UAE wealth fund starts operations in India's new finance hub
The UAE is the largest Arab investor in the South Asian country, and is setting up a fund of US$4 billion to US$5 billion to invest in the Gujarat-based hub
THE Abu Dhabi Investment Authority, the largest sovereign wealth fund in the United Arab Emirates (UAE), has started operations in an Indian tax-neutral finance hub, New Delhi said on Monday (Oct 7).
The Gujarat International Finance Tec-City, or Gift City, is a financial services hub that the Indian government is promoting as a “gateway for global capital and financial services”.
The zone, established in Prime Minister Narendra Modi’s home state of Gujarat, offers a 10-year tax holiday for companies setting up there, no taxes on the transfer of funds from overseas jurisdictions and closeness to Indian markets.
The investment authority first announced that it intended to establish itself in the hub in July 2023. In February, Reuters reported that the sovereign fund was setting up a US$4 billion to US$5 billion fund to invest in the country through the finance hub.
The UAE is the largest Arab investor in India, with investments of around US$3 billion in fiscal year 2023 to 2024. REUTERS
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