New strategic report uncovers UAE-India consumer and retail growth potential

Strategic Report Launches New Era of India-UAE Consumer & Retail Collaboration

On 18th May 2026, in Dubai, a significant event took place that marked a new chapter in the economic relationship between the United Arab Emirates (UAE) and India. The UAE India Business Council – UAE Chapter (UIBC-UC) and Arthur D. Little (ADL) launched a strategic report titled “The India–UAE Corridor: From Access to Advantage – Opportunities for Growth in the Consumer & Retail Sectors.” This groundbreaking initiative was unveiled during an exclusive dinner under the theme ‘Strength in Resilience,’ hosted by UIBC-UC.

The launch event was graced by prominent figures including Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade; Dr. Deepak Mittal, Ambassador of India to the UAE; and Satish Kumar Sivan, Consul-General of India to Dubai and the Northern Emirates. Alongside them were key members of the UIBC-UC leadership, such as Faizal Kottikollon, Chairman of UIBC-UC and Chairman of KEF Holdings; Nilesh Ved, Incoming Chairman of UIBC-UC, Chairman of AppCorp Holding, and owner of Apparel Group; and Adeeb Ahamed, Managing Director of Lulu Financial Holdings.

Evolving Economic Relationship

The report explores how the India–UAE economic relationship is transitioning from a traditional trade corridor into an integrated consumer and retail ecosystem. This transformation is driven by shifting consumer expectations, digital acceleration, policy reform, and interconnected supply chains. Faizal Kottikollon, Chairman of UIBC-UC, highlighted the importance of this shift, stating, “The next phase of India–UAE economic collaboration will be shaped by businesses that think beyond exports and invest in building integrated, future-ready ecosystems.”

Insights from Industry Leaders

Recognizing the significance of the consumer and retail corridor, the paper incorporates first-hand input from corporate giants across various sectors, including retail, FMCG, fashion, wellness, and jewelry. Senior executives from companies such as Sharaf Group, Landmark Group, Apparel Group, LuLu Group, Tata Consumer Products, Britannia Industries, Marico, TruNativ, and Tanishq shared their insights and experiences on the dynamic markets of India and the UAE.

Complementary Value Propositions

India offers scale, diversity, and long-term growth potential with a retail sector projected to exceed US$1.5 trillion by 2030. This growth is supported by a rapidly expanding middle class and increasing digital adoption. In contrast, the UAE provides a premium, globally benchmarked retail environment characterized by high purchasing power, advanced infrastructure, and a diverse, internationally influenced consumer base.

Thomas Kuruvilla, Managing Partner, Middle East & India at Arthur D. Little, emphasized the significance of this partnership, stating, “What we are witnessing is not merely a strengthening bilateral relationship; it is the formation of one of the most consequential consumer growth axes of the next decade.”

Structural Differences and Strategic Realities

While both countries present strong growth opportunities, the report highlights that companies often underestimate their structural differences. In India, businesses must navigate a highly fragmented landscape defined by regional diversity, varied income profiles, and evolving consumption patterns. Meanwhile, the UAE operates as a performance-driven market where consumers expect global standards across quality, service, and customer experience.

Kuruvilla added, “What will separate winners from the rest is not ambition alone, but the ability to localise, integrate operations, and execute with discipline across two very different retail environments.”

Five Strategic Realities

Drawing on interview findings and expert insight, the report outlines five strategic realities shaping cross-border success:

India must be approached as multiple micro-markets rather than a single consumer economy
The UAE serves as a premium retail laboratory and regional showcase for brands
Partnerships are essential to scaling successfully across both markets
Localisation must extend beyond products into pricing, branding, and customer engagement
Supply chains are shifting toward hybrid regional models prioritising resilience, speed, and flexibility

Recommendations for Businesses and Policymakers

The paper also provides recommendations for businesses and policymakers seeking to accelerate consumer trade and build resilience across the corridor:

Businesses need to prioritise localisation, partnerships, and omnichannel execution by tailoring products, pricing, branding, and operating models to local consumer realities while leveraging strategic alliances to scale effectively across both markets.
Companies should build resilient, regionally integrated supply chains that balance local sourcing, manufacturing, and distribution to improve speed, compliance, responsiveness, and cost efficiency.
Policymakers should focus on reducing operational friction through harmonised standards, faster regulatory approvals, streamlined logistics processes, and greater digital payment integration to accelerate cross-border retail and consumer trade.

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