Indian startups are increasingly turning to the Gulf Cooperation Council (GCC) as a first overseas expansion market, driven by capital availability, policy support, and stronger revenue visibility compared to other international destinations.

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The shift is most visible in the United Arab Emirates (UAE) and Saudi Arabia where SWFs, accelerators, and government-backed platforms are actively engaging Indian firms across fintech, enterprise SaaS, AI, logistics, and consumer internet sectors.

The UAE-India CEPA Council’s start-up series received more than “10k applications from Indian startups in under two months, making it the largest start-up initiative of its kind ever held in India. This level of engagement has validated the CEPA Council’s model and demonstrated strong demand for structured pathways into the UAE innovation ecosystem,” Director of UAE-India CEPA Council Ahmed Aljneibi told EnterpriseAM.

The UAE offers Indian startups a uniquely global scaling platform. “It combines regulatory clarity, ease of doing business, access to regional and international capital, and proximity to diverse clients across the Middle East, Africa, and Europe,” Aljneibi said. “Importantly, founders can internationalize without disconnecting from India, maintaining operational and cultural proximity.”

“What we are seeing is a clear change in founder mindset,” Lloyd Mathias, angel investor and business strategist, told EnterpriseAM. “Unlike earlier phases where startups focused on Silicon Valley or Southeast Asia, the GCC has become the primary port of call for many Indian founders over the last year.”

Why the GCC, and why now-

Several factors are converging to make the GCC an attractive expansion destination for Indian startups. Mathias pointed to the availability of large pools of capital as a key driver. “These economies are now actively looking beyond oil,” he said, citing Saudi Arabia’s Vision 2030 and the UAE’s startup-focused initiatives such as Hub71.

Geographic proximity and familiarity also matter. Most cities in the Gulf region are three-to-five-hour flights from India’s commercial hubs and host a large Indian diaspora, lowering cultural friction. This contrasts with tightening visa regimes and policy uncertainty in traditional Western markets, particularly the US.

High digital adoption and enterprise readiness across GCC economies further strengthen the case. “There is a strong appetite to adopt technology,” Mathias said. “At the same time, there is a talent gap that Indian startups can fill.”

Ashish Bhatia, founder and chief executive of India Accelerator, said the motivation for expansion has also become more pragmatic. “Founders aren’t expanding for a checkbox anymore,” he told EnterpriseAM. “They’re asking where their product will get adopted fastest, with the least friction and real revenue visibility. For many, the GCC feels like a logical second market after India.”

“Founders aren’t expanding for a checkbox anymore,” he told EnterpriseAM. “They’re asking where their product will get adopted fastest, with the least friction and real revenue visibility. For many, the GCC feels like a logical second market after India.”

Revenue visibility and scaling-

For many founders, the GCC offers stronger pricing power than the Indian market. “Indian clients often push pricing to levels that become unviable. While the GCC market is smaller in size, it is far more lucrative,” Mathias said.

Expansion beyond the Gulf: Indian startups are increasingly using the GCC not only as an end market but as a regional operating base to access clients across the Middle East and Africa. “More mature Indian startups are increasingly choosing the UAE as their regional base to expand into MENA rather than entering each market individually”, Ahmed said.

Specialized accelerator programs-

India Accelerator, a Gurugram-based startup accelerator, recently expanded into Saudi Arabia with a USD 15 mn fund to support Indian startups entering the Kingdom. The program is backed by Saudi Arabia’s National Technology Development Program (NTDP).

“What we realized was that the gap wasn’t access to capital — it was the absence of a structured pathway from pitching to proof,” Ashish Bhatia, founder and chief executive of India Accelerator, told EnterpriseAM. “Founders were coming in for fundraising conversations without customers, pilots, or operating presence.”

Watch out for risks-

While momentum is building, founders face risks if they underestimate regulatory variation, cultural norms, and the importance of local partnerships, Mathias cautioned. “The GCC provides revenue and margins, while India provides scale,” he said. “Used together, they create a more balanced revenue profile — but founders need to approach the region with discipline and patience.”

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