File photo of UAE and Indiaspora logo / Pexels

The Indian diaspora community in the United Arab Emirates (UAE) has witnessed extraordinary growth over the past five decades, expanding from a modest 5,000 in the 1970s to an estimated 3.9 million in 2025.

A recent report by Indiaspora, a nonprofit organization, titled From Ancient Legacy to Modern Triumphs: The Indian diaspora in the UAE, highlighted the Indian diaspora’s evolution and its lasting contributions to the Middle Eastern region.

The Indian diaspora in the UAE has not only grown in numbers but also in economic influence. According to the report, “Today, approximately 35 percent of the UAE Indian diaspora consists of professionals, entrepreneurs, business leaders, and other white-collar workers.”

A major contribution of the Indian community is the billions of dollars sent to India annually. In 2023, Indian diaspora in the UAE remitted $21.6 billion, making up 18 percent of the total global remittances from the Indian diaspora. These funds support millions of families, boosting education, healthcare, and small businesses, ultimately strengthening India's economy.

The report highlighted, “Governments on both sides have demonstrated a commitment to mutual prosperity, creating growth platforms for entrepreneurs, businesses, and professionals. Trade between India and the UAE has witnessed exponential growth, fueled by strategic initiatives such as free trade agreements and local currency settlements.”

The financial relationship between the two nations extends beyond remittances. Between 2000 and 2023, India received over $16 billion in cumulative foreign direct investment (FDI) from the UAE, while Indian investments in the UAE amounted to $19 billion. The deep economic ties have been further bolstered by free trade agreements and local currency settlements, paving the way for a diversified partnership that goes beyond traditional sectors.

The report further stated, “As both economies diversify, this partnership is poised to expand beyond traditional sectors, cementing their roles as key global trade partners. The Indian diaspora in the UAE is one of the largest globally and has been instrumental in shaping the socio-economic and cultural landscapes across six continents.”

The push for business-friendly reforms has also been strongly driven by Indian entrepreneurs. Previously, visa restrictions and mandatory local ownership of businesses posed challenges for diasporas. Through advocacy by organizations like the Indian Business & Professional Council, reforms have led to full foreign ownership in most sectors, extended visa durations, and the introduction of the 10-year Golden Visa. These changes have made the UAE a more attractive destination for investment and long-term settlement.

The Indian diaspora continues to play a leading role in advancing innovation within the UAE. With expertise in artificial intelligence, fintech, and blockchain technology, Indian professionals and entrepreneurs are driving the country’s digital transformation. However, challenges remain, particularly in retaining skilled professionals due to banking compliance hurdles and the competitive demand for STEM talent.

Despite these challenges, the UAE remains a hotspot for Indian entrepreneurs specializing in blockchain-based financial solutions, digital payments, and decentralized finance (DeFi). The report notes, “The economic footprint of over 90,000 Indian-owned companies registered with the Dubai Chamber of Commerce is vast and influential. The registration of 6,717 new Indian-owned companies in Dubai in just the first half of 2023, marking a 39 percent year-on-year growth, reinforces their dominant impact on the UAE’s economic landscape.”

The Indian diaspora in the UAE represents one of the largest diaspora communities globally, deeply embedded in the nation’s socio-economic fabric. Their contributions span business, trade, technology, education, and governance, shaping the UAE’s development while maintaining strong ties with India. As both economies continue to diversify and innovate, the partnership between India and the UAE is set to strengthen further, reinforcing their status as key global trade allies.

As the Indian diaspora continues to grow and evolve, its impact will only deepen, bridging borders and fostering a future of shared prosperity between India and the UAE.