Economy|Business and Economy
UAE, India look to double trade to at least $100B over five years
The United Arab Emirates is trying to burnish its credentials as a global hub for business and finance in the face of growing regional competition from Saudi Arabia.
The governments of India and the United Arab Emirates are set to start talks on an economic pact aimed at boosting business, investment and jobs [File: Bloomberg]
By Sylvia Westall and Shruti SrivastavaBloomberg
22 Sep 2021
The United Arab Emirates and India are seeking to more than double non-oil trade to at least $100 billion over five years as the Gulf Arab state works to deepen ties with fast-growing economies beyond the Middle East.
The two governments are set to start talks on an economic pact aimed at boosting business, investment and jobs, UAE Minister of State for Foreign Trade Thani Al Zeyoudi said on a visit to New Delhi for talks with Indian Commerce Minister Piyush Goyal.
“Both sides have drawn up a very aggressive and ambitious time-frame and aim to conclude negotiations by December 2021,” Goyal said at a press conference on Wednesday. “We hope to sign formal agreements in early 2022.”
The UAE is trying to burnish its credentials as a global hub for business and finance in the face of growing regional competition from Saudi Arabia. Earlier this month, the government said it plans to work on comprehensive economic agreements with countries showing high potential for growth, mainly in Asia and Africa. Last week, it said it plans to invest up to $14 billion in Britain.
India is seeking better trade links to revive its economy after a deadly second wave of the pandemic this year. The country is already the UAE’s second-largest trading partner, with around $40 billion in non-oil trade before the pandemic hit. The UAE says bi-lateral trade could reach up to $100 billion in the five years after the pact is agreed and Goyal said that target may be revised upwards.
Indian nationals make up one of the largest population groups in the oil-rich UAE, a major source of foreign remittances. India is also an important market for UAE airlines Emirates and Etihad. On a political level, UAE royals helped broker talks between India and Pakistan earlier this year.
Wealth Funds
Zeyoudi said representatives from the UAE’s sovereign wealth funds — some of the world’s biggest — will be part of a delegation set to meet with Goyal next week. An executive of Abu Dhabi’s state oil company, Adnoc, is part of the delegation currently in India.
Earlier, Goyal said the countries will focus on sectors including petrochemicals, textiles, jewelery, medical equipment and fintech. Investments between the two countries are already flowing. With an eye on food security, groups from the UAE, a desert country that relies heavily on imports, committed $7 billion in 2019 to set up a “food corridor” and invest in Indian agriculture.
Abu Dhabi wealth fund Mubadala invested $1.2 billion in India’s telecommunications provider Jio Platforms in June 2020, and India’s Reliance recently announced an investment of $2 billion in Abu Dhabi’s TA’ZIZ Industrial Chemical Zone.
“The UAE is moving quickly to establish new strategic agreements to expand our market access and use trade as a key pillar in a new era of economic cooperation,” Al Zeyoudi said. “It will strengthen our position as a global gateway to Africa, Asia and Europe.”
As part of that push, the UAE concluded talks with Indonesia earlier this year, committing to invest as much as $10 billion in sectors ranging from energy, infrastructure and ports to tourism and agriculture.
In­dia’s biggest e-scoot­er firm calls for end to gaso­line ve­hi­cles
Hero Elec­tric’s Naveen Mun­jal says if left to mar­ket forces, the tran­si­tion to elec­tric trans­port will be ‘much slow­er’.
22 Sep 2021
In­dia seized $2.7bn in Afghan hero­in amid Tal­iban takeover chaos
Near­ly three tonnes of hero­in from Afghanistan seized and two peo­ple ar­rest­ed in one of In­dia’s biggest such hauls.
21 Sep 2021
In­dia’s IPO fren­zy sends bankers in a work over­drive
Banks have raked in record fees, all the more sig­nif­i­cant in what has been a har­row­ing year as the virus rav­aged In­dia.
21 Sep 2021
In­dia asks UK to re­vise COVID quar­an­tine rules, warns re­tal­i­a­tion
In­dia’s FM urges UK to amend rule re­quir­ing In­di­ans vis­it­ing there to quar­an­tine even if they are ful­ly vac­ci­nat­ed.
21 Sep 2021
LG Energy Solution debuts in South Korea’s biggest IPO
Experts warn of ‘biosecurity risk’ at bustling Bali Bird Market
Tesla posts record earnings, sees supply chain issues ahead
US stocks erase gains on hawkish Powell signals
A simple guide to the Ukraine-Russia crisis: 5 things to know
US and NATO deliver responses to Russian demands over Ukraine
Latest Ukraine updates: US formally responds to Russia’s demands
Game over for India’s booming online gaming Industry?
Follow Al Jazeera English:
© 2022 Al Jazeera Media Network
You rely on Al Jazeera for truth and transparency
We understand that your online privacy is very important and consenting to our collection of some personal information takes great trust. We ask for this consent because it allows Al Jazeera to provide an experience that truly gives a voice to the voiceless. You have the option to decline the cookies we automatically place on your browser but allowing Al Jazeera and our trusted partners to use cookies or similar technologies helps us improve our content and offerings to you. You can change your privacy preferences at any time by selecting ‘Cookie preferences’ at the bottom of your screen.To learn more, please view our Cookie Policy.