PM Modi eyeing $800-billion funds from UAE

Indian Prime Minister Narendra Modi has been making headlines for his unstoppable foreign visits to bring more foreign investments to the country for long. And now, our respectable Prime Minister is eyeing a share in the $800-billion sovereign fund UAE. If he succeeds, PM Modi will use this fund for infrastructural needs and give momentum to Bilateral Investment Protection Agreements (BIPA) that has not functioned to its potential to attract investments, reported Economic Times.

The officials, requesting anonymity, indicated that buoyed by the oil economy, UAE sovereign wealth fund is estimated at over $800 billion and PM Modi might magnetize part of this fund, imperative for the country's infrastructural needs estimated at one trillion dollars.

The Abu Dhabi Investment Authority (ADIA) is the sovereign wealth fund owned by Emirate of Abu Dhabi (in the UAE) founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi. It manages the Emirate's excess oil reserves and is one of the world's largest investment funds.

BIPA was signed by both the countries in 2013 but somehow failed to function properly. The deal was aimed to ensure protection of cross border investments by India and UAE. It aimed to accelerate investments and give a fresh impetus to stalled joint venture projects.
During her visit to the UAE last year, the External Affairs Minister Sushma Swaraj had assured that the BJP government is strongly committed to implement BIPA.

The two-way trade has declined from a record high of $75.45 billion in 2012-13 to $59.54 billion in 2013-14 due to curbs on gold imports.
The Gulf country’s current investment in India is divided into two major parts. Of the total $8 billion investment, around $3.01 billion is in the form of foreign investment, while the rest is portfolio investment.

The sectors in which the UAE in making investments includes: construction development (15.52%), power (13.09%), metallurgical industries (9.90%), services (9.58%), and IT (4.90%).