UAE Operationalises Sovereign Fund For India, To Invest $75 Billion Into Indian Economy Over Next Decade

[NRJ]

In a major move to further boost bilateral economic ties, the United Arab Emirates (UAE) has operationalised a USD 75 billion sovereign fund for India of which USD one billion has already been transfered, the Gulf nation's envoy said today.

Diplomatic sources said Prime Minister Narendra Modi is likely to visit Abu Dhabi, the capital of UAE, in February to attend a global leadership summit.

On the sovereign fund, UAE Ambassador to India Ahmed Albanna said operationalisation of the USD 75 billion sovereign fund for India reflects UAE's commitment to significantly improve trade and investment ties.

He said USD one billion has already been transferred to India's National Infrastructure and Investment Fund. It was not clear when the entire amount will be transferred or the conditions related to the investment.

Abu Dhabi has a sovereign wealth fund of about USD 800 billion. India has been eyeing the fund, parked with the Abu Dhabi Investment Authority, for its infrastructure sector.

The issue was discussed during Modi's visit to UAE in August 2016.

Albanna, during a media interaction, said India-UAE cooperation was moving fast in various areas including in containing terrorism and radicalisation.

"We are working closely to defeat terrorism," he said.

The envoy said UAE will soon open visa and consular services centres in Hyderabad, Chandigarh and Chennai.

The UAE embassy has also launched a mobile app to help Indians living in the Gulf in dealing with visa and work related issues.

The ties between India and the UAE are on an upswing.

India is UAE's number one trading partner and the annual trade currently stands at around USD 53 billion. UAE, a major player in the Gulf region, is a strategically important country for India.

The country is home to around 2.6 million Indians who constitute nearly 30 per cent of its population.

The country contributes significantly to India's energy security and was the fifth-largest supplier of crude oil to India in 2016-17.

Source

 

[Ashwin]

It will be a huge if both can make it translate this into real investment on the ground rather than mere rhetorics.

Geopolitically, we need a strong ally in the Middle East and UAE need long-term security assurance with all the apparent US withdrawal from the region.

 

[Ironhide]

It will be a huge if both can make it translate this into real investment on the ground rather than mere rhetorics.

Geopolitically, we need a strong ally in the Middle East and UAE need long-term security assurance with all the apparent US withdrawal from the region.

It is real investment from UAE and not a rhetoric, as the the headline indicates UAE has already operationalised the $75 Billion funds meant for India by releasing more than 1 Billion Dollars already and this was quick implementation too, just last year Modi Ji went to UAE and made these ten year agreements.

 

[Ashwin]

It is real investment from UAE and not a rhetoric, as the the headline indicates UAE has already operationalised the $75 Billion funds meant for India by releasing more than 1 Billion Dollars already and this was quick implementation too, just last year Modi Ji went to UAE and made these ten year agreements.

This is rhetoric until its actually invested. One of the biggest investor JICA managed to bring in just a third of whats mentioned above after all these years. Only way such large number can materialize is through investment in energy sector.

Modi will tour so many places and will make statements. That is for public consumption. To make it reality it need years of work. Also, Modi don't have a magic wand. Foreign policy relationships are built on decades. He is just building on what the previous governments work.

 

[Pundrick]

We badly need those money for infrastructure, plus it will provide good returns unlike investing in some USA/Western bonds.

UAE choose best investment destination.

 

[Ironhide]

This is rhetoric until its actually invested. One of the biggest investor JICA managed to bring in just a third of whats mentioned above after all these years. Only way such large number can materialize is through investment in energy sector.

Modi will tour so many places and will make statements. That is for public consumption. To make it reality it need years of work. Also, Modi don't have a magic wand. Foreign policy relationships are built on decades. He is just building on what the previous governments work.

As reported in the above news "USD one billion has already been transferred to India's National Infrastructure and Investment Fund." So, UAE has already started sending money within one year of signing agreement.

 

[Pundrick]

This is rhetoric until its actually invested. One of the biggest investor JICA managed to bring in just a third of whats mentioned above after all these years. Only way such large number can materialize is through investment in energy sector.

Modi will tour so many places and will make statements. That is for public consumption. To make it reality it need years of work. Also, Modi don't have a magic wand. Foreign policy relationships are built on decades. He is just building on what the previous governments work.

