Ambassador Abdulnasser Alshaali
The strategic partnership between the United Arab Emirates (UAE) and India has never been stronger. At the heart of the flourishing relationship lies the Comprehensive Economic Partnership Agreement (CEPA). This week marks the second anniversary of the implementation of an agreement that has bolstered bilateral trade and investment by slashing tariffs, streamlining cross-border trade, broadening market access for services, instituting dispute settlement mechanisms, and safeguarding intellectual property rights.
The numbers speak for themselves. Bilateral trade has reached historic highs, growing from $72.9 billion to $84.5 billion between the 2021-2022 and 2022-2023 fiscal years—an almost 16 per cent year-on-year increase. The UAE has also emerged as India's fourth-largest foreign investor, with $3.3 billion in FDI inflows during the 2022-2023 fiscal year. This remarkable progress is a testament to the shared vision of our two nations to harness the power of economic integration to deliver mutual prosperity.
Building upon this success, the two nations have elevated their collaboration by inaugurating the UAE-India CEPA Council (UICC) this year. This high-level body brings together government officials and private sector leaders from both countries to identify new avenues for collaboration and ensure the agreement continues to deliver tangible results. The council's work has already yielded dividends, with several Indian companies engaging with key stakeholders from the UAE to address business issues and establish a presence to leverage our strategic location as a global hub.
The UICC has emerged as a pivotal driver in fostering closer ties and fortifying the partnership between the two nations. Looking ahead, the potential of the UAE-India economic partnership remains vast. Both countries are committed to harnessing innovation, sustainable development, and advanced technologies to drive future growth. Emerging sectors, including renewable energy, agri-tech, and digital services hold immense promise and will be a key focus under the CEPA framework.
The integration propelled by the agreement has made it easier for businesses to operate across borders and has boosted trade, as evidenced by initiatives such as the India-UAE rupee-dirham direct trade agreement and the launch of Bharat Mart. The Bharat Mart project, a flagship project conceived under the CEPA framework, is poised to become a significant distribution hub for Indian enterprises in Dubai. Leveraging the UAE's strategic location and top-tier logistics infrastructure, Bharat Mart is empowering Indian firms to tap into new markets and expand their global footprint. Similarly, the India-UAE rupee-dirham direct trade agreement has played a pivotal role in facilitating seamless and cost-effective transactions, thereby strengthening the export capabilities of Indian products.
A prime illustration of how the CEPA is fostering transformative and future-focused collaboration is evident across the food and renewable energy sector, where the UAE and India are already engaged in ambitious projects. Most recently, during the Gujarat visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, president of the UAE, several MoUs covering a range of sectors were exchanged between the UAE and India, reflecting the nations’ shared commitment to fostering collaboration and achieving ambitious goals.
The MoU in food park development emphasised the importance of the India-UAE food park project, aimed at enhancing food security by strengthening food supply chains and promoting trade in food and agriculture between the two nations. The MoU on investment cooperation in the renewable energy sector highlighted the potential for joint efforts in implementing renewable energy projects. Earlier this year, our two nations unveiled a groundbreaking agreement to establish a large-scale green hydrogen plant in the Emirates—a venture that will capitalise on Indian expertise in renewable energy technologies and the UAE's exceptional infrastructure and natural resources.
The significance of the UAE-India CEPA extends into broader realms beyond the economic sphere. By introducing transparent competition and facilitating smoother cross-border transactions, the CEPA fosters an environment conducive to cultural exchange and social integration. It builds on the UAE's unwavering devotion to pluralism and India's multiplicity, strengthening people-to-people connections through deepened economic ties.
Cultural and social integration has always stood as a cornerstone of this robust partnership, stimulating synergies and producing the conditions where diverse communities thrive. The UAE's commitment to creating a welcoming space for varied cultures echoes India's age-old tradition of honouring its rich diversity. The seamless experience for Indians travelling, conducting business, and thriving in the UAE underscores the mutual trust and respect shared between our nations. This mutual embrace of pluralism has become a defining element of the UAE-India relationship, encouraging an atmosphere where innovative ideas, entrepreneurial vigour, and collective prosperity flourish.
The success of the UAE-India CEPA is a tribute to the depth of our strategic relationship, and the power of economic integration to drive broader societal and geopolitical transformation. And the journey ahead is an exciting one. By unlocking the full potential of the CEPA, the UAE and India not only realise their own economic ambitions, but also set a global standard for how nations can collaborate to create a more integrated, innovative, and sustainable world.
In the years to come, the UAE-India partnership will continue to grow from strength to strength. By deepening our economic ties, we will also strengthen the cultural, diplomatic, and people-to-people connections that have long defined this relationship. Together, we will forge a new era of progress, innovation, and global influence—one that benefits not just our two nations, but the entire world.
The writer is the UAE ambassador to India.