Between 2020 and H1 2023, Dubai saw considerable FDI from Indian investors totaling USD 1.6 billion. Dubai’s geographical position, along with tax-friendly legislation, serves as a significant incentive for Indian investors and company owners wishing to expand into new markets.
From 2020 to 2022, Indian FDI in Dubai almost quadrupled, reaching USD 541 Mn. Furthermore, the first six months of 2023 accounted for 62% of all foreign direct investment (FDI) in the previous year. In 2022, Indian investors made major acquisitions in Dubai’s residential sector totaling more than USD 4 billion.
As COVID-19 came to a close, Indian investors steadily expanded their investments in Dubai, demonstrating a significant uptick since 2020. From 2020 to 2022, investment almost quadrupled, indicating upward momentum. This upbeat trend is likely to continue, in keeping with Dubai’s D33 economic goal.
In the first six months of 2023, India was among the top countries investing in Dubai, with a total investment of $335 million. In terms of project investments, India outnumbered Canada and Latvia, with investments in a total of 123 projects, according to a release from leading international property consultant Vestian, which provides occupier-focused solutions for commercial, residential, industrial, retail, and hospitality sectors.
The UAE aspires to treble Dubai’s GDP by 2033 and establish itself as a worldwide economic powerhouse and Indian investors are taking advantage of the possibilities afforded by the Emirate’s vibrant real estate market and investor-friendly regulations. According to Mr Shrinivas Rao, FRICS, CEO, Vestian, the ongoing positive trajectory is a testament to the mutually beneficial relationship between India and the UAE, which has been further cemented by the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, contributing to the UAE government’s ambitious economic goals.
According to the Dubai FDI monitor, India has made significant investments in the IT and business services industries. By the end of the second quarter of 2023, Indian investors had spent USD 10.5 million, the majority of which was in greenfield
Mr Rao goes on to say that Dubai has emerged as a leading investment location for Indian people and enterprises, providing a favorable alternative to large tax requirements in their own country. The recent declaration during the G20 summit of a transnational rail and maritime route linking India-Middle East-Europe is intended to boost connectivity between the UAE and India, encouraging economic growth.
