The UAE and India are expected to sign an agreement to finalise the framework for the $75 billion investment fund today with India offering to “ring fence” some investments made by UAE companies facing legal problems.
His Highness Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces commenced his official three-day visit to India on Tuesday, as the chief guest for the 2017-Republic Day celebrations.
Indian foreign ministry official in-charge of economic relations Amar Sinha said on Tuesday that the two countries were expecting to sign a memorandum of understanding on the $75bn investment fund, putting in place a framework on how the fund will be administered and sectors where it will invest.
UAE Ambassador to India Dr Ahmed Al Banna said earlier the fund will be investing over a period of 10 years in areas such as roads, highways, logistics centres, and railroads.
Sinha said the two countries will also work to conclude negotiations on ways to fill India’s strategic oil reserves at Mangalore.
India, which imports about 80 percent of its oil needs, is building emergency storage in vast underground caverns to hold some 36.87 million barrels of crude as it seeks to hedge against energy security risks, Reuters reported.
Sinha said the UAE’s demand also includes resolving “legacy issues” relating to their investors, particularly cases sub judice. Some of the UAE companies facing issues are Etisalat, DP World and Emaar Properties.
“New Delhi will try to see whether we can ring-fence some of their investors without diluting the main cases,” Sinha told reporters, adding the UAE is seeking relaxation in foreign direct investment the ports and real estate sector.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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