The ties between India and the Gulf go back centuries, to dhows carrying spices, textiles and pearls across the Arabian Sea. Today the cargo has changed, but the logic is the same: two economies that complement each other, separated by a short journey.
A landmark agreement
In 2022 the UAE and India brought into force a Comprehensive Economic Partnership Agreement (CEPA), India's first such agreement in more than a decade. It reduced tariffs on a large share of goods traded between the two countries and set out commitments on services, investment and trade facilitation. It has since been followed by further agreements, including a bilateral investment treaty and cooperation on payments in local currencies.
Why the corridor matters
- Trade. The UAE is one of India's largest trading partners, and India is one of the UAE's. Energy, metals, gems and jewellery, food and manufactured goods flow in both directions.
- People. The Indian community in the UAE is one of the largest diaspora populations anywhere, bringing skills, entrepreneurship and close family and business links.
- Capital. UAE sovereign and private investors have committed significant capital to Indian infrastructure, technology and consumer businesses, while Indian companies increasingly use the UAE as a base for regional and global expansion.
- Payments. Linking digital payment systems and settling trade in local currencies reduces cost and friction for businesses of every size.
Opportunities for businesses of every size
Large conglomerates and sovereign funds capture most headlines, but the corridor matters just as much for small and mid-sized businesses. Lower tariffs make it easier for Indian manufacturers to sell into the Gulf and beyond. UAE free zones give Indian entrepreneurs a fast, internationally recognised place to set up a regional company. Traders on both sides benefit from simpler customs procedures and from the ability to settle in rupees and dirhams rather than routing everything through a third currency.
The challenges worth noting
A strong corridor is not a frictionless one. Rules of origin under trade agreements can be complex, standards and certification differ between markets, and global shipping disruptions affect routes through the region. Businesses that invest in good advice and good partners at the start tend to capture far more of the benefits than those that rush in.
Zenith's place in the corridor
Zenith Group was founded by Hari Shankar Tibrewala, whose career has spanned India and the Gulf for more than two decades. The group is focused entirely on long-term investment. Our Dubai company, Zenith Multi Trading DMCC, is the group's investment company in the UAE. Our Abu Dhabi Global Market company, Plus Capital Limited, serves as a base for strategy and partnerships across India, the UAE and Europe.
We see the corridor not as a single trade route but as a two-way platform: Indian businesses looking outward, Gulf capital looking for long-term growth, and international partners using the UAE as a bridge between the two.
Looking ahead
Several forces should keep the corridor growing: India's continued expansion, the UAE's diversification beyond hydrocarbons, new logistics routes connecting India, the Middle East and Europe, and the steady integration of financial systems. Like any long-term relationship, it will have its slower years. The structural case, however, looks strong.
For a group that thinks in decades, few opportunities are as close to home.
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