Non-Resident Indians are diversifying their portfolios, moving from traditional property investments to global equities, private markets, and digital assets.
Riyadh, Saudi Arabia Jul 23, 2026 ALN: Dubai: In recent years, there has been a noticeable shift in the investment strategies of Non-Resident Indians (NRIs), particularly those residing in the Gulf region. Traditionally, NRIs have concentrated their wealth in property and operating businesses. However, global equities, private markets, fixed income, and selected digital assets are now drawing greater interest. This trend reflects a broader desire among younger generations of Indian families for liquid investments that can be managed across different countries and currencies.
The movement towards diversification is particularly evident among NRIs who are increasingly looking beyond traditional real estate investments. Kunal Sumaya, Market Head for Global NRI and Ad Interim Country Head for India at Julius Baer, notes that NRI clients are expanding their portfolios to include a wider range of financial assets. This includes growing interest in global equities, private equity, venture capital, structured solutions, and private credit. Such a shift indicates a strategic approach to building more diversified portfolios, which can better withstand market fluctuations.
Global equities provide investors with the opportunity to access companies and sectors outside their home market, allowing for greater exposure to international growth trends. Private equity and venture capital investments enable NRIs to invest in businesses before they reach public markets, potentially yielding higher returns. Additionally, private credit and structured investments are becoming more popular as wealthy families seek returns from a broader range of sources.
Fixed income investments have also regained importance among clients who desire regular income and lower volatility in conjunction with their equity and private market holdings. This reflects an increasing recognition of the need for stability in investment portfolios, especially in an uncertain global economic climate.
Despite the growing trend towards international diversification, NRIs continue to hold a significant amount of their wealth within the Indian economy. It is estimated that NRIs hold approximately ₹15 trillion, with around ₹10 trillion in deposits, ₹3 trillion in mutual funds, and ₹2 trillion in alternative investments. Furthermore, remittances to India reached a record $135.46 billion in the 2024-25 financial year. This substantial flow of capital provides a large pool of resources that can be allocated to various investment vehicles, including deposits, shares, funds, property, and private investments.
Interestingly, even as Global Indian families diversify their investments internationally, many still maintain a strong preference for assets linked to India. Sumaya notes that while these families are increasingly looking beyond Indian borders, they continue to exhibit a home bias, driven by India's long-term growth opportunities, entrepreneurial ecosystem, and deep equity markets. This dual approach allows them to capitalize on both local and global investment opportunities.
Investment options available to NRIs have expanded significantly in recent years. Beyond traditional bank deposits, property, and listed shares, NRIs now have access to Alternative Investment Funds, private market deals, and customized strategies that provide exposure to a broader section of the Indian economy. The development of GIFT City, an international financial services center in India, has also increased the number of investment structures available to overseas Indians seeking exposure to the Indian market.
A substantial portion of the wealth created by NRIs in the Gulf region has historically stemmed from family businesses and property investments. However, a growing share of this wealth is now being allocated to financial investments that can be accessed and managed on a global scale. This evolution in investment strategy is indicative of a broader trend among Gulf families, who are increasingly shifting their focus from fixed assets to liquid investments.
Sumaya points out that there is a clear shift occurring from local portfolios to global ones, which is accelerating the move towards more diversified and international investment strategies. Dubai and the wider UAE remain crucial centers for Global Indian wealth, largely due to the concentration of entrepreneurs, senior professionals, and family offices operating from the region.
Recent geopolitical uncertainties have prompted increased discussions about portfolio construction among investors. However, Sumaya emphasizes that the move towards global diversification has been developing over a longer period and is not merely a short-term reaction to current market events. This structural shift in how Global Indian families are thinking about wealth signifies a fundamental change in investment philosophy.
As NRIs hold assets across the UAE, India, and other jurisdictions, there is an increasing focus on how their wealth will be managed and transferred. Wealth planning discussions are evolving to encompass not just investment strategies but also critical areas such as succession planning, trusts, family governance, and cross-border ownership structures. These considerations are becoming particularly relevant as first-generation business owners prepare to pass on their assets and control to their children.
Sumaya notes that the priority for established NRI families is increasingly to combine long-term investment returns with clear ownership structures that can protect wealth and facilitate an orderly transfer between generations. This holistic approach to wealth management reflects a growing awareness of the complexities involved in managing and preserving wealth across multiple jurisdictions.
In conclusion, the shift in investment focus among NRIs from traditional property investments to a more diversified global portfolio represents a significant evolution in wealth management strategies. As the landscape of global finance continues to change, NRIs are adapting by seeking opportunities that align with their long-term financial goals while maintaining a strong connection to their roots in India. The implications of this shift are profound, not only for individual investors but also for the broader economic landscape, as increased capital flows into various sectors can contribute to growth and development in both the Gulf region and India.
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