Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the United Arab Emirates (UAE), has started operations in an Indian tax-neutral finance hub, the government said on Monday.
The Gujarat International Finance Tec-City, or GIFT City, is a financial services hub that the Indian government is promoting as a "gateway for global capital and financial services".
The zone, established in Prime Minister Narendra Modi's home state of Gujarat, offers a 10-year tax holiday for companies setting up there, no taxes on the transfer of funds from overseas jurisdictions and closeness to Indian markets.
ADIA's intention to establish a presence in the hub was first announced in July 2023. In February, Reuters reported that the sovereign fund was setting up a $4 billion to $5 billion fund to invest in the country through the finance hub.
The UAE is the largest Arab investor in India, with investments of around $3 billion in fiscal year 2023-24.