The UAE’s Lulu Group has announced a Dh1.5 billion (IN₹40 billion/US$410 million) investment in a major mixed-use development in Gujarat, adding to the growing flow of UAE capital into India’s western industrial powerhouse.
The project, which includes a shopping mall, five-star hotel and serviced residential apartments in Ahmedabad, comes as Dubai-based DP World continues with its Dh11 billion (US$3 billion) investment in ports and logistics infrastructure across the state. Together, the investments underline Gujarat’s increasing importance as a strategic economic gateway for India and a key partner in strengthening UAE-India trade ties.
Abdulla bin Touq Al Marri, UAE Minister of Economy and Tourism, said Gujarat has developed a diversified economic ecosystem spanning ports, industry, food processing, renewable energy, logistics and entrepreneurship.
“Gujarat serves as a crucial focal point for the next phase of the UAE-India Economic Corridor, offering promising opportunities to strengthen cooperation in resilient supply chains, advanced manufacturing, food security, financial services, and tourism,” he said.
Economic ties between the UAE and India continue to expand. The number of Indian companies operating in the UAE reached 290,222 by the end of the first half of 2026, a 16.7 per cent increase compared with the same period last year. A significant portion of these businesses are owned by members of the Gujarati community.
Yusuff Ali M.A., Chairman of Lulu Group, said: “We have announced a IN₹40 billion (Dh1.53 billion) investment project to come up with a modern shopping mall, 5-star hotel and furnished residential apartments in an area of nearly 21 acres of land that we have recently acquired in Ahmedabad. The project is expected to provide more than 15,000 jobs to residents of the state. In addition to this, we are also initiating for a Food Park as well as planning for a Fish-processing plant.”
Gujarat is among India’s most industrialised states, supported by a strong manufacturing base, export-oriented industries and extensive cargo-handling infrastructure. The state’s Gross State Domestic Product exceeds Rs24.6 trillion (about $260 billion), while per capita income has crossed Rs300,000.
The deepening economic relationship has also encouraged the UAE’s estimated 300,000-strong Gujarati diaspora to strengthen business and community networks. Gujarati Samaj UAE, a non-profit organisation established in 2022, has grown from 16 founding members to more than 28,000 members today.
Priteesh Patel, Founder of Gujarati Samaj UAE and Chairman of Akshar Holdings, said: “Gujaratis are a vibrant and resourceful community in the UAE. As the economic relationship between the UAE and the state of Gujarat strengthens, we are also gearing up to realign our resources to enhance the socio-economic relationship by promoting trade, investment and employment.
“Our community can play a large role in helping both the economies. We would also like to collaborate with the Government of Gujarat in organising investment conferences and exhibitions.”
Through initiatives such as Vyapar Junction UAE, the organisation aims to further boost trade, investment, entrepreneurship and employment opportunities between the UAE and Gujarat.
Source: Khaleej Times