Dubai-India Partnership in AI and Advanced Manufacturing

Dubai seeks stronger ties with India in AI and advanced manufacturing, building on $60.6 billion in non-oil trade and rising investment opportunities.

Published: 3 hours ago

By Deepak kumar

Dubai-India Partnership in AI and Advanced Manufacturing
Dubai-India Partnership in AI and Advanced Manufacturing

Dubai is looking to strengthen its trade and investment partnership with India, with a growing focus on advanced manufacturing, Artificial Intelligence (AI), technology and opportunities for small and medium-sized enterprises (SMEs). The emirate aims to attract higher-value industrial activities and reinforce its position as a global business and manufacturing hub.

Mohammad Ali Rashed Lootah, president and CEO of Dubai Chambers, said the organisation was working to expand international business connections and create new opportunities for Indian companies. The strategy includes helping businesses enter new markets, establish regional operations and build long-term commercial partnerships amid geopolitical uncertainty.

According to Rashed Lootah, Indian companies are increasingly viewing Dubai as a base for regional and international operations rather than simply as a destination for exporting products.

India-Dubai Non-Oil Trade Reaches $60.6 Billion

India remains one of Dubai’s most important international trading partners. Rashed Lootah said India was Dubai’s second-largest trading partner, with bilateral non-oil trade reaching $60.6 billion in 2025, representing year-on-year growth of 15%.

Investment flows have also strengthened. India ranked first globally among source countries for greenfield foreign direct investment (FDI) capital into Dubai in 2025. Indian investments amounted to approximately $2.28 billion across 337 projects during the year.

These figures highlight the growing commercial relationship between the two economies, extending beyond traditional trade into investment, industrial development and technology cooperation.

Dubai Chambers is seeking to build on this momentum by encouraging Indian businesses to establish a stronger presence in the emirate and use its international connectivity to reach customers and partners in other markets.

Agentic AI and Technology Emerge as Key Areas of Cooperation

Artificial intelligence, particularly agentic AI, is emerging as a major area of potential collaboration between India and Dubai. Agentic AI refers to AI systems designed to perform tasks and carry out multi-step activities with a degree of autonomy, rather than simply responding to individual instructions.

Rashed Lootah said Dubai wanted to accelerate the adoption of agentic AI across its private sector. The growing technology ecosystem in India could create opportunities for cooperation in developing, deploying and commercialising AI-based solutions.

The focus is not limited to large multinational corporations. Dubai Chambers is also looking to attract startups, SMEs and rapidly expanding companies that want to enter international markets.

Rashed Lootah said Dubai intended to act as a bridge for technology companies, supporting their regional expansion while also encouraging them to grow within their home markets. He highlighted the role technology businesses could play in shaping future economic growth.

Dubai Chambers plans to help companies identify commercial opportunities, connect with potential business partners and develop their own brands for international markets. The approach reflects an effort to build long-term business relationships rather than focus only on short-term trade transactions.

Advanced Manufacturing a Priority for Dubai

Advanced manufacturing is another major priority in Dubai’s economic strategy. The emirate wants to attract industrial activities that combine production capabilities with innovation, automation and emerging technologies.

Rashed Lootah pointed to India’s expanding manufacturing capabilities, including developments in aerospace and space-related manufacturing, as areas that could support deeper industrial cooperation.

India’s manufacturing ecosystem and Dubai’s international business connections could create opportunities for companies seeking to integrate production with global supply chains. Cooperation could also help businesses access new customers, suppliers and investment partners.

Dubai’s ambition is to establish itself as a leading international centre for advanced manufacturing, where companies can combine innovation and production with access to global markets.

The focus on manufacturing and technology is also consistent with Dubai’s broader effort to diversify its economy and expand the contribution of industrial activities.

India-UAE CEPA Supports Trade and Investment Opportunities

The UAE-India Comprehensive Economic Partnership Agreement (CEPA) has provided an important framework for strengthening commercial ties between the two countries.

Rashed Lootah said the agreement had improved business opportunities by reducing trade barriers, simplifying customs procedures and expanding market access. These measures can help companies manage cross-border trade and explore new commercial relationships.

