bonuses for investment in Gujarat International Finance Tec-City make investment in Gujarat International Finance Tec-City more attractive, and the good economic performance in India provides more space for more UAE investments in different sectors of the Indian economy.
