The United Arab Emirates is considering investing up to 50 billion dollars in India, its second largest trading partner, as part of a wider bet on the world’s fastest growing major economies.
People familiar with the matter, who requested anonymity because the information is not made public, said that it is possible to announce temporary pledges from the UAE early next year. Any new investments will follow Narendra Modi’s meetings with UAE President Sheikh Mohammed bin Zayed in July, according to a report published by “Bloomberg”.
The two countries have sought to strengthen relations over the past decade and aim to increase bilateral non-oil trade to 100 billion dollars. Modi’s recent visit to Abu Dhabi was his fifth trip to the UAE since becoming prime minister in 2014. Indira Gandhi was the last Indian prime minister to visit the UAE before him in 1981.
The sources said the deals being discussed include stakes in major Indian infrastructure projects and state-owned assets, and are likely to be announced before Modi seeks a third term in elections scheduled for next year. They said that some investments may include sovereign wealth funds such as the Abu Dhabi Investment Authority, Mubadala Investment Company and ADQ.
The pledges are unlikely to include clear timelines for much of the investment, the sources said. No final decisions have been made on the size or timing of the announcements.
One of the people said that as part of these efforts, entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan held talks at an early stage about investing billions of dollars in India.