Dubai Chambers is also maintaining a direct presence in India through its representative offices in Mumbai and Bengaluru. According to Rashed Lootah, these offices work with Indian businesses to identify investment opportunities, establish partnerships and support international expansion.

The local presence is intended to help companies understand the opportunities available in Dubai and navigate the process of building a business presence in the emirate.

Dubai Targets $30 Billion in Manufacturing Investment by 2033

Dubai’s manufacturing ambitions form part of the Dubai Economic Agenda, known as D33. Under the agenda, the emirate aims to increase manufacturing value added by 2.5 times and attract a cumulative $30 billion in private manufacturing investment by 2033.

Achieving these targets will require investment in industrial capacity, technology adoption and international business partnerships. Cooperation with India could contribute through manufacturing expertise, technology companies, investment flows and access to production networks.

The emphasis on advanced manufacturing also suggests that Dubai wants to move beyond traditional trading activities towards higher-value industrial production. AI and other emerging technologies are expected to play an important role in supporting that transition.

Businesses Continue Operations Despite Shipping Disruptions

Geopolitical uncertainty and shipping challenges remain important considerations for businesses operating across international markets. Rashed Lootah said established companies had largely continued their transactions despite disruptions, although some shipments had experienced delays.

Newer businesses had initially taken a more cautious approach, with many beginning transactions towards the end of the summer.

He emphasised that manufacturers and service providers should maintain their operational capacity so they are prepared for a possible increase in global demand when delayed projects resume.

The comments highlight the importance of business preparedness during periods of uncertainty. Companies that maintain production and service capabilities may be better positioned to respond when trade activity improves, although the timing and scale of any recovery remain uncertain.

Dubai, India and China Could Build Trade Corridors to Africa

Beyond bilateral cooperation, Rashed Lootah highlighted the potential for trilateral partnerships involving Dubai, India and China. He said the three economies could work together to create new trade and investment opportunities in African markets.

The proposed model would combine India’s and China’s manufacturing and sourcing capabilities with Dubai’s international connectivity, logistics infrastructure and access to global markets.

Such partnerships could help businesses develop alternative commercial routes, connect suppliers with international customers and expand their presence in emerging markets. They could also create opportunities for companies seeking to diversify their supply chains and strengthen cross-border trade relationships.

Rashed Lootah described the approach as an opportunity to reshape future trade and investment corridors while helping businesses respond to changing global conditions.

What Deeper India-Dubai Cooperation Could Mean for Businesses

Dubai’s proposed expansion of its partnership with India reflects a shift towards cooperation in technology, industrial production and international market access. The existing trade relationship provides a foundation, while investment flows and the UAE-India CEPA offer additional channels for commercial expansion.

For Indian startups and SMEs, Dubai could provide access to regional customers, international partners and investment opportunities. For manufacturers, cooperation could create opportunities to connect Indian production capabilities with Dubai’s logistics network and global business ecosystem.

For Dubai, deeper engagement with Indian businesses could support its ambition to attract manufacturing investment, accelerate AI adoption and diversify its industrial economy under the D33 agenda.

However, turning these ambitions into measurable outcomes will depend on sustained investment, effective business partnerships and the ability of companies to navigate geopolitical and supply chain challenges. The expansion of representative offices and the focus on agentic AI and advanced manufacturing indicate the areas where Dubai Chambers intends to concentrate its engagement with India.

As the two economies explore new opportunities, their partnership could increasingly extend beyond conventional trade towards technology development, industrial collaboration and wider international supply chain integration.

FAQs

  • Why does Dubai want to strengthen its partnership with India?
  • How much was India-Dubai non-oil trade in 2025?
  • How much did Indian companies invest in Dubai in 2025?
  • Why is agentic AI important to India-Dubai cooperation?
  • What role will Indian startups and SMEs play in Dubai's strategy?
  • How does the India-UAE CEPA support business opportunities?
  • What are Dubai's manufacturing investment targets for 2033?
  • How could India, Dubai and China cooperate in African markets?

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