The economic partnership between the United Arab Emirates and India has reached unprecedented heights, with bilateral trade surging to $100.06 billion in FY 2024-25. This growth, largely driven by the Comprehensive Economic Partnership Agreement (CEPA) that came into force on May 1, 2022, has created significant opportunities for entrepreneurs and businesses on both sides. However, navigating the complex legal and regulatory frameworks of these two distinct markets requires expert guidance. This article examines the current state of UAE-India trade relations, the mutual benefits driving cross-border investments, and the critical role legal and business consultancies play in helping companies capitalize on this thriving corridor.
A Historic Partnership: The Current State of UAE-India Relations
India and the UAE have forged one of the most dynamic bilateral relationships in recent history. Bilateral trade has grown from approximately $72.9 billion in FY 2021-22 to $100.06 billion in FY 2024-25, positioning the UAE as India’s third-largest trading partner and a top investor. India, in turn, has become a leading investor in the UAE.
The CEPA has been instrumental in this acceleration, facilitating both goods and services flows between the two nations. Non-oil trade alone surged to $37.6 billion in the first half of 2025, representing a 33.9% increase over the same period in the previous year. This structural shift underscores the deepening economic integration beyond traditional energy sectors.
A tangible symbol of this partnership is the upcoming Bharat Mart, scheduled to open by the end of 2026. This comprehensive hub for retail, showrooms, and logistics will significantly enhance the distribution of Indian goods across the Middle East, Africa, and Eurasia, further cementing the UAE’s role as a gateway for Indian commerce.
Mutual Attraction: Why Businesses Choose the UAE-India Corridor
The UAE’s Appeal to Indian Entrepreneurs
For Indian entrepreneurs and companies, the UAE offers a compelling business environment characterized by:
- Global connectivity: Strategic location providing access to markets across the Middle East, Africa, Europe, and Asia.
- Tax efficiency: Zero personal income tax and a 9% federal corporate tax rate with clear rules and free-zone incentives.
- World-class infrastructure: Advanced business hubs such as the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).
- Long-term stability: Residency options including the Golden Visa program.
- Business-friendly ecosystem: Streamlined processes and regulatory clarity.
India’s Appeal to UAE Investors
Conversely, India presents UAE investors with equally attractive opportunities:
- Market scale: Access to a fast-growing market of over 1.4 billion consumers
- Economic diversification: Alignment with the UAE’s strategy to diversify beyond oil-dependent sectors
- Human capital: A large, educated workforce and strong ties through approximately 4.3 million Indian nationals residing in the UAE
- Policy framework: CEPA combined with bilateral investment treaties (BIT) that enable long-term, trust-based partnerships
- Growth sectors: Expanding opportunities in infrastructure, energy, fintech, and technology
These opportunities extend beyond businesses already established in either market. Entrepreneurs and companies seeking to expand into the India-UAE corridor for the first time can equally benefit from this favorable environment.
Key Sectors Driving Cross-Border Investment
The UAE-India economic corridor is witnessing significant activity across multiple sectors. Financial technology is emerging in substantial ways, with both countries interlinking their digital payment systems, UPI and AANI, and connecting domestic card schemes through RuPay and JAYWAN. UPI acceptance at UAE merchants is expanding via Network International.
In precious metals and jewellery, CEPA has cut duties and simplified access, boosting India’s plain-gold jewellery exports to the UAE. The gold Tariff Rate Quota (TRQ) mechanism has also shaped recent bullion flows and policy adjustments. Beyond these sectors, substantial investments are flowing into real estate development, renewable energy projects, healthcare infrastructure, and related sectors, reflecting both countries’ commitment to long-term economic diversification.
The Strategic Role of Legal Advisory in Cross-Border Expansion
Behind this growing economic corridor stands a strong legal and advisory infrastructure. Law firms and consultancies translate bilateral frameworks like CEPA into actionable opportunities, helping businesses navigate complexities, minimize risk, and unlock incentives.
Business Consultancies assist companies in establishing their presence, from selecting the right legal structure to choosing between mainland or free-zone setups. Legal Consultancies ensure that entities are structured and operated in full compliance with UAE and Indian laws and regulations.
Beyond incorporation, advisors determine the optimal entity type, draft shareholders’ agreements and joint venture frameworks, and set up compliance and risk management systems. They also assess cross-border considerations such as CEPA benefits, free-zone incentives, FEMA regulations, and data or IP portability, enabling companies to expand seamlessly across the UAE-India corridor.
Habib Al Mulla and Partners has established itself as a key business consultancy facilitating UAE-India expansion. The firm provides comprehensive advisory services that guide companies through cross-border complexities, from initial market entry to long-term operational success. The firm empowers businesses through strategic support in company formation, governance frameworks, and regulatory compliance across both jurisdictions. With an established regional presence spanning India, Egypt, Turkey, Iraq, Russia, and the UAE, the firm provides support that ensures seamless coordination between regulatory environments, proactive risk management, and effective business expansion across interconnected markets.
Ultimately, legal consultancies serve not merely as intermediaries but as enablers of sustainable growth. They help transform trade agreements into real-world opportunities, bridging differences in legal systems and building a framework of trust between economies. As the UAE and India continue to deepen their strategic cooperation, law firms like Habib Al Mulla and Partners will remain key to strengthening this vital economic corridor, empowering entrepreneurs, facilitating investment, and shaping the future of cross-border commerce.
References:
- Economic Times. (2025, July 22). India-UAE trade at $100 bn since signing CEPA. The Economic Times.
- CII Blog. (2025, September 19). India-UAE economic partnership drives growth with rising trade and strategic investments. Confederation of Indian Industry.
Retrieved from https://ciiblog.in/india-uae-economic-partnership-drives-growth-with-rising-trade-and-strategic-investments/
- Khaleej Times. (2025, October 20). Bharat Mart UAE 2026 opening. Khaleej Times.
Retrieved from https://www.khaleejtimes.com/uae/bharat-mart-uae-2026-opening