US-Iran War Threatens $1.3 Billion Indian SME Investments in UAE

• The ongoing US-Iran conflict puts $1.3 billion in investments by 800 Indian small and medium companies in the UAE at risk.
• These companies, primarily in retail and hospitality, invested in the UAE over the last six months, with 280 firms in these sectors investing $400 million.
• UAE has become the second-largest Overseas Direct Investment (ODI) destination for Indian companies after the US in the last two years.
• Smaller companies face higher vulnerability due to limited financial power and concentration risk, making them susceptible to disruptions in cash flows.
• Despite short-term concerns, some companies like Wow! Momo remain bullish on the Middle East, planning significant expansion, believing the war impact will be temporary.