UAE funds target major India investment expansion

UAE sovereign wealth funds and private companies are preparing to expand investments in India, targeting artificial intelligence, logistics, food security and infrastructure as the two countries deepen their economic partnership.

Several significant announcements are expected over the coming months, UAE Ministry of Investment Undersecretary Mohammad Abdulrahman Alhawi said, highlighting sustained interest among government-backed funds and businesses in opportunities across the country.

“Our sovereign wealth funds continue to look actively at the Indian market,” Alhawi said. “UAE companies are also looking very seriously at India.”

The planned capital flows would build on $5 billion of investment by UAE entities announced during Prime Minister Narendra Modi’s visit to Abu Dhabi in May. The commitment strengthened a broader effort to move bilateral ties beyond energy and conventional trade into technology, transport networks, advanced manufacturing and strategic supply chains.

UAE investment in India totalled more than $25 billion between April 2000 and March 2025, making the federation one of the country’s largest sources of foreign direct investment. Abu Dhabi Investment Authority, Mubadala Investment Company and other state-linked institutions have accumulated holdings in infrastructure, renewable energy, property, financial services and digital businesses.

Artificial intelligence has emerged as a central pillar of the partnership. Both governments are pursuing cooperation in computing capacity, data centres, research and commercial applications as demand grows for locally hosted digital infrastructure.

A term sheet finalised this year between the Centre for Development of Advanced Computing, Abu Dhabi technology group G42 and Mohamed bin Zayed University of Artificial Intelligence covers the deployment of a supercomputer cluster in India. The project is expected to support research, start-ups and industrial applications requiring high-performance computing.

UAE investors are also studying opportunities in data infrastructure, cloud services, semiconductors and AI-enabled platforms. Abu Dhabi has positioned technology as a cornerstone of its economic diversification programme, while India offers a large pool of engineers, expanding digital demand and a rapidly growing start-up sector.

Logistics represents another major area of interest. DP World already operates ports, terminals, logistics parks, rail-linked facilities and supply-chain services across India. Its expanding network reflects UAE ambitions to connect production centres with Gulf markets, Africa and Europe.

The company is also establishing operations at Gujarat International Finance Tec-City, alongside First Abu Dhabi Bank. Their presence at the financial centre is designed to support cross-border financing, trade settlement and investment flows.

Food security carries particular strategic importance for the UAE, which imports most of its food requirements. Investment discussions have focused on storage facilities, food-processing units, cold chains, agricultural technology and export corridors linking farms in India to consumers across the Gulf.

Greater integration could reduce spoilage, improve price stability and provide producers with access to high-value markets. It would also help the UAE diversify supply routes at a time when conflicts, climate pressures and shipping disruptions have exposed vulnerabilities in global food networks.

Infrastructure opportunities include roads, ports, renewable power, urban development and digital connectivity. Long-term assets match the investment profile of sovereign funds, which can deploy capital over extended periods and accept longer construction and repayment cycles than many commercial investors.

The investment drive is supported by the Comprehensive Economic Partnership Agreement, which came into force in May 2022. Bilateral merchandise trade crossed $101 billion in the financial year ended March 2026, surpassing the $100 billion target originally set for the middle of the decade.

The agreement has lowered tariffs, simplified customs procedures and widened market access across goods and services. Non-oil trade has grown in importance, with machinery, electronics, jewellery, food products, chemicals and manufactured goods gaining a larger role.

Investopia Global’s India edition in Ahmedabad in July brought officials, investors and business executives together to examine opportunities in technology, family businesses, e-commerce, tourism and sustainable industries. Discussions also covered the use of UAE capital and logistics networks to connect India’s food production base with international markets.

Investment decisions will still depend on project quality, regulation, land availability and the speed of approvals. Large infrastructure and technology ventures also require reliable electricity, clear data rules and predictable taxation.