The economic ties between the UAE and India have been reinforced by growing trade between the two countries that stood at $60 billion in 2019. It is now estimated to touch $100 billion by 2030, a far cry from $180 million in the 1970s.
While fDi Markets (Financial Times) estimates that cumulative bilateral FDI flow between the two countries from 2003-2021 is valued at over $57 billion, according to the UAE Embassy in India, the cumulative bilateral FDI stands at $67 billion.
The Indian Embassy in the UAE estimates that the UAE’s investments in India are about $17-18 billion, of which over $11 billion is in the form of FDI (2000-June 2021). The majority of India’s FDI has been in the coal, oil and gas and real estate sectors, while the UAE’s FDI has primarily flowed into real estate and ceramics and glass.
India is the second largest trading partner of the UAE, whereas the UAE stands as the third largest trading partner for India, as of 2019. Petroleum products and gems and jewelry account for the majority of trade between India and the UAE (2016-2020).
Farhan Syed, Partner, Head of Advisory for KPMG Middle East and South Asia (MESA) and Lower Gulf, said: “The future of the India-UAE trade and investment relationship looks extremely bright. As both nations aim to strengthen ties in the coming years, there are several opportunities across various sectors to boost bilateral trade and investment.”