Inside Dubai’s Startup Boom: How CEPA Sparked A Gold Rush For Indian Founders

Indian founders seem to have discovered greener pastures in the City of Gold as 9,000 firms set up shops in Dubai in the first six months of this year alone.  

The Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE in 2022, which was laid out to reshape the economic corridor between the two nations, has been a significant factor in this gold rush.

By lowering tariffs on most goods, easing non-tariff barriers and providing clearer rules for services and digital trade, the CEPA has cut down on the entry cost and given the Indian firms better predictability when planning cross-border ventures. 

The impact is evident: non-oil trade between India and Dubai surpassed AED 193 Bn in 2024, cementing the city’s role as a hub for Indian businesses and digital economy players.

Dubai’s geographical advantage as a strategic outpost is supported by an agile policy framework. Sitting at the Asian gateway to Africa and Europe, it offers direct access to wider global markets. Add favourable tax regime, simplified visa processes and pro-business regulations to that. It is no wonder that Dubai has turned into a magnet for Indian startups aiming for global expansion.

At the core of this bustling India-Dubai corridor stands Dubai Chamber of Digital Economy, one of the three chambers operating under the umbrella of Dubai Chambers.  The chamber has seamlessly integrated itself into the cross-border business ecosystem and is instrumental in attracting global digital companies and talent, supporting the development of world-class digital infrastructure and advancing the interests of tech firms. 

Agreements signed by Dubai Chambers with Indian industry bodies such as the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), and the IMC Chamber of Commerce and Industry, have also established channels for greater collaboration – from data sharing to joint events – fostering closer connections between the two markets.

A Digital Gateway For Startups 

To reaffirm Dubai’s position as the core of the digital economy, Dubai Chamber of Digital Economy has launched the Business in Dubai initiative as a single-entry gateway for startups. The innovative digital platform offers fast-track licensing and visas, banking and regulatory approvals and access to advisors who can demystify market entry. Once established, the companies are connected to investors, corporates and potential customers through curated business matching. This support extends beyond setup, enabling companies to expand regionally and globally from their Dubai base. 

Meanwhile, the chamber’s online Knowledge Hub offers startups access to in-depth reports, insights, and resources on Dubai’s digital economy, enabling them to navigate opportunities and challenges effectively. 

The city’s wider digital ecosystem supports these efforts. Startups benefit from over 20 specialised free zones that provide a business-friendly environment with benefits like tax exemptions, simplified processes, 100% foreign ownership and relaxed regulations to attract investment, besides regulatory sandboxes or controlled environments where new business models can be tested to foster innovation, and accelerators and incubators that allow tech-led ventures to unfold in weeks, instead of months. 

A holistic synchronisation of these initiatives reduces friction in building cross-border businesses, while creating a fertile ground for innovation in sectors such as AI, fintech, SaaS, healthtech, edtech, and greentech. 

Flagship platforms like Expand North Star (ENS), hosted by Dubai Chamber of Digital Economy, provide concentrated networking opportunities. In 2024 alone, ENS brought together 1,800 global startups, 1,200 investors managing over $1 Tn assets and 65 unicorns in a single week of programming, compressing what would normally take months. 

This year’s edition of ENS, scheduled on October 12 to 15 at Dubai Harbour, is likely to build on that momentum. Indian founders are leveraging these platforms to accelerate their international journey. 

Initiatives And Enablers Driving Growth

A set of initiatives and frameworks have been aligned with India’s strength in technology and innovation, with Expand North Star (ENS) leading from the front as one of the largest startup events in the world. 

In 2024, around 225 Indian startups from sectors like AI, SaaS, healthtech and edtech, took part in ENS, fuelling hopes of a turnout exceeding 300 this year, making a 33% jump. Through partnerships with Startup India, IIT-Madras, NASSCOM, and various state-level startup missions, such as Startup Tamil Nadu, ENS ensures that Indian founders are well-represented and supported. 

On the policy level, the Dubai Economic Agenda (D33), launched in 2023, offers a clear framework for growth. Designed as a 10-year plan to double Dubai’s economy by 2033, D33 includes over 100 projects aimed at boosting competitiveness and cementing Dubai’s standing as a top global hub. 

The recent launch of the Dubai Founders HQ is set to advance these goals. This first-of-its-kind initiative combines a physical campus with an integrated digital platform, connecting entrepreneurs, startups, investors, and ecosystem partners to accelerate collaboration, innovation, and business growth. The Dubai Founders HQ empowers founders with unparalleled resources to launch, scale, and thrive. Its launch will support key D33 goals including scaling 30 unicorns from Dubai and helping 400 small and medium enterprises (SMEs) scale by 2033.

For Indian startups, the synergies with Dubai are striking.

• Digital transformation projects under D33 are expected to generate $27 Bn annually.
• Dubai plans to scale 30 digital startups into unicorns by 2033.
• Priority sectors include AI, fintech, ecommerce and healthtech – all strongholds of Indian innovators.
• Programmes like Create Apps Championship in Dubai support innovators to build mobile apps and digital models in Dubai, contributing to the availability of skilled digital talent. 

Dubai’s open policy on foreign ownership, zero personal income tax and accessible visa regime make scaling from Dubai both practical and cost-efficient. The emirate’s diversified economy also presents opportunities far beyond technology – running from tourism and retail to logistics and clean energy – that ensure that startups can find customers and partners across multiple sectors.

Dubai has coupled its business-friendly outlook with a strong lifestyle proposition. World-class infrastructure, multicultural vibrancy, safety and competitive salaries help attract talent from across the globe. This translated into a 120% annual growth in advanced tech startups relocating to the city during 2024, with Dubai Chamber of Digital Economy supporting the establishment and expansion of 1210 digital startups. 

Dubai’s mix of policy support, infrastructure and market access position it as one of the most attractive options for Indian startups seeking to scale globally.