Economic links between Dubai and India are entering a new phase as trade, investment and corporate activity continue to expand across both markets. The emirate has strengthened its role as one of the main international gateways for Indian businesses, while Dubai-based companies are increasing their exposure to one of Asia’s largest economies.
The scale of this relationship is reflected in the latest trade figures. Dubai’s non-oil trade with India reached a record AED 222.5 billion in 2025, representing an increase of 15% compared with the previous year. Over a longer period, the change has been even more significant: bilateral non-oil trade has risen by 136.2% from AED 94.2 billion in 2016. India is now Dubai’s second-largest trading partner.
The figures were reported by Gulf News, citing data presented by Dubai Chambers President and CEO Mohammad Ali Rashed Lootah during the Economic Times World Leaders Forum 2026 in New Delhi. The event brought together senior executives, investors and government representatives, including Indian Prime Minister Narendra Modi.
Indian companies strengthen their presence in Dubai
Trade growth is being accompanied by a substantial expansion of the Indian business community in the emirate. During the first half of 2026 alone, 7,579 Indian companies joined the Dubai Chamber of Commerce. By the end of June, the number of active Indian member companies had reached 85,841, an increase of 15% year on year.
The composition of these businesses illustrates how broad the commercial relationship has become. Trade and services represent 45% of active Indian companies registered with the chamber. Real estate, leasing and business services account for another 27.3%, while construction represents 19%.
For Indian entrepreneurs, Dubai offers more than access to the UAE domestic market. Its transport infrastructure, financial ecosystem and connections with the Middle East, Africa and other international markets allow companies to use the emirate as a base for regional expansion. The rising number of registered businesses suggests that this role is becoming increasingly important.
Capital flows are moving in both directions as well. Between 2016 and 2025, Dubai attracted approximately AED 32.3 billion in Indian investment. Of that amount, AED 8.4 billion arrived as foreign direct investment during 2025.
Dubai companies have also expanded their operations in India. Over the same ten-year period, businesses based in the emirate invested about AED 34.1 billion across 147 projects in the Indian market. Those investments contributed to the creation of more than 55,000 jobs, demonstrating that the economic relationship extends well beyond the exchange of goods.
CEPA accelerates bilateral trade
One of the major factors supporting this expansion has been the UAE–India Comprehensive Economic Partnership Agreement. CEPA entered into force in May 2022 with the aim of reducing trade barriers, improving access to both markets and creating more favorable conditions for companies operating between the two economies.
Since the agreement took effect, non-oil trade between Dubai and India has increased by approximately 35%. The growth indicates that closer regulatory and commercial integration is translating into measurable business activity rather than remaining limited to diplomatic agreements.
The partnership also provides Dubai with an additional source of economic diversification. Stronger commercial links with India support sectors ranging from logistics and construction to professional services and property, while Indian companies gain access to Dubai’s international business infrastructure and regional networks.
The next stage of cooperation is expected to extend increasingly into technology-driven industries. Areas such as fintech, digital services, deep technology and agentic artificial intelligence are emerging as potential sources of new investment and partnerships.
Technology could drive the next phase of growth
Dubai Chambers is already developing initiatives designed to encourage private-sector adoption of agentic AI, including specialized training programs and support for technology companies. Such measures could create additional opportunities for Indian technology firms seeking to establish operations in the emirate or collaborate with Dubai-based businesses.
This shift is important because Dubai–India economic relations are no longer defined primarily by traditional trade. The combination of rising investment, a growing Indian corporate presence and cooperation in emerging industries points toward a more diversified commercial partnership.
For Dubai, the numbers also reinforce its position as an international business hub connecting companies with markets well beyond the Gulf. For India, the emirate provides an established platform for reaching customers, investors and partners across the wider Middle East and other regions.
With non-oil trade already above AED 222 billion and tens of thousands of Indian companies active in Dubai, the relationship has developed into one of the emirate’s most significant international economic partnerships. Continued investment and expansion into technology could give that relationship an even larger role in Dubai’s future growth.