Nykaa, Anita Dongre, The Big Chill, Tanishq and others have entered Dubai over the past year. Coffee chain Blue Tokai said it has seen a “lot of interest” from the city and may open a cafe there through a joint venture.
Matt Chitharanjan, its co-founder and CEO, said, “Dubai is more like another city in India than an international market. We’ve been approached by many people there. It seems there’s a lot of interest in Indian coffee.”
Also read: How to obtain a Dubai Golden Visa through real estate investment
It also helps that markets such as the UAE allow foreign nationals to own 100% of their own business. There‘s no tax associated with foreign ownership, and businesses can also partner with local operators.
To be sure, Dubai and other Gulf markets are already hot retail destinations, with top global brands that cater to wealthy locals and expats. While competition is fierce, a growing number of Indian companies are looking to establish a small presence there.
Numbers game
Data from the Indian consulate in Abu Dhabi showed the Indians are the largest ethnic community in the UAE, comprising roughly 30% of the population. There were an estimated 3.5 million resident Indian nationals in the UAE in 2021, according to the country’s records. Nearly 20% of the Indian diaspora is in Abu Dhabi and remaining in six Northern Emirates including Dubai.
“It’s a matter of habit… I’m used to a certain kind of coffee or bread or food and am happy to consume it locally. The UAE offers Indian companies a great segue into global markets. There is also a feel-good factor attached to it,” said 38-year-old Pooja Khanna, an executive coach, who moved to Dubai from Delhi last December.
Also read | From Dubai to Tokyo: Indian spirits take flight, ticking global palates with single malts and more
Here’s one indication of the buying power of wealthy Indians at home and abroad: buyers from India and the UK spent the most on residential property in Dubai in 2023, followed by Russians, according to a report that year by Dubai-based real estate agency Betterhomes.
Cities such as Dubai have caught the fancy of Indian tourists, too. Last year, India sent more tourists to Dubai than any other country, according to Dubai International Airport.
Saturated and highly competitive
Restaurant chain The Big Chill, which operates eight outlets in the National Capital Region, opened one in Dubai Hills Mall last year, citing demand for its pastas and desserts from Indian patrons. Founder Aseem Grover said, “A lot of the Mumbai and Bengaluru folks heard about us from their Delhi friends, and then came the Pakistanis and Sri Lankans, through their Indian friends.”
Grover cautioned, however, that while Dubai presents a great opportunity, given its international appeal, it is also “very saturated” and competitive, not just in the restaurant business but also retail. “The world’s best chefs and fashion brands are there. It’s an extremely competitive market. Our motivation was personal as well (he has family in the city), so we put in our own money to open this outlet,” he said.
Also read: United Arab Emirates fund in talks to invest in OpenAI
Earlier this year, Indian cosmetics and fashion retailer Nykaa partnered with Dubai-based fashion and lifestyle retail company Apparel Group to expand Nykaa’s business in the Gulf. The two companies plan to build a multi-brand beauty retail business in Gulf Cooperation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
Called Nysaa, the e-commerce website was launched in January, and the first physical retail store in Dubai opened in March, marking Nykaa’s first international expansion.
Last year jeweller Titan Company Ltd took its jewellery brand Mia overseas with a store in Dubai. Tanishq’s first international store opened in Dubai’s Meena Bazaar in October 2020.
Queries sent to Titan remained unanswered. Its managing director CK Venkataraman had said in an interview in March, “We are currently focusing on the substantial Indian diaspora in the GCC countries, apart from Singapore, the US, a few cities in Canada, a few cities in the UK, and perhaps Australia.”
Not just for Indians
While they may be the focus, companies aren’t limiting themselves to Indian customers as local residents in these markets also have an appetite for Indian food and clothing. Indian designs and fits appeal to even local residents in GCC markets, said Yash Dongre, chief operating officer of Indian fashion house Anita Dongre, had told Mint in July. Having entered Dubai in March 2023, Anita Dongre plans to open at least a dozen stores in the GCC region over the mid-to-long term. It also has stores in New York.
Yash Dongre added, “Many designers have tried to crack that market but have not had success. We realised that there is a Middle Eastern market too, and not just the Indian diaspora. For the local Arab consumer, who shares sensibilities with Indians, there aren’t enough home-grown fashion brands. We are addressing that gap,” he said.
Also read: There is a need to tap more of those NRI investments
Zorawar Kalra’s Massive Restaurants was an early entrant into the Gulf region, with two franchised restaurants in Dubai — Farzi Cafe and Masala Library. Kalra said the local palate matches that of Indians – biryanis and kebabs are a hot favourite.
The Masala Library, located in a five-star hotel, is frequented by Indians and Arabs alike. “We have Indian clients, too, but a lot of the business now comes from locals. They eat similar food, just not as spicy as we like it in India,” Kalra said.
