Abu Dhabi lures Indian investors with sops

MUMBAI: On the back of an estimated USD 30- 40 billion investment from India in the UAE already, the industrial city of Abu Dhabi plans to attract more investors from the country to set up their plants in oil-rich Emirates.

Abu Dhabi lures investors with almost zero taxes and cheaper utilities, the Emirates representatives told an Abu Dhabi-Mumbai Investment forum organised by the Confederation of Indian Industry (CII) here today.

The Emirates offers electricity at USD 0.40 for per kw an hour, USD 0.60 for a cubic feet of water a day and natural gas at USD 1.35 per mmscd.

Indians account for nearly 42 percent of the work force and the UAE Exchange estimates Indian remittance to be 15 percent of the total outward remittance from the Emirate, they said, adding that the remittance to India is expected to touch around USD seven billion this year.

The remittance of the UAE last year stood at USD 50 billion and this year the exchange expects it to touch USD 55 billion.

Abu Dhabi's GDP was around USD 119 billion in 2010 and is likely to be USD 416 billion by 2030. Oil and gas currently contributes 60 percent to the GDP but the administration wants it to be brought down to 40 percent by 2030.

Abu Dhabi has two special economic zone -- Zones Corp and the Kizad Group.

The Zones Corp has so far attracted USD six billion from 600 companies, of which 280 are currently operational including Siemens, Jindal Steel, and Saint Gobain, among others.

It also plans to develop another 50 sq km in 10 years with an investment of USD 3 billion, Zones Corp Vice-President Marketing and Communication Samer Alhaira told PTI on the sidelines of the event here.