India's foreign direct investment in Dubai exceeded $3 billion in 2024, positioning it as the top investor, according to the latest data.
This week, Dubai’s Department of Economy and Tourism revealed that the emirate attracted an estimated 52.3 billion Dirhams ($14.20 billion) in FDI capital for the year.
India was “the top source country with the highest total estimated FDI capital into Dubai, accounting for 21.5%,” according to a statement by the principal authority for the planning, supervision and development of Dubai’s business and tourism sectors.
This totals approximately $3.05 billion, marking a fivefold increase from 2023, when India was Dubai’s fifth-largest contributor to FDI capital.
Last year, the US followed India with 13.7%, France contributed 11%, the UK accounted for 10%, and Switzerland made up 6.9%, Arab News reports.
In addition, India was also the second-largest contributor to FDI projects in Dubai, holding a 15% share, just behind the UK at 17%.
Business leaders noted a significant rise in Indian investment not only in Dubai but across the UAE.
This surge was driven by several bilateral agreements, notably the 2022 UAE-India Comprehensive Economic Partnership Agreement, which removed trade barriers, reduced tariffs, and streamlined business operations, making it easier for companies in both countries to access each other’s markets.
It has enabled “remarkable economic collaboration” and allowed Indians “to take full advantage of this favourable (investment) atmosphere,” said Adeeb Ahamed, managing director of LuLu Financial Holdings and chair of the Middle East Council of the Federation of Indian Chambers of Commerce and Industry.
Moreover, according to FICCI data, the top sectors for Indian FDI in Dubai are business services, software and IT services, consumer products, food and beverages, and real estate.
“This diversification reflects Indian businesses’ strategic approach to global expansion. The regulatory environment — the 2022 Comprehensive Economic Partnership Agreement and 2024 Bilateral Investment Treaty — have significantly reduced barriers, while world-class infrastructure and bilateral agreements have created an ecosystem where Indian enterprises can truly flourish,” FICCI Director-General Jyoti Vij told Arab News on Wednesday.
“This meteoric rise from the fifth to first position as Dubai’s top FDI source demonstrates our growing global ambitions and capabilities.”