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The United Arab Emirates (UAE) is evaluating potential investments in Dholera Smart City, a major infrastructure and industrial development located in Gujarat’s Dholera Special Investment Region (SIR), as part of the strengthening strategic and economic relationship between India and the UAE.

During high-level discussions held in January 2026, Indian Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan reiterated their commitment to expanding cooperation across sectors such as trade, defence, energy, and infrastructure. One of the key focus areas of these talks was the possibility of UAE participation in the development of Dholera Smart City.

A Letter of Intent on investment cooperation was signed between the Government of Gujarat and the UAE Ministry of Investment, indicating mutual interest in working together on Dholera’s urban and industrial infrastructure. The collaboration is expected to support long-term development through projects related to transportation, connectivity, energy systems, and smart urban planning.

Under the proposed investment framework, UAE sovereign wealth funds and institutional investors have been encouraged to explore opportunities in core infrastructure projects, including the Dholera International Airport, smart townships, railway connectivity, and energy infrastructure. These initiatives are expected to enhance regional connectivity, improve logistics efficiency, and support industrial growth.

The potential UAE investment aligns with the broader India–UAE goal of increasing bilateral trade to $200 billion by 2032. Discussions have also included cooperation in advanced technology, clean energy, space infrastructure, and other emerging sectors.

Analysts believe that growing UAE interest in Dholera, which is being developed under the Delhi–Mumbai Industrial Corridor initiative, could attract significant capital investment, create employment opportunities, and accelerate infrastructure development. This progress would further strengthen Dholera’s position as an emerging manufacturing, logistics, and smart urban hub in India.