There has been a visible warming of ties between India and the United Arab Emirates (U.A.E) over the past decade, spanning multiple areas. Prime Minister Narendra Modi made history in 2015 by becoming the first Indian leader to visit the Gulf state in 34 years, and has personally championed this advancement of bilateral ties. Since then, Modi has visited the U.A.E. six more time, including in February this year, declaring India and the U.A.E. as “partners in progress.” The ties span multiple sectors, from migration to business and defense-security, and are deemed part of “broader efforts to re-establish India as a crucial player in West Asia and a rising power on the world stage.” In his third term as prime minister, Modi is likely to continue prioritizing foreign policy goals from his previous two terms, including fortifying ties with all Gulf states.
In 2017, India and the U.A.E. established the Comprehensive Strategic Partnership (CSP), propelling their ties to new heights. Central to the relationship is the Indian expatriate community, which plays a key role in the U.A.E.’s economy and bolsters foreign remittances to India. Of the estimated 7.93 million Indian nationals living in the Gulf, over 3.5 million reside in the U.A.E., including many second or third generation U.A.E.-born Indians, making them the largest ethnic community in the state, outnumbering even Emirati citizens. Per the Indian government, 65 percent of Indians employed in the U.A.E. fall into the blue-collar category; 20 percent are white-collar non-professionals; and 15 percent are professionals and businessmen.
By the end of 2022, 83,000 Indian-owned companies were registered with the Dubai Chambers, and Indians owned 30 percent of Dubai’s startups. Several factors have drawn a growing number of non-resident Indians and Indian firms to the U.A.E., with job seekers lured by promises of higher salaries, improved living standards, and favorable career opportunities in diverse and thriving sectors. Indian business owners, investors, and entrepreneurs, meanwhile, can seamlessly connect with global markets, bypassing the cumbersome bureaucracy and high taxes often encountered at home. Importantly, many Indian companies are looking to leverage the U.A.E.’s re-export potential, aligning with the latter’s ambition to emerge as a nerve-center of international commerce.
The U.A.E., in turn, is facilitating Indians, with the state introducing a new category of work permits in 2020 enabling individuals to live and work there in fields such as legal consulting and software design even if their employers are based elsewhere. By contrast, Pakistan’s standing in the Gulf is on the decline, with Pakistanis often facing issues in securing visas and multiple reports of them not fulfilling the requirements of their employers abroad.