The United Arab Emirates (UAE) is planning for an investment around $50 billion in India, its second-largest trading partner, as part of a broader bet on the world’s fastest-growing major economy, according to a Bloomberg report.
Provisional pledges from the UAE could be announced early next year, people familiar with the matter said, demanding the identity of anonymity, as the information is not public.
Reportedly, any new investments would follow Narendra Modi’s meetings with UAE President Sheikh Mohammed bin Zayed in July.
Deals being discussed include stakes in key Indian infrastructure projects and state-owned assets, with announcements likely before Modi seeks a third term in federal elections due next year, the sources reportedly stated.
Some of the investments could involve sovereign wealth funds such as the Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, they added.
As part of the push, entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan have held early-stage talks on investing billions of dollars in India, one of the people said. Sheikh Tahnoon is the UAE president’s brother and chairman of International Holding Co., which disclosed a 5% stake in Gautam Adani’s flagship conglomerate last month.
As per the report, the UAE’s plan is a further indicator of the government’s push to position itself as a country that avoids taking sides in a world increasingly split between Washington and Beijing.
Earlier this year, the UAE announced plans to support Turkey’s embattled economy with a $51 billion investment pledge, including about $30 billion in energy. Talks over one deal in that sector — just one part of the broader bilateral push — have collapsed, Bloomberg News has reported.
