At a time when the Gulf Cooperation Council (GCC) nations come under the impact of the US-Iran war, Indian companies sharply increased outward foreign investments into the region, particularly to the UAE.However, instead of fresh equity for new ventures, the overseas direct investments (ODIs) were primarily through loans and guarantees to their subsidiaries, suggesting support to existing overseas subsidiaries or projects rather than setting up entirely new ventures.Overseas investment commitments into the GCC countries comprising Bahrain, Qatar, Oman, Saudi Arabia and the UAE, rose 51 per cent year-on-year to $1.9 billion since the time the war commenced — during March-May 2026. This was up from $1.2 billion in the same period last year, as per RBI data.This comes at a time when the overall growth of ODI from India has been about 18 per cent in the same post-war period. India’s total ODI in March-May 2026 stood at $18.4 billion, higher than $15.5 billion in the same period of 2025.Of the $1.9 billion invested in the GCC countries, the UAE alone accounted for $1.6 billion with India Inc having close business ties with the region. However, the increase is being driven less by equity infusion and more by loans and guarantees.ODI flowA detailed look at the kind of ODIs showed that the UAE investments were 57 per cent in the form of guarantee commitments, 26 per cent loans and only 17 per cent equity. This was more pronounced in Oman, with nearly 69 per cent loans and just 25 per cent guarantee. Similarly, 84 per cent of ODI sent to Saudi Arabia was in the form of guarantees to subsidiaries.ODI is a decision taken by private players based on the fund infusion needed for either new JV or projects globally or goes towards supporting existing subsidiaries, Madan Sabnavis, Chief Economist, Bank of Baroda, said. “The increase in ODI to the GCC nations on a year-on-year basis could indicate Indian companies taking care of the likely stress in West Asia operations by supporting subsidiaries there,” he added.Among the top ODI into the GCC nations included Reliance Industries’ $250-million guarantee to its UAE entity in March. Llyods Metals and Energies also committed $210-million ODI in the form of loans and guarantees to Lloyds Global Resources, its UAE subsidiary. Acme Global Green Hydrogen also made an ODI commitment of a loan of $28 million to its Oman entity Green Hydrogen and Chemicals SAOC. MAN Industries, which makes steel pipes, made a $140-million guarantee to MAN International Steel Industries Company (MISIC), its wholly-owned subsidiary in Saudi Arabia.Overall, India’s ODI continues to be driven by a handful of large corporate investments. Tata Motors’ $2.3-billion ODI to Singapore holding entity and Coforge’s $2.3 billion towards its acquisition of Encora emerged top ODIs in the March-May 2026 window.Published on July 15, 2026