Abu Dhabi's IHC Expands India Footprint with $1 Billion Investment in Sammaan Capital

In a landmark move underscoring the UAE's strategic pivot toward India, Abu Dhabi's International Holding Company (IHC) has committed $1 billion to Sammaan Capital, one of India's largest non-banking financial companies (NBFCs). This investment, which secures a 41.2–43.5% controlling stake, according to Gulf News, reflects a broader trend of Middle Eastern sovereign wealth funds (SWFs) diversifying their portfolios amid global geopolitical shifts. For IHC, the deal marks a calculated entry into India's financial services sector, leveraging the country's emergence as a global investment hub and its role in the "China+1" supply chain realignment.

Geopolitical Diversification and the Rise of India

The UAE's investment in Sammaan Capital is emblematic of a larger recalibration of Middle Eastern capital toward emerging markets. According to a Zawya report, 78% of Middle Eastern SWFs now prioritize active management of equities and fixed income to navigate regional uncertainties. India's robust FDI inflows-reaching $42.1 billion in April–September 2024, according to Invest India-and its strategic trade agreements, such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA), have made it a magnet for such capital. Non-oil trade between the two nations surged to $37.6 billion in the first half of 2025, a 33.9% year-on-year increase, as a Gulf News study highlighted, underscoring the deepening economic synergy.

India's appeal lies in its dual role as a manufacturing hub and a financial inclusion leader. Sammaan Capital, with its 220 branches across 150 Indian cities, serves as a critical conduit for expanding credit access to small businesses and mid-market mortgage borrowers, as reported by Gulf News. IHC's plan to integrate AI and technology into Sammaan's operations aligns with India's National Manufacturing Mission and "Make in India 2.0" initiatives, which aim to reduce import dependency and boost exports to $2 trillion by 2030, according to Invest India.

Strategic Partnerships and the "China+1" Imperative

The investment also underscores the geopolitical imperative of the "China+1" strategy, where global firms diversify supply chains away from China. India's large domestic market, improving infrastructure, and favorable trade policies have made it a preferred alternative. As noted by the India Foundation, companies like Apple and Toyota are increasingly anchoring production in India to mitigate risks from U.S.-China tensions. The UAE, with its strategic location and logistics infrastructure, acts as a bridge for Indian exports to global markets, exemplified by projects like Dubai's Bharat Mart, a 2.7 million square-foot export hub.

For IHC, the Sammaan Capital deal complements the UAE's Vision 2021, which emphasizes non-oil sectors like fintech and renewable energy. The investment is not isolated; Abu Dhabi has pledged $75 billion to India's infrastructure and renewables sectors, according to CEEW, reflecting a long-term bet on India's economic transformation.

Implications for Future Investment Flows

The IHC-Sammaan Capital partnership signals a shift in global capital flows toward markets that combine growth potential with geopolitical stability. India's FDI liberalization-allowing 100% automatic route approval in sectors like pharmaceuticals and renewables, per Invest India-has created a fertile ground for such investments. Meanwhile, the UAE's SWFs are increasingly adopting multi-asset strategies, with 63% allocating to private credit and 30% planning to boost fixed income exposure, the Zawya report also notes.

As India's clean energy sector alone attracted $3.4 billion in FDI in FY25, according to CEEW, the alignment of UAE capital with India's renewable energy goals further cements their strategic partnership. This synergy is likely to accelerate as global investors seek to hedge against regional volatility and capitalize on India's demographic dividend.

Conclusion

Abu Dhabi's $1 billion investment in Sammaan Capital is more than a financial transaction-it is a geopolitical statement. By anchoring itself in India's financial services sector, IHC is positioning the UAE as a key player in the "China+1" narrative while supporting India's ambition to become a $3 trillion economy. As global supply chains evolve and emerging markets gain prominence, such strategic alliances will redefine the contours of international investment.