The India-UAE relationship is gaining great momentum

CEPA is expected to increase the total value of non-oil bilateral trade to $100 billion over five years by facilitating access to markets and providing opportunities in vital sectors.

Starting from the Indian Ocean’s network of exchange, the United Arab Emirates (UAE) and India have built strong ties of history and culture. Our relationship represents a centuries-old legacy of trade, tradition and social relations, with synergies that have and will continue to greatly benefit both nations. At the outset, the UAE is looking forward to participating as a guest country for the second year in a row in the G20 Summit in New Delhi in September 2023. Now led by India, G20 will provide opportunities to discover new, mutually beneficial dimensions in the UAE-India relationship. It will take forward our common goal of growing and dimensionalising trade, which has gained momentum with the fast-tracking of the Comprehensive Economic Partnership Agreement (CEPA). CEPA is expected to increase the total value of non-oil bilateral trade to $100 billion over five years by facilitating access to markets and providing opportunities in vital sectors.

For India, CEPA opens up preferential market access provided by the UAE on over 97% of its tariff lines, which account for 99% of Indian exports to the UAE in value terms. (ANI)

For India, CEPA opens up preferential market access provided by the UAE on over 97% of its tariff lines, which account for 99% of Indian exports to the UAE in value terms. CEPA can create over a million new Indian jobs across sectors and bring the best of India to the Emirati market. Correspondingly, UAE exporters now benefit from greater market access through preferential tariff rates as CEPA offers them a robust legal framework to ensure the smooth flow of traded goods. The I2U2, a grouping of India, Israel, the UAE, and the United States, is another strong manifestation of our relationship.

It synergises the unique capabilities of partner nations. The UAE’s pro-business policies that highlight its status as a launchpad for start-ups envisaging global reach and leadership in advanced manufacturing; America’s immense multi-sectoral capabilities; India’s enormous pool of talent and resources; and Israel’s strong tech acumen. The I2U2 thus offers India a more holistic engagement platform to forge long-term economic ties. The UAE has also invested heavily in India’s food processing and agri-tech capabilities. The UAE-India food corridor connectivity project is expected to drive investment of up to $7 billion in India’s mega food parks, farming logistics, warehousing, as well as fruit and vegetable hubs.

Furthermore, there is much resonance between India’s and the UAE’s energy thinking. The UAE’s strong clean energy portfolio and critical knowledge also makes it a natural partner for India’s goal of 450 GW of installed renewable generation. There are also alignments on our respective multi-decade journeys to Net Zero. The UAE is also exploring public-private partnerships with India across renewables deployment, agri-efficiency, green hydrogen, sustainable finance, and carbon markets. In addition, conversations around green hydrogen, biofuels, and industrial decarbonisation add new dimensions to how the two nations seek to address energy demand and the climate crisis.

Next year will see India become the vice-chair of the Indian Ocean Rim Association (IORA), a highly important multilateral organisation for both the UAE and India. IORA’s role in facilitating regional cooperation on security and intra-regional trade is vital, now more than ever, as we navigate the impact of the global pandemic.

India will also host the Shanghai Cooperation Organisation (SCO) Summit in June 2023, in which the UAE is on the Dialogue Partner track. For the UAE, the SCO, which comprises 40% of the world’s population and 20% of the global Gross Domestic Product, offers a new opportunity to participate in and forge consensus to strengthen regional cooperation and unlock access to markets of strategic value. We look forward to intensifying our engagement to partner with India on strategic tracks towards next year’s SCO Summit to better meet the opportunities presented by today’s changing economic climate. In 2023 too, the UAE will host the UN Climate Change Conference (COP28), where it will look to deliver clean tech solutions maximising social and economic benefits for all. The UAE’s approach will reflect the spirit of inclusion and climate justice that India upheld in the highest regard at COP27. Today, the world needs focused conversation, greater cooperation, and richer collaboration. A stronger UAE-India partnership, with its deep and common understanding of important issues, will continue to play a pivotal role towards enhancing peace, growth, and prosperity.

Abdulnasser Alshaali is UAE’s ambassador to India

The views expressed are personal