Tuesday, Jan 17, 2012
Gulf News
Abu Dhabi: Abu Dhabis sovereign wealth fund, the Abu Dhabi Investment Authority (Adia), could be poised to invest in India.
Indias Trade Ministry said yesterday that Adia had a keen interest in putting cash into the countrys infrastructure market, which is likely to see investment of up to $1 trillion (Dh3.67 trillion) over the next five years.
This is an opportunity to enter this huge market, said Shaikh Hamed Bin Zayed Al Nahyan, managing director of Adia, according to the statement.
The authority is one of the worlds largest sovereign wealth funds with an estimated value of over $600 billion.
Reuters reported that this could include money for the Delhi Mumbai Industrial Corridor (DMIC), a project that aims to build 24 industrial hubs along a railway line connecting the two cities, but details of Adias specific targets in the subcontinent were unclear last night.
Meanwhile, IANS quoted Commerce and Industry Minister Anand Sharma as saying that besides infrastructure, the Abu Dhabi fund could also invest in the sectors like pharma, agro-processing, engineering and services sector.
More engagement
We will be very happy to see your participation in Indias infrastructure building, Sharma said.
The two countries have agreed to set up a joint working group to facilitate the flow of investments, the Commerce and Industry Ministry said in a statement after the meeting.
Keeping in mind the worsening investment climate in developed nations, both leaders agreed that UAE and India should engage more, the statement said.
Gary Dugan, chief investment officer at Emirates NBD, said that the news made sense given Adias ability to invest long-term in the Indian market at a time when the country is struggling economically.
Not surprising
It is a long-term investor, and it is prepared to take a risk where others are not, he said. Adia will have looked and said it is a good opportunity to buy, but it will take time. I think they will see at as a place that is ripe for long-term value investors.
Said Hirsh, an economist at Capital Economics in London, agreed.
There is no surprise in this since Adia has been, for some time, diversifying its investment base, both by sector and geography, he said. Since India is one of the fastest growing economies, it is natural that this will be one of its target markets.
Dugan said infrastructure was sorely needed in India. If you say India to people they say infrastructure. Its the kind of investment that the country needs.
By Orlando Crowcroft, Business News Editor
Gulf News 2012. All rights reserved.
