Government to open invest India office in Dubai to boost UAE investments

The Indian government has announced plans to establish an Invest India office in Dubai, marking a significant step towards attracting investments from the UAE. Union Minister for Commerce and Industry Piyush Goyal revealed this initiative during a press briefing following the 12th meeting of the India-UAE High-Level Task Force on Investment. This office will serve as a dedicated point of contact for potential investors from the UAE looking to invest in India as detailed in a report by The Press Trust of India.

The meeting, co-chaired by Goyal and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority, focused on reviewing progress on various key initiatives aimed at strengthening economic ties between the two nations. Among the topics discussed were bilateral trade in local currencies, integration of payment systems, cooperation on central bank digital currencies, and the development of a virtual trade corridor.

Goyal emphasised that the India-UAE partnership is built on pillars of innovation, investment, and sustainable development. He stated, "The Joint Task Force meeting today was useful to take stock of all the laudable initiatives that India and the UAE have jointly undertaken." He encouraged stakeholders to explore further investment opportunities facilitated by the robust framework provided by the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the Bilateral Investment Treaty (BIT).

The establishment of the Invest India office in Dubai is particularly noteworthy as it will be the first overseas office of Invest India in that region and only its second globally after Singapore. This move is expected to significantly enhance collaboration between Indian and UAE businesses, particularly given that the UAE is already India's largest Arab investor with investments amounting to approximately USD 3 billion in FY 2023-24.

Recent statistics according to the PTI report reveal that non-oil trade between India and the UAE reached USD 28.2 billion in the first half of 2024, reflecting a year-on-year increase of 9.8 per cent. The two nations are also exploring investments across various sectors including energy, artificial intelligence, logistics, food, and agriculture, which collectively total around USD 100 billion.

In addition to opening the Invest India office, Goyal announced plans for the first overseas campus of the Indian Institute of Foreign Trade (IIFT) in Dubai. This initiative aims to benefit the approximately 3.5 million-strong Indian community residing in the UAE.

The meeting also highlighted ongoing projects such as Bharat Mart, which is designed to leverage Jebel Ali Port's strategic location to enhance India's exports globally. Progress is being made on design work for retail spaces and warehousing facilities.

Moreover, discussions included advancements in digital payments through collaboration between India's National Payments Corporation and Al Etihad Payments in the UAE. The introduction of a domestic card scheme named JAYWAN aims to facilitate seamless cross-border transactions between both countries by interlinking national payment platforms.

Goyal concluded by stating that these initiatives will not only boost investor confidence but also create job opportunities and enhance food security for both nations. The new BIT is expected to provide a stable tax regime and a framework for resolving potential issues between Indian and UAE companies.

As these developments unfold, both nations are poised to strengthen their economic ties further, paving the way for increased investment flows and collaborative ventures that will benefit both economies.