After an absence of almost a year, I found myself making a couple of visits to Dubai, and I must say I am more impressed than ever. It’s a city that has never been content to accept the horizon as the boundary of possibility. In a landscape where sand once dictated limits, ambition now sketches skylines; where imagination once seemed speculative, innovation now stands in steel and glass.
Dubai’s transformation has not been driven by ambition alone, but by the systems that sustain ambition: transparent regulation, predictable frameworks, and institutions that function with consistency and foresight. It has shown that when policy, professionalism and preparedness move in harmony, a city evolves from a centre of activity into a model of confidence for the wider world.
While ambitious geopolitical projects like the India-Middle East-Europe Economic Corridor grab headlines, a more powerful and dynamic economic artery is already pulsating between India and the UAE without any fanfare. There’s a bustling, organic ‘Delhi-Dubai Passage’ forged from an ever-rising exchange of business, people, and ideas. What you see in Dubai is one of the world’s most exciting geoeconomic sites, a powerful nexus of commerce, strategy, and cultural exchange that’s quietly reshaping the possibilities for India.
The economic statistics are nothing short of phenomenal. Bilateral trade between India and the UAE has rocketed, reaching an astounding $100.06 billion in 2024-25. This explosive growth is largely fuelled by the landmark Comprehensive Economic Partnership Agreement signed in 2022, which has eliminated tariffs and streamlined trade across a multitude of sectors. The UAE is now India’s third-largest trading partner and may soon overtake the tariff-laden US, while India has become the UAE’s second-largest. The previously ambitious goal of $100 billion in non-oil and non-precious metals trade by 2030 has been revised to 2028, and given the 34 percent increase in the first half of 2025, seems entirely attainable.
Dubai’s role as a global marketplace is crucial to this success. Its central location makes it an ideal hub for Indian exports, from textiles and agricultural products to jewellery and cutting-edge technology. This strategic positioning allows Indian businesses to seamlessly connect with international supply chains, leveraging the UAE’s immense influence as a global trade giant. Dubai is connected everywhere. (Indian exports even go to Pakistan, after due repackaging here.)
Beyond trade, Dubai, already teeming with Indian talent, is becoming a powerful magnet for Indian capital investment. In the first quarter of 2024, India emerged as Dubai’s largest source of foreign direct investment, contributing a staggering $3.05 billion and representing 21.5 percent of the Emirate’s total inflow. This isn’t a gradual shift; it’s a seismic leap from just $589 million in the same period a year earlier. This five-fold increase in just one year propelled India from the fifth to the first place.
A key factor in attracting this investment is the UAE’s network of duty-free zones, which offer foreign companies full ownership, tax exemptions, and simplified regulations. The Jebel Ali Free Zone (Jafza), for instance, is now home to over 2,300 Indian companies, marking a 15 percent year-on-year increase. Similarly, the Dubai Multi-Commodities Centre has seen an influx of Indian businesses, with nearly 3,900 Indian companies now operating within this single free zone. These numbers paint a clear picture of Dubai’s role as a launchpad for Indian enterprises looking to go global.
Dubai’s significance extends far beyond. On a strategic level, India and the UAE are increasingly aligned on key issues. Our countries collaborate on the security of vital maritime routes, counter-terrorism efforts, and the formation of new regional frameworks like the I2U2 group, which brings together India, Israel, the UAE, and the US (though it has recently been dormant thanks to regional tensions). As India seeks to counterbalance Chinese influence and Gulf nations diversify their alliances, the Delhi-Dubai Passage acts as a pillar of stability and a source of shared strength.
The relationship today ranges from energy and food security to fintech, logistics and digital public infrastructure. It is structural cooperation, built on the recognition that in a volatile global economy, trade and trust must reinforce one another.
This partnership’s resilience is its ability to withstand volatility. And let’s not overlook the vibrant people-to-people connection. The flow of human and cultural capital is as important as the trade exchanges. With over 3.5 million Indians living in the UAE, constituting the largest expatriate group, the relationship is deeply personal and familial. As an MP from Kerala, I sometimes find it hard to meet someone there who doesn’t have a Gulf connection.
This human highway is evident in the staggering air traffic between the two countries. India is the single largest source of passenger traffic for Dubai International Airport, the world’s busiest international hub accounting for nearly 12 million passengers in 2023.
For India, then, Dubai’s combination of factors makes it arguably the most exciting city in the world. It benefits from the UAE’s strategic central location, India’s high-growth, high-scale, and diverse economy, a lack of historical baggage, and a genuine multi-cultural amalgamation.
Looking ahead, the potential for future collaboration is immense. Areas like green energy, space exploration, and digital innovation are key frontiers where India and the UAE can co-create global solutions. The UAE’s leadership on climate action at COP28 and India’s ambitious energy transition goals present a unique opportunity for this partnership to become a cornerstone of the global energy shift.
The Delhi-Dubai Passage is more than just a bridge of convenience; it’s an artery of influence. It seamlessly links commerce with security, innovation with sustainability, and regional agendas with global ones. In an increasingly multipolar world, this strategic partnership is not only fuelling economic growth but also reshaping influence across the region and beyond, offering a model for how regional connections can redefine the future of globalisation. The future is here—and all it needs to get there is a ticket to Dubai.
Shashi Tharoor | Fourth-term Lok Sabha MP, Chairman of Standing Committee on External Affairs, and Sahitya Akademi-winning author of 24 books
(Views are personal)