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UAE to invest $2 billion in India projects

The UAE and India have agreed to expedite an accord to boost two-way trade and investment, and allocate $2 billion for investments in infrastructure projects in the South Asian nation.

At a high-level Task Force meeting, co-chaired by Chairman of the Abu Dhabi Crown Prince’s Court Shaikh Hamed bin Zayed Al Nahyan and visiting Indian Commerce and Industry Minister Anand Sharma, both countries also agreed to establish strategic oil reserves in India and to speed up the resolution of issues associated with existing investments and opportunities for new cross-border investments across a range of sectors.

“Today we have laid the groundwork for what I am confident will be a fruitful series of discussions around issues of significant interest and importance to both the UAE and India,” said Shaikh Hamed.

Following the meeting, the Indian minister, who is heading a Federation of Indian Chambers of Commerce and Industries delegation, said both sides talked about the need to have a Bilateral Investment Promotion and Protection Agreement, or Bipa. “We have in-principle agreed for that and it will be expeditiously concluded,” he said.

A joint statement issued later said the meeting of the Task Force on Investments focused on wide-ranging issues with a view to increasing the bilateral trade and investment and expeditious conclusion of the Bipa.

Addressing the issues and concerns raised by the UAE business community with regard to their past investments, Sharma assured that he would take steps to protect investments of UAE businesses in India. “I have assured them that within the limits of our laws, India will protect every investment made by UAE companies. All pending issues will be dealt with fairly and correctly,” Sharma said. UAE-based etisalat had invested in Indian telecom venture etisalat-DB but had to exit the country after the Supreme Court cancelled 122 licences, including those of etisalat-DB.

Other UAE companies that have investments in India include DP World, Emaar and the Abu Dhabi National Energy Company, which is also known as Taqa.

Both India and the UAE have also agreed to get their public and private sectors to collaborate to take up third country projects in the oil and gas and infrastructure sectors.

Indian Ambassador M.K. Lokesh said both sides have also agreed to set up five sub-committees on infrastructure, manufacturing, trade and investments, aviation and IT.

The Indian minister, underlining India’s status as a major destination for foreign investments and the opportunities that exist for the UAE, especially in infrastructure areas, pointed out that Arab business community could tap investment opportunities through infrastructure debt funds in sectors like road, highways, power and other utilities, civil aviation, ports and urban infrastructure.

Sharma said Indian corporates were keen to participate in oil and gas sector of UAE.

The next meeting of the UAE-India High-Level Task Force on Investments will be held on a mutually agreed date and location.

The high-level task force was established in April 2012 as a platform to address mutual issues associated with existing investments between the two countries and to promote and facilitate investments between the two countries.

issacjohn@khaleejtimes.com