As the UAE works to deepen ties with fast-growing economies outside the Middle East, both the UAE and India’s trade ministers have stated that trade in goods and services between the two countries will increase by 70% over the next five years, achieving a target of more than $100 billion in bilateral trade. To meet the bilateral trade target, both countries are working to complete a Comprehensive Economic Partnership Deal (CEPA) and plan to sign a free trade agreement in March 2022.
The government announced earlier this month that it will work on a comprehensive economic deal with high-growth countries, especially in Asia and Africa, with plans to invest up to $14 billion in the UK. India is also an important market for the UAE, Emirates, and Etihad airlines.
Piyush Goyal, India’s Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution, and Textiles stated that countries will focus on petrochemicals, textiles, jewelry, medical devices, and fintech. Investment is already pouring between the two countries. With food security in mind, the UAE which relies heavily on imports invested $ 7 billion in Indian agriculture in 2019.
The pact is aimed at boosting jobs and investments in both countries, the UAE’s Minister of State for Foreign Trade Thani Al Zeyoudi said on a visit to New Delhi. Zeyoudi said representatives of the UAE’s sovereign wealth fund, part of the world’s largest fund, will be part of a delegation to meet Goyal next week. The executives of Abu Dhabi’s state-owned oil company, ADNOC, are now part of a delegation in India.
Petroleum goods, precious metals, stones, gems and jewellery, minerals, food items such as cereals, sugar, fruits and vegetables, tea, meat, and seafood, textiles, engineering, and industrial products, and chemicals are among India’s top exports to the UAE.
The UAE’s bold economic path for the next five decades is underpinned by trade, which is part of the country’s Projects of the 50 agenda – a comprehensive plan to double the economy, improve global competitiveness, attract foreign direct investment, and strengthen its position as an attractive hub for talent and investors.
Mubadala Wealth Fund:
Abu Dhabi’s Mubadala Wealth Fund invested $ 1.2 billion in Jio Platforms, an Indian telecoms operator, while Reliance Industries recently announced a $ 2 billion investment in Abu Dhabi’s TA’ZIZ Industrial Chemistry Zone.
As part of its promotion, the UAE closed negotiations with Indonesia earlier this year and promised $ 10 billion in investment in energy, infrastructure, ports, tourism, and agriculture.
According to Al Zeyodi, the UAE is “moving quickly to extend market access and build new strategic agreements to use trade as a vital pillar of a new age of economic cooperation.” rice fields “As a worldwide gateway to Africa, Asia, and Europe, this reinforces our position.”
The UAE concluded negotiations with Indonesia earlier this year as part of its marketing, promising $ 10 billion in investments in energy, infrastructure, ports, tourism, and agriculture.