A major threat is looming over the investments made by 800 small and medium-sized enterprises (SMEs) in India, which may jeopardize investments worth thousands of crores of rupees. This risk arises due to the ongoing conflict between Iran and the United States. As a result, various sectors ranging from travel to exports have been badly affected.
Moneycontrol released data claiming that, over the past six months, these companies together have invested a total of $1.3 billion (about ₹12,000 crore) in the United Arab Emirates (UAE)—investments that are now at risk due to the conflict. The impact is expected to be most severe on companies in the retail and hospitality sectors, where 280 Indian firms had invested nearly $400 million. This information is taken from the Direct Foreign Investment data published by the Reserve Bank of India (RBI).
The report further notes that this threat is particularly significant because, over the past two years, the UAE has emerged as the second largest destination for foreign investment by Indian companies, behind only the United States. Furthermore, it has been observed that these smaller companies face greater risks than larger companies investing in the Middle East, as their financial capacity to absorb potential losses is limited. Conversely, experts suggest that while the short-term outlook for the Middle East may seem bleak, the long-term argument for such investments in the UAE still remains strong.
Which company invested how much?
Mumbai-based coffee roasting company ‘Subko Coffee’ sent $210,000 to finance its wholly owned subsidiary in the UAE. Lifestyle brand ‘Brahm Lifestyle Products’ invested $2 million, while another hospitality firm, ‘Idam Natural Wellness’ invested about $680,000 earlier this year. Although these investments were made after August-September 2025, the RBI does not make public the exact dates of these transactions. Experts suggest that these companies may face financial losses and business disruptions. The biggest risk is that most of these—which are mostly small companies—do not have any active ‘war insurance policy’, making them even more vulnerable.
investment by big companies
The list of companies investing in the UAE in the last six months includes companies like Graviss Foods—the Indian licensee of Baskin Robbins—which has invested $11.4 million. Additionally, FMCG company Haldiram’s Snack Foods has invested $2.8 million in the UAE, while OYO’s subsidiary, OYO Proptech, has invested $11 million in the Gulf country.
