UAE, India talk on Economic Partnership Agreement

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During the first half of 2021, trade between the UAE and India reached $21 billion – a growth rate of more than 70 per cent when compared to the first six months of last year.
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  • Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, is in New Delhi to discuss trade and investment relations
  • It is the second CEPA deal that Dr. Al Zeyoudi is pursuing this month, following negotiations with Indonesia, as the UAE accelerates its global trade agenda

The United Arab Emirates and India have launched talks on the Comprehensive Economic Partnership Agreement (CEPA)  to deepen economic and investment opportunities, and mark a new phase of strategic cooperation between the two countries.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, is in New Delhi to discuss trade and investment relations.

It is the second CEPA deal that Dr. Al Zeyoudi is pursuing this month, following negotiations with Indonesia, as the UAE accelerates its global trade agenda. 

The value of the UAE’s non-oil trade with India may rise from pre-pandemic levels of $40 billion to over $100 billion within five years of the agreement being signed.

“The UAE is moving quickly to establish new strategic agreements to expand our market access and use trade as a key pillar in a new era of economic cooperation,” Dr. Al Zeyoudi said. 

Laying emphasis on an economic partnership with India Dr. Al Zeyoudi said that the trading routes have existed between India and the UAE for centuries. 

“The CEPA builds on these historic ties by laying the foundation for a mutually beneficial partnership that creates new jobs, promotes foreign direct investment, empowers entrepreneurs, attracts talent and accelerates our knowledge-driven economies,” he said. “It will strengthen our position as a global gateway to Africa, Asia and Europe, driving economic growth and prosperity across the region.”

As part of Dr. Al Zeyoudi’s visit to New Delhi, he will also meet with Jyotiraditya Scindia, India’s Minister of Civil Aviation, as well as Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology.

India is now the UAE’s second-largest trading partner, accounting for nine per cent of the UAE’s total foreign trade and 13 percent of non-oil exports. During the first half of 2021, bilateral trade reached $21 billion – a growth rate of more than 70 per cent when compared to the first six months of last year.

Recent years have also witnessed several major foreign direct investment partnerships. In June 2020, for example, Mubadala invested $1.2 billion in India’s telecommunications provider Jio Platforms. 

In 2019, UAE entities committed $7 billion to create a food corridor between the UAE and India to provide a stable market for farmers in Punjab, Madhya Pradesh, Uttar Pradesh and Gujarat. Meanwhile, India’s Reliance recently announced an investment of $2 billion in Abu Dhabi’s TA’ZIZ Industrial Chemical Zone.

 

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