Indian brands UAE sojourn reflects a new era of global expansion
13 June, Mumbai 2025
The United Arab Emirates retail space has seen an unprecedented rise of Indian brands. This isn't just about catering to the large Indian diaspora; it's a strategic expansion led by economic incentives, unparalleled market access, and a growing consumer base. The UAE, particularly Dubai, is fast becoming a crucial launchpad for Indian companies seeking global growth.
UAE’s irresistible lure
CEPA, a trade game-changer: The India-UAE Comprehensive Economic Partnership Agreement (CEPA), implemented in May 2022, has been at the centre of this growth. It slashes tariffs on over 90 per cent of goods, boosting bilateral non-oil trade. The ambitious target of $100 billion by 2030 is already within reach, creating a cost advantage for Indian brands.
Table: India-UAE non-oil trade
|
Year |
Non-Oil Trade ($ bn) |
|
2023 |
54.2 |
|
2019 |
36.7 |
(Source: Gulf News, based on Dubai Media Office data)
Pro-business environment: The UAE offers an enticing regulatory framework that includes 100 per cent foreign ownership in many sectors, zero personal income tax, full profit repatriation, and streamlined business registration (often within five days). This contrasts sharply with India's tax complexities, making the UAE an attractive alternative.
Gateway to global markets: Beyond the GCC, the UAE serves as a re-export hub for Indian brands targeting wider markets in the Middle East, Africa, and even Europe. Initiatives like the India-Middle East-Europe Economic Corridor (IMEC) further increase this connectivity.
Affluent consumer base & diaspora: The UAE has a strong economy with high consumer spending. Dubai, a global tourist magnet, offers the chance for Indian brands to capture higher margins. Crucially, the 3.5 million-strong Indian diaspora provides a familiar, affluent consumer base for initial market penetration.
Innovation hubs: The UAE's focus on fintech, AI, e-commerce, and digital transformation provides a fertile ground for Indian startups and tech companies, offering a receptive ecosystem, R&D opportunities, and growing venture capital.
Successful Indian brand footprint
Allen Solly's Dubai debut: Aditya Birla Lifestyle Brands Limited (ABLBL) recently launched Allen Solly's first exclusive store in Dubai's City Centre Deira. This 1,830+ sq. ft. outlet, a partnership with Kalyan Silks, marks a strategic global expansion. Jacob John, President, Premium Brands, ABLBL, sees Dubai as the perfect stage for their bold, contemporary aesthetic and smart casual philosophy, emphasizing its role beyond just a retail destination. The store also introduces Allen Solly Women, targeting millennial and Gen Z consumers with its unique blend of British heritage and modern Indian fashion.
Go Colors! global journey: Indian women's bottom wear brand Go Colors! has made its international debut with a new store at Silicon Central Mall in Dubai. Partnering with the Apparel Group, a leading regional retail conglomerate, Go Colors! aims to bring its extensive range of over 50 bottomwear silhouettes to a new global audience. Gautam Saraogi, CEO & Founder of Go Colors!, expressed excitement about Dubai being a "diverse and dynamic market" and a "strategic starting point" for their Middle East journey. This collaboration signifies Apparel Group's first partnership with an Indian-born fashion brand in the UAE, underscoring the growing appeal of Indian labels.
However, even though the UAE scores with its vibrant retail sector, digital economy, F&B, healthcare, and manufacturing, there’s intense competition from global brands; therefore, adapting to diverse consumer preferences beyond Indian diaspora is important. Also, high initial setup costs, talent acquisition complexities, and managing international supply chains are issues.
Table: FDI from India to Dubai
|
Category |
Value / Count |
|
Estimated FDI Capital |
$14.24 billion |
|
Greenfield FDI Projects |
1,117 |
|
% of Dubai's FDI Inflow (from India) |
21.50% |
|
New Companies Registered (Q1-Q3 2024) |
12,142 |
|
YoY Growth in New Indian Companies (Q1-Q3 2024) |
52.80% |
Source: Vision IAS, based on Dubai Chamber of Commerce analysis
However, the growing number of Indian brands setting up shop in the UAE signifies a mature phase of India's global economic integration. While the Indian diaspora remains a valuable anchor, the broader vision is clear: to leverage the UAE's strategic advantages as a global hub, fostering international expansion and unlocking new growth avenues.
