The Middle East is steadily strengthening its role in the global investment industry. With some of the world’s largest sovereign wealth funds and thousands of influential family offices, the region has been increasing its influence as a source of capital for the world.
Not surprisingly, some of the world’s most iconic things including popular football clubs, hotel properties, infrastructure projects and big businesses are owned or powered by capital from the Gulf. Notably, the region has been under a quiet undercurrent with money now flowing on a two-way street.
The region as a whole but with Dubai as the beacon has emerged as an important confluence of capital from investors across different continents. This is due to the proactive role by the establishment with tax friendly jurisdiction, high quality of life to attract talent and a thriving half-a-trillion strong population that serves as a significant sized market on its own for businesses to scale.
Indian businesses and investors, especially family offices, who have had historical ties in the region have been one of the key contributors to the trend.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) which came into effect in May 2022, marked an inflection point with bilateral merchandise trade nearly doubled in three years to $83.7 billion in 2023-24 and is poised to hit the milestone of $100 billion mark in the near future. Non-oil trade, a key focus, now accounts for more than half of the total.
And Dubai is the centrepiece of activity in the country. According to Dubai FDI monitor, in 2024, Dubai achieved a remarkable 33% increase in greenfield FDI capital with a record 1,117 fresh FDI projects, maintaining its position as the top global city for greenfield projects for the fourth consecutive year. This was anchored by investments in hotel & tourism, real estate, and advanced technologies.
India has been a strong contributor to this trend having jumped four spots to emerge as the leading source of FDI capital in Dubai, particularly driving investments into the real estate sector. FDI from India into Dubai accounted for more than fifth of the total capital flow into the emirate in 2024.
This shows how the capital flow in and out of Dubai and India is not a one-way street anymore.
In this context, VCCircle, the leading emerging markets publication tracking alternative investments, is bringing its flagship Limited Partners (LP) summit to Dubai for the second time. After 16 successful editions in India, the second edition of the Dubai chapter aims to spotlight regional opportunities and showcase how LPs on both sides can generate strong returns while advancing sustainability and scale with a tax friendly environment.