Consumer markets emerge as standout opportunity in UAE-India economic corridor
The UAE India Business Council has partnered with Arthur D. Little to examine the opportunities available to companies operating along the India–UAE economic corridor, concluding that the two countries have a strong platform to unlock billions of dollars in additional bilateral trade.
The report was launched to support the continued strengthening of economic ties between the United Arab Emirates (UAE) and India. Bilateral trade has expanded rapidly in recent years and is on course to surpass the $100 billion milestone well ahead of the 2030 target set by both governments.
“India and the United Arab Emirates exhibit one of the most dynamic and forward-looking partnerships globally. Rooted in deep historical ties, robust economic cooperation, and strong people-to-people connections, the relationship has strengthened bilateral trade and enabled sustained collaboration across key strategic sectors,” said Thomas Kuruvilla, Managing Partner for the Middle East and India at Arthur D. Little.
The study assesses the economic outlook, competitive landscape and cross-border expansion opportunities across both markets. It finds that India remains one of the world’s most attractive growth markets, supported by a rapidly expanding consumer base, favourable demographics, rising disposable incomes and a $4 trillion economy.
The UAE, meanwhile, is one of the Gulf’s strongest economies, underpinned by population growth, world-class infrastructure and its position as the Middle East’s leading consumer and retail hub.
Against this backdrop, the report highlights that the two countries are entering the next phase of their economic relationship. Changing consumer expectations, digital transformation, policy reforms and increasingly interconnected supply chains are creating new opportunities for businesses to expand across both markets.
Consumer and retail at the forefront
The report identifies the consumer and retail sector as a standout opportunity for further growth. Drawing on insights from executives across retail, fast-moving consumer goods, fashion, wellness and jewellery, the authors spell out how deeper commercial integration could accelerate growth in both countries.
A key strength of the partnership lies in the complementary nature of the two markets. India offers scale, diversity and long-term growth potential, with its retail market expected to exceed $1.5 trillion by 2030, fuelled by an expanding middle class and increasing digital adoption.
The UAE, meanwhile, provides a premium retail environment characterised by high purchasing power, sophisticated infrastructure and a diverse, internationally oriented consumer base.
“Consumer and retail sectors are uniquely positioned to drive the next phase of India-UAE economic collaboration because they sit at the intersection of innovation, digital adoption, supply chain evolution and changing consumer behaviour,” said Faizal Kottikollon, Chairman of the UAE India Business Council.
Kuruvilla added: “What we are witnessing is not merely a strengthening bilateral relationship; it is the formation of one of the most consequential consumer growth axes of the next decade.”
Success depends on execution
While both markets offer significant growth potential, the report cautions that international expansion requires more than simply entering a new geography.
For UAE businesses, India presents a highly fragmented market characterised by regional diversity, varying income levels and rapidly evolving consumer preferences. Companies are advised to approach India as a collection of distinct regional markets rather than a single homogeneous economy, while ensuring localisation extends beyond products to pricing, branding and customer engagement. Building strong local partnerships is also highlighted as a critical success factor.
“The report underscores that success depends on operational execution. Companies that rely on standardised market-entry models often struggle to scale, while those investing in local capabilities, strategic partnerships and tailored operating models are outperforming,” said Kuruvilla.
The report delivers similar advice for Indian businesses looking to expand into the UAE. Although the market is much smaller, consumers have high expectations around product quality, customer service and overall experience. Companies are encouraged to adopt an omnichannel approach, invest in local market knowledge and develop supply chains that effectively balance global sourcing with local responsiveness.
“In today’s changing environment, the traditional export-led mindset is structurally inadequate,” Kuruvilla concluded. “Companies that treat market entry as a distribution exercise will struggle. Those that treat it as a capability build will outperform – and the difference between presence and scale will come down to discipline in execution.”
