At a time when the overseas investments in India are on a decline, the Abu Dhabi Investment Authority’s (ADIA) ? one of the world?s largest sovereign wealth fund worth $700 billion ? is now looking for investment opportunities in India.
ADIA?s MD Sheikh Hamed bin Zaved Al Nahvan is set to visit India with a 14-member delegation in two weeks? times (January 15-21) to explore investment opportunities in India, said a senior government official in the ministry of commerce and industry.
So far, ADIA has been focused in the US and Europ. In India, the ADIA has a 12% stake in Infrastructure Leasing & Financial Services (IL&FS).
The meeting is crucial as Sheikh Hamed is not just the ADIA?s MD but is also brother of the UAE president Sheikh Khalifa and of Sheikh Mohamed who is crown prince of Abu Dhabi. He is also a minister and chairman of Etihad Airlines and chairman of Crown Prince Court of Emirate of Abu Dhabi.
?The Indian ambassador has requested the DIPP secretary PK Chaudhery to help ADIA look for suitable investment options in the country. The ADIA head is scheduled to meet senior Cabinet ministers and officials which include finance minister Pranab Mukherjee and the commerce and industry minister Anand Sharma,? the official said.
Interestingly, this visit could help India in solving its foreign direct investment (FDI) worries which has kept the government in a sticky position.
The country has been witnessing a constant decline in the FDI inflows and such investments may boost investor confidence. Already, the country has seen a 0.6% decline in the gross fixed capital formation akin to the third and fourth quarters of the crisis year 2008-09 which is also a big concedding to the worries.