$52bn Indian investment in UAE

India emerged as one of the top investors in the UAE as nearly 26,500 companies from the Subcontinent operate in the second largest Arab economy, with an estimated combined investment of around $52 billion, a prominent Indian businessman was reported on Monday as saying.

The figured does not include Indian firms operating in free zones in the UAE and this means India’s investments in the country are much higher, said Paras Shahdadpuri, President of the Indian Business and Professional Council (IBPC) in Dubai.

Quoted by the Dubai-based Arabic language daily Al Bayan, Shahdadpuri also expected the UAE economy to record high growth of between 5 and 7 per cent in 2013-2014.

“Our estimates show India’s investment in the UAE could be around $52 billion, excluding companies based in free zones in Dubai, Abu Dhabi and other emirates.

“As for the UAE investments in India, they are estimated at $15 billion,” he said.

He said India’s economic links with the UAE have rapidly grown over the past years, adding that New Delhi has become one of the UAE’s largest trade partners.

His figures showed two-way trade between the two countries leaped from around $43 billion during fiscal year 2009-2010 to a record high of $75 billion during 2012-2013.

Asked about the UAE economy, Shahdadpuri said he expected real GDP to grow by around five per cent in 2013 and 6-7 per cent in 2014.

“The UAE economy has strongly recovered in the wake of the 2008 global fiscal crisis.

“As the oil revenues now account for a relatively small share of the UAE’s GDP given the steady growth of other sectors, we expect high GDP growth in the coming years. A planned rail project within the Gulf Cooperation Council (GCC) will also give a strong push to growth and trade in the region,” he said.