India-UAE Corridor: $25B Invested, Hurdles Remain

The India-UAE growth corridor presents substantial opportunities for collaboration in trade, investments, and talent exchange between the two nations. While India has attracted significant capital from the UAE over the past decade, industry executives highlight specific challenges that could hinder further private investment.

Over the last ten years, India has received more than $25 billion in investments from the UAE. This partnership leverages India’s burgeoning digital economy and large demographics, alongside the UAE’s strong capital base, logistics capabilities, and global connectivity.

Navigating Investment Hurdles

Despite the existing collaboration, a consensus among UAE executives suggests that addressing key impediments could unlock greater private capital. Concerns include the absence of a time-bound legal framework for dispute resolution and inadequate infrastructure.

• Ekta Tolani, Chief Investment Officer at KBW Ventures, noted that India’s performance in ease of business, exit flexibility, liquidity, legal reforms, and infrastructure trails countries like the US, which often attracts more UAE capital. She stressed the necessity of a bilateral investment treaty.
• Nandi Vardhan Mehta, CFO at KAAF Investments, advocated for enhanced capital movement between private families. He also called for establishing co-investing vehicles, such as the National Investment and Infrastructure Fund, to anchor global private investments.

Catalysts for Future Growth

Beyond capital, the corridor actively facilitates a significant exchange of talent and technology. This dynamic interaction is strengthening the bridge between the two economies.

• More than 4,000 Indian businesses have established operations in the UAE, according to Nader Albastaki, Managing Director at Dubai Future District Fund, who also noted active fundraising by managers to bolster this connection.
• Youssef Salem, CFO at ADNOC Drilling, identified energy as a primary driver for UAE private investment. He added that India’s projected one billion urban population, rapid advancements in AI, and commitment to green energy make it an exceptionally attractive investment destination, with its extensive talent pool fueling growth in both India and Abu Dhabi.

Abdulla Ziad Galadari, senior partner at Galadari Advocates, affirmed that the unique partnership between India and the UAE, combining digital economy strengths with capital and logistics, indicates that current achievements are merely the initial phase of their potential.