Why India is the Top Destination for Agentic AI Development for Dubai in 2026

You want to build an AI agent for your business? But let's be honest: finding engineering resources takes months to hire and another month to train them so they align with your business goals. 

But it comes with a high investment cost, especially if you're just starting, making in-house development difficult to justify. So why not outsource Agentic AI development to offshore development teams in India that have spent years building RAG architectures, LLM-driven automation, and enterprise-grade data pipelines?

A report ranks India #1 globally for AI talent concentration, making it a growing talent hub.

This makes India the sweet spot for finding Agentic AI talent.

This guide outlines the top reasons to collaborate with a development partner in India, along with a checklist to follow before outsourcing agentic AI solutions for your enterprise.

Why are Dubai businesses adopting Agentic AI?  

According to the CISCO AI Readiness Index 2025, Dubai businesses are scaling by integrating AI into their core operations. 

One such study highlights the importance of adopting AI agents. This means that 92% of organizations plan to deploy AI agents, and 41% expect these agents to support employees by working side by side in the coming year.

The survey results show that, by moving from traditional AI chatbots to advanced Agentic AI systems, the UAE has a strong intention to turn its ideas into reality. 

Ultimately, this means businesses in the Middle East want greater autonomy and automation of complex tasks. 

P.S – Ready to adopt Agentic AI and scale like leading Dubai companies?

Why has India become the top destination for Agentic AI development?  

Here’s why India has become the top destination for Agentic AI development -

1. India has become a global AI hub for Dubai 

The biggest challenge Dubai businesses face is lack of local expertise due to which they can’t develop AI agents. 

According to the UAE findings from the Cisco AI Readiness Index, there's an AI talent gap: Only 38% of companies in the UAE have strong AI talent, but they need more senior AI architects and MLOps experts. 

But this creates a growing demand for autonomous AI systems, AI agents, and frameworks such as LangChain. 

This creates a disbalance between rising demand and talent supply. 

2. Expansion of Global Capability Centres in India  

India has become a global powerhouse in digital engineering and AI development, with 1,700+ Global Capability Centres (GCCs). As of 2024, these global centres generated $64.6 billion in revenue, supported by 1.9 million+ professionals. 

India, as the world's most populous country, is shifting its focus from AI adoption to building a foundation others can rely on. 

Best part? These GCCs have helped several MNEs across multiple functional areas, including IT, finance, analytics, and digital transformation. 

3. STEM Talent Pipeline 

India has a surplus of engineering and qualified tech talent (around 4 million STEM graduates) who pass out every year from top universities and colleges. 

Instead of working with mediocre AI developers and paying them 4-5 times more, the best approach is to partner with an AI development company.  

Best part? These companies host a vast pool of exceptionally talented, affordable developers who have high-level proficiency in agentic AI frameworks such as LangChain and multi-modal LLM orchestration. 

Key Advantages that Dubai Companies get by outsourcing Agentic AI services to India 

Here are a few benefits of why Dubai businesses are looking to India for tech such as AI and Agentic AI. 

1. India is the hub for the AI talent pool  

Though businesses around the globe, especially in the US and UAE, are going digital across sectors such as banking, logistics, government, and energy; to drive this transformation, they need vast numbers of AI engineers, data scientists, and cloud architects. 

And India is home to 4.5 million+ tech professionals. 600k+ new engineering graduates pass out every year, and many have a proven track record of working with global clients and expertise in building AI agents. 

Even a McKinsey report states that India produces 5X as many STEM graduates as the US. Today, India accounts for 16% of the global AI talent. With so much AI talent, it has positioned itself as the world's talent factory.  

IIT Delhi, one of the top engineering colleges, has revamped its curriculum to make engineering graduates job-ready for AI and sustainability.  

That's how UAE businesses can unlock this talent's expertise by collaborating with tech teams in India/ 

2. Lower cost of Agentic AI development in India 

Cost is always a concern for businesses, and when it comes to developing AI agents in Dubai, the figures would go around from AED 25,000 to AED 2,00,000+.  

In India, if you outsource, the cost of developing Agentic AI can range between Rs 8 lakh and Rs 1 crore. 

This means you can get more work done at a lower cost, and outsourced teams can scale up/down depending on your project requirements, plus you can work with niche engineers such as MLOps engineers, AI product owners, etc. 

Good side? By choosing India as an offshore development partner for Agentic AI workflows, they can launch their MVPs faster with reduced development expenses (30-50%). 

