At the World Economic Forum (WEF) Davos 2026, Andhra Pradesh Chief Minister N. Chandrababu Naidu secured a major investment commitment from the United Arab Emirates (UAE) to develop a food processing cluster in the state, highlighting India’s growing appeal as a global investment destination.

Food Processing Cluster and Investment Plans

During discussions with UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, UAE businesses pledged support for the proposed food processing cluster, which aims to enhance food security, expand processing capacities, and generate employment opportunities in Andhra Pradesh.

In addition to the food sector, approximately 40 UAE companies have committed to invest in logistics, port handling, and related infrastructure projects in the state. The discussions also included collaborations on multi-modal logistics parks, modern construction facilities, and port infrastructure, reflecting a comprehensive approach to economic development.

Strategic Significance

These initiatives align with Andhra Pradesh’s broader strategy to attract foreign investment, strengthen supply chains, and promote export-oriented industries. The UAE’s involvement is expected to accelerate growth in the food processing sector while benefiting downstream industries such as logistics, warehousing, and value-added exports.

The agreements reached at Davos are also expected to further deepen economic and trade ties between India and the Gulf region, positioning Andhra Pradesh as a hub for innovation and investment in agri-business.

Summary

At Davos 2026, the UAE committed to setting up a food processing cluster in Andhra Pradesh and investing in logistics, port, and infrastructure projects, involving around 40 UAE companies. The move is expected to enhance food processing capacities, create jobs, strengthen supply chains, and boost exports, while reinforcing economic ties between India and the Gulf region.

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