NEW DELHI: The Abu Dhabi Investment Authority (ADIA), one of the world's largest sovereign wealth funds with an investible amount of $700 billion, is keen to invest in India's infrastructure sector and wants to build a strategic partnership with New Delhi.
ADIA has withdrawn some of its investments from Europe due to the Eurozone debt crisis and diverted some of the investments to South-east Asian countries.
But it is keen to invest in emerging economies such as China, Brazil and India.
Sheikh Hamid bin Zayed Al Nahyan, managing director of ADIA, has held discussions with Indian authorities about possible investments in India.
ADIA has a 12% stake in Infrastructure Leasing and Financial Services Company ( ILFS), but it wants to diversify given the opportunities in the Indian infrastructure sector.
So far, ADIA has concentrated mostly in Europe and the US but given the slowdown in these markets it is looking at other destinations.
"Sheikh Hamed emphasized that ADIA wanted to be a strategic partner for India with long-term objectives," according to an official communication.
The ADIA MD is expected to lead a high-level delegation to India in the second week of January, and hold discussions with commerce and industry minister Anand Sharma and other senior ministers.
Economic relations between India and UAE have deepened in recent years and New Delhi's trade with UAE reached $67 billion in 2010-11. In June, the two countries set up a joint task force to promote investments between the two countries.
ADIA's intention to invest in India comes at a time when the Indian economy has slowed and public finances are under stress. The massive investment required for the infrastructure sector provides a huge opportunity for investors.
The government estimates that infrastructure investments needed for the next five years may exceed $1 trillion.
According to the Planning Commission, rapid urbanization will generate demand for better quality infrastructure and it would be critical for sustaining and accelerating growth.
Government is keen to develop infrastructure in the public-private partnership mode and interest of sovereign wealth funds such as ADIA should help in meeting the funding requirements Jfor bigger infrastructure projects.
ADIA has withdrawn some of its investments from Europe due to debt crisis and diverted some of these to South-east Asian countries.
indiatimes.com
ADIA has withdrawn some of its investments from Europe due to the Eurozone debt crisis and diverted some of the investments to South-east Asian countries.
But it is keen to invest in emerging economies such as China, Brazil and India.
Sheikh Hamid bin Zayed Al Nahyan, managing director of ADIA, has held discussions with Indian authorities about possible investments in India.
ADIA has a 12% stake in Infrastructure Leasing and Financial Services Company ( ILFS), but it wants to diversify given the opportunities in the Indian infrastructure sector.
So far, ADIA has concentrated mostly in Europe and the US but given the slowdown in these markets it is looking at other destinations.
"Sheikh Hamed emphasized that ADIA wanted to be a strategic partner for India with long-term objectives," according to an official communication.
The ADIA MD is expected to lead a high-level delegation to India in the second week of January, and hold discussions with commerce and industry minister Anand Sharma and other senior ministers.
Economic relations between India and UAE have deepened in recent years and New Delhi's trade with UAE reached $67 billion in 2010-11. In June, the two countries set up a joint task force to promote investments between the two countries.
ADIA's intention to invest in India comes at a time when the Indian economy has slowed and public finances are under stress. The massive investment required for the infrastructure sector provides a huge opportunity for investors.
The government estimates that infrastructure investments needed for the next five years may exceed $1 trillion.
According to the Planning Commission, rapid urbanization will generate demand for better quality infrastructure and it would be critical for sustaining and accelerating growth.
Government is keen to develop infrastructure in the public-private partnership mode and interest of sovereign wealth funds such as ADIA should help in meeting the funding requirements Jfor bigger infrastructure projects.
ADIA has withdrawn some of its investments from Europe due to debt crisis and diverted some of these to South-east Asian countries.
indiatimes.com
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