3. Time Zone Differences 

Operating a business in Dubai? Partnering with a remote team ensures they work exclusively on your project, but you must consider time-zone alignment. Since India is only 1.5 hours ahead of Dubai, collaboration is smooth and almost real-time unlike working with US-based teams, where the large time difference often causes delays and limited overlap. 

This means daily standup meetings can happen live, AI models will be updated on the same day, enabling continuous feedback loops, quick experimentation, and, as everyone works in close sync, there will be shorter sprint cycles, quicker time-to-market, and faster turnaround times. 

But if you outsource Agentic AI projects to a US-based development agency, the time zone difference is significant, which creates collaboration challenges. 

Let's say the UAE team shares feedback during the day; then the Indian team will implement those changes the same day and push builds or agentic AI workflows.  

Result? No more waiting around the whole day 

4. Diverse Cultural Perspectives  

When hiring Agentic AI developers in India, you'll get a mix of people from around the world. 

Also, many Indians are already familiar with Gulf culture, and as India is home to multiple languages, cultures, and regions, they can understand different cultural nuances, so there won't be any challenge, and the partnership will go smoothly. 

P.S – Searching for skilled Agentic AI developers for your next build?

Challenges Dubai Companies Face When Implementing Agentic AI 

Here are a few challenges that Dubai companies face when outsourcing Agentic AI development projects to Indian teams: 

1. Balance technical skills with UAE Regulations 

If you're doing business in healthcare or finance in the Middle East, your offshore Agentic AI development team needs to understand DIFC regulations, not just the generic GDPR.  

There are times when development teams fail simply because they don't understand the regulatory data requirements. 

As there are sector-specific regulations, if the outsourced vendor does not comply with local UAE regulations, it can even put sensitive business data at risk. 

Indian teams should comply with local data residency regulations, such as where they store data, and Dubai companies should ensure that every integration and API call is compliant. This creates misalignment between business and technical teams.  

2. Quality Uniformity  

Dubai businesses worry about quality dilution during project execution. It's like Indian vendors deploy senior AI engineers during the sales phase, but when the project kicks off, junior engineers create and deploy AI agents, so senior oversight decreases. 

Thus, the final product is functional, but it's not refined enough (performance, UX, maintainability) to meet the needs of enterprise customers in Dubai. 

3. Localisation Issues 

One of the most significant frictions Dubai teams face when outsourcing AI agent development projects is when Indian teams underestimate Arabic and mixed-language use and don't understand regional customer expectations. 

Though Indian teams write perfect code, problems arise when AI agents are not trained on the languages spoken by their users in the Dubai region. 

If the vendor doesn't design the AI agents for Gulf-specific linguistic patterns, this can become a significant challenge. This means that the models or agents you develop should be multilingual and understand the context. 

6 Step Simple Checklist to Follow before Partnering with an Offshore Agentic AI Development Agency in India 

1. Check their agentic frameworks. Do they build autonomous agents using LangChain, AutoGen, CrewAI, or their proprietary frameworks? 

2. Ask for industry-specific case studies and see not the generic AI dashboards but the real automation agents they've deployed. 

Go beyond those so-called hourly rates and measure the real impact like whether their AI agents deployed for other businesses have achieved 30% efficiency gains or a 25% reduction in operational costs. 

3. See whether their development team includes business analysts who ask detailed questions about your workflows.  

4. Does the AI agent development company have a well-established culture of communication? Do they provide weekly sprints, Loom updates, or are there clear documentation workflows? 

5. Ask for examples of multilingual/GCC-facing deployments. Check if they can handle Arabic/English switching without breaking customer experience. Can they create an AI agent that can connect with CRMs and ERPs? 

6. Do they provide post-go-live ownership, as AI agents are not "set and forget" tasks? Ask them how they handle performance updates, prompts, and workflow updates.  

Why partner with BigOhTech for Agentic AI solutions?  

As an AI agent development company, we create multi-AI agents for diverse use cases, including legal tech, FinOps, e-commerce, process automation, and fraud detection. 

From Agentic AI consulting to developing customized agents and providing post-deployment maintenance support to update your model regularly. 

Best part? Our agentic AI consultants offer flexible engagement models, including dedicated developers, end-to-end AI agent development teams, and hourly support. 

P.S – Want a trusted partner to build your Agentic AI solution?