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Tension in the Gulf, $1.3 billion at stake for 800 Indian companies in UAE. Middle East Tensions Put 1 Point 3 Billion Dollar Indian Sme Investments In Uae At Risk

Sanjeev Kumar | March 19, 2026 6:22 PM CST

Investments of Indian companies in UAE are in danger due to US-Iran tension. 800 SMEs have invested $1.3 billion in the last 6 months. Retail and hospitality sectors may be most affected, due to which small companies may suffer huge financial losses.

Tension has increased in the Gulf region due to the atmosphere of war between America and Iran. This is having a direct impact on Indian companies investing in the United Arab Emirates (UAE). In the last six months, around 800 Indian small and medium companies (SMEs) have invested a huge amount of $1.3 billion (i.e. $130 crore) in UAE, which is now in danger.

For the last two years, UAE had become the second largest investment destination for Indian companies after America. This tension is likely to have the biggest impact on the retail and hospitality (hotel, tourism) sectors. According to Reserve Bank data, 280 Indian companies from these sectors have invested about $ 400 million here.

Big concerns for small companies

This fight is a bigger problem for small companies than for large corporate groups. This is because they do not have much money to deal with sudden losses. Apart from this, the entire business of many companies is only in UAE. So, if movement of goods stops, customers fall or projects get delayed, their earnings will be immediately impacted. Due to the war, these companies may have to face huge financial losses and disruptions in business.

These companies have made big investments

In the last six months, many small and big Indian companies have invested money in UAE. Among these, Mumbai-based Subko Coffee has invested $2,10,000, lifestyle brand Brahm Lifestyle has invested $2 million and Idam Natural Wellness has invested $6,80,000. Apart from these, Gravis Foods, the licensee company of Baskin Robbins in India, has invested $ 11.4 million, Haldiram's has invested $ 2.8 million and Oyo's subsidiary Oyo Proptech has invested $ 11 million.

Companies did not give up hope

Despite the threat of conflict, most companies are confident about the future of their business in the UAE. President of the National Restaurant Association of India and 'Wow! Momo's (Wow! Momo) CEO Sagar Dariyani says that this crisis is only for some time. He hopes that the situation will become normal soon.