UAE to Establish Major Food Cluster in India's Andhra Pradesh Following WEF 2026 Discussions

Strategic Partnership Forged at World Economic Forum

The United Arab Emirates (UAE) has agreed to establish a major food cluster in the Indian state of Andhra Pradesh. This significant development emerged from discussions held on January 20, 2026, at the World Economic Forum (WEF) in Davos, Switzerland. The agreement was reached during a meeting between UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri and Andhra Pradesh Chief Minister N Chandrababu Naidu.

Focus on Food Processing and Agri-Exports

The proposed food cluster, sometimes referred to as a 'Dubai Food Cluster', will be strategically located within Andhra Pradesh's food processing sector. Its primary objectives include strengthening food processing capabilities, boosting agri-exports, and enhancing value-chain integration. Discussions between the two leaders specifically explored opportunities in various related fields, including:

• Agritech
• Foodtech
• Aquatech
• Development of food parks
• Enhancing food security mechanisms

Broader Investment and Economic Collaboration

Beyond the food cluster, the UAE Minister of Economy and Tourism, Abdulla bin Touq Al Marri, also assured support for approximately 40 UAE-based companies to establish operations in Andhra Pradesh. The comprehensive discussions at the WEF 2026 encompassed a wider range of investment proposals aimed at strengthening the economic partnership between Andhra Pradesh and the UAE. These proposals include:

• The UAE-based Sharaf Group's plan to establish a multi-modal logistics park in Andhra Pradesh.
• The development of a modern construction unit in Amaravati utilizing light gauge steel framing technology.
• A potential partnership between Andhra Pradesh and DP World for the development of large-scale port terminals, logistics facilities, and infrastructure.
• Plans for the Abu Dhabi National Oil Company (ADNOC) to set up a floating storage and regasification unit.
• Discussions regarding the Lulu Group's interest in establishing a mega shopping mall in Visakhapatnam.

Andhra Pradesh's Appeal to Investors

Chief Minister N Chandrababu Naidu actively showcased Andhra Pradesh's investment potential during the meetings, highlighting key sectors such as food security, logistics, port-related industries, renewable power, urban development, tourism, and infrastructure. He underscored the state's strong port connectivity, favorable policy environment, and efficient clearance processes for global investors. This strategic partnership with the UAE is anticipated to significantly boost industrial growth, generate employment opportunities, and increase exports from Andhra Pradesh.