Archive · 12 Nov 2025
UAE's Attractiveness Draws Indian Businesses, Highlighting Policy Challenges
Imagine India and the United Arab Emirates (UAE) made a special deal that made it easier for Indian companies to start businesses in the UAE.
Because of this deal, many Indian companies are now setting up shop in the UAE, especially in a place called Ajman NuVentures Centre Free Zone.
They see the UAE as a good stepping stone to reach customers in Europe, Africa, and other nearby countries.
This is happening because the UAE is becoming a very attractive place for businesses.
While international trade is generally good, this situation shows India that it needs to be better prepared when making these kinds of trade agreements.
The article suggests India should focus on making it easier for its own businesses to operate and grow within India, especially in manufacturing, to keep them from moving abroad.
Around 45% of companies registered at Ajman NuVentures Centre Free Zone in the past year are Indian, with many establishing manufacturing in the UAE.
Indian companies are using the UAE as a strategic gateway for expansion into European, African, and other Gulf markets.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA), effective May 2022, has facilitated Indian companies setting up businesses in the UAE.
The shift highlights a need for India to be better prepared for the implementation of trade pacts and consider their potential negative impacts.
To retain businesses, India must significantly enhance its ease of doing business, particularly for manufacturing enterprises.
- Who
- Indian businesses and companies
- What
- Shifting base to the UAE, particularly to the Ajman NuVentures Centre Free Zone (ANCFZ), seeking to expand into Europe, Africa, and other Gulf countries.
- When
- In the last year, with increased activity post-May 2022 following the CEPA.
- Where
- From India to the UAE (Ajman NuVentures Centre Free Zone and other locations).
- Why
- To leverage the UAE as a gateway for expansion, facilitated by the India-UAE CEPA, and to enhance ease of doing business.
- Companies registered at ANCFZ in the last year
- Around 6,500
- Percentage of Indian companies registered at ANCFZ
- Around 45%
- India-UAE agreement
- Comprehensive Economic Partnership Agreement (CEPA)
- CEPA effective date
- May 2022