“The MoU will help establish a transparent and high-level framework and collaboration platform under which both countries will explore ways to facilitate and expand the participation of UAE’s investment institutions in appropriate infrastructure projects and institutions in India, including NIIF,” a statement said.
The announcement comes in the wake of the joint statement made by India and UAE when Prime Minister Narendra Modi had visited the country in August last year, in which the oil-rich nation had pledged to invest in the NIIF up to USD 75 billion.
“This move is a game-changer,” Vinayak Chatterjee of Feedback Infra told CNBC-TV18, adding that the NIIF had step-down vehicles, which includes an asset reconstruction company. “A well capitalized ARC would be a boost to banks.”
UTI MF MD Leo Puri said he expects the announcement would help attract more funds from other sovereign funds from across the world.
“These are flagship investments,” said Chatterjee. “This will be a signal to other countries in Gulf as well as the European, Nordic countries and then the US and Canada.”
Interview transcript to follow.