UAE and India mark three years of CEPA as business ties flourish

The UAE and the Republic of India continue to witness growing and dynamic economic relations, built on longstanding historical ties and driven by their Comprehensive Economic Partnership Agreement (CEPA), which has significantly boosted economic growth and created new trade and investment opportunities for both business communities.

On 1st May, the UAE and India will celebrate the third anniversary of the entry into force of the CEPA, which marked a new chapter in their strategic economic relations.

The agreement was the UAE’s first bilateral deal under its global economic agreements programme, which aims to expand its network of trade partners with strategically important regional and global markets.

It also represented the first CEPA signed by India with a country from the Middle East and North Africa region. The agreement aims to increase bilateral non-oil trade to US$100 billion annually by 2030.

The UAE’s non-oil trade with India grew by 20.5 per cent to exceed Dhs240 billion in 2024, compared to Dhs199.3 billion in 2023, reflecting the strong investment and commercial potential between the two nations.

India ranked as the UAE’s top non-oil export destination in 2024, accounting for 13.5 per cent of the total, with an unprecedented year-on-year growth of 75.2 per cent.

The significant rise in non-oil trade, joint ventures and mutual investments coincides with the third year of the CEPA’s implementation, which has been a key driver in accelerating sustainable growth across various sectors.

In 2024 alone, over 41,600 new Indian economic licences were issued in the UAE, bringing the total number of active Indian business licences in the country to more than 247,000 by the end of the year. These licences span a wide range of commercial and economic activities. India also remains one of the largest tourism source markets for the UAE, with more than two million Indian tourists visiting the country annually, underscoring the strength of bilateral ties.

Meanwhile, the number of UAE companies operating in India continues to grow across strategic sectors. The coming period will see further expansion of cross-border business operations, particularly in new economy sectors, with the aim of creating thousands of sustainable jobs and supporting inclusive development in both countries.

Through their strategic partnership, the UAE and India have successfully built a robust economic foundation that has elevated their relationship to new heights. This includes fostering partnerships between their respective business communities, encouraging the growth of small and medium-sized enterprises and entrepreneurship, and driving forward the shared vision of sustainable economic growth and prosperity.

Dubai Chambers concluded the Dubai-India Business Forum in Mumbai. The event was organised on the sidelines of the visit of Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, to India.

The forum focused on enhancing strategic economic opportunities between the two markets and was attended by over 200 senior officials and investors, including a delegation featuring 39 prominent business leaders from Dubai.

The event comes three years after the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India on 18th February 2022 - the UAE’s first bilateral agreement under its CEPA programme - and coincides with strong momentum in bilateral relations.

During the forum, participants explored avenues to enhance trade and investment ties between the business communities in Dubai and India, as well as identifying opportunities to launch new joint ventures and strategic partnerships.

Discussions focused on the competitive advantages and economic prospects of both markets and how to harness these strengths to drive growth in bilateral trade and investments.

During his opening remarks, Ahmad bin Byat, Vice Chairman of Dubai Chambers, commented, “Dubai and India share an exceptional relationship built on mutual trust and a commitment to economic integration. India holds an important position as a key trading partner for Dubai. The value of non-oil trade between our markets exceeded Dhs142 billion during the first nine months of 2024, achieving year-over-year growth of 19 per cent.”

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said, “Dubai holds a strategic position for Indian companies as a preferred investment destination due to its unique competitive advantages. Indian investors form a key part of Dubai’s business landscape, with 72,651 active Indian companies registered as members of the Dubai Chamber of Commerce by the end of March 2025.” In addition, 4,563 new Indian companies joined the chamber during Q1 2025, marking year-over-year growth of 16.2 per cent.

WAM