India and UAE Strengthen Investment Ties with Aluminium Project and Sovereign Fund Discussions

Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on Saturday discussed a bigger role for L’IMAD, the UAE’s newest sovereign investment fund, in India, as the two sides look to deepen investment ties in strategic and emerging sectors. At their meeting on the sidelines of the 18th BRICS Summit, the leaders welcomed UAE-based International Holding Company’s (IHC) proposed $11.5-billion integrated greenfield aluminium project in Odisha, described as India’s largest integrated aluminium investment. The project is expected to strengthen Odisha’s position as a global aluminium manufacturing hub and underscores the UAE’s growing interest in large-scale Indian industrial projects. The two leaders specifically noted the potential of L’IMAD to deepen the India-UAE partnership, while also discussing cooperation in defence, space, nuclear energy, technology and innovation, according to a statement by the Ministry of External Affairs. L’IMAD is a new Abu Dhabi sovereign investment platform created after the consolidation of ADQ’s assets and investments. With an estimated asset base of around $300 billion, it has inherited ADQ’s investments and is focused on sectors including energy, infrastructure, logistics, ports, aviation and industry . Its India-linked portfolio includes ADQ’s earlier investment in Tata Motors’ electric-vehicle business. India is now seeking to attract more UAE sovereign capital into infrastructure , strategic industries and emerging technologies. The UAE already has substantial sovereign investment exposure to India through ADIA and Mubadala. ADIA is an anchor investor in the National Investment and Infrastructure Fund, while Mubadala has invested in Jio Platforms, Reliance Retail and Tata Power Renewable Energy. The meeting followed high-level exchanges this year, including UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to India in January and Modi’s visit to the UAE in May. The two leaders also welcomed the UAE’s active participation in BRICS under India’s chairmanship and reaffirmed the Comprehensive Strategic Partnership spanning political, commercial, energy and people-to-people ties.