December 26, 2023: Dubai witnessed significant investments (FDI) from Indian investors, amounting to $1.6 billion between 2020 and H1 2023, says a new report by occupier-focused workplace solutions firm Vestian.
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, says the report.
Headquartered at Chicago, Vestian has offices across the US, India, China, the UK, Sri Lanka and the Middle East, and specialises in commercial, residential, industrial, retail and hospitality sectors.
“Indian investments (FDI) in Dubai nearly doubled from 2020 to 2022, reaching $541 million in 2022. Moreover, the first six months of 2023 accounted for 62% of investments (FDI) in the whole previous year. Indian investors made significant purchases, exceeding $4 billion, in Dubai’s residential market in 2022,” It said.
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, the report added.
In the first six months of 2023, India was among the top countries investing in Dubai with a cumulative investment of $335 million, 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 the Dubai Land Department.
Indian Investments in Dubai
| Year | FDI | Number of projects |
| 2020 | $316 million | 29 |
| 2021 | $362 million | 78 |
| 2022 | $541 million | 142 |
| H1 2023 | $335 million | 123 |
Source: Department of Economic Development, Dubai FDI, Compiled by Vestian Research
Note: Data captured on November 8, 2023
The 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 the UAE and India, fostering economic development.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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