UAE Channels US$10 Billion in Investment Inflows to India during 2018-2022

UAE Channels US$10 Billion in Investment Inflows to India during 2018-2022

India, with its rapidly growing economy and a vast consumer market, has been a prominent hub for Foreign Direct Investment (FDI) from countries worldwide. Among these countries, the United Arab Emirates (UAE) stands out prominently. Over the five-year period from 2018 to 2022, India has received a cumulative FDI of 9994 million US$ from UAE alone.

The FDI inflow from UAE witnessed significant variation during this period. While there was a modest inflow of 721 million US$ in 2018, it peaked to an astonishing 3990 million US$ in 2020. However, there was a noticeable dip in 2021, registering 1131 million US$, before rebounding in 2022 to 3290 million US$.

When compared with other Arab countries, UAE has been a dominant player. In 2018, a whopping 91.5% of the total FDI inflows from Arab nations to India originated from UAE. This dominance continued over the years, with the UAE accounting for 80.2% in 2019, 57.0% in 2020, 83.4% in 2021, and a significant 97.0% in 2022.

The total FDI inflows from Arab countries to India from 2018-2022 stand at 13612 million US$. These nations have gradually been increasing their share in India's total FDI inflow. From a mere 1.9% share in 2018, it surged to a remarkable 10.8% in 2020. However, it tapered off to 2.6% in 2021 and 6.5% in 2022.

The total FDI inflows in India over the period 2018-2022 is a massive 258414 million US$. Among this, the share of FDI inflows from UAE alone has fluctuated, but it has undoubtedly been significant.

DP World, a leader in global supply chain solutions; Sharaf Group, a multifaceted conglomerate; Lulu Group, a retail powerhouse; and Emaar Properties, a real estate titan in the Middle East, are among the most prominent investors from the UAE in India.

The increase in FDI inflows from UAE to India can be attributed to a number of factors, including the strong economic ties between the two countries, the UAE's growing interest in investing in India's growing economy, and the Indian government's efforts to attract foreign investment.