In the first six months of 2023, India was amongst the top countries investing in Dubai with a cumulative investment of $335 million, data showed.
According to data from Vestian, Dubai witnessed significant investments from Indian investors, amounting to $1.6 billion between 2020 and H1 2023. Dubai’s strategic location along with tax-friendly policies act as a key incentive for Indian investors and business owners who are looking to expand into new markets.
Vestian is an occupier-focused workplace solutions firm specialising in commercial, residential, industrial, retail and hospitality sectors. Headquartered at Chicago, Vestian has offices across US, India, China, UK, Sri Lanka and the Middle East.
Indian investments in Dubai nearly doubled from 2020 to 2022, reaching $541 million in 2022. Moreover, the first six months of 2023 accounted for 62 per cent of investments in the whole previous year. Indian investors made significant purchases, exceeding $4 billion, in Dubai’s residential market in 2022.
As Covid-19 receded, Indian investors consistently increased their investments in Dubai, showcasing a notable uptrend since 2020. The investment amount nearly doubled from 2020 to 2022, reflecting positive momentum. This optimistic trajectory is expected to continue and align with Dubai’s economic agenda outlined in D33.
In terms of investments in the number of projects, India has outnumbered Canada and Latvia with investments in a total of 123 projects, leading international property consultant Vestian which provides occupier focused solutions for commercial, residential, industrial, retail and hospitality sectors said in a release citing data from Dubai Land Department.
UAE aims to double Dubai’s GDP by 2033 and position itself as a global economic hub, Indian investors are leveraging upon opportunities presented by the Emirate’s dynamic real estate market and investor-friendly policies. The ongoing positive trajectory is a testament to the mutually beneficial relationship between India and UAE, which has been further cemented by the signing of the Comprehensive Economic Partnership Agreement (Cepa) in 2022, contributing to the ambitious economic goals outlined by the UAE government says Shrinivas Rao, FRICS, CEO, Vestian.
As per Dubai FDI monitor, substantial investments from India have been directed towards the IT services and business services sectors. By the conclusion of the second quarter of 2023, Indian investors had invested $10.5 million, mostly in greenfield projects.
Rao further adds Dubai has emerged as a top choice for investment destination for Indian individuals and businesses, offering a favourable alternative to significant tax obligations in their home country. The recent announcement of a transnational rail and shipping route connecting India-Middle East-Europe corridor during the G20 summit is expected to improve connectivity between UAE and India, fostering economic development.