Wealthy Indian investors are expected to channel up to $20 billion a year into UAE assets, with real estate, tokenisation, and industrial growth driving the next wave of investment.
The momentum follows updated Reserve Bank of India (RBI) guidelines under the Foreign Exchange Management Act (FEMA), which give businesses and individuals greater flexibility in overseas investments.
Surge in Dubai Property Market
Dubai’s property sector continues its record-breaking run. In 2024, the market recorded 226,000 transactions worth AED761 billion ($207 billion) — a 36% rise in volume and a 20% increase in value compared to the previous year.
Investment volumes jumped 38% to AED526bn ($143bn).
More than 110,000 new investors entered the market, up 55% year-on-year.
The UAE real estate market as a whole is now valued at nearly $680 billion in assets.
Funding Gap Creates Opportunity
Analysts warn that sustaining this growth requires over $100bn annually in funding, while traditional capital sources cover only 30% of the need. This leaves a widening 70% funding gap, presenting major opportunities for private equity, non-banking finance, and institutional investors.
Nisus Finance, through its NiFCO fund, is targeting affordable housing projects in communities such as Jumeirah Village Circle (JVC) and Al Furjan, which account for 95% of new development growth.
Tokenisation and Technology in Real Estate
Digital innovation is reshaping UAE’s investment landscape. The Dubai Land Department has launched a real estate tokenisation pilot aiming for AED60bn ($16.3bn) in tokenised transactions by 2033.
Globally, tokenised assets are projected to reach $16 trillion by 2030, with real estate expected to dominate. Companies like Nisus Finance are aligning with this trend, deploying PropTech, AI, and blockchain to enhance asset evaluation and fund management.
Beyond Real Estate: Industrial & Logistics Growth
The UAE’s appeal extends further as geopolitical shifts drive manufacturing and logistics hubs toward the Gulf. Dubai, Abu Dhabi, and the Northern Emirates are positioning themselves as global centres for warehousing and light industry, supported by government incentives and streamlined approvals.
Indian Capital Driving Growth
India’s outbound investments rose 68% in FY2024-25 to $41.6bn, with both entities and individuals active under the RBI’s ODI and LRS schemes. Outward remittances under LRS hit a record $29bn between April 2023 and February 2024.
Indians are already the largest foreign investor group in the UAE, especially in real estate. In 2024 alone, 4,300 ultra-wealthy Indian families relocated to the UAE, bringing $5bn in investable assets.
Population & Institutional Capital Add Momentum
With the UAE’s Vision 2040 aiming to grow the population to 13.6 million from 10 million today, demand for housing, schools, and infrastructure is rising.
Global institutions including Blackstone and Brookfield, alongside sovereign wealth and pension funds, are increasing their commitments to UAE assets.
