The Gulf region has seen a surge in foreign direct investment inflows from India during the years 2018-2022, with the United Arab Emirates accounting for 55.7% of the total flows. This represents an 85.5% increase compared to the period from 2013 and amounted to $164.4 billion. According to a report by Alpen Capital titled “The Gulf-India Corridor: Investment Opportunities,” investing in Indian startups presents an opportunity to participate in the technological revolution and benefit from high investment returns generated by India.
Sanjay Sudhir, Ambassador of the Republic of India to the UAE, highlighted expanding relations between India and the Arab Gulf countries, emphasizing the clear roadmap provided by leadership in both regions to deepen cooperation across sectors. He also mentioned significant reforms undertaken by the Indian government to simplify procedures, taxes, and implement a single window system for customs clearance, making it easier for businesses to operate in India.
The Gulf Cooperation Council countries are attracting increased interest as an investment destination due to regional governments’ efforts to enhance foreign direct investments through economic diversification strategies. The region’s strategic location plays a crucial role in linking countries across regions, solidifying its position as a significant commercial center between East and West. Despite notable growth in trade between the Gulf countries and India, India’s share of total foreign direct investments into the Gulf Cooperation Council countries decreased during 2018-2022; however, it remains an attractive destination due to its status as one of the world’s fastest-growing major economies. The cumulative balance of foreign direct investment inflows to India reached $250.9 billion during this period, demonstrating its appeal for foreign investors.
