India, UAE discuss resolving Gulf firms' investment issues

India and UAE today discussed ways to expedite the resolution of pending issues to facilitate investment by Gulf companies - Etisalat, DP World and EMAAR.
The matter was discussed during the second meeting of India-UAE High Level Joint Task Force on Investments in Mumbai. The meeting was co-chaired by Commerce and Industry Minister Anand Sharma and Chairman of the Abu Dhabi Crown Prince Court Sheikh Hamed bin Zayed Al Nahyan.
"Discussions took place on expediting the resolution of current pending issues associated with existing UAE investments in India (Etisalat, Emaar and DP World), and a plan of action was agreed for the legacy issues sub-working group to address and resolve these issues," an official statement said.

UAE is one of the top investors in the country in terms of foreign direct investment (FDI). During April-December 2013, the UAE invested USD 223 million in India.
Following a Supreme Court order cancelling its 13 telecom licences, Etisalat exited from India operations and has sought refund of the licence fee as well as bank guarantees.
In June last year, the Enforcement Directorate slapped a Rs 8,600 crore show-cause notice on construction major Emmar MGF Land and its sister firms for alleged violation of forex rules.

Both the sides also held discussion on supporting the establishment of a strategic petroleum reserve in India.

It said that the reserve will be set up in a manner which would serve the common strategic interests of both countries and it would be based on the principles of long term strategic partnership and cooperation.
"The decision was taken to establish another joint working group to make progress on this effort," it added.
Sharma said India provides huge investment opportunities for Gulf firms in areas such as roads, power, civil aviation, ports, renewable energy and urban infrastructure.
On the other hand, Indian companies want to participate in the hydrocarbon sector in the UAE, especially in the upstream petroleum sector, he said.

On the Bilateral Investment Promotion and Protection Agreement (BIPPA), Al Nahyan said the UAE is looking forward to the ratification of the pact and resolution of the outstanding issues.
The agreement would serve as a platform for promotion and reciprocal legal protection of investments in both countries.
The first meeting of the task force was held in Abu Dhabi in February last year.
The task force was established in April 2012 as a platform to address mutual issues associated with existing investments between the countries and to promote and facilitate cross-border investments.
More than 30 government and private sector representatives from India and the UAE were present in the meeting.