The United Arab Emirates (UAE) and India have a substantial commercial and investment connection that has been rapidly expanding in recent years. Trade between India and the UAE has increased from US$ 180 million per year in the 1970s to US$ 73 billion today, making the UAE India’s third-largest trade partner in 2021-2022. Furthermore, the UAE is India’s second-largest export market (after the US) with a value of more than US$ 28 billion for fiscal years 2021-2022.
One of the key metrics for measuring the relationship between two countries is the bilateral relationship in various commercial and non-commercial areas. The connection between India and the UAE is essential for both nations since both have rapidly rising economies, such as India, and are among the wealthiest in the world, such as the UAE. A substantial export opportunity exists between India and the UAE since the preponderance of Indian expats live in the UAE and Indians have become prominent investors there.
The expansion of commerce and investment between the UAE and India has been facilitated by a number of factors. First off, there is a big market for Indian goods in the UAE thanks to the substantial presence of Indian companies there. In addition, the UAE’s strategic location at the intersection of Europe, Asia, and Africa has made it a desirable place for Indian companies aiming to increase their market share in the area.
With investments mostly concentrated in infrastructure, real estate, and the energy sector, the UAE is one of the biggest foreign investors in India. The United Arab Emirates (UAE) and India have a large and expanding bilateral trade and investment partnership that has grown quickly in recent years. With bilateral trade reaching a value of USD 60 billion in 2020, the UAE is India’s third-largest trade partner, and India is the UAE’s biggest trade partner.
In contrast, Indian firms have been investing in the UAE in areas such as information technology, pharmaceuticals, and engineering. Additional investment between the two nations has a great deal of promise, especially in industries like renewable energy, tourism, agriculture, and a number of other industries.
Trade:
Bilateral commerce between the UAE and India has increased dramatically in recent years, reaching $36.82 billion between April and August of fiscal year 2022–23. Petroleum-related goods, chemicals, and metals comprise the majority of the UAE’s exports to India, whereas India sends machinery, pearls, and refined petroleum to the UAE. The two nations’ commerce is mostly fueled by the substantial presence of Indian companies in the United Arab Emirates and the expanding demand for Indian goods in the area.
Investment:
One of the biggest foreign investors in India is the UAE, which mostly invests in the energy, real estate, and infrastructure industries. On the other side, Indian businesses have been making investments in the UAE in industries including engineering, pharmaceuticals, and information technology. Additional investment between the two nations has a great deal of promise, especially in industries like agriculture, tourism, and renewable energy.
There are several possibilities for Indians to invest in the United Arab Emirates. Investments have always flowed seamlessly between India and the UAE since it has always been a preferred location for Indians seeking to guarantee their future. According to popular belief, Indians contributed significantly to the development of the UAE. Consequently, there has always been a close tie between the two nations.
Let’s discuss the investment and incorporation possibilities for Indians in UAE.
Renewable Energy
India has also declared a goal to boost its usage of renewable energy sources, while the UAE has established itself as a pioneer in this field. In this area, there are many possibilities for cooperation between the two nations, including joint ventures in renewable energy projects and the exchange of knowledge and technology.
Tourism
The UAE and India’s economies both rely heavily on the tourist industry. The UAE is a popular tourism destination for Indians, while India is drawing an increasing number of UAE tourists. Further cooperation between the two nations in the tourism industry, including the creation of new tourist locations and coordinated marketing initiatives, might be advantageous.
Agriculture
India’s largest industry is agriculture, and there are prospects for cooperation between the two nations in this area. India has the capacity to enhance exports of food and agricultural goods in order to fulfill the UAE’s rising need for food. Additionally, the UAE can provide India with knowledge of advanced agricultural techniques and water management, which can help India produce more food.
Pharmaceuticals
India has a robust pharmaceutical sector and is one of the world’s leading producers of generic medications. On the other hand, the UAE has a sizable market for pharmaceutical goods and offers Indian pharmaceutical businesses the opportunity to sell their goods overseas.
Gold and Jewelry
With a long history of goldsmithing and jewelry-making, India is renowned for its gold and jewelry sectors. Due to the UAE’s significant gold and jewelry imports, Indian gold and jewelry manufacturers can sell their goods there.
Information Technology (IT)
With a sizable pool of qualified IT experts, India is one of the major outsourcing locations in the world. There are prospects for Indian IT companies to offer IT services to UAE-based businesses because the UAE’s IT sector is expanding.
Why is the UAE a favorite destination for investment opportunities for countries across the world, especially India?
India finds UAE to be the perfect commercial center due to its advantageous location at the intersection of Europe, Asia, and Africa. The UAE’s well-developed infrastructure, including ports, airports, and highways, makes it simpler for Indian enterprises to enter the UAE and other regional markets. The banking industry in the UAE is also well-developed, giving Indian businesses simple access to financial services.
Investment Promotion Agreements with India
In order to foster investment between the two nations, India and the UAE have inked a number of agreements for the promotion of investment. These agreements offer a framework for promoting and protecting investments and aid in luring capital into a number of industries, including infrastructure, real estate, and the energy industry.
Procedures for Indian Citizens to Invest in UAE
For Indian nationals, investing in the United Arab Emirates (UAE) might present a number of options. To guarantee a flawless investing process, however, there are a few procedures and guidelines that must be followed. Indian citizens can invest in the UAE by following these steps:
1. Choose the best investment option
Indian nationals can make a range of investments in the UAE, including starting a business, purchasing real estate, and making stock market investments. It is critical to do research and analysis on the numerous possibilities to discover which is best suited to your investment objectives and financial capability.
2. Get familiar with the legal requirements
It is crucial to become familiar with the laws and rules pertaining to your preferred investment choice because the UAE has a clear legal framework for foreign investment. This will assist in ensuring adherence to local laws and prevent any potential legal disputes.
3. Seek professional advice
Indian citizens who need assistance with their investments might turn to qualified financial consultants, attorneys, or accountants. These experts can provide you with market research, tax preparation, and other crucial elements of UAE investment.
4. Open a bank account
In order to facilitate their investments, Indian nationals must hold a local bank account in the UAE. This will make it possible to transfer money easily and manage your investments more easily.
5. Register your company
You must register your company with the appropriate authorities if you intend to establish a business setup in Dubai. This entails registering with the Chamber of Commerce and acquiring a trading license.
6. Obtain the necessary permits and visas
To invest and remain in the UAE, Indian nationals must get the relevant accreditations and permits. A resident visa, which may be acquired through the investment procedure, as well as other necessary permissions and licenses, depending on the type of investment, are included in this.
7. Finalize your investment
You can finalize your investment in the UAE once all the prerequisite processes have been completed. This will entail paying the required funds and completing any other necessary requirements.
We’ve delved into considerable detail in this blog on how Indians may invest in the UAE and the processes they can follow. The country has grown to be one of the best in the world, and it has earned the right to make the most of it. You can get in touch with Marqueway if you have any inquiries regarding investment possibilities. You only need to provide us the paperwork; we’ll take care of the rest.