Seeking Indian Investments and Inviting Startups to Establish Hubs for Indian enterprises to invest in, Abu Dhabi has identified priority sectors such as agritech, tourism, healthcare, pharmaceuticals, and financial services.
In order to diversify Abu Dhabi’s business activity beyond hydrocarbons, the UAE capital city is seeking more investments from India, which will not only benefit the local economy but will also allow Indian firms to use it as a platform to expand their footprints globally.
Abu Dhabi has identified priority sectors for Indian investment, including agritech, tourism, healthcare, pharmaceuticals, and financial services.
Natural extension of India-UAE relations
Abdulla Abdul Aziz Alshamsi, Acting Director General of the Abu Dhabi Investment Office, which is in charge of pulling the investments, told PTI that his office will facilitate all investment avenues for Indian companies, calling this a natural extension of India-UAE relations.
Alshamsi advocated for Indian companies to use Abu Dhabi as a platform to expand their global footprints, noting that their presence will benefit the local economy as well.
At a time when Indian startups are looking for better opportunities abroad, Abu Dhabi is eager to entice such innovative businesses, particularly those involved in the targeted priority sectors, to establish bases in the emirate. Alshamsi stated that agritech is an exciting sector given the dry and arid climatic conditions in Abu Dhabi, which are common throughout the Middle East, and that their work can help so many people.
Free Trade Agreement with India
He cited the recently signed Free Trade Agreement with India for economic collaboration, claiming that it will aid not only in the trade of goods and services, but also in the sharing of knowledge.
Throughout history, India and the UAE have had trade relations. According to the Ministry of External Affairs, India-UAE trade will be worth $72.8 billion in 2021-22, making the UAE India’s third largest trading partner after China and the United States.
The UAE is India’s second largest export destination
With nearly $28 billion in exports for the fiscal year 2021-22, the UAE is India’s second largest export destination (after the United States). The UAE’s investment in India is estimated to be around $17-18 billion, with 411.67 billion in FDI and the rest in portfolio investment. In terms of FDI, the UAE is India’s ninth largest investor.