I think the announcement of $ 75 billion was made public only 2 years during NDA. Could you post link which proves that the 75 billion proposal was signed during UPA rule ?

Even if it was, I think UAE would have reconsidered it after the policy paralysis of UPA-2.

 

[Butter Chicken]

Hopefully Modi will be able to convince Norway,Kuwait and Saudi too,which have $500 billion-$1 trillion sovereign funds just sitting there.

 

[Ashwin]

As reported in the above news "USD one billion has already been transferred to India's National Infrastructure and Investment Fund." So, UAE has already started sending money within one year of signing agreement.

Did you miss the second part how its not final yet?

I think the announcement of $ 75 billion was made public only 2 years during NDA. Could you post link which proves that the 75 billion proposal was signed during UPA rule ?

Even if it was, I think UAE would have reconsidered it after the policy paralysis of UPA-2.

Read again, Foreign policy relationship towards a country, not referring to a perticular agreement.

 

[Pundrick]

Read again, Foreign policy relationship towards a country, not referring to a perticular agreement.

Then you made a very generalized statement, bcoz the relation was always better with UAE but they never promised huge investment.

May be 75 is very exaggerated figure but that's how politics and economy works. Even if we get 1/3rd of what is announced in 10 years, then we'll still end up getting 25 billion which is not small amount either.

But all this depends on how stable environment Indian politics provides to the foreign investors, I am also very skeptic about 75 billion though.

 

[Ironhide]

Did you miss the second part how its not final yet?


Read again, Foreign policy relationship towards a country, not referring to a perticular agreement.

I am talking about already operationlised funds which is the headline of the news, 1 Billion USD has been transferred to India's National Infrastructure and Investment Fund, the second part you see is just speculation on when the rest 74 Billion will come by the author. The UAE Ambassador is saying UAE is showing its commitment by operationlising the 75 Billion fund by transferring 1 Billion already, UAE is walking the talk here. Of course, the agreement is for 10 years, so you cannot expect all 75 Billions USD at one Go.

 

[Ashwin]

Then you made a very generalized statement, bcoz the relation was always better with UAE but they never promised huge investment.

May be 75 is very exaggerated figure but that's how politics and economy works. Even if we get 1/3rd of what is announced in 10 years, then we'll still end up getting 25 billion which is not small amount either.

But all this depends on how stable environment Indian politics provides to the foreign investors, I am also very skeptic about 75 billion though.

Yes, It is a general statement. Was replying to how Modi went in and bought $75 billion !.

 

[Antiguy]

India should reject this money and depend upon internal sources for growth.

 

[Antiguy]

I think the announcement of $ 75 billion was made public only 2 years during NDA. Could you post link which proves that the 75 billion proposal was signed during UPA rule ?

Even if it was, I think UAE would have reconsidered it after the policy paralysis of UPA-2.

isn't it amzing? Within 6 months of Modi becoming PM people had so much confidence they gave 75 billion dollar.

 

[Pundrick]

India should reject this money and depend upon internal sources for growth.

And exactly how internal sources will invest and who will invest ? Are you suggesting banks to invest or public money be invested for infrastructure ? That will be crowding out funds from the private investors, not good for economy.

 

[Pundrick]

isn't it amzing? Within 6 months of Modi becoming PM people had so much confidence they gave 75 billion dollar.

Nobody is "giving" the money, they have just announced a number based on either future prospect of GoI's reform steps or they didn't had anywhere else to invest in.

And not in 6 months, but after 1 year of NDA the economic data did improve & combined with GoI's promise to further bring in reform did changed mind of many foreign investors to divert their money in Indian market, though mostly in capital market.

 

[Antiguy]

Nobody is "giving" the money, they have just announced a number based on either future prospect of GoI's reform steps or they didn't had anywhere else to invest in.

And not in 6 months, but after 1 year of NDA the economic data did improve & combined with GoI's promise to further bring in reform did changed mind of many foreign investors to divert their money in Indian market, though mostly in capital market.

hardly. The middle east knows what a strong leader means. They saw modi and realized this is a rare man of business and decided to immediately support investments. Do you not think they would have been tracking him for a long time?