- Since the India-UAE economic partnership agreement in 2022, a slew of Indian manufacturers, including Himalaya Wellness, Omega Seiki, Lohum Cleantech, and Switch Mobility are planning to set up their plants in the UAE
- With readymade infrastructure and easy access to global markets across MENA and Europe, Dubai’s free zones are a no-brainer for Indian companies
- The UAE has also been making long term investments in India’s sovereign wealth fund, other early-stage VC firms and startups
- Though Indian manufacturers’ shift to Dubai could adversely affect India’s export stats, India continues to be a major market and the risk of mass exodus remains limited
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“Make in Emirates, make for the world”. That has been the pitch coming from the United Arab Emirates (UAE) since 2021. Now, it’s resonating with Indian manufacturers.
Personal-care and pharmaceutical company Himalaya Wellness; electric-vehicle maker Omega Seiki Mobility (OSM); electric-bus manufacturer (and subsidiary of commercial-vehicle giant Ashok Leyland) Switch Mobility; and iron-and-steel-pipe manufacturer Jindal Saw. These are just a few among Indian companies who’re planning to set up fully-operational manufacturing bases across free-trade zones in the UAE.
Others, such as consumer-goods company Dabur, eyewear company Lenskart, and conglomerate Tata already have operations there. Tata’s presence, in particular, is sprawling—from hospitality ventures such as Taj Exotica and The Palm Dubai, to Tata Steel Middle East’s downstream facility to manufacture steel flooring in Jafza.
Of the total
We are positioning the UAE as our primary hub for expansion across the Gulf, with a strong focus on EV and CNG two- and three-wheeler segments, and our upcoming drone programme
Uday Narang, founder and CEO, Omega Seiki Mobility
The UAE does have a knack for reimagining barren desert into globally competitive hubs—whether for tourism, technology, or now manufacturing.
India tried to do something similar with its special economic zones (SEZ), or Gujarat’s GIFT city. But the results didn’t come close. While India currently has 276 operational SEZs with around 6,300 companies, the UAE—which is smaller than the state of Bihar in area—has 40 free-trade zones
It only helps that the UAE is India’s third-largest trading partner, after China and the US. In fact, after the two countries signed an economic partnership agreement in 2022, trade between them
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