The UAE and India are strengthening their business relationship as trade and investment continue to grow in 2026. Recent figures show that non-oil trade between the two countries reached AED 107.5 billion in the first half of 2026. Total bilateral trade also reached US$101.25 billion in FY 2025–26. Both countries aim to increase this figure to US$200 billion by 2032.
This growth is creating new opportunities for companies looking to enter either market. It also increases the need for proper financial planning, tax management and regulatory compliance. Businesses must understand these requirements before expanding their operations.
New Agreements Create Opportunities for Businesses
Recent agreements are opening new areas for cooperation. During the UAE President’s visit to India in January 2026, both countries discussed investment in Gujarat’s Dholera Special Investment Region. The UAE and India also announced a long-term liquefied natural gas supply agreement between ADNOC Gas and Hindustan Petroleum Corporation Limited (HPCL).
Another agreement focuses on food safety and agricultural trade. It aims to support trade by improving cooperation on food safety standards and related requirements. These developments may create opportunities for companies in manufacturing, energy, logistics, agriculture and food supply.
In September 2026, the 14th India-UAE High Level Joint Task Force meeting reviewed progress on trade and investment agreements. Discussions covered energy, infrastructure, technology, artificial intelligence and logistics. The meeting also considered ways to address issues faced by companies investing in both markets.
These developments show that UAE-India business relations are moving beyond traditional trade. Companies now have more reasons to explore business expansion in the UAE and India, but they must prepare for the financial and regulatory responsibilities that come with it.
Tax and Financial Compliance Remain Important
Companies operating across both countries must understand their tax duties and maintain accurate financial records. India introduced Form 41 under its Income Tax Act 2025 from 1 April 2026. Non-resident taxpayers seeking relief under a Double Taxation Avoidance Agreement must review the form’s filing requirements. UAE-based companies should also check their eligibility and obtain a valid UAE Tax Residency Certificate where required.
In the UAE, businesses must follow the Corporate Tax rules. The standard rate is 9% on taxable income above AED 375,000. Qualifying Free Zone Persons may benefit from a 0% rate on qualifying income, but only if they meet the required conditions.
Companies with related-party transactions must also follow transfer pricing requirements and keep suitable records. Proper accounting and bookkeeping help businesses track income, expenses and transactions. They also support accurate financial reporting and help companies prepare for tax reviews and audits.
The UAE-India Comprehensive Economic Partnership Agreement (CEPA) can offer lower tariffs to eligible goods. However, products must meet the applicable Rules of Origin. For many goods, this includes at least 40% value addition and a change in tariff classification. Product-specific rules may differ, so businesses should confirm the requirements before claiming tariff benefits.
What Companies Should Do Before Expanding
Businesses planning to enter either market should review their company structure, tax position and financial processes. They should maintain clear records, check treaty relief requirements, prepare transfer pricing documents and confirm whether their products qualify for CEPA benefits. Poor planning can lead to missed tax relief, customs problems and extra compliance costs.
Professional support can help companies manage these responsibilities. Dubai Business and Tax Advisors (DBTA) supports businesses with UAE company formation, business setup and ongoing financial requirements. Its services include accounting services, bookkeeping, Corporate Tax advisory, VAT compliance, transfer pricing support, audit and assurance, financial reporting, budgeting and forecasting, and financial due diligence.
These services can help businesses build stronger financial processes and understand their UAE compliance duties as they expand across borders. Companies should also seek advice from qualified professionals in India for Indian tax and legal requirements.
The UAE-India trade relationship is creating new opportunities, but successful expansion requires more than market entry. Companies that plan their finances, tax responsibilities and compliance processes early will be better prepared to manage growth in both markets.
