Indian Foreign Direct Investments (FDI) in Dubai surged to $335 million in H1 2023, marking a substantial increase from the $221 million recorded in the same period in 2022, according to Vestian.
The strategic location and tax-friendly policies of Dubai continue to entice Indian investors, resulting in a noteworthy total FDI of $1.6 billion from 2020 to H1 2023. This positive trend, evident in the doubling of Indian investments from $541 million in 2020 to $1.6 billion in H1 2023, aligns with Dubai’s economic agenda as outlined in D33.
Notably, the first half of 2023 alone accounted for 62 per cent of the total FDI in the previous year. The residential market in Dubai saw significant contributions from Indian investors, surpassing $4 billion in purchases during 2022. Investments from India, primarily directed towards IT services and business services sectors, amounted to $10.5 million by the end of Q2 2023, largely focused on greenfield projects, as reported by the Dubai FDI Monitor.
India emerged as one of the leading contributors to Dubai’s growth, investing $335 million in the first half of 2023 and leading in the number of projects with 123 investments, surpassing Canada and Latvia, according to Vestian, an international property consultant that provided these insights based on data from the Dubai Land Department.
As the UAE targets doubling Dubai’s GDP by 2033 and positioning itself as a global economic hub, Indian investors leverage the dynamic real estate market and investor-friendly policies. The sustained positive trajectory reflects the mutually beneficial relationship between India and the UAE, further strengthened by the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022. Shrinivas Rao, CEO of Vestian, emphasises how this contributes to the ambitious economic goals set by the UAE government.