The role of Indians in the growth of UAE’s economy

United Arab Emirates has witnessed an enormous growth in the population of immigrants from other countries. It mainly included the people from India migrating for jobs and business opportunities. Currently, Indians comprises of 30% of the total population of UAE. This means that Indians are the biggest expatriate community in the Middle East with expected growth in future. The tax-free business environment and abundance of job opportunities in the region have attracted Indian workers and traders on a large scale. Indians have played a significant role in UAE’s burgeoning economy.

According to the Indian Embassy in UAE, the total number of Indians in the country is estimated at 1.75 million people. The ever-growing demand of labour in UAE, especially in the construction industry have boosted the increase in blue-collar workers. 65% of Indians in UAE are engaged in the sector of construction and agriculture. 20% of the Indians in UAE are the white-collar non-professionals who are engaged in non-qualified jobs working as salesmen, clerical staff, shop assistants, etc. The rest of the 15% Indians are the businessmen and professionals.

The demand for skilled labour as well as non-skilled labour in various industrial sectors have been fulfilled mainly through Indian community. The oil-rich UAE is developing its infrastructure at a faster pace which needs a large amount of labour for construction. Also, the ever-increasing demand for food products in UAE have influenced the engagement of Indian community in the agricultural sector as well. UAE is moving from oil trade to innovations and it welcomes young talent from all over the world. The number of engineers, scientists and professionals from services-sector in UAE comprises of Indians on a large scale.

Adding corporate migration mechanism to its mainland regulatory framework, UAE has acquired a new milestone in economic achievements. Top Indian companies like L&T, HCL Infosystems, Nagarjuna Construction Company Ltd., Hinduja Group, Danube, Sobha Group, Indian Oil Corporation, Reliance Industries, Essar Group and big names from the banking sector of India are operating businesses in UAE. It has opened floodgates for Indians with a wider scope of business and job opportunities.

UAE and India share a strong bond of friendship founded on centuries old cultural, religious and most importantly, economic relationships between the two regions. The barter trade between them have existed since centuries. The current contribution of Indian community in the overall growth of UAE cannot be ignored as it has largely strengthened the relationship of both the countries.

UAE has recognised the skill of Indian community and their contribution to the growth of economy. The Indian community residing and working in UAE enjoy respect and benefit from the tax-free business environment.

Despite all of that, World Bank has referred Indian immigrants as the biggest remitters of the world. Because the amount of money that they earn in other countries is mainly transferred by them to their families in India. The Indian community in UAE is causing a little damage to the country’s economy by exporting funds back home but it’s comparatively very less when it comes to their contribution for UAE’s overall economic growth.

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