As part of a larger wager on the major economy with the highest rate of growth in the world, the United Arab Emirates (UAE) is thinking of spending as much as $50 billion in India, its second largest trading partner.
Preliminary commitments from the UAE might be made public early in 2024, according to people familiar with the matter, who spoke to Bloomberg.
Over the past ten years, the nations have worked to strengthen their relationship and raise their bilateral non-oil trade to $100 billion. After becoming prime minister in 2014, Modi has travelled to the Gulf state five times. His most recent visit was to Abu Dhabi in July 2023.
Indira Gandhi was the last Indian Prime Minister to visit the United Arab Emirates in 1981.
Sources close to Bloomberg also revealed that agreements involving interests in important state-owned businesses and infrastructure projects in India are being explored.
Announcements are probably going to come before Modi runs for a third term in the upcoming federal elections. Sovereign wealth funds like ADQ, Mubadala Investment Co., and Abu Dhabi Investment Authority may be involved in some of the deals.
According to the sources, a significant portion of the investments in the pledges are unlikely to have defined timeframes. The size and timing of the announcements are still up for debate.
Organisations under the direction of Sheikh Tahnoon bin Zayed Al Nahyan have initiated preliminary discussions on billion-dollar investments in India as part of this drive.
The chairman of International Holding Co. (IHC), which last month revealed a 5 per cent interest in Gautam Adani's flagship group, is Sheikh Tahnoon, the brother of the UAE president.
Days later, IHC reduced its ownership stake in two Adani companies, although at the time the company reaffirmed its commitment to India.