UAE-India relations have been getting stronger, and now the Middle East, primarily the UAE, is emerging as another center for international Chemical Export. The CHEMEXCIL report for the year 2023-2024 confirms the projection that exports of chemicals from India are expected to reach $1.077 billion. The required supply of specialty and commodity chemicals offers Indian startups a chance to establish a firm standing in the $1.2 billion market.
For Indian entrepreneurs and startups, this article is aimed at laying a roadmap on how to analyze the chemicals trade with the UAE, evaluate the demand, study the available trends, including the government policies, and learn how to scale the chemicals export business.
Analyzing the Chemical Industry’s Indian Market in the UAE
Why the UAE is a Strategic Market
The UAE is the key access point to the entire Gulf Cooperation Council (GCC) and Africa. It imports chemicals to cater to the increasing demands for;
- Petrochemical Refineries
- Construction Sector
- Agrochemical Requirements
- Personal Care and Cosmetics Industry
- Textile and Dye Manufacturing
With strong infrastructure in logistics, the UAE serves as a trade ally and is a stable, high-volume market for Indian exporters.
Related: Specialty Chemical Manufacturing: Transitioning from Bulk to High-Value Export Products
Indian Exports to UAE by Chemical Category
| Chemical Segment | 2021-22 (USD Mn) | 2022-23 (USD Mn) | 2023-24 (USD Mn) |
| Organic & Inorganic Chemicals | 632 | 480 | 427 |
| Cosmetics, Soaps, Toiletries & Essential Oils | 124 | 114 | 150 |
| Dyes & Dye Intermediates | 56 | 59 | 61 |
| Castor Oil | 18 | 13 | 14 |
| Total | 830 | 666 | 1,077 |
Source: CHEMEXCIL Annual Report 2023-24
The increasing imports of chemicals from India shows the strong trade relations and reliance that UAE has on India’s exports.
Key Export Products In Demand
Based on CHEMEXCIL’s findings on panel-wise export performance for the year 2023-24, the highest exported products from India to the UAE are:
- Dyes and Pigments: Reactive dyes, direct dyes
- Essential Oils: Eucalyptus, peppermint, sandalwood
- Cosmetics and Toiletries: Ayurvedic cosmetics, soaps and creams
- Agrochemicals: Pesticides and fertilizers
- Organic Chemicals: Acetic acid, citric acid
- Inorganic Chemicals: 39%
Market Drivers In the UAE
Construction and Infrastructure Growth
UAE’s infrastructure projects like Dubai Expo, smart cities, NEOM, etc., create a lot of demand for:
- Paints and coatings
- Adhesives
- Construction chemicals
Personal Care and Lifestyle
Rising middle-class consumers and tourism increase demand for:
- Ayurvedic and herbal cosmetics
- Perfumes and toiletries
Food Safety, Agriculture, and Innovations In Chemistry
Food security initiatives for dry regions increase demand for:
- Agrochemicals
- Soil conditioners and bio-fertilizers
Related: The Potential of Specialty Chemicals: A Startup’s Guide to High-Growth Markets
Government Support and Export Schemes
Role of CHEMEXCIL
CHEMEXCIL assists the startups by:
- Participating in trade shows and buyer-seller meets like Khimia 2023, Indo Beauty Expo 2023
- Export training seminars
- Participation in global exhibitions under the MAI scheme
CHEMEXCIL’s 2023-24 initiatives included:
- 24 exporters in Africa (with UAE-facing events).
- Buyer-Seller Meets in Ethiopia, Kenya, the Philippines, Argentina, and Chile.
Export Incentives for Startups
| Scheme | Benefit Offered |
| RoDTEP | Rebate on taxes for exported goods |
| MAI | Reimbursement of up to 50% registration cost |
| EPCG | Duty-free imports of capital goods |
| Advance Authorization | Duty-free input procurement |
View our books on Chemical Technology (Organic, Inorganic, Industrial), Fine Chemicals
Forecast: Chemical Export Potential to UAE and GCC
According to CHEMEXCIL and other global forecasts, we expect India to have a growing market share of Indian chemicals in the UAE.
Forecast Table: India’s Projected Chemical Exports to UAE
| Year | Estimated Amount (USD Million) |
| 2024-25 | 1,160 |
| 2025-26 | 1,275 |
| 2026-27 | 1,400+ |
Key Factors for Growth
- Sustainability mandates
- Shift toward green chemicals
- UAE’s trade re-export model to Africa and the GCC
Steps to Start A Chemical Export Business To the UAE
Product Feasibility and Market Research
- Utilize CHEMEXCIL information and international purchaser documents
- Concentrate on high-demand products such as dyes, essential oils, and adhesives
Legal and Trade Compliance
- Apply at DGFT for IEC and KYC
- Register CHEMEXCIL
- Learn the UAE’s regulatory norms, like the Emirates Authority for Standardization and Metrology, Dubai Municipality
Manufacturing Setup or Sourcing
- Build or source from certified small and medium enterprises, compliant manufacturing units
- Adhere to REACH, GMP, BIS standards
Export Logistics
- Utilize Jebel Ali Port and air cargo centers in Dubai
- Obtain Certificates of Origin from CHEMEXCIL
- Consult specialists for documents
Marketing and B2B Matchmaking
- Participate in ArabPlast and Beautyworld Middle East
- Utilize buyer-seller meets from CHEMEXCIL
- Generate leads on digital B2B platforms
Obstacles and Solutions
| Obstacle | Strategic Solution |
| Detailed UAE requirements | Hire compliance consultants and follow ESMA standards |
| Cultural tendencies | Halal certified products and localized designs |
| Costs for freight and logistics | Consider shipment consolidation and warehouse options |
| Security for sensitive payment details | Leverage LC (Letter of Credit) and ECGC Insurance |
Case Study: Success Story of Cosmetics Exporter
After attending Indo Beauty Expo 2023, a Gujarat MSME firm dealing in Ayurvedic cosmetics reported a 35% increase in revenue (aided by CHEMEXCIL). They set up distribution networks in Dubai and Sharjah owing to compliance guidance.
FAQs
Q1. What is the timeline for registering as an exporter?
A1. It takes roughly 3-4 weeks, encompassing both DGFT and CHEMEXCIL registration.
Q2. Is halal certification required for exporting cosmetics?
A2. It is not a must, but strongly advised for acceptance in the UAE market.
Q3. What port in the UAE is best to export chemicals?
A3. Jebel Ali Port is the most efficient primary access and re-export hub for distribution.
Q4. Is there an offer for financial assistance from CHEMEXCIL?
A4. Yes, exporters can claim up to 50% under the MAI Scheme for reimbursement of expenses incurred for product registration abroad.
Business Recommendation: Collaborate with a Trade Consultant
It is quite challenging to meet the UAE standards, distribution, logistics, and export. Work with a seasoned export advisor or government-supported councils like CHEMEXCIL for favorable results.
What Makes Startups Important Right Now
- The United Arab Emirates has a growing and diverse chemical demand.
- India has close to free trade agreements.
- Support from CHEMEXCIL simplifies market entry.
- There is a growing demand for environmentally friendly products and green chemicals.
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Niir Project Consultancy Services issues comprehensive market surveys and detailed techno-economic feasibility studies for potential exporters.
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