ADIA ramps up investments in India as UAE leverages ties

From energy, infrastructure and pharmaceuticals to iconic snack brands and baby products, the Abu Dhabi Investment Authority has been pumping funds into India over the past six months.

Across five deals with Indian businesses, the sovereign wealth fund invested $1 billion during the first half of 2024 as the UAE pushes to increase non-oil bilateral trade with its second-largest trading partner.

India is becoming a magnet for sovereign investment amid growing geopolitical and economic uncertainty elsewhere.

Last month UAE Minister of Economy Abdullah bin Touq led a trade delegation of Emirati business leaders and government officials to the world’s most populous nation.

It followed reciprocal visits by UAE President Sheikh Mohamed bin Zayed and Indian Prime Minister Narendra Modi.

ADIA has been able to leverage relationships with India’s biggest conglomerates, including Mukesh Ambani’s Reliance Industries and Gautam Adani’s Adani Group, to grow its presence.

The fund has been named among likely investors, alongside Abu Dhabi’s International Holding Co., in an upcoming $1 billion stock offering for Adani Energy.

Among the non-oil deals under pursuit, ADIA is a part of a consortium led by Blackstone which is attempting to acquire a majority stake in snack giant Haldiram in a deal worth $4.8 billion. If successful, the purchase is likely to be the largest private equity buyout in India to date.

The fund is also being sounded out by the Indian government to buy its stake in Vodafone Idea.