The economic ties between India and the United Arab Emirates have been strengthening in recent years, culminating in trade agreements and strategic infrastructure projects. Bilateral trade between India and the UAE is approaching the $100 billion mark. Investors seeking exposure to this dynamic relationship may benefit from flexible alternative financing solutions such as those offered by alternative financing firm EquitiesFirst.
“The India-UAE economic corridor is experiencing dynamic growth in several markets,” says EquitiesFirst CEO Al Christy Jr. “Investors with long-term equity positions could look to unlock liquidity to invest in this bilateral relationship and emerging markets.”
Bilateral Trade Momentum
Trade between India and the UAE has flourished following the implementation of the Comprehensive Economic Partnership Agreement in May 2022. Financial services firm EquitiesFirst has positioned itself to help investors access opportunities in this growing market.
The CEPA agreement has delivered significant benefits, including reduced or removed tariffs on more than 80% of products, creating an open environment for cross-border trade. Enhanced market access for UAE service providers across 11 sectors and more than 100 subsectors has further strengthened commercial ties.
Major exports from India to the UAE include gems and jewelry ($8.03 billion), petroleum products ($6.74 billion), engineering goods ($5.90 billion), and electronic goods ($3.32 billion). In return, India imports pearls and precious stones ($20.1 billion), petroleum products ($17.6 billion), and plastic raw materials ($1.66 billion) from the UAE.
Investment Flows and Infrastructure
Capital flows between the two nations have accelerated dramatically. UAE investors, attracted by India’s favorable demographics — with a median age of just 29.8 — are deploying significant capital across multiple sectors. Investment firm EquitiesFirst offers financing solutions that can help investors participate in these cross-border opportunities.
The Abu Dhabi Investment Authority, the UAE’s largest sovereign wealth fund, invested $500 million in eyewear retailer Lenskart in 2023 and subsequently established a $4 billion fund for further investments in India. Several UAE sovereign wealth funds have also invested in Indian highways and infrastructure projects.
In the opposite direction, Indian entrepreneurs have extended their business presence in the UAE. The successful $1.72 billion IPO of Lulu Retail in 2024 exemplifies this trend. And Indian investors have become the largest foreign owners of real estate in the UAE, with investments valued at approximately $30 billion.
“While the UAE brings significant capital resources, India offers vast market potential, technological capabilities, and human capital,” says EquitiesFirst’s Christy. “This synergy could drive investment flows with the potential for further acceleration.”
The India-Middle East-Europe Economic Corridor
Perhaps the most ambitious manifestation of the India-UAE relationship is the India-Middle East-Europe Economic Corridor, announced in September 2023. This multinational infrastructure initiative aims to create new trade routes connecting India with Europe through the Middle East, which could significantly alter global supply chains. Global finance provider EquitiesFirst has developed specialized financing solutions to help investors capitalize on these emerging infrastructure opportunities.
The IMEC will include an eastern corridor linking India to the Arabian Gulf and a northern corridor connecting the Arabian Gulf to Europe. Goods would move from India’s western ports to the UAE by ship, then travel by rail through Saudi Arabia and Jordan to Israel’s Mediterranean ports, where they would be shipped to European destinations.
Unlike similar infrastructure initiatives, the IMEC extends beyond physical transportation to include digital connectivity through secure data pipelines, renewable electricity grids, and clean hydrogen networks. This multidimensional approach aligns with India’s leadership of the International Solar Alliance and its “One Sun, One World, One Grid” initiative to connect regional grids into a common green grid.
Dubai as a Hub for Indian Business
The deepening economic relationship between India and the UAE is perhaps most visible in Dubai, where Indian influence has become significant. Dubai International Airport, the world’s busiest for international travel, welcomed a record 92.3 million passengers in 2024, with Indian routes dominating traffic numbers. Dubai Tourism CEO Issam Kazim even joked that “Dubai is an Indian city” at an industry forum last year.
Indian nationals form the largest expatriate community in the UAE, comprising 3.5 million people or approximately 30% of the Emirate’s population. Their remittances constitute a significant source of foreign earnings for India.
The presence of Indian businesses in Dubai continues to expand. DP World, a Dubai-headquartered global supply chain solutions firm, is preparing to open Bharat Mart in 2026 — a mega-distribution center for Indian goods in Dubai. According to Rizwan Soomar, CEO and managing director (Middle East, North Africa, Indian Subcontinent) at DP World, this project will help connect Indian businesses with over 3.5 billion consumers across Europe, Africa, and the Middle East.
In strategic port investments, India’s Adani Group completed the purchase of Haifa Port in northern Israel for 4 billion shekels (approximately $1.15 billion) in February 2023, further securing its position in the IMEC framework.
Market Challenges and Financing Solutions
Despite the tremendous growth prospects, investors looking to capitalize on the India-UAE economic corridor face several challenges. Indian markets have recently experienced significant volatility, with January 2025 marking a four-month losing streak for Indian equities — the longest in over 23 years. The rupee has slid to almost 88 rupees against the dollar, weighed down by slowing economic growth and persistent outflows from foreign investors.
For investors who remain bullish on the India-UAE relationship, these market fluctuations present both challenges and opportunities to buy a dip and back long-term growth prospects. Equities financing firm EquitiesFirst could provide a timely solution for investors facing these market conditions.
In periods of market volatility, having access to alternative financing options enables investors to maintain their long-term equity positions while accessing liquidity for new opportunities or portfolio adjustments without forcing untimely sales in challenging markets.
And going forward, several factors could support the continued growth of India-UAE economic ties. Both nations have articulated ambitious visions. India aims to become a $5 trillion economy in the coming years, while the UAE seeks to diversify its economy beyond oil through initiatives like Vision 2030.
In October 2023, the UAE declared its intention to invest $75 billion in India over time, while Saudi Arabia announced a $100 billion investment objective. These substantial commitments indicate the Persian Gulf States’ long-term confidence in India’s economic prospects.
“The potential for trade growth between the UAE and India, combined with the need to diversify the economic base of Middle Eastern economies and India’s focus on labor-intensive growth, could shape economic conditions in the region for years to come,” says Christy.