In an exclusive interview with CNBC-TV18, UAE Ambassador to India, Abdulnasser Alshaali, shared that a major Abu Dhabi-based bank is in advanced discussions to acquire a significant stake in an Indian bank. While the names of the banks remain undisclosed due to market sensitivities, the potential investment could be valued at billions of dollars, signaling deepening economic ties between the two nations.
Key Investment Opportunity with Challenges
Ambassador Alshaali acknowledged the magnitude of the deal but emphasized that certain unresolved issues need to be addressed before the investment can move forward. “There are some matters that need to be sorted out for this to go ahead,” he stated, while expressing optimism that the concerns would soon be resolved, enabling the significant transaction.
Crown Prince’s Visit Strengthens Bilateral Ties
This potential banking deal follows the recent visit of UAE Crown Prince Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan to India. During the visit, key discussions were held with Indian Prime Minister Narendra Modi, focusing on expanding bilateral cooperation in finance, trade, and infrastructure. The meeting, which took place at Hyderabad House in New Delhi, marked a milestone in the strategic relationship between the two countries.
Expanding UAE-India Economic Relations
Ambassador Alshaali highlighted the growing scope of UAE-India relations, particularly in trade and investment. “We are the second-largest export destination for India, the third-largest trade partner, and the fourth-largest investor,” he noted, stressing the remarkable progress in economic cooperation. Talks during the Crown Prince’s visit included sectors such as ports, renewable energy, and advanced technologies, with both nations prioritizing collaboration in energy security and food security.
Focus on Multisectoral Partnerships
Further discussions revolved around pharmaceuticals, logistics, and supercomputing, showcasing the multidimensional nature of the partnership. Additionally, the ambassador mentioned ongoing talks to enhance trade settlement mechanisms, including using local currencies and digital payment infrastructures like India’s UPI (Unified Payments Interface).
Strengthening Cultural and Strategic Ties
Ambassador Alshaali also highlighted the cultural connections between the UAE and India, referring to the “third-generation connection” that strengthens the people-to-people ties. As both nations continue to explore strategic investments, particularly in banking and ports, the future looks bright for further cooperation across a variety of sectors.
