Emaar, Etisalat issues likely to figure in India-UAE high-level meet next week

UAE is likely to take up concerns faced by its state-owned enterprises, including real estate major Emaar and telecom giant Etisalat in India, at the high level investment body meeting next week.

Union Commerce and Industry Minister Anand Sharma, in his meeting with the Managing Director of Abu Dhabi Investment Authority Sheikh Hamed bin Zayed Al Nahyan, is expected to discuss UAE’s proposed $2 billion investment in the country’s infrastructure sector and also support for the establishment of a strategic oil reserve, a Commerce Department official told Business Line .

The high-level investment body, which was established last year to sort out problems faced by UAE companies in India and to facilitate the $2-billion investment roadmap, is scheduled to meet in Mumbai on March 3.

“Although the UAE is interested in making more investments in India, it is not happy that many of its companies that have invested here are being investigated for various offences,” the official said.

UAE has invested about $8 billion in India so far, of which $2.6 billion is in the form of Foreign Direct Investment.

In its last meeting, India had promised to sort out the problems as early as possible.

Dubai-based Emaar’s joint venture with Indian company MGF has been slapped with a ₹8,500-crore fine for using foreign funds to buy agricultural land. The matter is being investigated by the Enforcement Directorate.

The country’s telecom major, Etisalat, which decided to exit its Indian arm Etisalat DB after the Supreme Court cancelled a number of telecom licences as a fallout of the 2G scam, is also facing similar problems.

The Finance Ministry, last year, had assured UAE that the country would try to ensure that a distinction is maintained between local promoters and foreign investors so that the latter was not harassed, the official added.

“We will assure UAE that everything is being done to sort out existing problems,” he added.

Areas where India is seeking investments from the UAE include petrochemicals and fertilisers, infrastructure, food processing and agro-based industries, construction and real estate, education and training (to cater to UAE’s manpower requirements), and civil aviation.