Indian Startups Aim to Access the Broader Region via UAE

Last year, India signed a significant Comprehensive Economic Partnership Agreement with the United Arab Emirates (UAE), which has opened up the Emirati market to Indian businesses and startups. This agreement has been highly beneficial, reducing tariffs on around 80 percent of goods and providing zero-duty access to 90 percent of Indian exports. As a result, bilateral trade between the two nations has reached a historic high, growing by 16 percent year-on-year to reach $85 billion in the period between April 2022 and March 2023, according to data from the Indian Ministry of Commerce. Indian startups eye North Africa entry through UAE trade pact platform.

According to the UAE India Business Council, this trend is set to continue, with further growth expected in the years to come. The council’s head of business development, Mukesh Kalra, explained that this is due to the UAE’s aggressive policies in attracting companies from India and other regions, along with the development of free economic zones.

For Indian businesses, the UAE is seen as a gateway to expand further into the Middle East and North Africa. This region represents an emerging destination for Indian companies, with many seeing it as an opportunity for growth. Klug Klug, an Indian tech platform for influencer marketing, recently opened an office in Dubai to access this broader region, citing the Middle East, including Saudi Arabia, as a rapidly growing market.

Similarly, Rajeev Punj, director of Interlude Global Business, has found having a UAE branch helpful in expanding his company’s business, but sees the future potential for expansion in Saudi Arabia. “Lots of opportunities are coming up,” he said.

While the UAE is a significant and valuable market for Indian businesses, it is not seen as the final destination. Rather, it is viewed as a hub for expanding further into the Middle East and North Africa, with many Indian companies recognizing the growth potential of this emerging region.

“The economic graph between UAE and India is going north,” Mukesh Kalra, the council’s head of business development, said in a recent interview.

“Free economic zones, aggressive policies of attracting companies from India and other (regions) have been really pushed by the UAE in the last few years.”

It also offers access to the Middle East and North Africa, which are largely emerging destinations for Indians.

“The reason why the companies are moving to UAE is access to the MENA region,” Kalra said. “North Africa is still not a saturated market.”

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