India and the UAE are accelerating their tech collaboration under CEPA, despite global tensions. With joint focus on AI, startups, semiconductors, and quantum tech, the two nations aim to strengthen digital ecosystems, boost trade to $100B by 2030, and shape the future of innovation across Asia and the Middle East.
While tensions rise across Asia and the Middle East due to ongoing conflicts like the Israel-Iran dispute, India and the UAE are quietly accelerating their innovation-driven partnership. The India-UAE CEPA Start-up Series, launched on June 24, 2025, is the latest move to connect India’s vibrant startup ecosystem with the UAE’s world-class infrastructure and digital economy.
This joint initiative is part of the larger Comprehensive Economic Partnership Agreement (CEPA) signed between the two nations, which is now powering a strategic shift toward deep cooperation in technology, AI, renewable energy, and space innovation.
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Economic momentum between the two countries has been rising steadily. Since the signing of CEPA, bilateral trade has grown from $43.3 billion to $83.7 billion in just five years. As of January 2025, trade between India and the UAE stood at $80.5 billion, with both governments aiming to take non-oil trade to $100 billion by 2030.
In terms of foreign investment, the UAE is already India’s 7th largest investor, contributing around 3% of total FDI. From April 2000 to June 2024, India received approximately $19 billion in FDI from the UAE.
Beyond economics, the India-UAE relationship is now being shaped by a shared ambition to lead in digital innovation and emerging technologies. This direction was set by the India-UAE Joint Vision Statement in 2022, which emphasized the central role of technology in strengthening bilateral ties.
One major outcome of that vision was the India-UAE Startup Bridge, launched three years ago to enhance cooperation between accelerators, incubators, and investors in both countries. This platform also facilitates knowledge exchange and joint ventures across various tech sectors.
India’s global standing as a tech innovation leader, combined with the UAE’s aggressive push to become a digital powerhouse, has created fertile ground for impactful collaboration in AI, quantum computing, semiconductors, and digital infrastructure.
The UAE is positioning itself as the Gulf’s leading technology ecosystem, with clear national strategies such as UAE Industry 4.0 and the Future 100 Initiative. These programs aim to integrate advanced technologies like AI, machine learning, and IoT into the UAE’s economy, and recognize the top 100 startups shaping the country’s innovation landscape.
By 2030, AI alone is expected to add $100 billion to the UAE’s economy—accounting for almost 15% of its GDP. Already, the UAE is home to 11 unicorn startups, the highest in the Gulf region.
According to a report by market research firm Tracxn, UAE-based tech startups raised $872 million in the first quarter of 2025, a massive 194% increase from the same period in 2024.
The Dubai Economic Agenda (D33) targets adding $27 billion to the national economy through digital transformation by 2033. Major innovation hubs like Dubai Internet City, Dubai Silicon Oasis, and Masdar City in Abu Dhabi are helping accelerate this transformation by offering infrastructure and investment support for startups and tech companies.
On the Indian side, bold national missions are reshaping the country’s tech future.
The National Quantum Mission (NQM), launched in April 2023 with a budget of $740 million, aims to make India a global leader in quantum computing, sensing, and communication by 2030. So far, 152 researchers across 43 institutions are actively contributing to this mission. Globally, India ranks 6th in the number of quantum science and tech startups, with 53 startups compared to the US (309), Germany (110), and UK (92).
India is also making rapid progress under its Semiconductor Mission, launched in 2021 with a budget of $10 billion. The mission aims to develop a complete semiconductor ecosystem, from chip design to manufacturing and testing. Recently, India unveiled two new design centers for 3-nanometer chips, bringing the total number of semiconductor facilities to six. The Indian semiconductor market is expected to grow from $45 billion in 2023 to over $100 billion by 2030.
India’s reputation as a startup superpower is also boosting this partnership. With over 110 unicorns and more than 1.57 lakh DPIIT-recognized startups as of December 2024, India holds the third-largest startup ecosystem in the world, after the US and China.
In the 2024 Global Innovation Index (GII), India ranked 39th among 133 countries, reflecting its steady rise as a global center of innovation.
As conflicts and uncertainty continue to impact regions around the world, India and the UAE are choosing cooperation over confrontation. Their joint tech initiatives reflect a shared belief that innovation, not isolation, is the path forward.
From AI to quantum science, and from startup support to semiconductor self-reliance, this partnership is not only boosting trade—but also shaping the digital future of two of the world’s most dynamic economies.
