Trade between the UAE and India has increased by 10 per cent in the year after the countries agreed to a major economic treaty, setting the stage for greater co-operation throughout the Middle East and Asia.
Non-oil trade rose to nearly $50 billion since the Comprehensive Economic Partnership Agreement (Cepa) was signed a year ago today, putting it on track to achieve its $100 billion goal by 2030, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a statement on Saturday.
“It was a landmark agreement that created a powerful nexus of fast-growth nations who are helping to redefine the future of trade. And it delivered from day one,” Dr Al Zeyoudi said in a LinkedIn post.
He said India, South Asia's largest economy, is emerging as a “fourth economic pole” alongside the US, Europe and China.
“In parallel, we are cementing our position as a middle power — an innovation hub, a global market and a gateway to the world,” the minister said.
“As the economic centre of gravity shifts south and east, the UAE-India Cepa is creating an economic alliance that promises to help unlock the Asian future and establish the trade routes of tomorrow.”
The UAE signed its first Cepa with India a year ago today, and it took effect on May 1. The benefits of Cepa include enhanced market access, lower or eliminated tariff rules, simpler customs procedures, clear and transparent rules and rule-based competition.
This helped propel trade between the two nations to $38.6 billion in the first nine months of 2022 — almost double the figure recorded in the same period of 2020.
In the first eight months since its implementation, trade surged 30 per cent, which puts the countries on track to achieve $88 billion worth of trade in the financial year, Indian ambassador to the UAE Sunjay Sudhir said last month.
The UAE is India's third-biggest trading partner, while the South Asian nation is the Emirates’ second-largest trading partner. India hopes its exports will hit $1 trillion in the near to medium term, Piyush Goyal, India’s minister of commerce and industry, has previously said.
The deal, a part of the UAE's trade strategy, is also expected to add 1.7 per cent, or $8.9 billion, to the country's gross domestic product and increase exports by 1.5 per cent, or $7.6 billion, by 2030.
The Emirates aims to conclude at least 22 Cepa deals by 2031, Dr Al Zeyoudi said in December.
As the economic centre of gravity shifts south and east, the UAE-India Cepa is creating an economic alliance that promises to help unlock the Asian future and establish the trade routes of tomorrow
Dr Thani Al Zeyoudi,
UAE Minister of State for Foreign Trade
The UAE’s non-oil foreign trade reached a record Dh2.23 trillion ($607.1 billion) in 2022, as the Arab world’s second-largest economy accelerates efforts to reduce its dependence on hydrocarbons and boosts its economic partnerships globally, government data showed earlier this month.
On Friday, Dr Al Zeyoudi addressed a delegation from the Federation of Indian Chambers of Commerce and Industry as part of the one-year anniversary of Cepa.
The UAE-India Cepa is “another step on a journey that first began with our foundation as a united, independent nation in 1971. And it’s remarkable how far we have both come,” he said in a statement on Saturday.
“There is, in my mind, no better model of international co-operation than this modern, flexible and mutually beneficial deal, and I look forward greater collaboration and innovation as we begin to realise its full potential.”
The UAE Chapter of the UAE-India Business Council in Dubai was also launched on Friday. It aims to improve collaboration between the nations' business sectors and help them to access each other's markets and expertise.
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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