Why Gulf NRIs are turning to Indian equities as real estate sees an exit

Indian equities are emerging as the primary wealth creation engine for Gulf-based non-resident Indians, with a clear shift away from real estate and towards financial assets, according to a new report by Equirus Wealth. The report, based on a survey of over 8,300 GCC-based NRI investors across the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, shows that 73% of respondents have increased exposure to Indian equities, while 42% are willing to deploy fresh capital into the market.

This marks a structural change in asset allocation patterns rather than a short-term reaction to global uncertainty, the report said. “What we are witnessing is not a short-term reaction to global uncertainty, but a structural evolution in how GCC NRIs approach wealth creation,” said Ankur Punj, MD at Equirus Wealth. “The shift away from real estate towards financial assets, particularly Indian equities, marks a defining transition.”

The data shows that real estate is witnessing a broad-based exit, with up to 40% of investors reducing exposure, signalling a long-term reallocation of capital away from physical assets. The shift comes even as geopolitical tensions in the Gulf region remain elevated.

Despite this, 86% of respondents reported stable or improved financial confidence, reflecting steady income visibility and a more mature investment approach among NRI investors. At the same time, 83% acknowledged geopolitical risks, but said their response has been measured, focusing on higher savings and selective portfolio adjustments rather than panic-driven decisions.

The report highlights that the move toward equities is not driven by a single trend but is visible across multiple indicators. While 42% of investors are actively looking to deploy fresh funds, broader portfolio data shows a stronger tilt, with over 73% increasing exposure to equities and mutual funds. This reinforces India’s position as the preferred destination for long-term capital deployment.

Traditionally linked to family support, remittances are now increasingly aligned with investment goals. The report shows that 27% of remittances are now directed toward investments and 22% toward retirement planning, together accounting for nearly half of total flows into India.

This suggests deeper financial integration of overseas Indians with India’s capital markets. Investor behaviour also reflects a mix of caution and conviction. About 35% of respondents said they are increasing savings, while 26% are cutting discretionary spending, but this has not translated into reduced market participation. Instead, 75% of investors remain actively invested or selectively deploying capital, indicating a forward-looking approach.Confidence levels vary across regions. Kuwait reported the highest financial confidence among respondents, followed by the UAE and Qatar, while Saudi Arabia and Oman showed more cautious behaviour. Bahrain recorded the lowest confidence levels in the sample.

The report identifies three long-term structural shifts driving this trend — a migration from physical to financial assets, India’s emergence as the core wealth destination, and rising financial discipline among investors. Together, these trends suggest that Indian equities are not just benefiting from cyclical inflows, but are increasingly becoming a central pillar of global NRI portfolios.