Indian FMCG companies are increasingly turning to Dubai as a springboard for global expansion, according to Ashraf A. Mahate, Dubai’s chief economist for trade and export development.
By capitalizing on Dubai’s robust infrastructure and strategic location, these businesses are strategically aiming to penetrate key markets in regions like the Middle East, Africa, and Europe.
Mahate underscores the importance of Dubai’s export and re-export infrastructure, highlighting the potential cost and time savings it offers for Indian firms. Despite India’s incentives for production, Dubai’s logistical efficiency and extensive trade agreements provide attractive prospects for FMCG players.
Indian enterprises are actively exploring various strategies, including local manufacturing and re-exporting, to leverage Dubai’s benefits. The forthcoming India-UAE Comprehensive Economic Partnership Agreement further reinforces this trend by simplifying duty-free procurement of raw materials.
Dubai’s role as a trade hub is evident in its utilization by Indian pharmaceutical companies as an export base to Africa, indicating its credibility as a global trade hub.
With its diverse cultural landscape and market dynamics, Dubai provides an ideal platform for Indian FMCG startups to test their products before expanding globally. Dubai’s pivotal role in global trade positions Indian firms to reap substantial benefits.