UAE may invest another $25bn: Piyush Goyal

UAE-based investors have signalled intent to put an additional $25 billion into India, building on an existing $25 billion of investments and with an eventual objective of taking total UAE investments in India to $100 billion, Union minister of commerce Piyush Goyal said. Goyal said the UAE is already the seventh-largest source of foreign direct investment into India and pointed to recent transactions such as Emirates NBD’s investment in RBL and IHC’s acquisition of a stake in Sammaan Capital as illustrations of growing UAE capital flows.

"We are also exploring the possibility of UAE becoming a more important source of LPG and other energy supplies that we require. A study is also underway to see whether we can develop subsea pipelines through which gas can be transported and stored in India, strengthening our energy resilience and security," Goyal said, outlining energy as a priority area for deeper cooperation.

The comments followed the 14th meeting of the High-Level Joint Task Force on Investments, where India and the UAE reviewed investment commitments and discussed mechanisms to resolve investor challenges and accelerate implementation of the Comprehensive Economic Partnership Agreement (CEPA). CEPA, now in its fourth year, coincides with bilateral trade having doubled to $100 billion, Goyal noted.

Areas of cooperation and practical measures

During the talks, authorities on both sides explored broadening collaboration across multiple sectors and policy levers. Goyal listed sectors under active discussion:

• Energy and energy security, including LPG supplies and subsea pipeline feasibility
• Shipbuilding and modern port infrastructure
• Space technology
• Agri-innovation and logistics
• Artificial intelligence and emerging technologies
• Fintech and financial cooperation

On financial flows, India and the UAE are also working to increase bilateral trade in local currencies — the Indian rupee and the UAE dirham. Goyal highlighted that local currency trade is already in "double digits" and predicted further growth. "If we have to pay for imports in dirham and receive rupee payments for exports, we can periodically convert the balances into dollars," he said, noting that the dirham’s peg to the dollar makes such arrangements "viable, liquid and low risk," according to bankers present.

Officials said the High-Level Joint Task Force on Investments has become an effective mechanism to resolve implementation issues and investor concerns, particularly those related to CEPA. The task force’s 14th meeting addressed topics including investments, trade facilitation, taxation, logistics, energy, market access and financial cooperation.

Outlook

With $25 billion already invested and a further $25 billion signalled by UAE investors, the bilateral agenda now focuses on converting intent into concrete deals across infrastructure, energy and technology. The proposed subsea pipeline study and discussions on local currency settlement mechanisms represent practical steps that could deepen economic ties and reduce transaction frictions. If commitments materialise and CEPA-related impediments are resolved, the stated ambition of elevating UAE investment to $100 billion will hinge on sustained follow-through by governments, investors such as Emirates NBD and IHC, and the operationalisation of the task force’s recommendations.