Indian Businesses in Dubai: A Magnet for Growth and Opportunities
Dubai continues to attract Indian businesses, with a remarkable influx of 15,481 new Indian-owned enterprises joining the Dubai Chamber of Commerce in 2023 alone. This marks a substantial 38 percent increase compared to the previous year, underscoring Dubai’s allure as a top choice for Indian investors seeking to expand their operations.
The India-UAE CEPA Effect
Simultaneously, the driving force behind this surge is multifaceted. Key factors include the India-UAE CEPA implementation.Enacted in April 2022, the CEPA aims to streamline procedures. It also reduces tariffs and creates a favorable environment. This is for Indian businesses in Dubai and the UAE. Consequently, non-oil bilateral trade between India and the UAE surpassed US$50 billion. Ambitious targets are set to double this figure by 2030. In addition, the CEPA marked a new bilateral cooperation phase. It steadily creates additional investment and trade avenues. These are for companies in India and the UAE.
A New Phase of Bilateral Cooperation
The CEPA agreement has ushered in a new era of UAE-India bilateral cooperation, steadily opening up additional avenues of investment and trade for Indian businesses. According to Abdulla bin Touq, UAE Minister of Economy, “The CEPA would add 1.7 per cent or $8.9bn to the UAE’s gross domestic product and boost exports by 1.5 per cent or $7.6bn by 2030.” This agreement presents significant opportunities for Indian businesses to expand their operations and forge stronger economic ties with the UAE.
Sectors Leading the Charge
In addition, the bulk of the newly registered companies with the Dubai Chamber of Commerce in 2023 operate in the wholesale and retail trade and motor vehicle repair sector, constituting 44.2 percent of new memberships. Following closely behind are companies in the real estate, renting, and business activities sector, comprising 32 percent of the total. This influx of Indian businesses in Dubai is a testament to the UAE’s attractiveness as a business hub.
A Promising Horizon
Notably, with the CEPA in full effect, the horizon appears promising. This is for economic collaboration between India and the UAE. Moreover, a record number of Indian firms joined the Dubai Chamber.The estimated 3.55 million Indian expatriates living in the UAE testify. They show the growing ties between the two nations. The Dubai Chamber of Commerce is a nonprofit public entity. It is dedicated to advancing Dubai’s global standing. Furthermore, it empowers Indian businesses and offers innovative value-added services. It also facilitates access to influential networks.
In conclusion, the remarkable growth of Indian businesses in Dubai is a testament to the UAE’s attractiveness as a business hub. With the CEPA agreement driving growth and opportunities, the future looks bright for Indian investors and the UAE-India bilateral trade. As Indian businesses in Dubai continue to thrive, the Chamber’s efforts will play a crucial role in fostering growth and opportunities for Indian investors.