Abu Dhabi Investment Authority revealed plans to make investments of about US$200 million in Indian real estate emphasizing a trend for significant Gulf sovereign wealth funds to diversify from developed markets such as Northern American countries and Europe, two sources with knowledge of the deal said. Abu Dhabi Investment Authority handles the surpluses the Gulf emirate makes from its oil exports.
One of the sources said that Abu Dhabi Investment Authority appointed Kotak Realty Fund, operated by Kotak Mahindra Bank Ltd, to invest the money.
Investments to India has been rising. Just this month, an investment of US$200 million from the Government of Singapore Investment Corp, Temasek, and Oman's State General Reserve Fund was received by a real estate fund operated by Housing Development Finance Corporation, India's biggest mortgage lender.
In May, Qatar spent US$1.26 billion for a 5% stake in Indian telecommunications firm Bharti Airtel Ltd. Bharti Airtel is the fourth-biggest mobile phone firm by customers in the world.
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