India Fosters Economic Relations with UAE
Historical analyses have confirmed that there was a tremendous cultural flux between ancient India and Middle East for several centuries. The Indian classical system of music shares many similarities with its Middle Eastern counterpart, and maritime trade also prospered between the two regions as Arabic sailors frequently transported goods from the Middle East to India in exchange for spices and other trademark Indian commodities. Time has failed to debilitate the ties as Prime Minister Modi and his government have ensured prosperous economic relations with the Middle East, specifically with the UAE. A population survey conducted in 2009 revealed that 2 million people of Indian origin live in the United Arab Emirates.
What is remarkable about the population of Indians residing in the UAE is that it boasts of denizens from both ends of the financial spectrum. Gone are the days when only members of the elite class possess the capability to enter financially rich cities in other parts of the globe to embrace their dreams. Indians of all financial backgrounds have contributed to the labor force in UAE, the effects of which are evident not only in the host nation but also in the mother nation.
As Dubai embarked on an ascending journey of wealth and fame, many people began to flood the city due to lucrative investment opportunities. Indians were not an exception. Prior to the Modi administration, business friendly initiatives were seldom evident in India and as a result, investors turned to other markets for better opportunities.
For example, India’s exponentially growing population has proved to be overwhelming for its expanding yet limited infrastructure. Thus, land prices have embraced an upward trend, making real estate investments in India financially unappealing. Additionally, a general aura of apathy and unprofessionalism has been looming around developers in the Indian property building industry for quite some time.
This leftward shift of demand for real estate in India is leading to a rightward shift of demand for real estate in other countries, such the UAE. Dubai, along with New York, London, and Singapore, is turning into a real estate hotspot for Indian investors.