Why Indian investors love Dubai
India has emerged as the top source of foreign direct investment (FDI) in Dubai, while bilateral trade between the UAE and India has surged to record levels, highlighting deepening economic ties between the two longstanding partners.
Dubai and India’s enduring relationship is one of the oldest and most successful in the region. Long before the formation of the United Arab Emirates in 1971, trade between the two was already strong, but in recent decades, with Dubai’s growing reputation as the Middle East’s most important economic hub, the partnership has reached unprecedented heights.
Dubai secured AED 52.3 billion (US$14.2 billion) in foreign direct investment (FDI) in 2024, marking a 5% rise from 2023. India alone accounted for 21.5% of this total, injecting US$3.05 billion – a fivefold increase from the previous year – establishing it as the largest investor in Dubai for the first time.
Indian investors launched more than 1,800 FDI projects in Dubai in 2024, including more than 1,100 greenfield ventures in sectors such as real estate, technology, business services, logistics and healthcare.
"India has consistently been among Dubai’s top investment partners, but 2024 has marked a breakthrough,” said Ibrahim Ahli, director of Investment Promotion at Dubai FDI. “We’re seeing a new generation of investors from India in sectors aligned with Dubai’s future economy.”
India-UAE FTA drives record levels of trade and investment
The value of investments has surged in the wake of the UAE-India Comprehensive Economic Partnership Agreement (CEPA), which was signed in 2022, and has served to significantly strengthen economic ties between the two countries.
By eliminating or significantly reducing tariffs on more than 90% of traded goods, removing key non-tariff barriers and streamlining customs procedures, the agreement has created a more open and efficient trade environment.
It also includes provisions that simplify business operations, promote investment flows, and enhance cooperation across sectors such as services, digital trade and intellectual property. As a result, CEPA has made it markedly easier for companies in both the UAE and India to expand into each other’s markets, accelerating trade volumes and unlocking new growth opportunities.
The impact of the agreement can be seen in the massive increase in merchandise trade between the two partners, with the total value almost doubling from US$43 billion in FY 2020‑21 to around US$84 billion in FY 2023‑24.
Non-oil trade between the UAE and India also climbed 20.5% to exceed US$65 billion in 2024. India remains the UAE’s leading export destination accounting for 13.5% of total exports, reflecting a 75% year-on-year jump in UAE non-oil shipments.
Millions of Indian nationals making a life UAE
The UAE is home to approximately 3.8 million Indian nationals, making them the country’s largest expatriate group. Remittances from the UAE to India are estimated at US$25 billion annually, contributing nearly 20% of India’s total global remittances, which are expected to hit US$129 billion in 2025.
Indian investors accounted for 21% of all property purchases by foreign buyers in Dubai in 2024, with this share increasing to 22% so far in 2025 – the highest among all nationalities, according to Dubai Land Department data.
Dubai's Department of Economy & Tourism has ramped up investment roadshows in Indian cities like Mumbai, Hyderabad, and Kochi, targeting sectors such as tech, logistics, aviation, finance, healthcare and tourism – efforts that have drawn praise from Indian entrepreneurs present at the events.
Dubai FDI also regularly conducts investor outreach seminars and roadshows in India’s biggest cities including Mumbai, Hyderabad and Kochi.
"There has never been a better time for bilateral engagement between Dubai and India,” says Ahli.
“UAE-India relations are on a faster and stronger track, and leaders on both sides are determined to make their partnership a game-changer in global trade. In India we are able to connect with our audiences and engage them in identifying areas where Dubai can place them on the forefront of emerging industries and technologies.”
