Fund manager Artha Bharat relocates two GIFT City funds to Abu Dhabi

The fund manager has cited multiple regulatory uncertainties as the primary reason for relocating the two funds to the Abu Dhabi Global Market (ADGM). According to the company, ongoing ambiguities surrounding tax deductions, compliance requirements, and investor restrictions have made it difficult to operate efficiently from GIFT City.

GIFT City, established in Gujarat as India's premier international financial centre, has attracted numerous global financial firms since its inception. However, fund managers have increasingly raised concerns about inconsistent policy implementation and regulatory clarity, which have hindered business operations and investor confidence.

The relocation decision underscores the competitive pressure facing GIFT City from other established offshore financial centres. Abu Dhabi Global Market has been aggressively expanding its offerings to attract Asian asset managers and investors, positioning itself as a more stable and predictable regulatory environment.

Artha Bharat's move adds to a growing list of operational challenges that GIFT City has faced in retaining financial service providers. Policymakers and industry stakeholders have called for urgent clarification on key regulatory frameworks to make the financial centre more attractive to domestic and international investors.