The economic cooperation between the UAE and India is enjoying significant and rapid growth due to the multiplicity of its sectors and fields, thanks to the Comprehensive Economic Partnership Agreement (CEPA) between the two countries, which entered into force in May 2022, reported Wam citing a senior minister.
The UAE and India have historical relations based on a set of shared values that have evolved into a strong strategic partnership that supports the two countries’ progress and prosperity, stated Mohamed Hassan Alsuwaidi, Minister of Investment, on the occasion of the visit of Indian Prime Minister Narendra Modi to the UAE.
The volume of bilateral trade between the UAE and India reached $84.5 billion during the period from April 2022 to March 2023, and it is expected to rise to $100 billion by 2027, he added.
Earlier in the day, PM Modi was given a grand welcome by President His Highness Sheikh Mohamed bin Zayed Al Nahyan on his arrival at the Presidential Airport in Abu Dhabi on Tuesday (February 13).
The Indian PM is on a two-day visit to the UAE, during which he will participate in the World Governments Summit 2024 being held in Dubai, with India as the guest of honour. He will then leave for Qatar tomorrow.
Alsuwaidi said this investment co-operation reflects the UAE’s continued commitment to driving the economic development process in both countries by developing investment opportunities and ensuring their promotion in various sectors and fields.
The UAE is the seventh-largest investor in India, with investments estimated at $17 billion by the end of September 2023.
The cooperation between the UAE and India focuses on promoting effective cooperation by building strong relations between institutions in the public and private sectors, while providing competitive incentives that support joint initiatives in various fields and enhance the exchange of experiences and knowledge, he added.
Lauding the strategic partnership with India, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said it constitutes a model of bilateral relations aimed at achieving sustainable development and common interests.
The UAE-India strategic partnership across various fields, including the Comprehensive Economic Partnership (CEPA), was only made possible by the unlimited support of the leaderships of the two countries, Al Zeyoudi told Wam, as the duo gears up to celebrate the second anniversary of the signing of the CEPA on February 18.
The agreement, which entered into force on May 1 2022, has significantly contributed to facilitating the flow of trade and investment between the two sides, and has helped to raise the level of cooperation and partnership to broader levels, he added.
Al Zeyoudi pointed out that UAE shared a special bonding with India being its second-largest trading partner globally, according to 2022 data, with non-oil trade between the two countries reaching $51.4 billion, up 15% compared to 2021 and more than 24% compared to 2019, with a share of 8.3% of the UAE’s total international non-oil trade.
India is also the world’s leading destination for the UAE’s non-oil exports, with a share of 11% of the country’s total exports, he added.
“During the 17 months from the start of implementation of the CEPA on May 1, 2022, to the end of September 2023, non-oil trade between the two countries increased by 2.5% compared to the corresponding period of 2021/2022, and by 42.4% compared to the same period of 2020/2021, and by 54.8 percent compared to the same period of 2019/2020,” stated the minister.
Non-oil trade between the two countries reached $38.1 billion in the first nine months of 2023, the same figure recorded in the same period of 2022, noted Al Zeyoudi.
“The main commodities exchanged between the two sides have diversified, especially UAE exports, to include gold, jewellery, plastics, cement, petroleum oils and dates, which have achieved significant growth after benefiting from the provisions of the CEPA,” he added.
