Dubai Free Zone Lures Indian Companies

The Dubai Multi Commodities Centre (DMCC), a free zone and authority on trade, witnessed a significant surge in Indian businesses in 2023. Over 160 Indian companies set up base at the DMCC, buoyed by the landmark Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India.

The CEPA agreement, which came into effect in May 2023, eliminated duties on 90% of India's exports, including key sectors like gems and jewellery, food, and energy. This move significantly reduced trade barriers and opened up new opportunities for Indian businesses to access the Middle Eastern and global markets through Dubai.

"We saw the impact firsthand, with rapidly growing trade and investment, " said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC. The influx of Indian companies bolstered the already strong presence of nearly 3, 900 Indian businesses at the DMCC, making them the largest national contingent at the free zone.

The DMCC's attractive proposition for Indian businesses goes beyond just trade benefits. The free zone offers a world-class business environment with state-of-the-art infrastructure, streamlined regulations, and a supportive ecosystem. Companies can benefit from tax exemptions, hassle-free repatriation of profits, and access to a large pool of talent.

This surge in Indian firms reflects not only the CEPA agreement's positive impact but also the DMCC's continuous efforts to attract foreign direct investment (FDI). The free zone's roadshow program actively promotes Dubai as a premier business destination, highlighting its strategic location, world-class connectivity, and pro-business policies.

The DMCC's success in attracting Indian businesses is a win-win situation for both Dubai and India. It strengthens bilateral trade ties, creates new business opportunities, and contributes to the economic growth of both countries. As trade between India and the UAE flourishes, the DMCC is well-positioned to play a key role in facilitating this economic partnership.

The growing presence of Indian companies at the DMCC is a testament to the free zone's ability to provide a launchpad for businesses aiming to expand their reach into the Middle East and beyond. With its commitment to innovation and its focus on creating a business-friendly environment, the DMCC is likely to continue attracting companies from India and around the world.

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