Abu Dhabi Investment Authority to establish subsidiary in GIFT City: Piyush Goyal

The India-UAE High Level Joint Task Force on Investments (HLJTFI) gathered for its 12th meeting in Mumbai on Monday, October 7. The meeting was co-chaired by Commerce and Industry Minister Piyush Goyal and Abu Dhabi Investment Authority (ADIA) Managing Director Sheikh Hamed bin Zayed Al Nahyan. During the meeting, the co-chairs acknowledged the continued growth and strengthening of the bilateral relationship between India and the UAE, spanning a number of matters including those related to trade and investments. The India-UAE Bilateral Investment Treaty, signed during Prime Minister Narendra Modi’s visit to the UAE in February 2024, has been ratified by both sides and entered into force with effect from August 31, 2024, according to an official statement.  

Goyal said that the government will open an Invest India office in Dubai, the UAE, which will serve as a dedicated point of contact for potential UAE investors seeking to invest in India.

The Indian Union Minister also said that Abu Dhabi Investment Authority (ADIA) will establish a subsidiary at GIFT City in Gujarat. "This underlines the strong interest from UAE’s institutional investors in India’s growing and dynamic economy, and GIFT City’s reputation as world-class financial services centre, operating under a strong regulator and a robust legal framework," the statement mentioned. 

“India-UAE partnership stands on the pillars of innovation, investment and sustainable development. The Joint Task Force meeting today was useful to take stock of all the laudable initiatives that India and the UAE have jointly undertaken, such as local currency settlement, virtual trade corridor, Bharat Mart, and so on," said the Commerce and Industries Minister. 

"With the strong framework now provided by India-UAE CEPA and Bilateral Investment Treaty, I encourage stakeholders to further explore investment opportunities and trade possibilities," Goyal added.

He also acknowledged food parks among the key areas for greater collaboration and investments between India and the UAE. 

Established in 2013 to promote trade, investment, and economic ties between India and the UAE, HLJTFI has provided an effective mechanism to discuss opportunities and prospects for further investments in India and the UAE. It also acts as a forum to resolve issues faced by investors of the two countries.

The co-chairs acknowledged a number of areas during the meeting, including the rapid rise in bilateral trade under the Comprehensive Economic Partnership Agreement (CEPA), which came into force in May 2022.

The Joint Task Force also reviewed the working of the India-UAE CEPA, which was one of the fastest-ever negotiated Free Trade Agreements.

This landmark agreement is designed to stimulate increased trade and boost the trading relationship between the two countries, the trade ministry said.

In the last two years, the CEPA has helped reduce tariffs on the majority of product lines, sought to address other barriers to trade, and created new avenues for cooperation.

As a result of the deal, bilateral trade has risen consistently, with non-oil trade rising to $28.2 billion in the first half of 2024, a 9.8 per cent year-on-year increase, the ministry noted.

It also highlighted that the agreement has spurred FDI on both sides, representing "real growth with real, on-the-ground impact". The agreement has also led to job creation in India and rapid growth in exports from labour-oriented sectors, it said. 

Considering the strategic agreements and initiatives signed during Abu Dhabi Crown Prince Sheikh Khalid bin Mohamed Al Nahyan's recent official visit to India, the two sides noted the existing and future investments and projects of UAE entities in key sectors of the Indian economy, including energy, artificial intelligence, logistics, and food and agriculture, totalling approximately $100 billion.

The meeting also reviewed UAE investments in Indian infrastructure assets.

During Monday's meeting, the two sides reviewed progress on several key initiatives, a few of which were previously announced by Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan. Both sides also expressed satisfaction at the rapid pace of implementation.