The United Arab Emirates (UAE) and India have signed a broad trade and investment agreement that is anticipated to increase bilateral trade to more than $100 billion in the next five years.
The UAE-India Comprehensive Economic Partnership Agreement (UAE-India CEPA) is the UAE’s first bilateral trade agreement, as well as India’s first in the Middle East and North Africa region.
“India is one of our most important strategic partners and this deal brings us closer than ever before,” During a virtual summit with India’s Prime Minister Narendra Modi on Friday, Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince of the Emirate of Abu Dhabi, remarked.
“This deal promises to provide significant benefits to UAE and Indian businesses, including reduced tariffs and enhanced market access, while also breathing new life into trading corridors from Africa to Asia and laying the foundations for growth and prosperity that will benefit the entire region,” he added.
“The Agreement reflects the deep friendship, shared vision and the trust between the two countries. I am sure this will usher in a new era in our bilateral economic relations,” Prime Minister Modi said.
The agreement represents a step forward in the UAE-India relationship. The UAE is India’s third-largest trading partner, with bilateral trade set to exceed $60 billion this fiscal year. India is also the UAE’s most important non-oil trade partner, accounting for almost 14 percent of the UAE’s total non-oil exports internationally.
The agreement is anticipated to increase bilateral trade in goods to over $100 billion in the next five years, as well as increase bilateral trade in services to over $15 billion. According to the minister, the agreement would increase UAE GDP by 1.7 percent over the next ten years, improve exports, and generate more than 140,000 employment.