Indian expatriates across the Gulf are increasingly shifting their investment preferences away from traditional real estate and moving towards Indian equities and mutual funds as their preferred long-term wealth creation strategy. Amid ongoing geopolitical tensions in West Asia, GCC-based NRIs are showing growing confidence in India’s financial markets over physical assets like property.
A recent Equirus Wealth report highlights that this is not a temporary trend but a structural shift, with Indian equities emerging as the primary destination for fresh capital from Gulf-based investors.
Titled “Indian Equity at the Core, Eyes Everywhere: The New Investment Behaviour of GCC NRIs”, the study found that nearly 73% of surveyed NRIs are increasing their exposure to Indian equities and mutual funds, while around 40–45% are reducing investments in Indian real estate. The survey covered over 8,300 NRIs across the UAE, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain.
The report suggests that long-standing investment patterns among expatriate Indians are changing rapidly as investors prioritize liquidity, flexibility, and long-term growth potential.
This shift comes amid continued geopolitical uncertainty in the Gulf region. Rising regional tensions, inflationary pressures, and global market volatility remain key concerns. However, instead of withdrawing from markets, many NRIs are actively rebalancing their portfolios.
Geopolitical instability was identified as the top concern by 41% of respondents, followed by inflation and rising living costs at 23%, and global volatility at 13%. Despite these challenges, investor sentiment remains resilient, with 86% of respondents reporting stable or improved financial confidence over the past year.
The report also noted disciplined financial behaviour among GCC NRIs, with 35% increasing savings, 26% cutting discretionary spending, and another 26% shifting towards safer instruments such as debt and liquid funds. Interestingly, 22% have increased their allocation to India despite global uncertainties.
Long-term expatriates are leading this transition, with more than 84% of respondents having lived in the GCC for over a decade and 38% for more than 20 years. This reflects a mature investor base focused on strategic, long-term financial planning.
Remittance patterns are also evolving. Investments in India now account for 27% of remittance intent, while retirement planning contributes 22%, surpassing traditional family-support remittances. This indicates a growing perception of India as a primary wealth-creation destination.
While higher-income NRIs are gradually diversifying into global assets, India continues to remain the core focus across all income groups. Systematic investment plans (SIPs), retirement planning, and structured portfolios are steadily replacing real estate-driven wealth models.
Overall, the findings highlight a clear shift in NRI investment behaviour — from property-led wealth creation to disciplined, financial asset-driven strategies aligned with India’s long-term growth story.
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