UAE eyes stronger India ties to boost investor confidence

Dubai: Strengthening economic ties with the Indian subcontinent could help restore investor confidence in the UAE at a time when regional tensions have triggered cautious capital movements, according to Mishal Kanoo, chairman of The Kanoo Group, one of the region's largest family-owned conglomerates.

Encouraging businesses from those countries to expand operations in the UAE would signal stability to the wider investment community, Kanoo told ET in an interview post the two-week ceasefire announcement between the United States and Iran. The call for stronger economic partnerships comes amid capital flight concerns as Iran's retaliatory strikes on key Gulf cities since February 28 put to test the safe haven status of Dubai and Abu Dhabi.

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"Some capital has left the UAE because money is a coward...The moment money feels threatened, it leaves," Kanoo said, noting that capital naturally seeks stability, continuity and long-term certainty. The focus should be on bringing investors and businesses back, he said.

"For me, one of the most natural investment and business partners is the Indian subcontinent... Strengthening those ties could help attract people, investment and businesses back to the UAE. If well-known companies from those countries operate comfortably here, that sends a signal to others that the environment is stable and safe," he said.

The Kanoo Group is a diversified conglomerate operating across several key industries including energy, travel, shipping, logistics, real estate, and industrial services. "The government needs to reassure people, not only citizens but residents, investors and businesses, that this is a safe place," Kanoo said, noting uncertainty could persist even if a deal is reached. "The UAE needs to focus on attracting people and investment into the region," he said.

"Every global city has faced crises. London was bombed during WWII. Paris was invaded. Tokyo experienced destruction. Yet these cities recovered because the perception of stability returned," Kanoo noted.