India and the Middle East have a very close relationship that dates back millennia. Indian traders have been visiting the land for thousands of year’s trading spices, gold, textile and so on. In the past few decades, the countries in the Middle East have risen at a very fast pace due to the vast amounts of hydrocarbons found beneath their lands. The world in which we live right now seemed to be uninhabitable without the use of fossil fuels derived from these hydrocarbons. The huge demands for hydrocarbons allowed these countries’ economies to quickly rise through the ranks. Soon, they started to understand that the resources that their economies were so dependent upon is a non-renewable one and is in limited supply, which will dry up one day sooner or later. This made them conscious of their future source of income and they started a new way of making money, investments.
Talking of investments, the middle-eastern countries have been investing their loads of money in Europe and North America for the past two decades. However, since the economic depression of 2008 that started from the US, these countries have looked at other regions for investments as well. The next best alternative for them were China and India. Bothe these markets offer huge opportunities in terms of population and a stable government system as well. However, the Chinese market seemed to be stagnating after a continuous rapid growth period of 4 decades. This phenomenon compelled the middle-eastern economies to look more into India for investments. Moreover, the last decade saw India grow as one of the best startup nations. The Indian startups have grown to become unicorns in various sectors and that is quite alluring for investors all over the world and so is the case for the middle-eastern investors.
Investments are a crucial part of any business if not the backbone of it. It not only helps the company to run on a daily basis and make its day-to-day payments but also help it gain confidence and popularity in the market. If a big and reputed corporation invests in a small company or a startup, then the investee gains reputation as the one having high potential.
Indian startups have seen heavy investments from the Chinese tech giants. Now the institutions from the countries such as Qatar, UAE, Saudi Arabia and so on are investing heavily in India. Indian Edtech startup Byju’s and Food delivery startup Zomato have been invested in by some of the middle-eastern countries. Recently, Qatar Investment Authority (QIA) invested in Flipkart. One of the major reasons behind such investments is not just startups’ growth but also exits. The Indian startup ecosystem has seen some big exits and Flipkart is the biggest of them all. Many Indian startups have been acquired by foreign companies. This builds confidence in the Indian startup scene for the foreign players regarding their investments. Investments in Indian companies prove to be a safe bet for the institutions of the middle-eastern countries.