Surge in Indian Investments in Dubai Post-CEPA: What Entrepreneurs Need to Know
Since the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE came into force in May 2022, Indian investments in Dubai have experienced exponential growth. The agreement marked a strategic milestone in bilateral trade, slashing tariffs on more than 80% of goods, easing service trade barriers, and providing a structured platform for cross-border collaboration.
By 2025, the impact is clearly visible—Dubai has emerged as one of the top investment destinations for Indian entrepreneurs, family offices, and SMEs looking to expand operations internationally.
Key Sectors Witnessing Growth
| Sector | Growth Highlights |
|---|---|
| Information Technology | Major tech firms from India are establishing regional hubs in Dubai Internet City. |
| Consumer Goods | Surge in FMCG and D2C brands entering the GCC market via Dubai. |
| Real Estate | Indian HNIs and developers investing in commercial and residential projects. |
| Fintech & Startups | Fintech incubators in DIFC and DMCC now home to dozens of Indian ventures. |
| Healthcare & Wellness | Cross-border collaboration in medical tourism, clinics, and health tech startups. |
CEPA Benefits for Indian Investors
- Zero or Reduced Tariffs on 90%+ of exported Indian goods.
- Streamlined business setup in Dubai with fast-track licensing procedures.
- 100% foreign ownership in mainland and free zones.
- Access to GCC market via Dubai as a launchpad.
- Visa facilitation under investor and Golden Visa categories.
- Double taxation avoidance and improved legal clarity for dispute resolution.
Why Indian Entrepreneurs Are Choosing Dubai
- Strategic Location: 4-hour flight to major Indian cities, seamless logistics, and port infrastructure.
- Tax Benefits: 0% personal income tax, and 0% corporate tax for qualifying free zone entities.
- Business Ecosystem: Supportive free zone authorities like DMCC, DIFC, and Dubai Silicon Oasis.
- High Quality of Life: Safety, cosmopolitan lifestyle, world-class infrastructure.
- Cultural Affinity: Large Indian diaspora and shared cultural-business values.
Legal and Tax Considerations
| Topic | Indian Resident Investing in Dubai | NRIs Investing in Dubai |
| Tax Residency | Remains Indian tax resident unless physically relocated | NRI status benefits on global income |
| Double Taxation Agreement | India-UAE DTA avoids dual taxation | Applies, minimizing tax burden |
| Repatriation | Profits can be repatriated under FEMA rules | Easier repatriation and capital flows |
| Investment Vehicle | Free zone company, mainland company, holding structures | SPVs, family offices, investment firms |
Authority Sources
How Affinitas DMCC Can Help Investors
At Affinitas DMCC, we assist Indian entrepreneurs with:
- Strategic market entry advisory
- End-to-end company formation in Dubai mainland or free zones
- Assistance in tax registration, accounting, and compliance
- Tailored redomiciliation or expansion support for Indian companies
- Investor Visa and Golden Visa guidance
FAQs
Q1: Can an Indian national own 100% of a business in Dubai? Yes. As of 2021, full foreign ownership is permitted in most sectors, both on the mainland and in free zones.
Q2: Is Dubai a tax haven for Indian investors? Dubai is not a tax haven but offers legal, transparent structures with tax incentives like 0% personal income tax and 0% corporate tax in qualified zones.
Q3: Do Indian startups need a local partner to register in Dubai? No. In most cases, Indian startups can incorporate with full ownership through various licensing options.
Q4: What is the minimum capital required to start a business in Dubai? This depends on the license and free zone but can start as low as AED 10,000.
Looking to expand your Indian business into Dubai? Let Affinitas DMCC be your trusted advisor.
📞 +971 4 576 2903
📧 in*******@af***********.com
🌐 www.affinitasdmcc.com
Take advantage of CEPA opportunities and launch your Dubai venture today!
