Dilasha Seth

India and UAE are set to boost their partnership through joint investments and improved logistics.

In anticipation of the Eid al-Adha holidays, hotels across Dubai and Abu Dhabi are seeing a notable spike in reservations, a promising sign for the hospitality sector emerging from a tough stretch. With families opting for staycations and intercity travel, occupancy rates are projected to soar, signaling a fresh wave of optimism for the industry.

Abu Dhabi has frozen property rents for residential, commercial, and industrial spaces. This measure aims to provide relief during the ongoing regional conflict. Experts believe Dubai will not implement a similar freeze. This is because Dubai is an international investment hub. Such a move could impact investor sentiment and future property development.

Over 15% of India-UAE trade has been invoiced in local currencies since the rupee-dirham mechanism launched nearly three years ago. Both nations are now intensifying efforts to boost adoption, aiming for faster trade and cost reduction, despite industry-cited structural bottlenecks. Authorities are focusing on onboarding more banks and simplifying procedures to enhance cross-border transaction efficiency.

Property consultants say enquiries remain below pre-war levels, preferred deal sizes have fallen to around AED 1. 5m from over AED 2m earlier

Dubai's residential property market is cooling after a five-year rally as buyers become more price-sensitive, negotiate harder and shift toward smaller, lower-cost homes amid higher supply and geopolitical uncertainty. While prices remain higher year-on-year, they have softened quarterly, with annual growth slowing sharply from 17–18% in 2024 to around 4–5%.

New UAE Central Bank rules are creating hurdles for Indian banks seeking to attract NRI dollar deposits. Restrictions on representative offices, including documentation support and cross-selling, are expected to slow down deposit mobilization, particularly for retail customers. This comes at a critical time as Indian banks are aggressively marketing FCNR(B) deposits with attractive interest rates and leverage options until September 30.

New UAE Central Bank rules are creating hurdles for Indian banks seeking to attract NRI dollar deposits. Restrictions on representative offices, including documentation support and cross-selling, are expected to slow down deposit mobilization, particularly for retail customers. This comes at a critical time as Indian banks are aggressively marketing FCNR(B) deposits with attractive interest rates and leverage options until September 30.

Gulf sovereign funds invested $1.7 billion in India in the first half of 2026, defying heightened geopolitical tensions due to the Iran war and fears the conflict would curb their appetite for overseas deals. It was the most for half a year after 2024. The region's share in overall investment in the country by sovereign wealth funds (SWFs) and public pension funds (PPFs) during the period nearly doubled since then, underscoring their growing role as a long-term capital.

Gulf sovereign funds invested $1.7 billion in India during the first half of 2026. This investment defied geopolitical tensions and fears of reduced overseas deal appetite. The region's share in India's sovereign wealth fund investments nearly doubled since 2024. Funds deployed nearly three times more capital compared to the second half of 2025. These investors prioritize long-term structural themes like infrastructure and technology.