Unlock Global Partnerships: Indian, Chinese & Brazilian Firms Are Moving Production to the UAE to bypass the Trump tariffs and to get better global market access.
The UAE is fast becoming a preferred destination for global businesses navigating today’s shifting trade and tariff landscape. With recent changes in U.S. trade policy — including significant tariff hikes on imports from India, China, and Brazil — companies from these major economies are actively seeking to relocate or expand their manufacturing base to more competitive jurisdictions. The UAE, with its robust logistics, attractive free zones, and strategic trade agreements, stands out as the natural hub.
For UAE-based businesses, this opens up a powerful window of opportunity: joint ventures and partnerships with global players who are eager to shift their production and trading operations into the UAE.
Why Are Global Businesses Looking to the UAE?
Indian Businesses
- Facing a 50% tariff wall in the U.S., Indian exporters in jewelry, textiles, and food processing are shifting production to the UAE, where qualifying goods enjoy a much lower tariff rate (~10%) when re-exported.
- Notable example, Titan buys Damas: Titan Company Limited recently acquired Dubai’s Damas Jewellers as part of its strategy to use the Gulf as a manufacturing and export hub.
- Opportunity: Local UAE partners can benefit from joint facilities, supply chain integration, and distribution tie-ups.
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Expanding Horizons: How Indian Exporters Can Leverage Government Support and UAE Partnerships
Chinese Businesses
- Chinese exporters, particularly in electronics, consumer goods, and machinery, are using the UAE for final assembly and substantial transformation, enabling them to reclassify goods as UAE-origin.
- With Chinese firms already present in JAFZA, KIZAD, and Dubai Industrial City, UAE partners can tap into technology transfers, contract manufacturing, and re-export collaborations.
Brazilian Businesses
- Brazil’s exports, from agri-foods to steel and machinery, are under similar tariff pressure. While many Brazilian companies focus on expanding U.S. or regional production, there is a rising interest in Middle East partnerships — especially in food processing, steel, and aviation-linked industries.
- Ongoing Mercosur–UAE trade discussions may further unlock tariff advantages, making partnerships with Brazilian firms particularly forward-looking.
Why the UAE Is the Ideal Platform
- World-Class Free Zones: From JAFZA to Masdar City, ADGM to RAKEZ — the UAE offers specialized clusters for manufacturing, logistics, renewable energy, and high-tech.
- Tax & Tariff Benefits: Double Taxation Avoidance Agreements (DTAA), CEPA (India–UAE), and ongoing trade talks with Mercosur amplify the appeal.
- Infrastructure & Connectivity: Ports like Jebel Ali and Khalifa, coupled with Emirates SkyCargo and Etihad Cargo, make re-exports seamless.
- Investor-Friendly Regulations: Clear rules for company formation, foreign ownership, and joint ventures ensure legal certainty and flexibility.
What This Means for UAE Businesses
For UAE manufacturers, distributors, and investors, the time is right to explore joint ventures and partnerships with these international players frustrated with the US tariffs and looking for newer markets. Benefits include:
- Access to new product lines and advanced manufacturing processes.
- Building strategic alliances with companies eager to invest capital and technology.
- Tapping into global distribution networks while strengthening the UAE’s role as a trade hub.
- Leveraging legal frameworks to structure partnerships that balance risk, protect intellectual property, and maximize returns.
Practical Support for Businesses
UAE companies exploring joint ventures or partnerships with Indian, Chinese, and Brazilian firms will need to consider:
- Structuring joint ventures that balance risk and reward.
- Drafting and negotiating agreements to clearly define roles, responsibilities, and protections.
- Choosing between free zone or mainland incorporation, and meeting local value-addition requirements for re-exports.
- Navigating cross-border legal, tax, and regulatory frameworks to ensure compliance and smooth operations.
Once-in-a-Decade Opportunities
Global trade shifts are creating once-in-a-decade opportunities. The UAE is uniquely positioned to be the bridge between East, West, and the Global South. For local businesses, this is the time to partner with Indian, Chinese, and Brazilian firms seeking new homes for their production lines. Strategic partnerships today can shape tomorrow’s trade leadership.
