UAE raises investment commitment to US$ 100 Billion

The United Arab Emirates (UAE) is set to increase its investment commitment in India, to nearly US$ 100 billion. Currently, the UAE is the seventh-largest foreign direct investor in India, representing 3% of the total FDI, with cumulative investments of approximately US$ 19 billion from April 2000 to June 2024.

The United Arab Emirates (UAE) is poised to raise its investment commitment in India to over US$ 100 billion, up from an initial goal of US$ 75 billion. Following the 12th meeting of the India-UAE High-Level Task Force on Investments, the Commerce and Industry Minister Piyush Goyal informed, “We have also reviewed the progress in the US$ 75 billion investment that was planned from UAE to India, which when we discussed today, will fructify to nearly US$ 100 billion investment in infrastructure, manufacturing, public markets and various other forms of investment.”

Recent discussions have centered around establishing “Food Corridors,” which will focus on creating food parks in India tailored for the UAE market. The Minister further added that an initial investment of US$ 2 billion is planned to develop food processing units that cater to UAE tastes, along with the necessary logistics for transporting these products.

The UAE is currently the seventh-largest foreign direct investor in India, with cumulative investments of around US$ 19 billion from April 2000 to June 2024, accounting for 3% of total Foreign direct investment (FDI). 

The Minister said, “UAE investment comes through two mediums. One is directly from the UAE which is in the region of about US$ 20 billion. They are also co-investing through several other funds across the world. All the Blackstones and KKRs have a large degree of investments from sovereign wealth funds of UAE which then come to India through the large investment houses.” 

The Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE and among the largest globally, has commenced operations in India after obtaining regulatory approvals and opening an office in GIFT City. This new office is expected to enhance ADIA’s investment activities within the country.

In addition, India will be opening a trade and investment promotion office in the UAE, a collaborative effort involving Invest India, the Export Credit Guarantee Corporation (ECGC), the Directorate General of Foreign Trade (DGFT), and the National Industrial Corridor Development Corporation (NICDC). The NICDC is focused on developing 20 smart industrial cities across India.