The business of space- Why Indian spacetech startups are betting big on Dubai

Time of India

23-04-2025

India's private space sector is no longer just aiming for the stars—it's moving fast, fueled by ambitious startups like Skyroot, Pixxel, and Agnikul that are reshaping how the country approaches space innovation. As these companies eye global markets, advanced infrastructure, and significant scale, the key question is no longer if they should expand internationally—but where to establish their next stronghold. Traditional tech hubs may still command attention, but a new force is emerging in the spacetech landscape—Dubai, steadily positioning itself as the next global launchpad.
The Emirate is emerging as a serious player in space business, with a growing ecosystem that's beginning to attract attention from Indian spacetech founders seeking the next big leap.
Dubai presents a potential avenue for global collaboration and accelerated growth that warrants a closer look.
Why Global investors are eyeing Economic Zones for space commerce?
Dubai's vision to become a global leader in space is anchored in its National Space Strategy 2030, which outlines goals in scientific research, technology advancement, and a thriving commercial space sector. A key part of this is the Space Economic Zone Program by the UAE Space Agency, aimed at attracting and supporting foreign startups and SMEs. These zones offer 100% foreign ownership, streamlined business setup, access to world-class infrastructure, dedicated workspaces, and incubation and acceleration services, making them highly appealing to global space-tech companies. The strategy positions Dubai as a hub for space commerce by tapping into international talent and capital.
The Mohammed bin Rashid Space Centre (MBRSC), founded in 2006, plays a central role in this vision. It led the Emirates Mars Mission (Hope Probe), the Arab world's first interplanetary mission, and oversees the satellite initiatives and Astronaut Program, highlighting the nation's growing capabilities in space.
How is Dubai positioning itself in the spacetech market?
Dubai is strategically positioning itself as a global hub in the space economy through targeted initiatives. While direct mentions of hosting events like the International Astronautical Congress or World Space Forum are limited, Dubai's broader commitment to international engagement signals active participation in such forums to foster global collaboration.
A critical pillar of this strategy is Dubai's adaptive regulatory environment. As Khalfan Belhoul, CEO of the Dubai Future Foundation, explained, 'Innovation requires an adaptive framework, such as regulatory labs and sandbox systems, to foster technological progress while ensuring safety. These systems and initiatives bring policymakers, entrepreneurs, and stakeholders together to collaborate and refine solutions,' stressing the importance of fostering ecosystems that accelerate innovation while maintaining safety and scalability.
The Emirate also emphasises the importance of public-private partnerships, creating a business-friendly environment that encourages global players, including potential collaborations with companies like SpaceX and Blue Origin, to explore opportunities within the UAE's expanding space ecosystem.
Companies like ST Advanced Composites provide key strategic advantages to Dubai and UAE-based space businesses through their specialised expertise in crucial lightweight and durable composite materials, enabling enhanced mission performance. Dr. Devendran Thirunavukarasu, Founder, ST Advanced Composites, highlights:'The utilisation of lightweight composite materials is revolutionising satellite launches by significantly reducing overall weight. This directly translates to improved launch efficiency, allowing for greater payload capacity and decreased fuel consumption – ultimately making more ambitious space missions economically feasible.'
Government-backed initiatives such as Space Economic Zones and the National Space Fund reinforce Dubai's ambition, offering incentives, streamlined processes, and financial support to attract global space-tech ventures and foster cross-border innovation.
What's in it for Indian spacetech startups?
For Indian space-tech startups exploring global expansion, Dubai offers a strategic gateway. Initiatives like the National Space Fund provide financial support to both Emirati and international companies, while world-class accelerators—potentially within Dubai Internet City and other free zones—offer mentorship, networking, and funding access. With 100% foreign ownership and streamlined setup processes in many zones, Dubai creates a highly business-friendly environment.
Thirunavukarasu mentioned, 'Collaborating with Dubai-based entities offers a range of exciting opportunities for expanding technologies into new frontiers like lunar or Mars missions. The strategic geographic location acts as a crucial hub for international space collaboration, complemented by state-of-the-art infrastructure like the Mohammed Bin Rashid Space Centre (MBRSC)."
He further added, "The government's strong commitment to space exploration, evidenced by the UAE Space Strategy 2030 and the Mars 2117 Vision, provides a robust framework for partnerships. This governmental backing, coupled with access to potential funding and policy support, can significantly accelerate the deployment and innovation of technologies for deep space exploration. Collaborations with universities and research institutions also open avenues for joint R&D in critical areas like robotics and sustainable life-support systems, while the unique desert environment offers a valuable testing ground for technologies intended for harsh extraterrestrial conditions."
This supportive environment is further emphasised by Anna Hazlett, CEO at AzurX, a firm dedicated to attracting space tech companies to the UAE, who stated,
"AzurX has actively worked to attract and support space and satellite technology companies, along with research and development (R&D), to the UAE since 2019. A flourishing UAE space sector, encompassing a vibrant startup and venture ecosystem, offers numerous strategic, economic, and diplomatic advantages... enabling the expansion of the private space ecosystem in the UAE."
Its geographic and cultural proximity to India makes the transition smoother, while its advanced infrastructure serves as an ideal base for testing, mission control, and manufacturing. The UAE's active push for collaborations in satellite technology and knowledge-sharing, along with success stories of Indian ventures already operating in the region, cements Dubai's position as a promising launchpad for India's spacetech ambitions.
What's next – Future prospects and bilateral growth
The UAE's space economy, guided by its National Space Strategy 2030, is rapidly expanding, creating timely opportunities for Indian startups. India and the UAE already share a solid foundation in space collaboration, with ISRO and the UAE Space Agency partnering on satellite launches and space exploration. There's growing scope for joint ventures in Earth observation, navigation, and interplanetary missions.
For Indian startups, an early presence in Dubai offers a first-mover edge, access to futuristic infrastructure, and entry into global markets. This is particularly true for companies specialising in advanced materials, a critical area for the future of space technology.
Thirunavukarasu highlights the transformative role of their materials, stating that,"Advanced composites, such as carbon fibre reinforced polymers, are significantly lighter than traditional metals. This weight-saving translates into reduced launch costs, allowing for more payload capacity and improving the efficiency of spacecraft design.
The success of companies like SatSure, Dhruva Space, and ST Advanced Composites in India—and their growing presence in the UAE—shows the real potential of these technologies in new markets.
As Dubai cements its position in the global space economy, Indian space-tech startups with expertise in areas like advanced composites have a clear path to scale, collaborate, and lead on the international stage.