The United Arab Emirates (UAE) is ready to benefit significantly from a new wave of outbound UAE investment from India. Moreover, it is estimated that more than $20 billion yearly could flow into the foreign market. This surge comes as the introduction of a more liberalized framework for outbound capital under India’s Foreign Exchange Management Act (FEMA).
India’s Outbound UAE Investment on the Rise
Revised guidelines on Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI) have simplified global capital mobility. Now, investors and corporates can incest abroad under the Automatic Route without prior approval from the Reserve Bank of India (RBI), as long as the investment remains within 400% of net worth.
Amit Goenka, Chairman and MD of Nisus Finance, said this change in the regulatory is the turning point. Moreover, he noted, ”We expect affluent Indians to increasingly invest in the global equities, assets, and real estate. This could reach $20 billion annually, with the UAE standing out as the largest beneficiary”.
Data also supported this trend. Hence, it revealed that India’s outbound UAE investment surged by 67.7% in the FY2024-25 by reaching $41.6 billion. However, the outward remittance under the Liberalised Remittance Scheme (LRS) hit a record $29 billion.
UAE Real Estate: The Top Magnet
The real estate sector of the UAE is the biggest attraction, as it has reached $680 billion. Moreover, property transactions also surged to h761 billion ($207 billion) across 226,000 deals in 2024. Hence, it marks a 36% increase in volume. Additionally, Dubai also welcomed 110,000 new investors, which highlights a rise of 55 percent.
Goenka noted that private capital is going to play a decisive role in bridging the $100 billion annual funding gap in the sector. For example, Nisus Finance is investing actively in affordable housing projects like Jumeirah Village Circle and Al Furjan.
Innovation and Institutional Participation
On top of that, Dubai is also pioneering the real estate tokenization due to projects expected to attract Dh60 billion worth of tokenized property deals by 2033. Therefore, analysts believed that this could position tokenization as a mainstream investment class.
Global investment giants like Blackstone and Brookfield, along with sovereign wealth funds, are also expanding their footprints in the United Arab Emirates (UAE). Therefore, these factors are signaling confidence in the market. So, we can expect more investors entering this market.
Future prediction
The UAE Vision 2040 aims to grow the population to 13.6 million by driving demand across housing, education, and healthcare. Moreover, over 4,300 ultra-wealthy Indian families are relocating to the UAE in 2024. Hence, it brings $5 billion in investable wealth. So, the country is set to become a central hub for real estate, industrial investment, and global capital flows.
Read more:
[…] Wealthy Indians to Channel $20 Billion Annually into UAE Investments Amid Liberalised Rules […]
[…] Wealthy Indians to Channel $20 Billion Annually into UAE Investments Amid Liberalised Rules […]