India’s ties with the United Arab Emirates (UAE) have expanded significantly in recent years due to growing economic and strategic convergence along with robust people-to-people linkages. For a long time, the UAE has accounted for a significant percentage of remittances that India receives. Over 1/3rd of the Indian expats in the Gulf are based in the UAE. The total number of Indians based in the Gulf is 9 million—of which over 3 million are settled in the UAE. According to estimates, the Gulf accounts for 20% of the total remittances that India receives (recent weeks have witnessed a drop in the remittances India has been receiving from the Gulf). A drop in remittances will impact India’s economy, which according to forecasts is likely to witness slower growth and rising inflation due to the West Asia crisis.
The UAE is a favored destination for Indian HNIs in recent years.
In the aftermath of the covid-19 pandemic, the UAE has emerged as one of the top migration destinations for Indian High Net-worth Individuals (HNIs) with many seeking long-term residency visas via investment—also referred to as Golden Visas. Recent years have also witnessed a trend of several Indian expats in the West moving to the UAE—especially Dubai. According to Henley and Partners’ influential Residence Program Index 2025, the UAE Golden Visa has been amongst the most sought-after. Indian nationals also account for over 20% of foreign property purchases.
UAE: An important education hub
In recent years, the UAE has also been trying to attract professionals and students. A strong reiteration of this point is the expansion of Golden Visa categories.
The past few years have also witnessed a rise in the enrollment of Indian students in UAE universities. The rise in enrollment of Indian students in UAE universities is especially visible since 2021. The reasons for the same have been the increasingly stringent visa rules of western countries, the UAE’s proximity to India, and the fact that the UAE is home to many overseas campuses of top western institutions, Australian universities, and Indian higher education institutions. Indians account for over 40% of the international student community in Dubai. Over 1/4th of India’s international students are studying in the Gulf region.
The recent West Asian crisis has resulted in Indian expats, like those from other countries, looking for alternative destinations. There has been a significant dip in real estate transactions in the aftermath of the conflict. The drop in transactions is higher in comparison to earlier crises.
Over 200,000 Indians have returned from Gulf countries, of which a large number are from the UAE.
Will the UAE remain a favored higher education destination?
There is also likely to be a drop in Indian students showing interest in the UAE at least in the short run. Several offshore campuses of Indian higher education institutions—Indian Institute of Management (IIM), Ahmedabad, and Birla Institute of Technology and Science (BITS), Pilani, in Dubai—are holding classes in virtual mode. Many Indian students studying at these institutions have returned home.
The UAE’s economic dynamism and ability to deal with crises
Several Indian institutions have shifted their students back home. Indian students too could look at alternatives in other destinations in Europe and East Asia. Here it would be pertinent to point out that the UAE has shown the resilience to adapt to the changing geographical landscape and deal with crises, so it may be premature to make any forecasts. The UAE leadership has also continuously reached out to expats.
The UAE ambassador to India, Abdulnasser Jamal Alshaali, while reassuring Indians whose families were settled in the Gulf, said:
‘Your family in the UAE is not alone. They are safe, they are cared for, and they are considered family by the leadership of this country’
Several Indian expats settled in the Gulf are not keen to return to India due to various reasons. The expat community has integrated very well in Gulf countries—especially the UAE. The economic opportunities and the track record of the UAE in dealing with disruptions—as mentioned earlier—are likely to ensure that an overwhelming majority of Indian expats stay in the UAE. According to several economists, the UAE is better placed to deal with West Asia than other Gulf countries since it has more cushion.
Conclusion
In conclusion, the West Asian crisis has impacted India in several ways. It remains to be seen if the current conflict has a long-term impact on the UAE as a destination for Indian HNIs, professionals, and students. Ties between both countries have strengthened in recent years, and people-to-people linkages as well as the progressive and vibrant Indian expat community in the UAE have played an important role in the same.
