been a greater outflow of FDI from India to Dubai.
Many Indian entrepreneurs and start-ups wanting to set up their base and expanding to other markets have invested in Dubai. Dubai has 3,000 start-ups with 200 Indian nationalities and Indians form 30 percent of Dubai’s start-up community. Indians also rank first in investments in Dubai’s real estate sector. Dubai Land Department (DLD) data shows 5,246 Indian nationals invested in Dubai’s real estate sector in 2019 pumping in more than Dh.10.89 billion. The UAE has come up with a number of new initiatives to further attract Indian talent and investors in the recent past – the latest being citizenship offered to innovators, artists, doctors, scientists and investors and their families.
Together in Performance
World Bank data confirms that the GDP of the UAE has grown from US$104 billion in 2000 to US$421 by the end of 2019. It means UAE’s economy has grown four times during the past 20 years accounting for the world’s highest per capita income at US$43,470. The UAE currently has 79,000 high-net-worth individuals, 3,400 multimillionaires and 12 billionaires. Meanwhile, India’s GDP grew from US$468 billion in 2000 to US$2,869 billion by the end of 2019 becoming the world’s fifth-largest economy. The country is currently chasing the target of a US$ 5 trillion economy.
Helping Each Other in Crisis
There are 3.3 million Indians living in the UAE and the country has consistently acknowledged the constructive role played by them in the nation-building exercise. Covid-19 provided another opportunity for both India and the UAE to come closer and extend a helping hand to each other. “UAE’s assistance to India comes in recognition of the profound and brotherly ties our two countries have shared throughout the years”, the UAE ambassador to India Ahmed Abdul AlBanna had said. Interestingly, in May last year the UAE sent 7 tons of medical supplies to India to fight the pandemic.
Looking Towards Future
The normalisation of ties between the UAE and Israel augurs well for India. The synergy and collaboration between the three nations would bring greater fruits in the future especially in the areas of scientific research, IT, AgriTech, food security, healthcare and sustainability. As Indians constitute 30 of the UAE population, and the UAE’s eagerness to invest more in India, the two countries are set to go places with Israel now joining the league.
Dubai – The Centre of Attraction
As the UAE and India come closer and collaborate than ever before, the centre of attraction, of course, is Dubai. It is the most preferred city for investors from India because it has a sound business ecosystem. High on technology and huge on infrastructure Dubai ranks top among other countries in happiness index. Strategically located, it has positioned itself as the place to grow one’s business through a series of investor-friendly measures. Experts say the UAE-India trade has the potential to go up to US$ 100 billion annually.
Investment grows better and faster in the fertile soil of trust, they say. If one is to go by this dictum, there has not been a better time or place than Dubai to those who are in search of a right ecosystem to invest their money.
Disclaimer: This article is a part of featured content series on Business in Dubai