Indian Economy News

Davos 2026: UAE agrees to establish food cluster in Andhra Pradesh

  • IBEF
  • January 21, 2026

At the World Economic Forum (WEF) Davos 2026, Andhra Pradesh Chief Minister Mr. N. Chandrababu Naidu has received a significant investment commitment from the United Arab Emirates (UAE) to set up a food processing cluster in the state of Andhra Pradesh, marking the increasing attractiveness of India as a global investment destination. In his interactions with UAE Minister of Economy and Tourism Mr. Abdulla bin Touq Al Marri, UAE businesses committed to the development of the proposed food processing cluster, which is expected to improve food security value chains, increase processing capacities, and provide jobs in Andhra Pradesh. In addition to the food processing cluster, the UAE Minister of Economy and Tourism Mr. Abdulla bin Touq Al Marri has also committed that approximately 40 UAE businesses would invest in Andhra Pradesh in the logistics, port handling, and related infrastructure sectors, which indicates the strong interest of the private sector in leveraging the market potential of India. Collaboration on multi-modal logistics parks, modern construction units, and port infrastructure was also discussed, which indicates a comprehensive approach towards economic development.
The agreements are in line with the overall economic strategy of Andhra Pradesh to attract foreign investments, improve supply chains, and boost export-oriented sectors. The UAE’s participation is likely to not only accelerate the development of industries in the food processing sector but also help the downstream sectors like logistics, warehousing, and value-added exports. The overall financial collaborations and trade relationships that were discussed during the summit may also help to further strengthen the economic relationships between India and the Gulf countries, making Andhra Pradesh the hub for innovation in the agri-business sector. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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