UAE-India: President Sheikh Mohamed and Prime Minister Modi meet to discuss economic and diplomatic ties
UAE and India discuss economic ties as President Sheikh Mohamed welcomes Narendra Modi
UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi met in Abu Dhabi to discuss strengthening economic and diplomatic ties between the two countries.
They discussed the Comprehensive Strategic Partnership and Comprehensive Economic Partnership between the UAE and India, as well as examining ways to bolster these ties, aimed at fostering sustainable development and prosperity for both peoples.
The meeting took place during Indian Prime Minister Modi’s visit to the UAE, where he is scheduled to participate in the World Governments Summit 2024 in Dubai.
UAE-India ties
Sheikh Mohamed welcomed the Indian Prime Minister, who in turn expressed his gratitude for the warm reception he received during his visit.
He underlined his appreciation for the invitation for India to participate as a guest of honour at the summit this year.
“The UAE and India are united by our shared keenness to develop the bilateral strategic partnership to achieve further progress and build a better future for our peoples”.
Sheikh Mohamed and Modi reviewed developments in the bilateral partnership and strategic progress across the economic, investment, development, renewable energy, and food security areas that support both countries’ vision to achieve sustainable economic development and prosperity.
They witnessed the exchange of memoranda of understanding and agreements aimed at enhancing the comprehensive strategic partnership between the two countries and expanding cooperation, especially in vital fields.
The agreements and memoranda covered the following areas:
- Investment
- Trade
- Digital infrastructure projects
- Electrical connectivity
- Maritime transport
- Ports
- Railways
They also discussed cross-border remittance network connectivity, linking instant payment platforms, and a framework agreement on enabling the economic corridor between India, the Middle East, and Europe, among other vital areas.
Meanwhile, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, praised the strategic partnership between the UAE and India, which constitutes a model of bilateral relations aimed at achieving sustainable development and common interests.
He said that the UAE-India strategic partnership across various fields, including the Comprehensive Economic Partnership (CEPA), was only made possible by the unlimited support of the leaderships of the two countries.
Al Zeyoudi noted that the visit is of particular importance as it coincides with the two countries celebrating the second anniversary of the signing of the CEPA on February 18, 2022.
The agreement, which entered into force on May 1 of the same year, has significantly contributed to facilitating the flow of trade and investment between the two sides, and has helped to raise the level of cooperation and partnership to broader levels, he added.
Al Zeyoudi emphasised that India is the UAE’s second-largest trading partner globally, according to 2022 data, with non-oil trade between the two countries reaching $51.4bn, a growth of 15 per cent compared to 2021 and more than 24 per cent compared to 2019, with a share of 8.3 per cent of the UAE’s total international non-oil trade.
India is also the world’s leading destination for the UAE’s non-oil exports, with a share of 11 per cent of the country’s total exports.
He added: “During the 17 months from the start of implementation of the Comprehensive Economic Partnership Agreement between the UAE and India on May 1, 2022, to the end of September 2023, non-oil trade between the two countries increased by 2.5 per cent compared to the corresponding period of 2021/2022, and by 42.4 per cent compared to the same period of 2020/2021, and by 54.8 per cent compared to the same period of 2019/2020.”
Non-oil trade between the two countries reached $38.1bn in the first nine months of 2023, the same figure recorded in the same period of 2022, Al Zeyoudi stated.
“The main commodities exchanged between the two sides have diversified, especially UAE exports, to include gold, jewellery, plastics, cement, petroleum oils and dates, which have achieved significant growth after benefiting from the provisions of the Comprehensive Economic Partnership Agreement.”
Al Zeyoudi explained that 7.4 per cent of India’s international imports come from the UAE, which ranks second globally after China.
India also exports 6.9 per cent of its international exports are received by the UAE, which ranks second for Indian exports after the United States.
The UAE is also India’s third-largest trading partner globally, with a 7.2 per cent share of its non-oil foreign trade, and the first Arab country with a share exceeding one-third of India’s trade with Arab countries, he added.
The Minister of State for Foreign Trade stated that the value of the UAE’s direct investments in India reached about $17bn by the end of September 2023, making it the seventh-largest investor in India globally and the first Arab country with a 3 per cent share of total foreign direct investment.
Investments in the UAE reached $8bn, ranking second globally with a 6 per cent share of total foreign direct investment into the country.
Thus, the value of mutual investments is $25bn, 70 per cent of which is from the UAE to the Asian nation, Al Zeyoudi further said.
Source: ArabianBusiness