UAE, India set up $75b fund

Dubai - Agreement seeks to support next-gen infrastructure, boost trade by 60%.

The UAE and India agreed on Monday to elevate their economic and investment relations to a new level by setting up a $75 billion infrastructure fund and to boost two-way trade by 60 per cent over the next five years.
The new fund has been designed to support the expansion of India's network of railways, ports, roads, airports and industrial corridors.
The joint communiques issued after the meeting between His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Indian Prime Minister Narendra Modi said given that "India is emerging as the new frontier of investment opportunities", both sides would seek to encourage the investment institutions of the UAE to raise their investments in India, "including through the establishment of the UAE-India Infrastructure Investment Fund". The fund has a target of $75 billion in investments to support India's plans for rapid expansion of next-generation infrastructure.
The two countries said they also agreed to facilitate the participation of Indian companies in infrastructure development in the UAE and cooperate in the manufacturing of defence equipment in India.
The UAE is already India's third-largest trade partner and home to more than 2.5 million Indians. Earlier on Monday, Modi, the first Indian premier to visit the UAE in more than three decades, told investors in Abu Dhabi that his country needs $1 trillion in investments, touting opportunities in areas from real estate to energy and tourism.
Addressing the media, Indian Foreign Secretary S. Jaishankar and Indian Ambassador to the UAE T.P. Seetharam, said both nations also agreed to forge strategic partnerships in the energy sector, including through the UAE's participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors, and collaboration in third countries.
The communique said both countries agreed to further promote bilateral trade and use their respective locations and infrastructure for expanding trade in the region and beyond, with the target of increasing trade by 60 per cent in the next five years.
The countries also agreed to tap India's expertise in small and medium enterprises to create a vibrant industrial base in the UAE, which could also be of benefit to Indian enterprises.
The two leaders also agreed to poromote scientific collaboration, including in the areas of renewable energy, sustainable development, arid agriculture, desert ecology, urban development and advanced healthcare.
Both countries will also seek to boost cooperation in space, including in joint development and launch of satellites, ground-based infrastructure and space application.Modi welcomed the UAE's plan to set up the Middle East's first space research centre at Al Ain and plans to launch a Mars mission in 2021.
On Monday, the Indian premier held talks with government officials and top executives from companies including Emirates Airline, DP World, Emaar Properties, Mubadala and the Emirates Investment Authority. Prominent business leaders from both countries were among those who attended the talks.
- issacjohn@khaleejtimes.com