Other BriefingsOver 15,000 Indian Companies Joined Dubai Chamber of Commerce in 2023
Dubai continues to be a magnet for Indian businesses, as evidenced by a remarkable influx of 15,481 new Indian-owned enterprises joining the Dubai Chamber of Commerce in 2023 alone. This marks a substantial 38 percent increase compared to the previous year, underscoring Dubai’s allure as a top choice for Indian investors. The analysis, conducted internally by the Dubai Chamber of Commerce, underscores the robust relationship between the UAE and India.
The driving force behind this surge is multifaceted, with key factors including the implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Enacted in April 2022, the CEPA aims to streamline procedures, reduce tariffs, and create a more favorable environment for businesses on both sides. Since its inception, non-oil bilateral trade between India and the UAE has surpassed US$50 billion, with ambitious targets set to double this figure by the end of the decade.
The CEPA agreement has marked a new phase of UAE-India bilateral cooperation and is steadily creating additional avenues of investment and trade for companies in India and the UAE.
It [UAE-India CEPA] would add 1.7 per cent or $8.9bn to the UAE’s gross domestic product and boost exports by 1.5 per cent or $7.6bn by 2030: Abdulla bin Touq, UAE Minister of Economy.
The bulk of the newly registered companies with the Dubai Chamber of Commerce in 2023 operate in the wholesale and retail trade and motor vehicle repair sector, constituting 44.2 percent of new memberships. Following closely behind are companies in the real estate, renting, and business activities sector, comprising 32 percent of the total.
Over 3.55 million Indian expatriates are estimated to be living in the UAE, up from 3.419 million at the end of 2022: Government of India
With the CEPA in full effect and a record number of Indian firms joining the Dubai Chamber, the horizon appears promising for economic collaboration between India and the UAE.
The Dubai Chamber of Commerce, a nonprofit public entity, is dedicated to advancing Dubai’s global standing by empowering businesses, offering innovative value-added services, and facilitating access to influential networks.
For Indian companies eyeing opportunities in Dubai, particularly within the wholesale and retail trade, motor vehicle repair, real estate, renting, and business activities sectors, the time is ripe to capitalize on this momentum. By leveraging the benefits of the CEPA and tapping into Dubai’s dynamic business ecosystem, companies can unlock new avenues for growth, expansion, and collaboration.
As you navigate this evolving landscape, we offer the following strategic recommendations:
- Explore market potential: Conduct thorough market research to identify untapped opportunities and emerging trends within your industry sector in Dubai. Understand local consumer preferences, regulatory frameworks, and tax regime to tailor your offerings effectively.
- Forge strategic partnerships: Foster strategic partnerships with local businesses, industry associations, and government entities to gain insights, access resources, and navigate regulatory complexities more effectively. Collaborative ventures can also facilitate market entry and expansion efforts.
- Optimize operational efficiency: Streamline your operations, supply chains, and logistics to enhance efficiency and reduce costs. Leverage technology solutions, automation, and best practices to optimize resource allocation and improve productivity.
- Invest in talent development: Invest in recruiting, training, and retaining local talent with the necessary skills and expertise to drive your business forward in the Dubai market. Cultivate a diverse and inclusive workforce that reflects the multicultural fabric of Dubai.
- Stay agile and adaptive: Remain agile and adaptive in response to evolving market dynamics, regulatory changes, and geopolitical developments. Continuously monitor industry trends, consumer preferences, and competitive pressures to adjust your strategies accordingly.
Should you require further assistance or guidance in navigating the Dubai market, please do not hesitate to reach out to us. We are committed to supporting your business endeavors and helping you achieve your strategic objectives in Dubai and beyond.
For professional advisory on setting up in the UAE or doing business in India, you may reach our experts at dubai@dezshira.com and india@dezshira.com
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
For support with establishing a business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at dubai@dezshira.com or visit us at www.dezshira.com. To subscribe for content products from the Middle East Briefing, please click here.
