India’s FDI Share In Dubai Increases Over The Years: Report

India’s share of Foreign Direct Investment (FDI) has increased from USD 463.15 million in 2015 to USD 545.52 million in 2022, says a report released by Dubai’s FDI Monitor. The report clearly implies the importance of Indian capital in the overall development of Dubai.

Along with estimated FDI capital infused by India, the report also mentioned the estimated FDI jobs and the number of FDI projects that surged in Dubai over the years. From 21 FDI projects in 2015, the year 2022 witnessed 142 projects supported by India’s FDI. 

According to the reports, India has invested 77.5 per cent in greenfield projects followed by new forms of investment that contain 14 per cent of involvement of India’s FDI. The report said that India has also invested 5 per cent of the total FDI in reinvestment. 

Among the sectors, a major portion of 32.2 per cent of India’s investment goes into software & IT service. While 19 per cent of the investment is occupied by the business service sector followed by 9 per cent of investment flows into the consumer product industry. 

As per the Indian Equity Brand Foundation (IBEF) findings, India is UAE’s second-largest trading partner accounting for 9 per cent of its total foreign trade and 14 per cent of non-oil exports. 

In the month of February 2023, both countries completed a year of the historical India-UAE Comprehensive Economic Partnership Agreement (CEPA), and in this one last year, the bilateral trade between the two countries increased by 27.5 per cent. 

While inaugurating the agreement, Prime Minister of India, Narendra Modi claimed that CEPA will be the game changer and can rise the trade of goods to USD 100 billion and services to USD 15 billion in the next 5 years.