UAE and India Sign Historic Trade Pact; Marking a New Era of Economic Cooperation

New Delhi-India/Abu Dhabi-UAE, 18 February 2022: His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Executive Council, and His Excellency Shri Narendra Modi, Hon’ble Prime Minister of India, convened a Virtual Summit today, on the 18th of February 2022. At the event, both leaders put out their vision for the future of the historic and friendly relations between the two nations, at a time when India is marking 75 years of independence as Azadi Ka Amrut Mahotsav and the UAE is celebrating its 50th anniversary of its founding.

The leaders also witnessed the signing of the India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA) by the two nations’ respective Commerce and Industry/Economy Ministers. The India-UAE CEPA is the UAE’s first bilateral trade agreement, as well as India’s first bilateral trade pact in the MENA area. CEPA is an important initiative in bilateral ties during the epidemic, as well as a major trade deal that will usher in a new age of strategic collaboration between the two countries. In a post-COVID world, it will revolutionise bilateral commercial and investment ties, open up emerging trade channels between Africa and Asia, promote global trade liberalisation, and push economic growth.

“Under President His Highness Sheikh Khalifa bin Zayed Al Nahyan’s leadership, the UAE continues to cement its worldwide position as a gateway for commerce and investment,” HH Sheikh Mohamed bin Zayed Al Nahyan remarked. “India is one of our most significant strategic partners, and this transaction puts us closer together than ever before. The agreement we made with Prime Minister Modi today not only strengthens our economic and trading ties with a key ally, but also ushers in a new age of global collaboration.”

“The historic economic agreement underlines our leaders’ dedication to the daring Projects of the 50, launched in our quest of the next 50 years of progress and prosperity,” His Highness remarked. Future generations will benefit from this forward-thinking vision, which aims to stimulate development and double our commerce with the rest of the globe, as well as to boost the UAE’s knowledge- and innovation-driven economy. This agreement promises to deliver considerable benefits to UAE and Indian firms, such as reduced tariffs and improved market access, while also reviving trading corridors from Africa to Asia and establishing the groundwork for growth and prosperity that will benefit the entire region.

“I am delighted that our two countries have signed the Comprehensive Economic Partnership Agreement today,” Prime Minister Narendra Modi remarked. It is interesting that such a significant deal was reached in less than three months. Such agreements typically take years to complete. The agreement illustrates the two countries’ longstanding affinity, common vision, and trust. I am optimistic that this will herald in a new era in our bilateral economic relations, with bilateral trade volume increasing from USD 60 billion to USD 100 billion over the next five years.

In recent years, bilateral relations between India and the UAE have expanded in all areas of mutual interest; both sides entered into a comprehensive strategic partnership in 2017. Leaders from the two countries have kept in touch on a regular basis in recent years, particularly during the COVID-19 pandemic, as the two countries worked closely together to combat the pandemic in critical areas such as healthcare and food security. Ministerial visits have also resumed between the two countries. This strategic partnership laid the groundwork for the two countries’ CEPA, which was signed today.

India and the UAE’s bilateral trade, investment, and energy connections have remained strong. The signing of the CEPA demonstrates the importance of these long-standing bilateral trade and investment ties. Both sides are also expanding their collaboration in new renewable energy fields such as green hydrogen, climate action, start-ups, skilling, fintech, and healthtech. The UAE is India’s third largest economic partner, with bilateral trade anticipated to exceed USD 60 billion this fiscal year. India is the UAE’s top non-oil trading partner, accounting for almost 14 percent of the UAE’s total non-oil exports globally. Within five years, CEPA may raise the entire amount of bilateral trade to more than $100 billion. The historic trade agreement is anticipated to establish the groundwork for a shared future vision of stronger, more resilient economies that provide sustainable welfare and wellness to the peoples of the two countries.