‘UAE-India economic partnership a global model of sustainable growth’

A year after their Comprehensive Economic Partnership Agreement (CEPA) took effect, the UAE and India have further strengthened their strategic relations, said Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

In his statement to the Emirates News Agency (WAM), he stressed that the Emirati-Indian strategic partnership has seen positive developments at all levels, including the CEPA, which makes it a global model for how to upscale collaboration and partnership ties to higher levels that achieve mutual growth, create opportunities for business communities, stimulate entrepreneurship, and support sustainable development.

He noted that would not be achieved without the shared keenness and unlimited support of the leaderships of the two countries.

He added that the UAE and India had entered a new phase of shared prosperity due to the CEPA that took effect a year ago, which has boosted key sectors in both countries, most notably non-oil trade and mutual investment.

In the first year of the partnership, their non-oil trade reached $50.5 billion, growing by 5.8 per cent year-on-year, and compared to the previous year, from May 2020 to April 2021, non-oil trade grew by 53.5 per cent, he added.

Moreover, it increased by 36.1 per cent compared to the same period in 2019-2020, and by 29.6 per cent compared to the same period in 2018-2019, Al Zeyoudi further said, stressing that the UAE-India partnership agreement boosted non-oil exports from the UAE, which reached $10.3 billion in the year of its implementation, a rise of 18.6 per cent compared to the same period between 2020 and 2021.

Moreover, there was a significant increase of 95 per cent compared to the same period from May 2019 to April 2020, and an increase of 80.7 per cent compared to the same period in 2018 and 2019, he added.

Al Zeyoudi noted the UAE’s ongoing investment in India, which was driven by the impressive growth of one of the world’s fastest-growing economies.

As per the latest official data released this year, the UAE invested $36.61 billion in various sectors, including financial services, real estate, business services, alternative and renewable energy, engine manufacturing, equipment, and more.

The UAE chose India as the first country to sign a comprehensive economic partnership agreement with, in light of their strong strategic ties. India is a key ally and partner for the UAE in trade and investment, and they have a long history of friendship. This is also India’s first agreement of this kind with a country in the Middle East and North Africa region.

Al Zeyoudi also said he was confident that the CEPA would meet its goals in increasing trade exchange by 120 per cent to $100 billion in five years, compared to the current trade exchange amounting to $45 billion.

“CEPA will achieve growth in the national economy by 1.7 per cent in 10 years with a value of $9 billion by 2023. It will increase exports by 1.5 per cent, equivalent to $7.6 billion, and imports by 3.8 per cent, equivalent to $14.3 billion, which will positively impact the Indian economy by nearly 0.7 per cent and create around 140,000 new high-skilled job opportunities in the UAE.”

He further pointed out that the achievements in the first year show that it is moving forward steadily and confidently to benefit both countries.

Meanwhile UAE-India bilateral non-oil trade reached $45.5bn in the first 11 months of the two country’s Comprehensive Economic Partnership Agreement (CEPA), according to government statistics published on May 2023.

The figure represents a 6.9 per cent increase from the previous 12-month period, despite the downturn in global trade in Q3 and Q4, 2022.

The figures were shared by Thani bin Ahmed Al Zeyoudi, the Minister of State for Foreign Trade, who heralded the “new era of prosperity”.

Speaking on the opening day of the Annual Investment Meeting (AIM) in Abu Dhabi ahead of the first anniversary of the UAE-India CEPA, the minister also stated that bilateral trade surged ahead in Q1, 2023.

Trade between the nations climbed 24.7 per cent on the previous quarter, with UAE non-oil exports to India climbing an impressive 33 per cent.

Al Zeyoudi said: “One of the central goals of the UAE-India CEPA is to increase the flow of goods and services between our nations – and, by doing so, stimulate key export sectors, drive industrial output and kick-start an exciting new era of prosperity.

“These figures underline the pace of our progress. The UAE and India have created an alliance for growth, a platform for deeper cooperation and economic integration that will reap considerable rewards over the long term.”

“Over the past year, our nations have recognised that our economies work better when we remove barriers, facilitate cooperation and build trust, and we must constantly work together to strengthen our partnership to create more opportunities for our private sectors – and deliver more prosperity for our people,” he added.