The UAE-based investment banking advisory firm, Alpen Capital, announced the publication of its research report titled “GCC-India Corridor – Investment Opportunities”. This report provides an analysis of the investment flows between the GCC and India. It assesses the competitiveness of both regions and identifies key sectors for potential cooperation and investment.

Additionally, the report examines the investment drivers and challenges within both regions. Furthermore, it profiles prominent Indian companies which have invested in the GCC and vice versa. The report also includes profiles of the sovereign wealth funds (SWFs) of the GCC.

“Indian engagement with the GCC countries is expanding at a rapid pace. The vision of the leadership on both sides, in India as well as in the GCC countries, provides a clear roadmap for deepening cooperation across sectors. These partnerships are two-way – creating win-win solutions for all stakeholders. On the other hand, the growth story of India is itself a big pull for investors. The returns from investing in India are some of the highest in the world.

Further, investing in startups is creating an opportunity to be part of cutting-edge technological revolution that is creating next generation solutions for everyday problems. The Indian government has also undertaken major reforms, especially simplification of procedures, taxation, and implementation of single window clearances to facilitate ease of doing business,” said Sunjay Sudhir, Ambassador of India to the UAE.

“The UAE and India are bound by strong economic ties and mutual opportunities exist between the two. The strategic initiatives and sector-specific opportunities make the UAE an attractive destination for Indian companies and vice versa, fostering a dynamic investment landscape. These opportunities and initiatives are expected to drive the bilateral countries relation to ever growing heights,” said Fahad Al Gergawi, Chief Executive Officer (CEO), Dubai FDI.

“Both India and the GCC are undergoing significant transition, with the respective governments moving ahead with their economic integration and diversification efforts. India’s ongoing efforts to upgrade infrastructure, foster digital empowerment, boost local manufacturing, and enhance energy production align with the GCC nations’ substantial investments in diversifying their non-oil economies. Though trade relations between the two blocs have been flourishing, investment relations have also experienced further advancements on the back of emerging opportunities in various sectors including healthcare, pharma, ICT, industrial manufacturing and agriculture. As these nations continue to grow and develop their economies, there is significant potential for investors from both the regions to capitalise on abundant opportunities,” said Rohit Walia, Executive Chairman and CEO, Alpen Capital (ME) Ltd.

The GCC is increasingly attracting attention worldwide as an investment destination, aided by the efforts of the regional governments to promote foreign direct investment (FDI) through economic diversification strategies. The region’s strategic location also plays a vital role in connecting countries across regions, thus positioning it as a viable trading hub between the East and West.

Amid strong economic advancements, cumulative FDI inflows in the GCC during 2018-22 reached $164.4 billion, up 60 per cent from $102.7 billion during 2013-17. The UAE accounted for the highest share at 55.7 per cent among the GCC nations during 2018-22, marking an 85.5 per cent increase from the 2013-17 period. While GCC-India trade has experienced significant growth in recent years, India’s portion of total FDI into the GCC has declined from $9.8 billion during 2013-17 to $5.4 billion during 2018-22. Consequently, India’s share of total FDI inflow into the GCC declined from 9.5 per cent during 2013-17 to 3.4 per cent during 2018-22.

Resilient Economy: Ambitious agendas, including social and business-friendly reforms, initiatives to enhance fiscal sustainability, coupled with efforts towards upgrading infrastructure through investments have helped the region remain buoyant.

Diversification Strategies: GCC countries led by UAE and Saudi Arabia are investing in giga projects, allowing 100 per cent foreign ownership, adopting structural reforms to liberalise residencies, offering funding to attract start-ups, and boosting entrepreneurship and capital market activity to diversify their economies.

Encouraging Demographics: The region’s economic growth continues to be driven by its affluent and expanding population base that is largely comprised of young and working professionals. The overall income levels in the GCC have recovered substantially due to increase in oil prices and private sector growth, recording higher per capita incomes than the average of Emerging & Developing Economies in 2022.